Deliver a Customer Service Training Program to Your IT Department

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  • Parent Category Name: Service Desk
  • Parent Category Link: /service-desk
  • The scope of service that the service desk must provide has expanded. With the growing complexity of technologies to support, it becomes easy to forget the customer service side of the equation. Meanwhile, customer expectations for prompt, frictionless, and exceptional service from anywhere have grown.
  • IT departments struggle to hire and retain talented service desk agents with the right mix of technical and customer service skills.
  • Some service desk agents don’t believe or understand that customer service is an integral part of their role.
  • Many IT leaders don’t ask for feedback from users to know if there even is a customer service problem.

Our Advice

Critical Insight

  • There’s a common misconception that customer service skills can’t be taught, so no effort is made to improve those skills.
  • Even when there is a desire to improve customer service, it’s hard for IT teams to make time for training and improvement when they’re too busy trying to keep up with tickets.
  • A talented service desk agent with both great technical and customer service skills doesn’t have to be a rare unicorn, and an agent without innate customer service skills isn’t a lost cause. Relevant and impactful customer service habits, techniques, and skills can be taught through practical, role-based training.
  • IT leaders can make time for this training through targeted, short modules along with continual on-the-job coaching and development.

Impact and Result

  • Good customer service is critical to the success of the service desk. How a service desk treats its customers will determine its customers' satisfaction with not only IT but also the company as a whole.
  • Not every technician has innate customer service skills. IT managers need to provide targeted, practical training on what good customer service looks like at the service desk.
  • One training session is not enough to make a change. Leaders must embed the habits, create a culture of engagement and positivity, provide continual coaching and development, regularly gather customer feedback, and seek ways to improve.

Deliver a Customer Service Training Program to Your IT Department Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should deliver customer service training to your team, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

  • Deliver a Customer Service Training Program to Your IT Department – Executive Brief
  • Deliver a Customer Service Training Program to Your IT Department Storyboard

1. Deliver customer service training to your IT team

Understand the importance of customer service training, then deliver Info-Tech's training program to your IT team.

  • Customer Service Training for the Service Desk – Training Deck
  • Customer Focus Competency Worksheet
  • Cheat Sheet: Service Desk Communication
  • Cheat Sheet: Service Desk Written Communication
[infographic]

Mitigate Machine Bias

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  • Parent Category Name: Business Intelligence Strategy
  • Parent Category Link: /business-intelligence-strategy
  • AI is the new electricity. It is fundamentally and radically changing the fabric of our world, from the way we conduct business, to how we work and live, make decisions, and engage with each other, to how we organize our society, and ultimately, to who we are. Organizations are starting to adopt AI to increase efficiency, better engage customers, and make faster, more accurate decisions.
  • Like with any new technology, there is a flip side, a dark side, to AI – machine biases. If unchecked, machine biases replicate, amplify, and systematize societal biases. Biased AI systems may treat some of your customers (or employees) differently, based on their race, gender, identity, age, etc. This is discrimination, and it is against the law. It is also bad for business, including missed opportunities, lost consumer confidence, reputational risk, regulatory sanctions, and lawsuits.

Our Advice

Critical Insight

  • Machine biases are not intentional. They reflect the cognitive biases, preconceptions, and judgement of the creators of AI systems and the societal structures encoded in the data sets used for machine learning.
  • Machine biases cannot be prevented or fully eliminated. Early identification and diversity in and by design are key. Like with privacy and security breaches, early identification and intervention – ideally at the ideation phase – is the best strategy. Forewarned is forearmed. Prevention starts with a culture of diversity, inclusivity, openness, and collaboration.
  • Machine bias is enterprise risk. Machine bias is not a technical issue. It is a social, political, and business problem. Integrate it into your enterprise risk management (ERM).

Impact and Result

  • Just because machine biases are induced by human behavior, which is also captured in data silos, they are not inevitable. By asking the right questions upfront during application design, you can prevent many of them.
  • Biases can be introduced into an AI system at any stage of the development process, from the data you collect, to the way you collect it, to which algorithms are used, to which assumptions are made, etc. Ask your data science team a lot of questions; leave no stone unturned.
  • Don’t wait until “Datasheets for Datasets” and “Model Cards for Model Reporting” (or similar frameworks) become standards. Start creating these documents now to identify and analyze biases in your apps. If using open-source data sets or libraries, you may need to create them yourself for now. If working with partners or using AI/ ML services, demand that they provide such information as part of the engagement. You, not your partners, are ultimately responsible for the AI-powered product or service you deliver to your customers or employees.
  • Build a culture of diversity, transparency, inclusivity, and collaboration – the best mechanism to prevent and address machine biases.
  • Treat machine bias as enterprise risk. Use your ERM to guide all decisions around machine biases and their mitigation.

Mitigate Machine Bias Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to understand the dark side of AI: algorithmic (machine) biases, how they emerge, why they are dangerous, and how to mitigate them. Review Info-Tech’s methodology and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Understand AI biases

Learn about machine biases, how and where they arise in AI systems, and how they relate to human cognitive and societal biases.

  • Mitigate Machine Bias – Phase 1: Understand AI Biases

2. Identify data biases

Learn about data biases and how to mitigate them.

  • Mitigate Machine Bias – Phase 2: Identify Data Biases
  • Datasheets for Data Sets Template
  • Datasheets for Datasets

3. Identify model biases

Learn about model biases and how to mitigate them.

  • Mitigate Machine Bias – Phase 3: Identify Model Biases
  • Model Cards for Model Reporting Template
  • Model Cards For Model Reporting

4. Mitigate machine biases and risk

Learn about approaches for proactive and effective bias prevention and mitigation.

  • Mitigate Machine Bias – Phase 4: Mitigate Machine Biases and Risk
[infographic]

Workshop: Mitigate Machine Bias

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Prepare

The Purpose

Understand your organization’s maturity with respect to data and analytics in order to maximize workshop value.

Key Benefits Achieved

Workshop content aligned to your organization’s level of maturity and business objectives.

Activities

1.1 Execute Data Culture Diagnostic.

1.2 Review current analytics strategy.

1.3 Review organization's business and IT strategy.

1.4 Review other supporting documentation.

1.5 Confirm participant list for workshop.

Outputs

Data Culture Diagnostic report.

2 Understand Machine Biases

The Purpose

Develop a good understanding of machine biases and how they emerge from human cognitive and societal biases. Learn about the machine learning process and how it relates to machine bias.

Select an ML/AI project and complete a bias risk assessment.

Key Benefits Achieved

A solid understanding of algorithmic biases and the need to mitigate them.

Increased insight into how new technologies such as ML and AI impact organizational risk.

Customized bias risk assessment template.

Completed bias risk assessment for selected project.

Activities

2.1 Review primer on AI and machine learning (ML).

2.2 Review primer on human and machine biases.

2.3 Understand business context and objective for AI in your organization.

2.4 Discuss selected AI/ML/data science project or use case.

2.5 Review and modify bias risk assessment.

2.6 Complete bias risk assessment for selected project.

Outputs

Bias risk assessment template customized for your organization.

Completed bias risk assessment for selected project.

3 Identify Data Biases

The Purpose

Learn about data biases: what they are and where they originate.

Learn how to address or mitigate data biases.

Identify data biases in selected project.

Key Benefits Achieved

A solid understanding of data biases and how to mitigate them.

Customized Datasheets for Data Sets Template.

Completed datasheet for data sets for selected project.

Activities

3.1 Review machine learning process.

3.2 Review examples of data biases and why and how they happen.

3.3 Identify possible data biases in selected project.

3.4 Discuss “Datasheets for Datasets” framework.

3.5 Modify Datasheets for Data Sets Template for your organization.

3.6 Complete datasheet for data sets for selected project.

Outputs

Datasheets for Data Sets Template customized for your organization.

Completed datasheet for data sets for selected project.

4 Identify Model Biases

The Purpose

Learn about model biases: what they are and where they originate.

Learn how to address or mitigate model biases.

Identify model biases in selected project.

Key Benefits Achieved

A solid understanding of model biases and how to mitigate them.

Customized Model Cards for Model Reporting Template.

Completed model card for selected project.

Activities

4.1 Review machine learning process.

4.2 Review examples of model biases and why and how they happen.

4.3 Identify potential model biases in selected project.

4.4 Discuss Model Cards For Model Reporting framework.

4.5 Modify Model Cards for Model Reporting Template for your organization.

4.6 Complete model card for selected project.

Outputs

Model Cards for Model Reporting Template customized for your organization.

Completed model card for selected project.

5 Create Mitigation Plan

The Purpose

Review mitigation approach and best practices to control machine bias.

Create mitigation plan to address machine biases in selected project. Align with enterprise risk management (ERM).

Key Benefits Achieved

A solid understanding of the cultural dimension of algorithmic bias prevention and mitigation and best practices.

Drafted plan to mitigate machine biases in selected project.

Activities

5.1 Review and discuss lessons learned.

5.2 Create mitigation plan to address machine biases in selected project.

5.3 Review mitigation approach and best practices to control machine bias.

5.4 Identify gaps and discuss remediation.

Outputs

Summary of challenges and recommendations to systematically identify and mitigate machine biases.

Plan to mitigate machine biases in selected project.

Set Meaningful Employee Performance Measures

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  • Parent Category Name: Manage & Coach
  • Parent Category Link: /manage-coach
  • Despite the importance of performance measures, most organizations struggle with choosing appropriate metrics and standards of performance for their employees.
  • Performance measures are often misaligned with the larger strategy, gamed by employees, or too narrow to provide an accurate picture of employee achievements.
  • Additionally, many organizations track too many metrics, resulting in a bureaucratic nightmare with little payoff.

Our Advice

Critical Insight

  • Focus on what matters by aligning your departmental goals with the enterprise's mission and business goals. Break down departmental goals into specific goals for each employee group.
  • Employee engagement, which results in better performance, is directly correlated with employees’ understanding what is expected of them on the job and with their performance reviews reflecting their actual contributions.
  • Shed unnecessary metrics in favor of a lean, holistic approach to performance measurement. Include quantitative, qualitative, and behavioral dimensions in each goal and set appropriate measures for each dimension to meet simple targets. This encourages well-rounded behaviors and discourages rogue behavior.
  • Get rid of the stick-and-carrot approach to management. Use performance measurement to inspire and engage employees, not punish them.

Impact and Result

  • Learn about and leverage the McLean & Company framework and process to effective employee performance measurement setting.
  • Plan effective communications and successfully manage departmental employee performance measurement by accurately recording goals, measures, and requirements.
  • Find your way through the maze of employee performance management with confidence.

Set Meaningful Employee Performance Measures Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Set Meaningful Employee Performance Measures Storyboard – This deck provides a comprehensive framework for setting, communicating, and reviewing employee performance measures that will drive business results

This research will help you choose an appropriate measurement framework, set effective measures. and communicate and review your performance measures. Use Info-Tech's process to set meaningful measures that will inspire employees and drive performance.

  • Set Meaningful Employee Performance Measures Storyboard

2. Employee Performance Measures Goals Cascade – A tool to assist you in turning your organizational goals into meaningful individual employee performance measures.

This tool will help you set departmental goals based on organizational mission and business goals and choose appropriate measures and weightings for each goal. Use this template to plan a comprehensive employee measurement system.

  • Employee Performance Measures Goals Cascade

3. Employee Performance Measures Template – A template for planning and tracking your departmental goals, employee performance measures, and reporting requirements.

This tool will help you set departmental goals based on your organizational mission and business goals, choose appropriate measures and weightings for each goal, and visualize you progress toward set goals. Use this template to plan and implement a comprehensive employee measurement system from setting goals to communicating results.

  • Employee Performance Measures Template

4. Feedback and Coaching Guide for Managers – A tool to guide you on how to coach your team members.

Feedback and coaching will improve performance, increase employee engagement, and build stronger employee manager relationships. Giving feedback is an essential part of a manger's job and if done timely can help employees to correct their behavior before it becomes a bigger problem.

  • Feedback and Coaching Guide for Managers

Infographic

Workshop: Set Meaningful Employee Performance Measures

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Source and Set Goals

The Purpose

Ensure that individual goals are informed by business ones.

Key Benefits Achieved

Individuals understand how their goals contribute to organizational ones.

Activities

1.1 Understand how your department contributes to larger organizational goals.

1.2 Determine the timelines you need to measure employees against.

1.3 Set Business aligned department, team, and individual goals.

Outputs

Business-aligned department and team goals

Business-aligned individual goals

2 Design Measures

The Purpose

Create holistic performance measures.

Key Benefits Achieved

Holistic performance measures are created.

Activities

2.1 Choose your employee measurement framework: generic or individual.

2.2 Define appropriate employee measures for preestablished goals.

2.3 Determine employee measurement weightings to drive essential behaviors.

Outputs

Determined measurement framework

Define employee measures.

Determined weightings

3 Communicate to Implement and Review

The Purpose

Learn how to communicate measures to stakeholders and review measures.

Key Benefits Achieved

Learn how to communicate to stakeholders and coach employees through blockers.

Activities

3.1 Learn how to communicate selected performance measures to stakeholders.

3.2 How to coach employees though blockers.

3.3 Reviewing and updating measures.

Outputs

Effective communication with stakeholders

Coaching and feedback

When to update

4 Manager Training

The Purpose

Train managers in relevant areas.

Key Benefits Achieved

Training delivered to managers.

Activities

4.1 Deliver Build a Better Manager training to managers.

4.2

Outputs

Manager training delivered

Further reading

Set Meaningful Employee Performance Measures

Set holistic measures to inspire employee performance.

EXECUTIVE BRIEF

Set employees up for success by implementing performance measures that inspire great performance, not irrelevant reporting.

Executive Summary

Your Challenge

In today’s competitive environment, managers must assess and inspire employee performance in order to assess the achievement of business goals.

Despite the importance of performance measures, many leaders struggle with choosing appropriate metrics.

Performance measures are often misaligned with the larger strategy, gamed by employees, or are too narrow to provide an accurate picture of employee achievements.

Common Obstacles

Managers who invest time in creating more effective performance measures will be rewarded with increased employee engagement and better employee performance.

Too little time setting holistic employee measures often results in unintended behaviors and gaming of the system.

Conversely, too much time setting employee measures will result in overreporting and underperforming employees.

Info-Tech’s Approach

Info-Tech helps managers translate organizational goals to employee measures. Communicating these to employees and other stakeholders will help managers keep better track of workforce productivity, maintain alignment with the organization’s business strategy, and improve overall results.

Info-Tech Insight

Performance measures are not about punishing bad performance, but inspiring higher performance to achieve business goals.

Meaningful performance measures drive employee engagement...

Clearly defined performance measures linked to specific goals bolster engagement by showing employees the importance of their contributions.

Significant components of employee engagement are tied to employee performance measures.

A diagram of employee engagement survey and their implications.

Which, in turn, drives business success.

Improved employee engagement is proven to improve employee performance. Setting meaningful measures can impact your bottom line.

Impact of Engagement on Performance

A diagram that shows Percent of Positive Responses Among Engaged vs. Disengaged
Source: McLean & Company Employee Engagement Survey Jan 2020-Jan 2023; N=5,185 IT Employees; were either Engaged or Disengaged (Almost Engaged and Indifferent were not included)

Engaged employees don’t just work harder, they deliver higher quality service and products.

Engaged employees are significantly more likely to agree that they regularly accomplish more than what’s expected of them, choose to work extra hours to improve results, and take pride in the work they do.

Without this sense of pride and ownership over the quality-of-service IT provides, IT departments are at serious risk of not being able to deliver quality service, on-time and on-budget.

Create meaningful performance measures to drive employee engagement by helping employees understand how they contribute to the organization.

Unfortunately, many employee measures are meaningless and fail to drive high-quality performance.

Too many ineffective performance measures create more work for the manager rather than inspire employee performance. Determine if your measures are worth tracking – or if they are lacking.

Meaningful performance measures are:

Ineffective performance measures are:

Clearly linked to organizational mission, values, and objectives.

Based on a holistic understanding of employee performance.

Relevant to organizational decision-making.

Accepted by employees and managers.

Easily understood by employees and managers.

Valid: relevant to the role and goals and within an employee’s control.

Reliable: consistently applied to assess different employees doing the same job.

Difficult to track, update, and communicate.

Easily gamed by managers or employees.

Narrowly focused on targets rather than the quality of work.

The cause of unintended outcomes or incentive for the wrong behaviors.

Overly complex or elaborate.

Easily manipulated due to reliance on simple calculations.

Negotiable without taking into account business needs, leading to lower performance standards.

Adopt a holistic approach to create meaningful performance measurement

A diagram that shows a holistic approach to create meaningful performance measurement, including inputs, organizational costs, department goals, team goals, individual goals, and output.

Info-Tech’s methodology to set the stage for more effective employee measures

1. Source and Set Goals

Phase Steps
1.1 Create business-aligned department and team goals
1.2 Create business-aligned individual goals

Phase Outcomes
Understand how your department contributes to larger organizational goals.
Determine the timelines you need to measure employees against.
Set business-aligned department, team, and individual goals.

2. Design Measures

Phase Steps
1.1 Choose measurement framework
1.2 Define employee measures
1.3 Determine weightings

Phase Outcomes
Choose your employee measurement framework: generic or individual.
Define appropriate employee measures for preestablished goals.
Determine employee measurement weightings to drive essential behaviors.
Ensure employee measures are communicated to the right stakeholders.

3. Communicate to Implement and Review

Phase Steps
1.1 Communicate to stakeholders
1.2 Coaching and feedback
1.3 When to update

Phase Outcomes
Communicate selected performance measure to stakeholders.
Learn how to coach employees though blockers.
Understand how to review and when to update measures.

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit
"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

Guided Implementation
"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop
"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

Consulting
"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks are used throughout all four options.

Guided Implementation

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is four to six calls over the course of two to four months.

What does a typical GI on this topic look like?

A diagram that shows Guided Implementation in 3 phases.

pricing

  • TymansGroupVideosExcerpt: BasicFor freelancers$19/ month 10 presentations/monthSupport at $25/hour1 campaign/month Choose plan StandardFor medium sized teams$29/ month 50 presentations/month5 hours of free support10 campaigns/month Choose plan EnterpriseFor large companies$79/ month Unlimited presentationsUnlimited supportUnlimited campaigns Choose plan

Pricing

Our pricing options will be available soon for simple download,

In the meantime, please book a free discovery call. No cost, no sales pitch.

Continue reading

Build Your Security Operations Program From the Ground Up

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  • Parent Category Name: Security Processes & Operations
  • Parent Category Link: /security-processes-and-operations
  • Analysts cannot monitor and track events coming from multiple tools because they have no visibility into the threat environment.
  • Incident management takes away time from problem management because processes are ad hoc and the continuous monitoring, collection, and analysis of massive volumes of security event data is responsive rather than tactical.
  • Organizations are struggling to defend against and prevent threats while juggling business, compliance, and consumer obligations.

Our Advice

Critical Insight

  • Security operations is no longer a center but a process. The need for a physical security hub has evolved into the virtual fusion of prevention, detection, analysis, and response efforts. When all four functions operate as a unified process, your organization will be able to proactively combat changes in the threat landscape.
  • Raw data without correlation is a waste of time, money, and effort. A SIEM on its own will not provide this contextualization and needs configuration. Prevention, detection, analysis, and response processes must contextualize threat data and supplement one another – true value will only be realized once all four functions operate as a unified process.
  • If you are not communicating, then you are not secure. Collaboration eliminates siloed decisions by connecting people, processes, and technologies. You leave less room for error, consume fewer resources, and improve operational efficiency with a transparent security operations process.

Impact and Result

  • A centralized security operations process actively transforms security events and threat information into actionable intelligence, driving security prevention, detection, analysis, and response processes that address the increasing sophistication of cyberthreats while guiding continuous improvement.
  • This blueprint will walk through the steps of developing a flexible and systematic security operations program relevant to your organization.

Build Your Security Operations Program From the Ground Up Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should build a security operations program, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Establish your foundation

Determine how to establish the foundation of your security operations.

  • Build Your Security Operations Program From the Ground Up – Phase 1: Establish Your Foundation
  • Information Security Pressure Analysis Tool

2. Assess your current state

Assess the maturity of your prevention, detection, analysis, and response processes.

  • Build Your Security Operations Program From the Ground Up – Phase 2: Assess Your Current State
  • Security Operations Roadmap Tool

3. Design your target state

Design a target state and improve your governance and policy solutions.

  • Build Your Security Operations Program From the Ground Up – Phase 3: Design Your Target State
  • Security Operations Policy

4. Develop an implementation roadmap

Make your case to the board and develop a roadmap for your prioritized security initiatives.

  • Build Your Security Operations Program From the Ground Up – Phase 4: Develop an Implementation Roadmap
  • In-House vs. Outsourcing Decision-Making Tool
  • Security Operations MSSP RFP Template
  • Security Operations Project Charter Template
  • Security Operations RACI Tool
  • Security Operations Metrics Summary Document
[infographic]

Workshop: Build Your Security Operations Program From the Ground Up

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Establish Your Foundation

The Purpose

Identify security obligations and the security operations program’s pressure posture.

Assess current people, process, and technology capabilities.

Determine foundational controls and complete system and asset inventory.

Key Benefits Achieved

Identified the foundational elements needed for planning before a security operations program can be built

Activities

1.1 Define your security obligations and assess your security pressure posture.

1.2 Determine current knowledge and skill gaps.

1.3 Shine a spotlight on services worth monitoring.

1.4 Assess and document your information system environment.

Outputs

Customized security pressure posture

Current knowledge and skills gaps

Log register of essential services

Asset management inventory

2 Assess Current Security Operations Processes

The Purpose

Identify the maturity level of existing security operations program processes.

Key Benefits Achieved

Current maturity assessment of security operations processes

Activities

2.1 Assess the current maturity level of the existing security operations program processes.

Outputs

Current maturity assessment

3 Design a Target State

The Purpose

Design your optimized target state.

Improve your security operations processes with governance and policy solutions.

Identify and prioritize gap initiatives.

Key Benefits Achieved

A comprehensive list of initiatives to reach ideal target state

Optimized security operations with repeatable and standardized policies

Activities

3.1 Complete standardized policy templates.

3.2 Map out your ideal target state.

3.3 Identify gap initiatives.

Outputs

Security operations policies

Gap analysis between current and target states

List of prioritized initiatives

4 Develop an Implementation Roadmap

The Purpose

Formalize project strategy with a project charter.

Determine your sourcing strategy for in-house or outsourced security operations processes.

Assign responsibilities and complete an implementation roadmap.

Key Benefits Achieved

An overarching and documented strategy and vision for your security operations

A thorough rationale for in-house or outsourced security operations processes

Assigned and documented responsibilities for key projects

Activities

4.1 Complete a security operations project charter.

4.2 Determine in-house vs. outsourcing rationale.

4.3 Identify dependencies of your initiatives and prioritize initiatives in phases of implementation.

4.4 Complete a security operations roadmap.

Outputs

Security operations project charter

In-house vs. outsourcing rationale

Initiatives organized according to phases of development

Planned and achievable security operations roadmap

Establish High-Value IT Performance Dashboards and Metrics

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  • Parent Category Name: Performance Measurement
  • Parent Category Link: /performance-measurement

While most CIOs understand the importance of using metrics to measure IT’s accomplishments, needs, and progress, when it comes to creating dashboards to communicate these metrics, they:

  • Concentrate on the data instead of the audience.
  • Display information specific to IT activities instead of showing how IT addresses business goals and problems.
  • Use overly complicated, out of context graphs that crowd the dashboard and confuse the viewer.

Our Advice

Critical Insight

While most CIOs understand the importance of using metrics to measure IT’s accomplishments, needs, and progress, when it comes to creating dashboards to communicate these metrics, they:

  • Concentrate on the data instead of the audience.
  • Display information specific to IT activities instead of showing how IT addresses business goals and problems.
  • Use overly complicated, out of context graphs that crowd the dashboard and confuse the viewer.

Impact and Result

Use Info-Tech’s ready-made dashboards for executives to ensure you:

  • Speak to the right audience
  • About the right things
  • In the right quantity
  • Using the right measures
  • At the right time.

Establish High-Value IT Performance Dashboards and Metrics Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Establish High-Value IT Performance Metrics and Dashboards – a document that walks you through Info-Tech’s ready-made IT dashboards.

This blueprint guides you through reviewing Info-Tech’s IT dashboards for your audience and organization, then walks you through practical exercises to customize the dashboards to your audience and organization. The blueprint also gives practical guidance for delivering your dashboards and actioning your metrics.

  • Establish High-Value IT Performance Metrics and Dashboards Storyboard

2. Info-Tech IT Dashboards and Guide – Ready-made IT dashboards for the CIO to communicate to the CXO.

IT dashboards with visuals and metrics that are aligned and organized by CIO priority and that allow you to customize with your own data, eliminating 80% of the dashboard design work.

  • Info-Tech IT Dashboards and Guide

3. IT Dashboard Workbook – A step-by-step tool to identify audience needs, translate needs into metrics, design your dashboard, and track/action your metrics.

The IT Dashboard Workbook accompanies the Establish High Value IT Metrics and Dashboards blueprint and guides you through customizing the Info-Tech IT Dashboards to your audience, crafting your messages, delivering your dashboards to your audience, actioning metrics results, and addressing audience feedback.

  • Info-Tech IT Dashboards Workbook

4. IT Metrics Library

Reference the IT Metrics Library for ideas on metrics to use and how to measure them.

  • IT Metrics Library

5. HR Metrics Library

Reference the HR Metrics Library for ideas on metrics to use and how to measure them.

  • HR Metrics Library

Infographic

Workshop: Establish High-Value IT Performance Dashboards and Metrics

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Test Info-tech’s IT Dashboards Against Your Audience’s Needs and Translate Audience Needs Into Metrics

The Purpose

Introduce the Info-Tech IT Dashboards to give the participants an idea of how they can be used in their organization.

Understand the importance of starting with the audience and understanding audience needs before thinking about data and metrics.

Explain how audience needs translate into metrics.

Key Benefits Achieved

Understanding of where to begin when it comes to considering dashboards and metrics (the audience).

Identified audience and needs and derived metrics from those identified needs.

Activities

1.1 Review the info-Tech IT Dashboards and document impressions for your organization.

1.2 Identify your audience and their attributes.

1.3 Identify timeline and deadlines for dashboards.

1.4 Identify and prioritize audience needs and desired outcomes.

1.5 Associate metrics to each need.

1.6 Identify a dashboard for each metric.

Outputs

Initial impressions of Info-Tech IT Dashboards.

Completed Tabs 2 and 3 of the IT Dashboard Workbook.

2 Inventory Your Data and Assess Data Quality and Readiness

The Purpose

Provide guidance on how to derive metrics and assess data.

Key Benefits Achieved

Understand the importance of considering how you will measure each metric and get the data.

Understand that measuring data can be costly and that sometimes you just can’t afford to get the measure or you can’t get the data period because the data isn’t there.

Understand how to assess data quality and readiness.

Activities

2.1 Complete a data inventory for each metric on each dashboard: determine how you will measure the metric, the KPI, any observation biases, the location of the data, the type of source, the owner, and the security/compliance requirements.

2.2 Assess data quality for availability, accuracy, and standardization.

2.3 Assess data readiness and the frequency of measurement and reporting.

Outputs

Completed Tab 4 of the IT Dashboard Workbook.

3 Design and Build Your Dashboards

The Purpose

Guide participants in customizing the Info-Tech IT Dashboards with the data identified in previous steps.

This step may vary as some participants may not need to alter the Info-Tech IT Dashboards other than to add their own data.

Key Benefits Achieved

Understanding of how to customize the dashboards to the participants’ organization.

Activities

3.1 Revisit the Info-Tech IT Dashboards and use the identified metrics to determine what should change in them.

3.2 Build your dashboards by editing the Info-Tech IT Dashboards with your changes as planned in Step 3.1.

Outputs

Assessed Info-Tech IT Dashboards for your audience’s needs.

Completed Tab 5 of the IT Dashboard Workbook.

Finalized dashboards.

4 Deliver Your Dashboard and Plan to Action Metrics

The Purpose

Guide participants in learning how to create a story around the dashboards.

Guide participants in planning to action metrics and where to record results.

Guide participants in how to address results of metrics and feedback from audience about dashboards.

Key Benefits Achieved

Participants understand how to speak to their dashboards.

Participants understand how to action metrics results and feedback about dashboards.

Activities

4.1 Craft your story.

4.2 Practice delivering your story.

4.3 Plan to action your metrics.

4.4 Understand how to record and address your results.

Outputs

Completed Tabs 6 and 7 of the IT Dashboard Workbook.

5 Next Steps and Wrap-Up

The Purpose

Finalize work outstanding from previous steps and answer any questions.

Key Benefits Achieved

Participants have thought about and documented how to customize the Info-Tech IT Dashboards to use in their organization, and they have everything they need to customize the dashboards with their own metrics and visuals (if necessary).

Activities

5.1 Complete in-progress deliverables from previous four days.

5.2 Set up review time for workshop deliverables and to discuss next steps.

Outputs

Completed IT Dashboards tailored to your organization.

Completed IT Dashboard Workbook

Further reading

Establish High-Value IT Performance Dashboards and Metrics

Spend less time struggling with visuals and more time communicating about what matters to your executives.

Analyst Perspective

A dashboard is a communication tool that helps executives make data-driven decisions

CIOs naturally gravitate toward data and data analysis. This is their strength. They lean into this strength, using data to drive decisions, track performance, and set targets because they know good data drives good decisions.

However, when it comes to interpreting and communicating this complex information to executives who may be less familiar with data, CIOs struggle, often falling back on showing IT activity level data instead of what the executives care about. This results in missed opportunities to tell IT’s unique story, secure funding, reveal important trends, or highlight key opportunities for the organization.

Break through these traditional barriers by using Info-Tech’s ready-made IT dashboards. Spend less time agonizing over visuals and layout and more time concentrating on delivering IT information that moves the organization forward.

Photo of Diana MacPherson
Diana MacPherson
Senior Research Analyst, CIO
Info-Tech Research Group

Executive Summary

Your Challenge

While most CIOs understand the importance of using metrics to measure IT’s accomplishments, needs, and progress, when it comes to creating dashboards to communicate these metrics, they:

  • Concentrate on the data instead of the audience.
  • Display information specific to IT activities instead of showing how IT addresses business goals and problems.
  • Use overly complicated, out of context graphs that crowd the dashboard and confuse the viewer.

Common Obstacles

CIOs often experience these challenges because they:

  • Have a natural bias toward data and see it as the whole story instead of a supporting character in a larger narrative.
  • Assume that the IT activity metrics that are easy to get and useful to them are equally interesting to all their stakeholders.
  • Do not have experience communicating visually to an audience unfamiliar with IT operations or lingo.

Info-Tech’s Approach

Use Info-Tech’s ready-made dashboards for executives to ensure you:

  • Speak to the right audience
  • About the right things
  • In the right quantity
  • Using the right measures
  • At the right time

Info-Tech Insight

The purpose of a dashboard is to drive decision making. A well designed dashboard presents relevant, clear, concise insights that help executives make data-driven decisions.

Your challenge

CIOs struggle to select the right metrics and dashboards to communicate IT’s accomplishments, needs, and progress to their executives. CIOs:

  • Fail to tailor metrics to their audience, often presenting graphs that are familiar and useful to them, but not their executives. This results in dashboards full of IT activities that executives neither understand nor find valuable.
  • Do not consider the timeliness of their metrics, which has the same effect as not tailoring their metrics: the executives do not care about the metrics they are shown.
  • Present too many metrics, which not only clutters the board but also dilutes the message the CIO needs to communicate.
  • Do not act on the results of their metrics and show progress, which makes metrics meaningless. Why measure something if you won’t act on the results?

The bottom line: CIOs often communicate to the wrong audience, about the wrong things, in the wrong amount, using the wrong metrics, at the wrong time.

In a survey of 500 executives, organizations that struggled with dashboards identified the reasons as:
61% Inadequate context
54% Information overload

— Source: Exasol

CXOs and CIOs agree that IT performance metrics need improvement

When asked which performance indicators should be implemented in your business, CXOs and CIOs both agree that IT needs to improve its metrics across several activity areas: technology performance, cost and salary, and risk.

A diagram that shows performance indicators and metrics from cxo and cio.

The Info-Tech IT Dashboards center key metrics around these activities ensuring you align your metrics to the needs of your CXO audience.

Info-Tech CEO/CIO Alignment Survey Benchmark Report n=666

The Info-Tech IT Dashboards are organized by the top CIO priorities

The top six areas that a CIO needs to prioritize and measure outcomes, no matter your organization or industry, are:

  • Managing to a budget: Reducing operational costs and increasing strategic IT spend
  • Customer/constituent satisfaction: Directly and indirectly impacting customer experience.
  • Risk management: Actively knowing and mitigating threats to the organization.
  • Delivering on business objectives: Aligning IT initiatives to the vision of the organization.
  • Employee engagement: Creating an IT workforce of engaged and purpose-driven people.
  • Business leadership relations: Establishing a network of influential business leaders.

Deliver High-Value IT Dashboards to Your Executives

A diagram that shows Delivering High-Value IT Dashboards to Your Executives

Info-Tech’s approach

Deliver High-Value Dashboards to Your Executives

A diagram that shows High-Value Dashboard Process.

Executives recognize the benefits of dashboards:
87% of respondents to an Exasol study agreed that their organization’s leadership team would make more data-driven decisions if insights were presented in a simpler and more understandable way
(Source: Exasol)

The Info-Tech difference:

We created dashboards for you so you don’t have to!

  1. Eliminate 80% of the dashboard design work by selecting from our ready-made Info-Tech IT Dashboards.
  2. Use our IT Dashboard Workbook to adjust the dashboards to your audience and organization.
  3. Follow our blueprint and IT Dashboard Workbook tool to craft, and deliver your dashboard to your CXO team, then action feedback from your audience to continuously improve.

Info-Tech’s methodology for establishing high-value dashboards

1. Test Info-Tech’s IT Dashboards Against Your Audience’s Needs

Phase Steps

  1. Validate Info-Tech’s IT Dashboards for Your Audience
  2. Identify and Document Your Audience’s Needs

Phase Outcomes

  1. Initial impressions of Info-Tech IT Dashboards
  2. Completed Tabs 2 of the IT Dashboard Workbook

2. Translate Audience Needs into Metrics

Phase Steps

  1. Review Info-Tech’s IT Dashboards for Your Audience
  2. Derive Metrics from Audience Needs
  3. Associate metrics to Dashboards

Phase Outcomes

  1. Completed IT Tab 3 of IT Dashboard Workbook

3. Ready Your Data for Dashboards

Phase Steps

  1. Assess Data Inventory
  2. Assess Data Quality
  3. Assess Data Readiness
  4. Assess Data Frequency

Phase Outcomes

  1. Assessed Info-Tech IT Dashboards for your audience’s needs
  2. Completed Tab 5 of the IT Dashboard Workbook
  3. Finalized dashboards

4. Build and Deliver Your Dashboards

Phase Steps

  1. Design Your Dashboard
  2. Update Your Dashboards
  3. Craft Your Story and Deliver Your Dashboards

Phase Outcomes

  1. Completed IT Tab 5 and 6 of IT Dashboard Workbook and finalized dashboards

5. Plan, Record, and Action Your Metrics

Phase Steps

  1. Plan How to Record Metrics
  2. Record and Action Metrics

Phase Outcomes

  1. Completed IT Dashboards tailored to your organization
  2. Completed IT Dashboard Workbook

How to Use This Blueprint

Choose the path that works for you

A diagram that shows path of using this blueprint.

The Info-Tech IT Dashboards address several needs:

  1. New to dashboards and metrics and not sure where to begin? Let the phases in the blueprint guide you in using Info-Tech’s IT Dashboards to create your own dashboards.
  2. Already know who your audience is and what you want to show? Augment the Info-Tech’s IT Dashboards framework with your own data and visuals.
  3. Already have a tool you would like to use? Use the Info-Tech’s IT Dashboards as a design document to customize your tool.

Insight Summary

The need for easy-to-consume data is on the rise making dashboards a vital data communication tool.

70%: Of employees will be expected to use data heavily by 2025, an increase from 40% in 2018.
— Source: Tableau

Overarching insight

A dashboard’s primary purpose is to drive action. It may also serve secondary purposes to update, educate, and communicate, but if a dashboard does not drive action, it is not serving its purpose.

Insight 1

Start with the audience. Resist the urge to start with the data. Think about who your audience is, what internal and external environmental factors influence them, what problems they need to solve, what goals they need to achieve, then tailor the metrics and dashboards to suit.

Insight 2

Avoid showing IT activity-level metrics. Instead use CIO priority-based metrics to report on what matters to the organization. The Info-Tech IT Dashboards are organized by the CIO priorities: risks, financials, talent, and strategic initiatives.

Insight 3

Dashboards show the what not the why. Do not assume your audience will draw the same conclusions from your graphs and charts as you do. Provide the why by interpreting the results, adding insights and calls to action, and marking key areas for discussion.

Insight 4

A dashboard is a communication tool and should reflect the characteristics of good communication. Be clear, concise, consistent, and relevant.

Insight 5

Action your data. Act and report progress on your metrics. Gathering metrics has a cost, so if you do not plan to action a metric, do not measure it.

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

Photo of Dashboards

Key deliverable: Dashboards

Ready-made risk, financials, talent, and strategic initiatives dashboards that organize your data in a visually appealing way so you can concentrate on the metrics and communication.

Photo of IT Dashboard Workbook

IT Dashboard Workbook

The IT Dashboard Workbook keeps all your metrics, data, and dashboard work in one handy file!

Photo of IT Dashboard Guide

IT Dashboard Guide

The IT Dashboard Guide provides the Info-Tech IT Dashboards and information about how to use them.

Blueprint benefits

CIO Benefits

  • Reduces the burden of figuring out what metrics to show executives and how to categorize and arrange the visuals.
  • Increases audience engagement through tools and methods that guide CIOs through tailoring metrics and dashboards to audience needs.
  • Simplifies CIO messages so executives better understand IT needs and value.
  • Provides CIOs with the tools to demonstrate transparency and competency to executive leaders.
  • Provides tools and techniques for regular review and action planning of metrics results, which leads to improved performance, efficiency, and effectiveness.

Business Benefits

  • Provides a richer understanding of the IT landscape and a clearer connection of how IT needs and issues impact the organization.
  • Increases understanding of the IT team’s contribution to achieving business outcomes.
  • Provides visibility into IT and business trends.
  • Speeds up decision making by providing insights and interpretations to complex situations.

Measure the value of this blueprint

Realize measurable benefits after using Info-Tech’s approach:

Determining what you should measure, what visuals you should use, and how you should organize your visuals, is time consuming. Calculate the time it has taken you to research what metrics you should show, create the visuals, figure out how to categorize the visuals, and layout your visuals. Typically, this takes about 480 hours of time. Use the ready-made Info-Tech IT Dashboards and the IT Dashboard Workbook to quickly put together a set of dashboards to present your CXO. Using these tools will save approximately 480 hours.

A study at the University of Minnesota shows that visual presentations are 43% more effective at persuading their audiences (Bonsignore). Estimate how persuasive you are now by averaging how often you have convinced your audience to take a specific course of action. After using the Info-Tech IT Dashboards and visual story telling techniques described in this blueprint, average again. You should be 43% more persuasive.

Further value comes from making decisions faster. Baseline how long it takes, on average, for your executive team to make a decision before using Info-Tech’s IT Dashboards then time how long decisions take when you use your Info-Tech’s IT Dashboards. Your audience should reach decisions 21% faster according to studies at Stanford University and the Wharton School if business (Bonsignore).

Case Study

Visuals don’t have to be fancy to communicate clear messages.

  • Industry: Construction
  • Source: Anonymous interview participant

Challenge

Year after year, the CIO of a construction company attended business planning with the Board to secure funding for the year. One year, the CEO interrupted and said, “You're asking me for £17 million. You asked me for £14 million last year and you asked me for £12 million the year before that. I don't quite understand what we get for our money.”

The CEO could not understand how fixing laptops would cost £17 million and for years no one had been able to justify the IT spend.

Solutions

The CIO worked with his team to produce a simple one-page bubble diagram representing each IT department. Each bubble included the total costs to deliver the service, along with the number of employees. The larger the bubble, the higher the cost. The CIO brought each bubble to life as he explained to the Board what each department did.

The Board saw, for example, that IT had architects who thought about the design of a service, where it was going, the life cycle of that service, and the new products that were coming out. They understood what those services cost and knew how many architects IT had to provide for those services.

Recommendations

The CEO remarked that he finally understood why the CIO needed £17 million. He even saw that the costs for some IT departments were low for the amount of people and offered to pay IT staff more (something the CIO had requested for years).

Each year the CIO used the same slide to justify IT costs and when the CIO needed further investment for things like security or new products, an upgrade, or end of life support, the sign-offs came very quickly because the Board understood what IT was doing and that IT wasn't a bottomless pit.

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit
"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

Guided Implementation
"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop
"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

Consulting
"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks are used throughout all four options.

Guided Implementation

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is 8 to 12 calls over the course of 4 to 6 months.

What does a typical GI on this topic look like?

A diagram that shows Guided Implementation in 5 phases.

Workshop overview

Day 1: Test Info-tech’s IT Dashboards Against Your Audience’s Needs and Translate Audience Needs Into Metrics

Activities
1.1 Review the info-Tech IT Dashboards and document impressions for your organization.
1.2 Identify your audience’s attributes.
1.3 Identify timeline and deadlines for dashboards.
1.4 Identify and prioritize audience needs and desired outcomes.
1.5 Associate metrics to each need.
1.6 Identify a dashboard for each metric.

Deliverables
1. Initial impressions of Info-Tech IT Dashboards.
2. Completed Tabs 2 and 3 of the IT Dashboard Workbook.

Day 2: Inventory Your Data; Assess Data Quality and Readiness

Activities
2.1 Complete a data inventory for each metric on each dashboard: determine how you will measure the metric, the KPI, any observation biases, the location of the data, the type of source, and the owner and security/compliance requirements.
2.2 Assess data quality for availability, accuracy, and standardization.
2.3 Assess data readiness and frequency of measurement and reporting.

Deliverables
1. Completed Tab 4 of the IT Dashboard Workbook.

Day 3: Design and Build Your Dashboards

Activities
3.1 Revisit the Info-Tech IT Dashboards and use the identified metrics to determine what should change on the dashboards.
3.2 Build your dashboards by editing the Info-Tech IT Dashboards with your changes as planned in Step 3.1.

Deliverables
1. Assessed Info-Tech IT Dashboards for your audience’s needs.
2. Completed Tab 5 of the IT Dashboard Workbook.
3. Finalized dashboards.

Day 4: Deliver Your Dashboard and Plan to Action Metrics

Activities
4.1 Craft your story.
4.2 Practice delivering your story.
4.3 Plan to action your metrics.
4.4 Understand how to record and address your results.

Deliverables
1. Completed Tabs 6 and 7 of the IT Dashboard Workbook.

Day 5: Next Steps and Wrap-Up (offsite)

Activities
5.1 Complete in-progress deliverables from previous four days
5.2 Set up review time for workshop deliverables and to discuss next steps.

Deliverables
1. Completed IT Dashboards tailored to your organization.
2. Completed IT Dashboard Workbook.

Contact your account representative for more information.

workshops@infotech.com
1-888-670-8889

What is an IT dashboard?

A photo of Risks - Protect the Organization. A photo of Financials: Transparent, fiscal responsibility
A photo of talent attrat and retain top talent A photo of Strategic Initiatives: Deliver Value to Customers.

An IT dashboard is…
a visual representation of data, and its main purpose is to drive actions. Well-designed dashboards use an easy to consume presentation style free of clutter. They present their audience with a curated set of visuals that present meaningful metrics to their audience.

Dashboards can be both automatically or manually updated and can show information that is dynamic or a snapshot in time.

Info-Tech IT Dashboards

Review the Info-Tech IT Dashboards

We created dashboards so you don’t have to.

A photo of Risks - Protect the Organization. A photo of Financials: Transparent, fiscal responsibility A photo of talent attrat and retain top talent A photo of Strategic Initiatives: Deliver Value to Customers.

Use the link below to download the Info-Tech IT Dashboards and consider the following:

  1. What are your initial reactions to the dashboards?
  2. Are the visuals appealing? If so, what makes them appealing?
  3. Can you use these dashboards in your organization? What makes them usable?
  4. How would you use these dashboards to speak your own IT information to your audience?

Download the Info-Tech IT Dashboards

Why Use Dashboards When We Have Data?

How graphics affect us

Cognitively

  • Engage our imagination
  • Stimulate the brain
  • Heighten creative thinking
  • Enhance or affect emotions

Emotionally

  • Enhance comprehension
  • Increase recollection
  • Elevate communication
  • Improve retention

Visual clues

  • Help decode text
  • Attract attention
  • Increase memory

Persuasion

  • 43% more effective than text alone

— Source: (Vogel et al.)

Phase 1

Test Info-Tech’s IT Dashboards Against Your Audience’s Needs

A diagram that shows phase 1 to 5.

This phase will walk you through the following:

  • Documenting impressions for using Info-Tech’s IT Dashboards for your audience.
  • Documenting your audience and their needs and metrics for your IT dashboards

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Info-Tech IT Dashboard organization and audience

We created a compelling way to organize IT dashboards so you don’t have to. The Info-Tech IT Dashboards are organized by CIO Priorities, and these are consistent irrespective of industry or organization. This is a constant that you can organize your metrics around.

A photo of Info-Tech IT Dashboards

Dashboard Customization

The categories represent a constant around which you can change the order; for example, if your CXO is more focused on Financials, you can switch the Financials dashboard to appear first.

The Info-Tech IT Dashboards are aimed at a CXO audience so if your audience is the CXO, then you may decide to change very little, but you can customize any visual to appeal to your audience.

Phase 1 will get you started with your audience.

Always start with the audience

…and not the data!

Reliable, accurate data plays a critical role in dashboards, but data is only worthwhile if it is relevant to the audience who consumes it, and dashboards are only as meaningful as the data and metrics they represent.

Instead of starting with the data, start with the audience. The more IT understands about the audience, the more relevant the metrics will be to their audience and the more aligned leadership will be with IT.

Don’t forget yourself and who you are. Your audience will have certain preconceived notions about who you are and what you do. Consider these when you think about what you want your audience to know.

46% executives identify lack of customization to individual user needs as a reason they struggle with dashboards.
— Source: (Exasol)

Resist the Data-First Temptation

If you find yourself thinking about data and you haven’t thought about your audience, pull yourself back to the audience.

Ask first Ask later
Who is this dashboard for? What data should I show?
How will the audience use the dashboard to make decisions? Where do I get the data?
How can I show what matters to the audience? How much effort is required to get the data?

Meaningful measures rely on understanding your audience and their needs

It is crucial to think about who your audience is so that you can translate their needs into metrics and create meaningful visuals for your dashboards.

A diagram that highlights step 1-3 of understanding your audience in the high-value dashboard process.

Step 1.1

Review and Validate Info-Tech’s IT Dashboards for Your Audience

Activities:
1.1.1 Examine Info-Tech’s IT Dashboards.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 1.1 & 1.2 to Test Info-Tech’s IT Dashboards Against Your Audience’s Needs.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Info-Tech dashboards reviewed for your organization’s audience.

1.1.1 Examine the Info-Tech IT Dashboards

30 minutes

  1. If you haven’t already downloaded the Info-Tech IT Dashboards, click the link below to download.
  2. Complete a quick review of the dashboards and consider how your audience would receive them.
  3. Document your thoughts, with special emphasis on your audience in the Info-Tech Dashboard Impressions slide.

A diagram that shows Info-Tech IT Dashboards

Download Info-Tech IT Dashboards

Reviewing visuals can help you think about how your audience will respond to them

Jot down your thoughts below. You can refer to this later as you consider your audience.

Consider:

  • Who is your dashboard audience?
  • Are their needs different from the Info-Tech IT Dashboard audience’s? If so, how?
  • Will the visuals work for your audience on each dashboard?
  • Will the order of the dashboards work for your audience?
  • What is missing?

Step 1.2

Identify and Document Your Audience’s Needs

Activities:
1.2.1 Document your audience’s needs in the IT Dashboard Workbook.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 1.1 & 1.2 to Test Info-Tech’s IT Dashboards Against Your Audience’s Needs.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Audience details documented in IT Dashboard Workbook

Identify Your Audience and dig deeper to understand their needs

Connect with your audience

  • Who is your audience?
  • What does your audience care about? What matters to them?
  • How is their individual success measured? What are their key performance indicators (KPIs)?
  • Connect the challenges and pain points of your audience to how IT can help alleviate those pain points:
    • For example, poor financial performance could be due to a lack of digitization. Identify areas where IT can help alleviate this issue.
    • Try to uncover the root cause behind the need. Root causes are often tied to broad organizational objectives, so think about how IT can impact those objectives.

Validate the needs you’ve uncovered with the audience to ensure you have not misinterpreted them and clarify the desired timeline and deadline for the dashboard.

Document audiences and needs on Tab 2 of the IT Dashboard Workbook

Typical Audience Needs
Senior Leadership
  • Inform strategic planning and track progress toward objectives.
  • Understand critical challenges.
  • Ensure risks are managed.
  • Ensure budgets are managed.
Board of Directors
  • Understand organizational risks.
  • Ensure organization is fiscally healthy.
Business Partners
  • Support strategic workforce planning.
  • Surface upcoming risks to workforce.
CFO
  • IT Spend
  • Budget Health and Risks

Prioritize and select audience needs that your dashboard will address

Prioritize needs by asking:

  • Which needs represent the largest value to the entire organization (i.e. needs that impact more of the organization than just the audience)?
  • Which needs will have the largest impact on the audience’s success?
  • Which needs are likely to drive action (e.g. if supporting a decision, is the audience likely to be amenable to changing the way they make that decision based on the data)?

Select three to five of the highest priority needs for each audience to include on a dashboard.

Prioritize needs on Tab 2 of the IT Dashboard Workbook

A diagram that shows 3 tiers of high priority, medium priority, and low priority.

1.2.1 Document Your Audience Needs in the IT Dashboard Workbook

1 hour

Click the link below to download the IT Dashboard Workbook and open the file. Select Tab 2. The workbook contains pre-populated text that reflects information about Info-Tech’s IT Dashboards. You may want to keep the pre-populated text as reference as you identify your own audience then remove after you have completed your updates.

A table of documenting audience, including key attributes, desired timeline, deadline, needs, and priority.

Download Info-Tech IT Dashboard Workbook

Phase 2

Translate Audience Needs Into Metrics

A diagram that shows phase 1 to 5.

This phase will walk you through the following:

  • Revisiting the Info-Tech IT Dashboards for your audience.
  • Documenting your prioritized audience’s needs and the desired outcome of each in the IT Dashboard Workbook.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Linking audience needs to metrics has positive outcomes

When you present metrics that your audience cares about, you:

  • Deliver real value and demonstrate IT’s value as a trusted partner.
  • Improve the relationship between the business and IT.
  • Enlighten the business about what IT does and how it is connected to the organization.

29% of respondents to The Economist Intelligence Unit survey cited inadequate collaboration between IT and the business as one of the top barriers to the organization’s digital objectives.
— Source: Watson, Morag W., et al.

Dashboard Customization

The Info-Tech IT Dashboards use measures for each dashboard that correspond with what the audience (CXO) cares about. You can find these measures in the IT Dashboard Workbook. If your audience is the CXO, you may have to change a little but you should still validate the needs and metrics in the IT Dashboard Workbook.

Phase 2 covers the process of translating needs into metrics.

Once you know what your audience needs, you know what to measure

A diagram that highlights step 4-5 of knowing your audience needs in the high-value dashboard process.

Step 2.1

Document Desired Outcomes for Each Prioritized Audience Need

Activities:
2.1.1 Compare the Info-Tech IT Dashboards with your audience’s needs.
2.1.2 Document prioritized audience needs and the desired outcome of each in the IT Dashboard Workbook.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 2.1 to 2.3 to translate audience needs into metrics.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Understanding of how well Info-Tech IT Dashboards address audience needs.
  • Documented desired outcomes for each audience need.

2.1.1 Revisit Info-Tech’s IT Dashboards and Review for Your Audience

30 minutes

  1. If you haven’t already downloaded the Info-Tech IT Dashboards, click the link below to download.
  2. Click the link below to download the Info-Tech IT Dashboard Workbook.
  3. Recall your first impressions of the dashboards that you recorded on earlier in Phase 1 and open up the audience and needs information you documented in Tab 2 of the IT Dashboard Workbook.
  4. Compare the dashboards with your audience’s needs that you documented on Tab 2.
  5. Record any updates to your thoughts or impressions on the next slide. Think about any changes to the dashboards that you would make so that you can reference it when you build the dashboards.

Download Info-Tech IT Dashboard Workbook

A photo of Info-Tech IT Dashboards
The Info-Tech IT Dashboards contain a set of monthly metrics tailored toward a CXO audience.

Download Info-Tech IT Dashboards

Knowing what your audience needs, do the metrics the visuals reflect address them?

Any changes to the Info-Tech IT Dashboards?

Consider:

  • Are your audience’s needs already reflected in the visuals in each of the dashboards? If so, validate this in the next activity by reviewing the prioritized needs, desired outcomes, and associated metrics already documented in the IT Dashboard Workbook.
  • Are there any visuals your audience would need that you don’t see reflected in the dashboards? Write them here to use in the next exercise.

Desired outcomes make identifying metrics easier

When it’s not immediately apparent what the link between needs and metrics is, brainstorm desired outcomes.

A diagram that shows an example of desired outcomes

2.1.2 Document your audience’s desired outcome per prioritized need

Now that you’ve examined the Info-Tech IT Dashboards and considered the needs of your audience, it is time to understand the outcomes and goals of each need so that you can translate your audience’s needs into metrics.

1 hour

Click the link below to download the IT Dashboard Workbook and open the file. Select Tab 3. The workbook contains pre-populated text that reflects information about Info-Tech’s IT Dashboards. You may want to keep the pre-populated text as reference as you identify your own audience then remove it after you have completed your updates.

A diagram that shows desired outcome per prioritized need

Download Info-Tech IT Dashboard Workbook

Deriving Meaningful Metrics

Once you know the desired outcomes, you can identify meaningful metrics

A diagram of an example of meaningful metrics.

Common Metrics Mistakes

Avoid the following oversights when selecting your metrics.

A diagram that shows 7 metrics mistakes

Step 2.2

Derive Metrics From Audience Needs

Activities:
2.2.1 Derive metrics using the Info-Tech IT Dashboards and the IT Dashboard Workbook.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 2.1 to 2.3 to translate audience needs into metrics.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Documented metrics for audience needs.

2.2.1 Derive metrics from desired outcomes

Now that you have completed the desired outcomes, you can determine if you are meeting those desired outcomes. If you struggle with the metrics, revisit the desired outcomes. It could be that they are not measurable or are not specific enough.

2 hours

Click the link below to download the IT Dashboard Workbook and open the file. Select Tab 3. The workbook contains pre-populated text that reflects information about Info-Tech’s IT Dashboards. You may want to keep the pre-populated text as reference as you identify your own audience then remove it after you have completed your updates.

A diagram that shows derive metrics from desired outcomes

Download Info-Tech IT Dashboard Workbook

Download IT Metrics Library

Download HR Metrics Library

Step 2.3

Associate Metrics to Dashboards

Activities:
2.3.1 Review the metrics and identify which dashboard they should appear on.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 2.1 to 2.3 to translate audience needs into metrics.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Metrics associated to each dashboard.

2.3.1 Associate metrics to dashboards

30 minutes

Once you have identified all your metrics from Step 2.2, identify which dashboard they should appear on. As with all activities, if the Info-Tech IT Dashboard meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information.

A diagram that shows associate metrics to dashboards

Phase 3

Ready Your Data for Dashboards

A diagram that shows phase 1 to 5.

This phase will walk you through the following:

  • Inventorying your data
  • Assessing your data quality
  • Determining data readiness
  • Determining data measurement frequency

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Can you measure your metrics?

Once appropriate service metrics are derived from business objectives, the next step is to determine how easily you can get your metric.

A diagram that highlights step 5 of measuring your metrics in the high-value dashboard process.

Make sure you select data that your audience trusts

40% of organizations say individuals within the business do not trust data insights.
— Source: Experian, 2020

Phase 3 covers the process of identifying data for each metric, creating a data inventory, assessing the readiness of your data, and documenting the frequency of measuring your data. Once complete, you will have a guide to help you add data to your dashboards.

Step 3.1

Assess Data Inventory

Activities:
3.1.1 Download the IT Dashboard Workbook and complete the data inventory section on Tab 4.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 3.1 to 3.4 to ready your data for dashboards.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Documented data inventory for each metric.

3.1.1 Data Inventory

1 hour

Click the link below to download the IT Dashboard Workbook and open the file. Select Tab 4. The pre-populated text is arranged into the tables according to the dashboard they appear on; you may need to scroll down to see all the dashboard tables.

Create a data inventory by placing each metric identified on Tab 3 into the corresponding dashboard table. Complete each column as described below.

A diagram that shows 9 columns of data inventory.

Metrics Libraries: Use the IT Metrics Library and HR Metrics Library for ideas for metrics to use and how to measure them.

Download Info-Tech IT Dashboard Workbook

Step 3.2

Assess Data Quality

Activities:
3.2.1 Use the IT Dashboard Workbook to complete an assessment of data quality on Tab 4.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 3.1 to 3.4 to ready your data for dashboards.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Documented data quality assessment for each metric.

3.2.1 Assess Data Quality

1 hour

Document the data quality on Tab 4 of the IT Dashboard Workbook by filling in the data availability, data accuracy, and data standardization columns as described below.

A diagram that shows data availability, data accuracy, and data standardization columns.

Data quality is a struggle for many organizations. Consider how much uncertainty you can tolerate and what would be required to improve your data quality to an acceptable level. Consider cost, technological resources, people resources, and time required.

Download Info-Tech IT Dashboard Workbook

Step 3.3

Assess Data Readiness

Activities:
3.3.1 Use the IT Dashboard Workbook to determine the readiness of your data.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 3.1 to 3.4 to ready your data for dashboards.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Documented data readiness for each metric

3.3.1 Determine Data Readiness

1 hour

Once the data quality has been documented and examined, complete the Data Readiness section of Tab 4 in the Info-Tech IT Dashboard Workbook. Select a readiness classification using the definitions below. Use the readiness of your data to determine the level of effort required to obtain the data and consider the constraints and cost/ROI to implement new technology or revise processes and data gathering to produce the data.

A diagram that shows data readiness section

Remember: Although in most cases, simple formulas that can be easily understood are the best approach, both because effort is lower and data that is not manipulated is more trustworthy, do not abandon data because it is not perfect but instead plan to make it easier to obtain.

Download Info-Tech IT Dashboard Workbook

Step 3.4

Assess Data Frequency

Activities:
3.4.1 Use the IT Dashboard Workbook to determine the readiness of your data and how frequently you will measure your data.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 3.1 to 3.4 to assess data inventory, quality, and readiness.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Documented frequency of measurement for each metric.

3.4.1 Document Planned Frequency of measurement

10 minutes

Document the planned frequency of measurement for all your metrics on Tab 4 of the IT Dashboard Workbook.

For each metric, determine how often you will need to refresh it on the dashboard and select a frequency from the drop down. The Info-tech IT Dashboards assume a monthly refresh.

Download Info-Tech IT Dashboard Workbook

Phase 4

Build and Deliver Your Dashboards

A diagram that shows phase 1 to 5.

This phase will walk you through the following:

  • Designing your dashboards
  • Updating your dashboards
  • Crafting your story
  • Delivering your dashboards

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Using your dashboard to tell your story with visuals

Now that you have linked metrics to the needs of your audience and you understand how to get your data, it is time to start building your dashboards.

A diagram that highlights step 6 of creating meaningful visuals in the high-value dashboard process.

Using visual language

  • Shortens meetings by 24%
  • Increases the ability to reach consensus by 21%
  • Strengthens persuasiveness by 43%

— Source: American Management Association

Phase 4 guides you through using the Info-Tech IT Dashboard visuals for your audience’s needs and your story.

Step 4.1

Design Your Dashboard

Activities:
4.1.1 Plan and validate dashboard metrics, data, level of effort and visuals.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 4.1 to 4.3 to build and deliver your dashboards.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Identified and validated metrics, data, and visuals for your IT dashboards.

Use clear visuals that avoid distracting the audience

Which visual is better to present?

Sample A:
A photo of Sample A visuals

Sample B:
A diagram Sample B visuals

Select the appropriate visuals

Identify the purpose of the visualization. Determine which of the four categories below aligns with the story and choose the appropriate visual to display the data.

Relationship

A photo of Scatterplots
Scatterplots

  • Used to show relationships between two variables.
  • Can be difficult to interpret for audiences that are not familiar with them.

Distribution

A photo of Histogram
Histogram

  • Use a histogram to show spread of a given numeric variable.
  • Can be used to organize groups of data points.
  • Requires continuous data.
  • Can make comparisons difficult.

A photo of Scatterplot
Scatterplot

  • Can show correlation between variables.
  • Show each data plot, making it easier to compare.

Composition

A photo of Pie chart
Pie chart

  • Use pie charts to show different categories.
  • Avoid pie charts with numerous slices.
  • Provide numbers alongside slices, as it can be difficult to compare slices based on size alone.

A photo of Table
Table

  • Use tables when there are a large number of categories.
  • Presents information in a simple way.

Comparison

A photo of Bar graph
Bar graph

  • Use to compare categories.
  • Easy to understand, familiar format.

A photo of Line chart
Line chart

  • Use to show trends or changes over time.
  • Clear and easy to analyze.

(Calzon)

Examples of data visualization

To compare categories, use a bar chart:
2 examples of bar chart
Conclusion: Visualizing the spend in various areas helps prioritize.


To show trends, use a line graph:
An example of line graph.
Conclusion: Overlaying a trend line on revenue per employee helps justify headcount costs.


To show simple results, text is sometimes more clear:
A diagram that shows examples of text and graphics.
Conclusion: Text with meaningful graphics conveys messages quickly.


To display relative percentages of values, use a pie chart:
An example of pie chart.
Conclusion: Displaying proportions in a pie chart gives an at-a-glance understanding of the amount any area uses.

Choose effective colors and design

Select colors that will enhance the story

  • Use color strategically to help draw the audience’s attention and highlight key information.
  • Choose two to three colors to use consistently throughout the dashboard, as too many colors will be distracting to the audience.
  • Use colors that connect with the audience (e.g., organization or department colors).
  • Don’t use colors that are too similar in shade or brightness level, as those with colorblindness might have difficulty discerning them.

Keep the design simple and clear

  • Leave white space to separate sections and keep the dashboard simple.
  • Don’t measure everything; show just enough to address the audience’s needs.
  • Use blank space between data points to provide natural contrast (e.g., leaving space between each bar on a bar graph). Don’t rely on contrast between colors to separate data (Miller).
  • Label each data point directly instead of using a separate key, so anyone who has difficulty discerning color can still interpret the data (Miller).

Example

A example that shows colours and design of a chart.

Checklist to build compelling visuals in your presentation

Leverage this checklist to ensure you are creating the perfect visuals and graphs for your presentation.

Checklist:

  • Do the visuals grab the audience’s attention?
  • Will the visuals mislead the audience/confuse them?
  • Do the visuals facilitate data comparison or highlight trends and differences in a more effective manner than words?
  • Do the visuals present information simply, cleanly, and accurately?
  • Do the visuals illustrate messages and themes from the accompanying text?

4.1.1 Plan and validate your dashboard visuals

1 hour

Click the links below to download the Info-Tech IT Dashboards and the IT Dashboard Workbook. Open the IT Dashboard Workbook and select Tab 5. For each dashboard, represented by its own table, open the corresponding Info-Tech IT Dashboard as reference.

A diagram of dashboard and its considerations when selecting visuals.

Download Info-Tech IT Dashboards

Download Info-Tech IT Dashboard Workbook

Step 4.2

Update Your Dashboards

Activities:
4.2.1 Update the visuals on the Info-Tech IT Dashboards with data and visuals identified in the IT Dashboard Workbook.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 4.1 to 4.3 to build and deliver your dashboards.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Dashboards updated with your visuals, metrics, and data identified in the IT Dashboard Workbook.

4.2.1 Update visuals with your own data

2 hours

  1. Get the data that you identified in Tab 4 and Tab 5 of the IT Dashboard Workbook.
  2. Click the link below to go to the Info-Tech IT Dashboards and follow the instructions to update the visuals.

Do not worry about the Key Insights or Calls to Action; you will create this in the next step when you plan your story.

Download Info-Tech IT Dashboards

Step 4.3

Craft Your Story and Deliver Your Dashboards

Activities:
4.3.1 Craft Your Story
4.3.2 Finalize Your Dashboards
4.3.3 Practice Delivering Your Story With Your Dashboards

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 4.1 to 4.3 to build and deliver your dashboards.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Documented situations, key insights, and calls to action for each dashboard/visual.
  • A story to tell for each dashboard.
  • Understanding of how to practice delivering the dashboards using stories.

Stories are more easily understood and more likely to drive decisions

IT dashboards are valuable tools to provide insights that drive decision making.

  • Monitor: Track and report on strategic areas IT supports.
  • Provide insights: sPresent important data and information to audiences in a clear and efficient way.

“Data storytelling is a universal language that everyone can understand – from people in STEM to arts and psychology.” — Peter Jackson, Chief Data and Analytics Officer at Exasol

Storytelling provides context, helping the audience understand and connect with data and metrics.

  • 93% of respondents (business leaders and data professionals) agreed that decisions made as a result of successful data storytelling have the potential to help increase revenue.
  • 92% of respondents agreed that data storytelling was critical to communicate insights effectively.
  • 87% percent of respondents agreed that leadership teams would make more data-driven decisions if insights gathered from data were presented more simply.

— Exasol

For more visual guidance, download the IT Dashboard Guide

Include all the following pieces in your message for an effective communication

A diagram of an effective message, including consistent, clearn, relevant, and concise.

Info-Tech Insight

Time is a non-renewable resource. The message crafted must be considered a value-adding communication to your audience.

Enable good communication with these components

Be Consistent

  • The core message must be consistent regardless of audience, channel, or medium.
  • Test your communication with your team or colleagues to obtain feedback before delivering to a broader audience.
  • A lack of consistency can be interpreted as an attempt at deception. This can hurt credibility and trust.

Be Clear

  • Say what you mean and mean what you say.
  • Choice of language is important: “Do you think this is a good idea? I think we could really benefit from your insights and experience here.” Or do you mean: “I think we should do this. I need you to do this to make it happen.”
  • Avoid jargon.

Be Relevant

  • Talk about what matters to the audience.
  • Tailor the details of the message to the audience’s specific concerns.
  • IT thinks in processes but wider audiences focus mostly on results; talk in terms of results.
  • IT wants to be understood, but this does not matter to stakeholders. Think: “What’s in it for them?”
  • Communicate truthfully; do not make false promises or hide bad news.

Be Concise

  • Keep communication short and to the point so key messages are not lost in the noise.
  • There is a risk of diluting your key message if you include too many other details.
  • If you provide more information than necessary, the clarity and consistency of the message can be lost.

Draft the core messages to communicate

  1. Hook your audience: Use a compelling introduction that ensures your target audience cares about the message. Start with a story or metaphor and then support with the data on your dashboard. Avoid rushing in with data first.
  2. Demonstrate you can help: Let the audience know that based on the unique problem, you can help. There is value in engaging and working with you further.
  3. Write for the ear: Use concise and clear sentences, avoid technological language, and when you read it aloud ensure it sounds like how you would normally speak.
  4. Interpret visuals for your audience: Do not assume they will reach the same conclusions as you. For example, walk them through what a chart shows even if the axes are labeled, tell them what a trend line indicates or what the comparison between two data points means.
  5. Identify a couple of key insights: Think about one or two key takeaways you want your audience to leave with.
  6. Finish with a call to action: Your concluding statement should not be a thank-you but a call to action that ignites how your audience will behave after the communication. Dashboards exist to drive decisions, so if you have no call to action, you should ask if you need to include the visual.

4.3.1 Craft Your Story

1 hour

Click the link below to download the IT Dashboard Workbook and open the file. Select Tab 6. The workbook contains grey text that reflects a sample story about the Info-Tech IT Dashboards. You may want to keep the sample text as reference, then remove after you have entered your information.

A diagram of dashboard to craft your story.

Download Info-Tech IT Dashboard Workbook

4.3.2 Finalize Your Dashboards

30 minutes

  1. Take the Key Insights and Calls to Action that you documented in Tab 6 of the IT Dashboard Workbook and place them in their corresponding dashboard.
  2. Add any text to your dashboard as necessary but only if the visual requires more information. You can add explanations more effectively during the presentation.

A diagram that shows strategic initiatives: deliver value to customers.

Tip: Aim to be brief and concise with any text. Dashboards simplify information and too much text can clutter the visuals and obscure the message.

Download Info-Tech IT Dashboard Workbook

4.3.3 Practice Delivering Your Story With Your Dashboards

1 hour

Ideally you can present your dashboard to your audience so that you are available to clarify questions and add a layer of interpretation that would crowd out boards if added as text.

  1. To prepare to tell your story, consult the Situation, Key Insights, and Call to Action sections that you documented for each dashboard in Tab 6 of the Info-Tech IT Dashboard Workbook.
  2. Practice your messages as you walk through your dashboards. The next two slides provide delivery guidance.
  3. Once you deliver your dashboards, update Tab 6 with audience feedback. Often dashboards are iterative and when your audience sees them, they are usually inspired to think about what else they would like to see. This is good and shows your audience is engaged!

Don’t overwhelm your audience with information and data. You spent time to craft your dashboards so that they are clear and concise, so spend time practicing delivering a message that matches your clear, concise dashboards

Download Info-Tech IT Dashboard Workbook

Hone presentation skills before meeting with key stakeholders

Using voice and body

Think about the message you are trying to convey and how your body can support that delivery. Hands, stance, and frame all have an impact on what might be conveyed.

If you want your audience to lean in and be eager about your next point, consider using a pause or softer voice and volume.

Be professional and confident

State the main points of your dashboard confidently. While this should be obvious, it needs to be stated explicitly. Your audience should be able to clearly see that you believe the points you are stating.

Present in a way that is genuine to you and your voice. Whether you have an energetic personality or a calm and composed personality, the presentation should be authentic to you.

Connect with your audience

Look each member of the audience in the eye at least once during your presentation or if you are presenting remotely, look into the camera. Avoid looking at the ceiling, the back wall, or the floor. Your audience should feel engaged – this is essential to keeping their attention.

Avoid reading the text from your dashboard, and instead paraphrase it while maintaining eye/camera contact.

Info-Tech Insight

You are responsible for the response of your audience. If they aren’t engaged, it is on you as the communicator.

Communication Delivery Checklist

  • Have you practiced delivering the communication to team members or coaches?
  • Have you practiced delivering the communication to someone with little to no technology background?
  • Are you making yourself open to feedback and improvement opportunities?
  • If the communication is derailed from your plan, are you prepared to handle that change?
  • Can you deliver the communication without reading your notes word for word?
  • Have you adapted your voice throughout the communication to highlight specific components you want the audience to focus on?
  • Are you presenting in a way that is genuine to you and your personality?
  • Can you communicate the message within the time allotted?
  • Are you moving in an appropriate manner based on your communication (e.g., toward the screen, across the stage, hand gestures)
  • Do you have room for feedback on the dashboards? Solicit feedback with your audience after the meeting and record it in Tab 6 of the IT Dashboard Workbook.

Phase 5

Plan, record, and action your metrics

A diagram that shows phase 1 to 5.

This phase will walk you through the following:

  • Planning to track your metrics
  • Recording your metrics
  • Actioning your metrics

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Actioning your metrics to drive results

To deliver real value from your dashboards, you need to do something with the results.

Don’t fail on execution! The whole reason you labor to create inviting visuals and meaningful metrics is to action those metrics. The metrics results inform your entire story! It’s important to plan and do, but everything is lost if you fail to check and act.

70%: of survey respondents say that managers do not get insights from performance metrics to improve strategic decision making.
60%: of survey respondents say that operational teams do not get insights to improve operation decision making.

(Bernard Marr)

“Metrics aren’t a passive measure of progress but an active part of an organization’s everyday management….Applying the “plan–do–check–act” feedback loop…helps teams learn from their mistakes and identify good ideas that can be applied elsewhere”

(McKinsey)

Step 5.1

Plan How to Record Metrics

Activities:
5.1.1 For each dashboard, add a baseline and target to existing metrics and KPIs.

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 5.1 to 5.2 to plan, record, and action your metrics.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Baselines and targets identified and recorded for each metric.

5.1.1 Identify Baselines and Targets

1 hour

To action your metrics, you must first establish what your baselines and targets are so that you can determine if you are on track.

To establish baselines:
If you do not have a baseline. Run your metric to establish one.

To establish targets:

  • Use historical data and trends of performance.
  • If you do not have historical data, establish an initial target based on stakeholder-identified requirements and expectations.
  • You can also run the metrics report over a defined period of time and use the baseline level of achievement to establish an initial target.
  • The target may not always be a number – it could be a trend. The initial target may be changed after review with stakeholders.

Actions for Success:
How will you ensure you can get this metric? For example, if you would like to measure delivered value, to make sure the metric is measurable, you will need to ensure that measures of success are documented for an imitative and then measured once complete.

  • If you need help with Action plans, the IT Metrics Library includes action plans for all of its metrics that may help

A diagram of identify metrics and to identify baselines and targets.

Download Info-Tech IT Dashboard Workbook

Step 5.2

Record and Action Metrics

Activities:
5.2.1 Record and Action Results

  • Note, the Info-Tech IT Dashboards are organized by CIO priorities – Risk, Financials, Talent, and Strategic Initiatives – and address the needs of the CXO audience. The IT Dashboard Workbook is pre-populated with this information.
  • If this meets your audience’s needs, you do not have to edit this content and can instead use the pre-populated information. You may wish to review the information to ensure it is still valid for your audience.

A diagram that shows step 5.1 to 5.2 to plan, record, and action your metrics.

This phase involves the following participants:

  • Senior IT leadership
  • Dashboard SMEs

Outcomes of this step:

  • Understanding of what and where to record metrics once run.

5.2.1 Record and Action Results

1 hour

After analyzing your results, use this information to update your dashboards. Revisit Tab 6 of the IT Dashboard Workbook to update your story. Remember to record any audience feedback about the dashboards in the Audience Feedback section.

Action your measures as well as your metrics

What should be measured can change over time as your organization matures and the business environment changes. Understanding what creates business value for your organization is critical. If metrics need to be changed, record metrics actions under Identified Actions on Tab 7. A metric will need to be addressed in one of the following ways:

  • Added: A new metric is required or an existing metric needs large-scale changes (example: calculation method or scope).
  • Changed: A minor change is required to the presentation format or data. Note: a major change in a metric would be performed through the Add option.
  • Removed: The metric is no longer required, and it needs to be removed from reporting and data gathering. A final report date for that metric should be determined.
  • Maintained: The metric is still useful and no changes are required to the metric, its measurement, or how it’s reported.

A diagram of record results and identify how to address results.

Don’t be discouraged if you need to update your metrics a few times before you get it right. It can take some trial and error to find the measures that best indicate the health of what you are measuring.

Download Info-Tech IT Dashboard Workbook

Tips for actioning results

Sometimes actioning your metrics results requires more analysis

If a metric deviates from your target, you may need to analyze how to correct the issue then run the metric again to see if the results have improved.

Identify Root Cause
Root Cause Analysis can include problem exploration techniques like The 5 Whys, fishbone diagrams, or affinity mapping.

Select a Solution
Once you have identified a possible root cause, use the same technique to brainstorm and select a solution then re-run your metrics.

Consider Tension Metrics
Consider tension metrics when selecting a solution. Will improving one area affect another? A car can go faster but it will consume more fuel – a project can be delivered faster but it may affect the quality.

Summary of Accomplishment

Problem Solved

  1. Using this blueprint and the IT Dashboard Workbook, you validated and customized the dashboards for your audience and organization, which reduced or eliminated time spent searching for and organizing your own visuals.
  2. You documented your dashboards’ story so you are ready to present them to your audience.
  3. You assessed the data for your dashboards and you built a metrics action-tracking plan to maintain your dashboards’ metrics.

If you would like additional support, have our analysts guide you through an Info-Tech workshop or Guided Implementation.

Contact your account representative for more information.
workshops@infotech.com
1-888-670-8889

Additional Support

If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop.

To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.

Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.

Contact your account representative for more information.

workshops@infotech.com
1-888-670-8889

The following are sample activities that will be conducted by Info-Tech analysts with your team:

A photo of Info-Tech IT Dashboards
Review the Info-Tech IT Dashboards
Determine how you can use the Info-Tech IT Dashboards in your organization and the anticipated level of customization.

A photo of the IT Dashboard Workbook
Plan your dashboards
Complete the IT Dashboard Workbook to help plan your dashboards using Info-Tech’s IT Dashboards.

Research Contributors and Experts

Photo of John Corrado
John Corrado
Head of IT
X4 Pharmaceuticals

As head of IT, John is charged with the creation of strategic IT initiatives that align with X4s vision, mission, culture, and long-term goals and is responsible for the organization’s systems, security, and infrastructure. He works closely developing partnerships with X4tizens across the organization to deliver value through innovative programs and services.

Photo of Grant Frost
Grant Frost
Chief Information & Security Officer
Niagara Catholic School Board

Grant Frost is an experienced executive, information technologist and security strategist with extensive experience in both the public and private sector. Grant is known for, and has extensive experience in, IT transformation and the ability to increase capability while decreasing cost in IT services.

Photo of Nick Scozzaro
Nick Scozzaro
CEO and Co-Founder of MobiStream and ShadowHQ
ShadowHQ

Nick got his start in software development and mobility working at BlackBerry where he developed a deep understanding of the technology landscape and of what is involved in both modernizing legacy systems and integrating new ones. Working with experts across multiple industries, he innovated, learned, strategized, and ultimately helped push the boundaries of what was possible.

Photo of Joseph Sanders
Joseph Sanders
Managing Director of Technology/Cyber Security Services
Kentucky Housing Corporation

In his current role Joe oversees all IT Operations/Applications Services that are used to provide services and support to the citizens of Kentucky. Joe has 30+ years of leadership experience and has held several executive roles in the public and private sector. He has been a keynote speaker for various companies including HP, IBM, and Oracle.

Photo of Jochen Sievert
Jochen Sievert
Director Performance Excellence & IT
Zeon Chemicals

Jochen moved to the USA from Duesseldorf, Germany in 2010 to join Zeon Chemicals as their IT Manager. Prior to Zeon, Jochen has held various technical positions at Novell, Microsoft, IBM, and Metro Management Systems.

Info-Tech Contributors

Ibrahim Abdel-Kader, Research Analyst
Donna Bales, Principal Research Director
Shashi Bellamkonda, Principal Research Director
John Burwash, Executive Counselor
Tony Denford, Research Lead
Jody Gunderman, Senior Executive Advisor
Tom Hawley, Managing Partner
Mike Higginbotham, Executive Counselor
Valence Howden, Principal Research Director
Dave Kish, Practice Lead
Carlene McCubbin, Practice Lead
Jennifer Perrier, Principal Research Director
Gary Rietz, Executive Counselor
Steve Schmidt, Senior Managing Partner
Aaron Shum, Vice President, Security & Privacy
Ian Tyler-Clarke, Executive Counselor

Plus, an additional four contributors who wish to remain anonymous.

Related Info-Tech Research

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Build an IT Risk Taxonomy

Use this blueprint as a baseline to build a customized IT risk taxonomy suitable for your organization.

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Create a Holistic IT Dashboard

This blueprint will help you identify the KPIs that matter to your organization.

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Develop Meaningful Service Metrics

This blueprint will help you Identify the appropriate service metrics based on stakeholder needs.

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IT Spend & Staffing Benchmarking

Use this benchmarking service to capture, analyze, and communicate your IT spending and staffing.

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Key Metrics for Every CIO

This short research piece highlights the top metrics for every CIO, how those align to your CIO priorities, and action steps against those metrics.

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Present Security to Executive Stakeholders

This blueprint helps you identify communication drivers and goals and collect data to support your presentation. It provides checklists for building and delivering a captivating security presentation.

Bibliography

“10 Signs You Are Sitting on a Pile of Data Debt.” Experian, n.d. Web.

“From the What to the Why: How Data Storytelling Is Key to Success.” Exasol, 2021. Web.

Bonsignore, Marian. “Using Visual Language to Create the Case for Change.” Amarican Management Association. Accessed 19 Apr. 2023.

Calzon, Bernardita. “Top 25 Dashboard Design Principles, Best Practices & How To’s.” Datapine, 5 Apr. 2023.

“Data Literacy.” Tableau, n.d. Accessed 3 May 2023.

“KPIs Don’t Improve Decision-Making In Most Organizations.” LinkedIn, n.d. Accessed 2 May 2023.

Miller, Amanda. “A Comprehensive Guide to Accessible Data Visualization.” Betterment, 2020. Accessed May 2022.

“Performance Management: Why Keeping Score Is so Important, and so Hard.” McKinsey. Accessed 2 May 2023.

Vogel, Douglas, et al. Persuasion and the Role of Visual Presentation Support: The UM/3M Study. Management Information Systems Research Center School of Management University of Minnesota, 1986.

Watson, Morag W., et al. ”IT’s Changing Mandate in an Age of Disruption.” The Economist Intelligence Unit Limited, 2021.

Make Sense of Strategic Portfolio Management

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  • Parent Category Name: Portfolio Management
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  • As an IT leader, you’re responsible for steering the realization of business strategy through wise investments in and responsible stewardship of assets, applications, portfolios, programs, products, and projects.
  • You need a tool to help align goals and facilitate processes across business units. You’re aware of a tool space called Strategic Portfolio Management, and it looks like it could help, but you’re unsure of how it’s different from some of the existing tools you already pay for and don’t use to their full functionality.

Our Advice

Critical Insight

As a software space, strategic portfolio management lacks a unified definition. In the same way that it took many years for project portfolio management to stabilize as a concept distinct from traditional enterprise project management, strategic portfolio management is experiencing a similar period of formational uncertainty. Unpacking what’s truly new and valuable in helping to define strategy and drive strategic outcomes versus what’s just repackaged as SPM is an important first step, but it's not an easy undertaking.

Impact and Result

In this concise publication, we will cut through the marketing to unpack what strategic portfolio management is, and what makes it distinct from similar capabilities. We’ll help to situate you in the space and assess the extent to which your tooling needs can be met by a strategic portfolio management offering.

Make Sense of Strategic Portfolio Management Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Make Sense of Strategic Portfolio Management Storyboard – A guide to help you drive strategic outcomes.

In this concise publication we introduce you to strategic portfolio management and consider the extent to which your organization can leverage an SPM application to help drive strategic outcomes.

  • Make Sense of Strategic Portfolio Management Storyboard

2. Strategic Portfolio Management Needs Assessment Tool – Use this tool to determine if your organization can benefit from the features and functionality of an SPM approach.

Use this Excel workbook to determine if your organization can benefit from the features and functionality of an SPM approach or whether you need something more like a traditional project portfolio management tool.

  • Strategic Portfolio Management Needs Assessment
[infographic]

Further reading

Make Sense of Strategic Portfolio Management

Separate what's new and valuable from bloated claims on the hype cycle.

Analyst Perspective

Do you need strategic portfolio management, or do you need to do portfolio management more strategically?

Travis Duncan, Research Director, PPM and CIO Strategy

Travis Duncan
Research Director, PPM and CIO Strategy
Info-Tech Research Group

While the market is eager to get users into what they're calling "strategic portfolio management," there's a lot of uncertainty out there about what this market is and how it's different from other, more established portfolio disciplines – most significantly, project portfolio management.

Indeed, if you look at how the space is covered within the industry, you'll encounter a dog's breakfast of players, a comparison of apples and oranges: Jira in the same quadrants as Planisware, Smartsheets in the same profiles as Planview and ServiceNow. While each of the individual players is impressive, their areas of focus are unique and the extent to which they should be compared together under the category of strategic portfolio management is questionable.

It speaks to some of the grey area within the SPM space more generally, which is at a bit of a crossroads: Will it formally shed the guardrails of its antecedents to become its own space, or will it devolve into a bait and switch through which capabilities that struggled to gain much traction beyond IT settings seek to infiltrate the business and grow their market share under a different name?

Part of it is up to the rest of us as users and potential customers. Clarifying what we need before we jump into something simply because our prior attempts failed will help determine whether we need a unique space for strategic portfolio management or whether we simply need to do portfolio management more strategically.

Executive Summary

Your Challenge Common Obstacles Info-Tech's Approach
  • As an IT leader, you're responsible for steering the realization of business strategy through wise investments in/ and responsible stewardship of: assets, applications, portfolios, programs, products, and projects.
  • You need a tool to help align goals and facilitate processes and communications across business units. You're aware of a tool space called strategic portfolio management, and it looks like it could help, but you're unsure of how it's different from some of the existing tools you already license.
  • As a software space, strategic portfolio management lacks a unified definition. Unpacking what's truly new in helping to define strategy and drive strategic outcomes versus what's just repackaged as SPM is no small undertaking.
  • Because SPM can span different business units, ways of working, and roles, getting buy-in, alignment, and adoption can be even more precarious than it is when implementing other types of solutions.
  • In this concise publication, we will cut through the marketing to unpack what strategic portfolio management is and what makes it distinct from similar capabilities.
  • Assess the extent to which your tooling needs can be met by a strategic portfolio management offering or the extent to which you may need to look at other software categories.
  • With a better understanding of the space, we hope to help facilitate better internal discussions around the value of SPM for your business needs.

Info-Tech Insight
In the same way that it took many years for PPM to stabilize as a concept distinct from traditional enterprise project management, strategic portfolio management is experiencing a similar period of formational uncertainty. In a space that can be all things to all users, clarify your actual needs before jumping onto a bandwagon and ending up with something that you don't need, and that the organization can't adopt.

Strategic portfolio management is enterprise portfolio management

Evolved from various other capabilities and vendor solutions, strategic portfolio management (SPM) seeks to connect strategy to execution.

While the concept of 'strategic portfolio management' has been written about within project portfolio management circles for nearly 20 years, SPM, as a distinct organizational competence and software category, is a relatively new and largely vendor-driven capability.

First emerging in the discourse during the mid-to-late 2010s, SPM has evolved from its roots in traditional enterprise project portfolio management. Though, as we will discuss, it has other antecedents not limited to PPM.

In this publication, we'll unpack what SPM is, how it is distinct (and, in turn, how it is not distinct) from PPM and other capabilities, and we will consider the extent to which your organization can and should leverage an SPM application to help drive strategic outcomes.

–The increasing need to deliver value from digital initiatives is giving rise to strategic portfolio management, a digital investment management discipline that enables strategy realization in complex dynamic environments."
– OnePlan, "Is Strategic Portfolio Management the Future of PPM?"

Only 2% of business leaders are confident that they will achieve 80% to 100% of their strategic objectives.
Source: Smith, 2022

Put strategic portfolio management in context

SPM is a new stage in the history of project portfolio management more generally. While it's emerging as a distinct capability, and it borrows from capabilities beyond PPM, unpacking its distinctiveness is best done by first understanding its source.

Understand the recent triggers for strategic portfolio management

Triggers for the emergence of strategic portfolio management in the discourse include the pace of technology-introduced change, the waning of enterprise project management, and challenges around enterprise PPM tool adoption.

Spot the difference?

Scope, focus, and audience are just a few of the factors distinguishing what the market calls "SPM" from traditional PPM.

Project Portfolio Management Differentiator Strategic Portfolio Management
Work-Level (Tactical) Primary Orientation High-Level (Strategic)
CIO Accountable for Outcomes CxO
Project Manager Responsible for Outcomes Product Management Organization
Project Managers, PMO Staff Targeted Users Business Leaders, ePMO Staff
Project Portfolio(s) Essential Scope Multi-Portfolio (Project, Application, Product, Program, etc.)
IT Project Delivery and Business Results Delivery Core Focus Business Strategy and Change Delivery
Project Scope Change Impact Sensitivity Enterprise Scope
IT and/or Business Benefit Language of Value Value Stream
Project Timelines Main View Strategy Roadmaps
Resource Capacity Primary Currency Money
Work-Assignment Details Modalities of Planning Value Milestones & OKRs
Work Management Modalities of Execution Governance (Project, Product, Strategy, Program, etc.)
Project Completion Definitions of "Done" Business Capability Realization

Info-Tech Insight
The distinction between the two capabilities is not necessarily as black and white as the table above would have it (some "PPM" tools offer what we're identifying above as "SPM" capabilities), but it can be helpful to think in these binaries when trying to distinguish the two capabilities. At the very least, SPM broadens its scope to target more executive and business users, and functions best when it's speaking at a higher level, to a business audience.

Strategic portfolio management offers a more holistic view of the enterprise

At its best, strategic portfolio management can accommodate various paradigms of work management and incorporate different types of portfolio management.

Perhaps the biggest evolution from traditional PPM that strategic portfolio management promises is that it casts a wider net in terms of the types of work it tracks (and how it tracks that work) and the types of portfolios it accommodates.

Not bound to the concepts of "projects" and a "project portfolio" specifically, SPM broadens its scope to encompass capabilities like product and product portfolio management, enterprise architecture management, security and risk management, and more.

  • Where a PPM solution only shows one piece of the puzzle, SPM looks at the entire investment ecosystem, tracking strategic goals, the ideas generated to help achieve those goals, and all the various kinds of investments made in the service of those goals.
  • what's more, where traditional PPM tools required users to adhere to a certain way of working and managing tasks, SPM is more flexible, relying on integrations across various ways of working to provide higher-level insight on the progress of work and the achievement of goals.

Deliver business strategy and change effectively

Info-Tech's Strategic Portfolio Management Framework

"An SPM tool will capture business strategy, business capabilities, operating models, the enterprise architecture and the project portfolio with unmatched visibility into how they all relate. This will give...a robust understanding of the impact of a proposed IT change " and enable IT and business to act like cocreators driving innovation."
– Paula Ziehr

You might need a strategic portfolio management tool if–

If you find yourself facing any of these situations, it might be time to step away from your PPM tool and into an SPM approach:

  • Your organization is facing a large implementation that will cross multiple departmental units and requires alignment across senior leadership (e.g. a digital transformation initiative).
  • You currently have disparate systems tracking different portfolios (project, product, applications, etc.) and types of investments, but lack insight into the whole in terms of how work efforts and investments tie back to strategy realization.
  • You are an ePMO or a strategy realization office that doesn't manage work necessarily, but that rather ensures that the work, assets, and capabilities that are funded connect to strategy and drive the realization of strategy.

Sixty one percent of leaders acknowledge their companies struggle to bridge the gap between creating a strategy and executing on that strategy.
Source: StrategyBlocks, 2020

Get to know your strategic portfolio management stakeholders

In terms of users, SPM's focus is further up the org chart than most applications, relying on high-level but usable outputs to help drive decision making.

ePMO or Strategy Realization Office Senior Leadership and Executive Stakeholders Business Leads and IT Directors and Managers
SPM tools are best facilitated through enterprise PMOs or strategy realization offices. After all, in enterprises, these are the entities charged with the planning, execution, and tracking of strategy.

Their roles within the tool typically entail:

  • Helping to facilitate processes and collect data.
  • Data quality and curation.
  • Report distribution and consumption.
 As those with the accountability and authority to drive the organization's strategy, you could argue that these stakeholders are the primary stakeholders for an SPM tool.

Their roles within the tool typically entail:

  • Using strategy map and ideation functionalities.
  • Using reports to steward strategy realization.
 SPM targets more business users as well as senior IT managers and directors.

Their roles within the tool typically entail:

  • Using strategy map and ideation functionalities.
  • Providing updates to ePMOs on progress.

What should you look for in a strategic portfolio management tool? (1 of 2)

Standard features for SPM include:

Name Description
Analytics and Reporting SPM should provide access to real-time dashboards and data interpretation, which can be exported as reports in a range of formats.
Strategy Mapping and Road Mapping SPM should provide access to up-to-date timeline views of strategies and initiatives, including the ability to map such things as dependencies, market needs, funding, priorities, governance, and accountabilities.
Value Tracking and Measurement SPM should include the ability to forecast, track, and measure return on investment for strategic investments. This includes accommodations for various paradigms of value delivery (e.g. traditional value delivery and measurement, OKRs, as well as value mapping and value streams).
Ideation and Innovation Management SPM should include the ability to facilitate innovation management processes across the organization, including the ability to support stage gates from ideation through to approval; to articulate, socialize, and test ideas; perform impact assessments; create value canvas and OKR maps; and prioritize.
Multi-Portfolio Management SPM should include the ability to perform various modalities of portfolio management and portfolio optimization, including project portfolio management, applications portfolio management, asset portfolio management, etc.
Interoperability/APIs An SPM tool should enable seamless integration with other applications for data interoperability.

What should you look for in a strategic portfolio management tool? (2 of 2)

Advanced features for SPM can include:

Name Description
Product Management SPM can include product-management-specific functionality, including the ability to connect product families, roadmaps, and backlogs to enterprise goals and priorities, and track team-level activities at the sprint, release, and campaign levels.
Enterprise Architecture Management SPM can include the ability to define and map the structure and operation of an organization in order to effectively coordinate various domains of architecture and governance (e.g. business architecture, data architecture, application architecture, security architecture, etc.) in order to effectively plan and introduce change.
Security and Risk Management SPM can include the ability to identify and track enterprise risks and ensure compliance controls are met.
Lean Portfolio Management SPM can include the ability to plan and report on portfolio performance independent from task level details of product, program, or project delivery.
Investment and Financial Management SPM can include the ability to forecast, track, and report on financials at various levels (strategy, product, program, project, etc.).
Multi-Methodology Delivery SPM can include the ability to plan and execute work in a way that accommodates various planning and delivery paradigms (predictive, iterative, Kanban, lean, etc.).

What's promising within the space?

As this space continues to stabilize, the following are some promising associations for business and IT enablement.

1. SPM accommodates various ways of working.
  • Where traditional PPM and work management tools required that users change their processes and tasking paradigms to fit within the tool's rigid task management and data structures, the best SPM tools are those that are adaptable to various ways of working and can accommodate many tasking and work management models.
  • Sometimes this is done through extensive integrations and APIs that pull data from existing work management applications into a single view within the SPM tool, and other times, this is done by abstracting the task-level details into a higher-level reporting structure (it can depend on the solution). In any event, the best SPMs are bound to one work management model.
2. SPM puts the focus on value and change.
  • With its focus on the planning and execution of strategy, SPM can't avoid putting a spotlight on value and value realization. The best SPM tools include the ability to forecast, track, and measure return on investment for strategic investments, and they accommodate for various paradigms of value delivery (e.g. traditional value delivery and measurement, OKRs, as well as value mapping and value streams).
  • Of course, you can't realize value without successfully fostering change. And while SPM tools don't necessarily offer functionality explicitly identifiable as organizational change management, they can act as agents of change in putting the spotlight on the execution of change at the executive level.
3. SPM fosters a coherent approach to demand management.
  • With its goal of ensuring that strategy informs the organization of portfolios and guides the selection of projects and delivery of products, SPM can potentially bring some order to what is often a chaotic demand-management landscape, ensuring that planned and in-progress work is well justified from an ROI perspective.

What's of concern within the space?

As a progeny from other capabilities, SPM has some risks and connotations potential users should be wary of.

1. The space is rife with IT buzzwords and, as a concept, is sometimes used as a repackaging of failing concepts.
  • You don't need to spend too much time engaging with the literature around SPM before you notice the marketing appeals heavily to concepts like "digitalization," "digital transformation," "continual innovation," "agility/Agile," and the like. While these are all important concepts, and the pursuit of them is worthwhile in many cases, there's no denying they're used as consultant and vendor buzzwords, deployed to excite our imaginations, without necessarily providing much meat around what they mean or how they're deployed and successfully sustained.
  • Indeed, many concepts and capabilities that appear in relation to SPM are on the downward swing of industry hype cycles, suggesting that SPM may be being used by vendors and consultants as another attempt to repackage and capitalize on these concepts even as practitioners grow weary and suspicious of the marketing claims built up around them.
2. Some solutions that identify as SPM are not.
  • Because it's on the upward swing of its place in the hype cycle, many established PPM and service management vendors are applying the 'strategic portfolio management" label to their products without necessarily doing anything different from a functionality perspective to fit within the space. As a result, SPM vendor landscapes can compare work management, project management, demand management tools, and more. Users who want SPM functionality need to stay frosty to ensure they get what they pay for.
3. SPM tools may have a capacity blind spot.
  • The biggest barrier to getting things done and done well in modern enterprises is approving more work than you have the capacity to deliver. While SPM offerings can help with better demand management, not many of them cover the capacity side with the same level of improvement.

Does your organization need a strategic portfolio management tool?

Use Info-Tech's Strategic Portfolio Management Needs Assessment to gauge your readiness for SPM.

  • As noted in previous places in this deck, there is often a grey area in the market between project portfolio management tools and strategic portfolio management tools.
  • Some PPM tools offer SPM functionality, while some SPM tools avoid traditional PPM outcomes and stay at a higher, strategic level.
  • Depending on the scope of your PMO or portfolio optimization needs, you may need a tool that has just one, or both, of these capabilities.
  • Use Info-Tech's Strategic Portfolio Management Needs Assessment to help you assess whether you require a high-level strategy management tool, a more low-level project portfolio management tool, or a mix of both.

Download Info-Tech's Strategic Portfolio Management Needs Assessment

1.1 Assess your needs

10 to 20 minutes

  1. The Strategic Portfolio Management Needs Assessment is a 41-question survey broken up into three parts: (1) PMO Type, (2) Features and Functionality, (3) Roles.
  2. Go through each section using the provided dropdowns to help identify the orientation of your PMO, the feature and functionality needs of your office, as well as the roles whose needs will need to be serviced through the potential tool implementation.

This screenshot shows a sample output from the assessment. Based upon your inputs, you'll be grouped within three ranges:

  1. Green: Based upon your inputs, you will benefit from an SPM tool.
  2. Yellow: You may benefit from an SPM tool, but you may also require something more traditional. Clarify your requirements before proceeding.
  3. Red: you're unlikely to leverage many of the benefits of an SPM tool at this time. Look for a more tactical solution.

Sample Output from the assessment tool

Input Output
  • Understanding of existing project management, project portfolio management, and work management applications.
  • Recommendation on PPM/SPM tool type
Materials Participants
  • Strategic Portfolio Management Needs Assessment tool
  • Portfolio managers and/or ePMO directors
  • Project managers and product managers
  • Business stakeholders

Explore the SPM vendor landscape

Use Info-Tech's application selection resources to help find the right solution for your organization.

If the analysis in the previous slides suggested you can benefit from an SPM tool, you can quick-start your vendor evaluation process with SoftwareReviews.

SoftwareReviews has extensive coverage of not just the SPM space, but of the project portfolio management (pictured to the top right) and project management spaces as well. So, from the tactical to the strategic, SoftwareReviews can help you find the right tools.

Further, as you settle in on a shortlist, you can begin your vendor analysis using our rapid application selection methodology (see framework on bottom right). For more information see our The Rapid Application Selection Framework blueprint.

Info-Tech's Rapid Application Selection Framework

Info-Tech's Rapid Application Selection Framework (RASF)

Related Info-Tech Research

Develop a Project Portfolio Management Strategy
Drive IT project throughput by throttling resource capacity.

Prepare an Actionable Roadmap for your PMO
Turn planning into action with a realistic PMO timeline.

Maintain an Organized Portfolio
Align portfolio management practices with COBIT (APO05: Manage Portfolio)

Bibliography

Angliss, Katy, and Pete Harpum. Strategic Portfolio Management: In the Multi-Project and Program Organization. Book. Routledge. 30 Dec. 2022.

Anthony, James. "95 Essential Project Management Statistics: 2022 Market Share & Data Analysis." Finance Online. 2022. Web. Accessed 21 March 2022

Banham, Craig. "Integrating strategic planning with portfolio management." Sopheon. Webinar. Accessed 6 Feb. 2023.

Garfein, Stephen J. "Executive Guide to Strategic Portfolio Management: roadmap for closing the gap between strategy and results." PMI. Conference Paper. Oct. 2007. Accessed 6 Feb. 2023.

Garfein, Stephen J. "Strategic Portfolio Management: A smart, realistic and relatively fast way to gain sustainable competitive advantage." PMI. Conference Paper. 2 March 2005. Accessed 6 Feb. 2023.

Hontar, Yulia. "Strategic Portfolio Management." PPM Express. Blog 16 June 2022. Accessed 6 Feb. 2023.

Milsom, James. "6 Strategic Portfolio Management Trends for 2023." i-nexus. Blog. 25 Jan. 2022. Accessed 6 Feb. 2023.

Milsom, James. "Strategic Portfolio Management 101." i-nexus. 8 Dec. 2021. Blog . Accessed 6 Feb. 2023.

OnePlan, "Is Strategic Portfolio Management the Future of PPM?" YouTube. 17 Nov. 2022. Accessed 6 Feb. 2023.

OnePlan. "Strategic Portfolio Management for Enterprise Agile." YouTube. 27 May 2022. Accessed 6 Feb. 2023.

Piechota, Frank. "Strategic Portfolio Management: Enabling Successful Business Outcomes." Shibumi. Blog . 31 May 2022. Accessed 6 Feb. 2023.

ServiceNow. "Strategic Portfolio Management—The Thing You've Been Missing." ServiceNow. Whitepaper. 2021. Accessed 6 Feb. 2023.

Smith, Shepherd, "50+ Eye-Opening Strategic Planning Statistics" ClearPoint Strategy. Blog. 13 Sept. 2022. Accessed 6 Feb. 2023.

SoftwareAG. "What is Strategic Portfolio Management (SPM)?" SoftwareAG. Blog. Accessed 6 Feb. 2023.

Stickel, Robert. "What It Means to be Adaptive." OnePlan. Blog. 24 May 2021. Accessed 6 Feb. 2023.

UMT360. "What is Strategic Portfolio Management?" YouTube. Webinar. 22 Oct. 2020. Accessed 6 Feb. 2023.

Wall, Caroline. "Elevating Strategy Planning through Strategic Portfolio Management." StrategyBlocks. Blog. 26 Feb. 2020. Accessed 6 Feb. 2023.

Westmoreland, Heather. "What is Strategic Portfolio Management." Planview. Blog. 19 Oct 2002. Accessed 6 Feb. 2023.

Wiltshire, Andrew. "Shibumi Included in Gartner Magic Quadrant for Strategic Portfolio Management for the 2nd Straight Year." Shibumi. Blog. 20 Apr. 2022. Accessed 6 Feb. 2023.

Ziehr, Paula. "Keep your eye on the prize: Align your IT investments with business strategy." SoftwareAG. Blog. 5 Jul. 2022. Accessed 6 Feb. 2023.

Incident Management for Small Enterprise

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  • Parent Category Name: Incident & Problem Management
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  • Technical debt and disparate systems are big constraints for most small enterprise (SE) organizations. What may have worked years ago is no longer fit for purpose or the business is growing faster than the current tools in place can handle.
  • Super specialization of knowledge is also a common factor in smaller teams caused by complex architectures. While helpful, if that knowledge isn’t documented it can walk out the door with the resource and the rest of the team is left scrambling.
  • Lessons learned may be gathered for critical incidents but often are not propagated, which impacts the ability to solve recurring incidents.
  • Over time, repeated incidents can have a negative impact on the customer’s perception that the service desk is a credible and essential service to the business.

Our Advice

Critical Insight

  • Go beyond the blind adoption of best-practice frameworks. No simple formula exists for improving incident management maturity. Identify the challenges in your incident lifecycle and draw on best-practice frameworks pragmatically to build a structured response to those challenges.
  • Track, analyze, and review results of incident response regularly. Without a comprehensive understanding of incident trends and patterns you can be susceptible to recurring incidents that increase in damage over time. Make the case for problem management, and successfully reduce the volume of unplanned work by scheduling it into regular IT activity.
  • Recurring incidents will happen; use runbooks for a consistent response each time. Save your organization response time and confusion by developing your own specific incident use cases. Incident response should follow a standard process, but each incident will have its own escalation process or call tree that identifies key participants.

Impact and Result

  • Effective and efficient management of incidents involves a formal process of identifying, classifying, categorizing, responding, resolving, and closing of each incident. The key for smaller organizations, where technology or resources is a constraint, is to make the best practices usable for your unique environment.
  • Develop a plan that aligns with your organizational needs, and adapt best practices into light, sustainable processes, with the goal to improve time to resolve, cost to serve, and ultimately, end-user satisfaction.
  • Successful implementation of incident management will elevate the maturity of the service desk to a controlled state, preparing you for becoming proactive with problem management.

Incident Management for Small Enterprise Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should implement incident management, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Identify and log incidents

This phase will provide an overview of the incident lifecycle and an activity on how to classify the various types of incidents in your environment.

  • Service Desk Standard Operating Procedure
  • Incident Management Workflow Library (Visio)
  • Incident Management Workflow Library (PDF)

2. Prioritize and define SLAs

This phase will help you develop a categorization scheme for incident handling that ensures success and keeps it simple. It will also help you identify the most important runbooks necessary to create first.

  • Service Desk Ticket Categorization Schemes
  • IT Incident Runbook Prioritization Tool
  • IT Incident Management Runbook Blank Template

3. Respond, recover, and close incidents

This phase will help you identify how to use a knowledgebase to resolve incidents quicker. Identify what needs to be answered during a post-incident review and identify the criteria needed to invoke problem management.

  • Knowledgebase Article Template
  • Root-Cause Analysis Template
  • Post-Incident Review Questions Tracking Tool
[infographic]

Workshop: Incident Management for Small Enterprise

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Assess the Current State

The Purpose

Assess the current state of the incident management lifecycle within the organization.

Key Benefits Achieved

Understand the incident lifecycle and how to classify them in your environment.

Identify the roles and responsibilities of the incident response team.

Document the incident workflows to identify areas of opportunities.

Activities

1.1 Outline your incident lifecycle challenges.

1.2 Identify and classify incidents.

1.3 Identify roles and responsibilities for incident handling.

1.4 Design normal and critical incident workflows for target state.

Outputs

List of incident challenges for each phase of the incident lifecycle

Incident classification scheme mapped to resolution team

RACI chart

Incident Workflow Library

2 Define the Target State

The Purpose

Design or improve upon current incident and ticket categorization schemes, priority, and impact.

Key Benefits Achieved

List of the most important runbooks necessary to create first and a usable template to go forward with

Activities

2.1 Improve incident categorization scheme.

2.2 Prioritize and define SLAs.

2.3 Understand the purpose of runbooks and prioritize development.

2.4 Develop a runbook template.

Outputs

Revised ticket categorization scheme

Prioritization matrix based on impact and urgency

IT Incident Runbook Prioritization Tool

Top priority incident runbook

3 Bridge the Gap

The Purpose

Respond, recover, and close incidents with root-cause analysis, knowledgebase, and incident runbooks.

Key Benefits Achieved

This module will help you to identify how to use a knowledgebase to resolve quicker.

Identify what needs to be answered during a post-incident review.

Identify criteria to invoke problem management.

Activities

3.1 Build a targeted knowledgebase.

3.2 Build a post-incident review process.

3.3 Identify metrics to track success.

3.4 Build an incident matching process.

Outputs

Working knowledgebase template

Root-cause analysis template and post-incident review checklist

List of metrics

Develop criteria for problem management

Prevent Data Loss Across Cloud and Hybrid Environments

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  • Parent Category Name: Governance, Risk & Compliance
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  • Organizations are often beholden to compliance obligations that require protection of sensitive data.
  • All stages of the data lifecycle exist in the cloud and all stages provide opportunity for data loss.
  • Organizations must find ways to mitigate insider threats without impacting legitimate business access.

Our Advice

Critical Insight

  • Data loss prevention is the outcome of a well-designed strategy that incorporates multiple, sometimes disparate, tools within your existing security program.
  • The journey to data loss prevention is complex and should be taken in small and manageable steps.

Impact and Result

  • Organizations will achieve data comprehension.
  • Organizations will align DLP with their current security program and architecture.
  • A DLP strategy will be implemented with a distinct goal in mind.

Prevent Data Loss Across Cloud and Hybrid Environments Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Prevent Data Loss Across Cloud and Hybrid Environments Storyboard – A guide to handling data loss prevention in cloud services.

This research describes an approach to strategize and implement DLP solutions for cloud services.

  • Prevent Data Loss Across Cloud and Hybrid Environments Storyboard

2. Data Loss Prevention Strategy Planner – A workbook designed to guide you through identifying and prioritizing your data and planning what DLP actions should be applied to protect that data.

Use this tool to identify and prioritize your data, then use that information to make decisions on DLP strategies based on classification and data environment.

  • Data Loss Prevention Strategy Planner
[infographic]

Further reading

Prevent Data Loss Across Cloud and Hybrid Environments

Leverage existing tools and focus on the data that matters most to your organization.

Analyst Perspective

Data loss prevention is an additional layer of protection

Driven by reduced operational costs and improved agility, the migration to cloud services continues to grow at a steady rate. A recent report by Palo Alto Networks indicates workload in the cloud increased by 13% last year, and companies are expecting to move an additional 11% of their workload to the cloud in the next 24 months1.

However, moving to the cloud poses unique challenges for cyber security practitioners. Cloud services do not offer the same level of management and control over resources as traditional IT approaches. The result can be reduced visibility of data in cloud services and reduced ability to apply controls to that data, particularly data loss prevention (DLP) controls.

It’s not unusual for organizations to approach DLP as a point solution. Many DLP solutions are marketed as such. The truth is, DLP is a complex program that uses many different parts of an organization’s security program and architecture. To successfully implement DLP for data in the cloud, an organization should leverage existing security controls and integrate DLP tools, whether newly acquired or available in cloud services, with its existing security program.

Photo of Bob Wilson
Bob Wilson
CISSP
Research Director, Security and Privacy
Info-Tech Research Group

Executive Summary

Your Challenge

Organizations must prevent the misuse and leakage of data, especially sensitive data, regardless of where it’s stored.

Organizations often have compliance obligations requiring protection of sensitive data.

All stages of the data lifecycle exist in the cloud and all stages provide opportunity for data loss.

Organizations must find ways to mitigate insider threats without impacting legitimate business access.

Common Obstacles

Many organizations must handle a plethora of data in multiple varied environments.

Organizations don’t know enough about the data they use or where it is located.

Different systems offer differing visibility.

Necessary privileges and access can be abused.

Info-Tech’s Approach

The path to data loss prevention is complex and should be taken in small and manageable steps.

First, organizations must achieve data comprehension.

Organizations must align DLP with their current security program and architecture.

Organizations need to implement DLP with a distinct goal in mind.

Once the components are in place it’s important to measure and improve.

Info-Tech Insight

Data loss prevention is the outcome of a well-designed strategy that incorporates multiple, sometimes disparate, tools within your existing security program.

Your challenge

Protecting data is a critical responsibility for organizations, no matter where it is located.

45% of breaches occurred in the cloud (“Cost of a Data Breach 2022,” IBM Security, 2022).

A diagram that shows the mean time to detect and contain.

It can take upwards of 12 weeks to identify and contain a breach (“Cost of a Data Breach 2022,” IBM Security, 2022).

  • Compliance obligations will require organizations to protect certain data.
  • All data states can exist in the cloud, and each state provides a unique opportunity for data loss.
  • Insider threats, whether intentional or not, are especially challenging for organizations. It’s necessary to prevent illicit data use while still allowing work to happen.

Info-Tech Insight

Data loss prevention doesn’t depend on a single tool. Many of the leading cloud service providers offer DLP controls with their services and these controls should be considered.

Common obstacles

As organizations increasingly move data into the cloud, their environments become more complex and vulnerable to insider threats

  • It’s not uncommon for an organization not to know what data they use, where that data exists, or how they are supposed to protect it.
  • Cloud systems, especially software as a service (SaaS) applications, may not provide much visibility into how that data is stored or protected.
  • Insider threats are a primary concern, but employees must be able to access data to perform their duties. It isn’t always easy to strike a balance between adequate access and being too restrictive with controls.

Insider threats are a significant concern

53%

53% of a study’s respondents think it is more difficult to detect insider threats in the cloud.

Source: "2023 Insider Threat Report," Cybersecurity Insiders, 2023

45%

Only about 45% of organizations think native cloud app functionality is useful in detecting insider threats.

Source: "2023 Insider Threat Report," Cybersecurity Insiders, 2023

Info-Tech Insight

An insider threat management (ITM) program focuses on the user. DLP programs focus on the data.

Insight summary

DLP is not just a single tool. It’s an additional layer of security that depends on different components of your security program, and it requires time and effort to mature.

Organizations should leverage existing security architecture with the DLP controls available in the cloud services they use.

Data loss prevention is not a point solution

Data loss prevention is the outcome of a well-designed strategy that incorporates multiple, sometimes disparate tools within your existing security program.

Prioritize data

Start with the data that matters most to your organization.

Define an objective

Having a clearly defined objective will make implementing a DLP program much easier.

DLP is a layer

Data loss prevention is not foundational, and it depends on many other parts of a mature information security program.

The low hanging fruit is sweet

Start your DLP implementation with a quick win in mind and build on small successes.

DLP is a work multiplier

Your organization must be prepared to investigate alerts and respond to incidents.

Prevent data loss across cloud or hybrid environments

A diagram that shows preventing data loss across cloud or hybrid environments

Data loss prevention is not a point solution.
It’s the outcome of a well-designed strategy that incorporates multiple, sometimes disparate tools within your existing security program.

Info-Tech Insight

Leverage existing security tools where possible.

Data loss prevention (DLP) overview

DLP is an additional layer of security.

DLP is a set of technologies and processes that provides additional data protection by identifying, monitoring, and preventing data from being illicitly used or transmitted.

DLP depends on many components of a mature security program, including but not limited to:

  • Acceptable use policy
  • Data classification policy and data handling guidelines
  • Identity and access management

DLP is achieved through some or all of the following tactics:

  • Identify: Data is detected using policies, rules, and patterns.
  • Monitor: Data is flagged and data activity is logged.
  • Prevent: Action is taken on data once it has been detected.

Info-Tech Insight

DLP is not foundational. Your information security program needs to be moderately mature to support a DLP strategy.

DLP approaches and methods

DLP uses a handful of techniques to achieve its tactics:

  • Policy and access rights: Limits access to data based on user permissions or other contextual attributes.
  • Isolation or virtualization: Data is isolated in an environment with channels for data leakage made unavailable.
  • Cryptographic approach: Data is encrypted.
  • Quantifying and limiting: Use or transfer of data is restricted by quantity.
  • Social and behavioral analysis: The DLP system detects anomalous activity, such as users accessing data outside of business hours.
  • Pattern matching: Data content is analyzed for specific patterns.
  • Data mining and text clustering: Large sets are analyzed, typically with machine learning (ML), to identify patterns.
  • Data fingerprinting: Data files are matched against a pre-calculated hash or based on file contents.
  • Statistical Analysis: Data content is analyzed for sensitive data. Usually involves machine learning.


DLP has two primary approaches for applying techniques:

  • Content-based: Data is identified through inspecting its content. Fingerprinting and pattern matching are examples of content-based methods.
  • Context-based: Data is identified based on its situational or contextual attributes. Some factors that may be used are source, destination, and format.

Some DLP tools use both approaches.

Info-Tech Insight

Different DLP products will support different methods. It is important to keep these in mind when choosing a DLP solution.

Start by defining your data

Define data by answering the 5 “W”s

Who? Who owns the data? Who needs access? Who would be impacted if it was lost?
What? What data do you have? What type of data is it? In what format does it exist?
When? When is the data generated? When is it used? When is it destroyed?
Where? Where is the data stored? Where is it generated? Where is it used?
Why? Why is the data needed?

Use what you discover about your data to create a data inventory!

Compliance requirements

Compliance requirements often dictate what must be done to manage and protect data and vary from industry to industry.

Some examples of compliance requirements to consider:

  • Healthcare - Health Insurance Portability and Accountability Act (HIPAA)
  • Financial Services - Gramm-Leach-Bliley Act (GLBA)
  • Payment Card Industry Data Security Standards (PCI DSS)

Info-Tech Insight

Why is especially important. If you don’t need a specific piece of data, dispose of it to reduce risk and administrative overhead related to maintaining or protecting data.

Classify your data

Data classification facilitates making decisions about how data is treated.

Data classification is a process by which data is categorized.

  • The classifications are often based on the sensitivity of the data or the impact a loss or breach of that data would have on the organization.
  • Data classification facilitates decisions about data handling and how information security controls are implemented. Instead of considering many different types of data individually, decisions are based on a handful of classification levels.
  • A mature data classification should include a formalized policy, handling standards, and a steering committee.

Refer to our Discover and Classify Your Data blueprint for guidance on data classification.

Sample data classification schema

Label

Category
Top Secret Data that is mission critical and highly likely to negatively impact the organization if breached. The “crown jewels.”
Examples: Trade secrets, military secrets
Confidential Data that must not be disclosed, either because of a contractual or regulatory requirement or because of its value to the organization.
Examples: Payment card data, private health information, personally identifiable information, passwords
Internal Data that is intended for organizational use, which should be kept private.
Examples: Internal memos, sales reports
Limited Data that isn’t generally intended for public consumption but may be made public.
Examples: Employee handbooks, internal policies
Public Data that is meant for public consumption and anonymous access.
Examples: Press releases, job listings, marketing material

Info-Tech Insight

Data classification should be implemented as a continuous program, not a one-time project.

Understand data risk

Knowing where and how your data is at risk will inform your DLP strategy.

Data exists in three states, and each state presents different opportunities for risk. Different DLP methodologies will be appropriate for different states.

Data states

In use

  • End-user devices
  • Mobile devices
  • Servers

In motion

  • Cloud services
  • Email
  • Web/web apps
  • Instant messaging
  • File transfers

At rest

  • Cloud services
  • Databases
  • End-user devices
  • Email archives
  • Backups
  • Servers
  • Physical storage devices

Causes of Risk

The most common causes of data loss can be categorized by people, processes, and technology.

A diagram that shows the categorization of causes of risk.

Check out our Combine Security Risk Management Components Into One Program blueprint for guidance on risk management, including how to do a full risk assessment.

Prioritize your data

Know what data matters most to your organization.

Prioritizing the data that most needs protection will help define your DLP goals.

The prioritization of your data should be a business decision based on your comprehension of the data. Drivers for prioritizing data can include:

  • Compliance-driven: Noncompliance is a risk in itself and your organization may choose to prioritize data based on meeting compliance requirements.
  • Audit-driven: Data can be prioritized to prepare for a specific audit objective or in response to an audit finding.
  • Business-driven: Data could be prioritized based on how important it is to the organization’s business processes.

Info-Tech Insight

It’s not feasible for most organizations to apply DLP to all their data. Start with the most important data.

Activity: Prioritize your data

Input: Lists of data, data types, and data environments
Output: A list of data types with an estimated priority
Materials: Data Loss Prevention Strategy Planner worksheet
Participants: Security leader, Data owners

1-2 hours

For this activity, you will use the Data Loss Prevention Strategy Planner workbook to prioritize your data.

  1. Start with tab “2. Setup” and fill in the columns. Each column features a short explanation of itself, and the following slides will provide more detail about the columns.
  2. On tab “3. Data Prioritization,” work through the rows by selecting a data type and moving left to right. This sheet features a set of instructions at the top explaining each column, and the following slides also provide some guidance. On this tab, you may use data types and data environments multiple times.

Click to download the Data Loss Prevention Strategy Planner

Activity: Prioritize your data

In the Data Loss Prevention Strategy Planner tool, start with tab “2. Setup.”

A diagram that shows tab 2 setup

Next, move to tab “3. Data Prioritization.”

A diagram that shows tab 3 Data Prioritization.

Click to download the Data Loss Prevention Strategy Planner

Determine DLP objectives

Your DLP strategy should be able to function as a business case.

DLP objectives should achieve one or more of the following:

  • Prevent disclosure or unauthorized use of data, regardless of its state.
  • Preserve usability while providing adequate security.
  • Improve security, privacy, and compliance capabilities.
  • Reduce overall risk for the enterprise.

Example objectives:

  • Prevent users from emailing ePHI to addresses outside of the organization.
  • Detect when a user is uploading an unusually large amount of data to a cloud drive.

Most common DLP use cases:

  • Protection of data, primarily from internal threats.
  • Meet compliance requirements to protect data.
  • Automate the discovery and classification of data.
  • Provide better data management and visibility across the enterprise.
  • Manage and protect data on mobile devices.

Info-Tech Insight

Having a clear idea of your objectives will make implementing a DLP program easier.

Align DLP with your existing security program/architecture

DLP depends on many different aspects of your security program.
To the right are some components of your existing security program that will support DLP.


1. Data handling standards or guidelines: These specify how your organization will handle data, usually based on its classification. Your data handling standards will inform the development of DLP rules, and your employees will have a clear idea of data handling expectations.

2. Identity and access management (IAM): IAM will control the access users have to various resources and data and is integral to DLP processes.

3. Incident response policy or plan: Be sure to consider your existing incident handling processes when implementing DLP. Modifying your incident response processes to accommodate alerts from DLP tools will help you efficiently process and respond to incidents.

4. Existing security tools: Firewalls, email gateways, security information and event management (SIEM), and other controls should be considered or leveraged when implementing a DLP solution.

5. Acceptable use policy: An organization must set expectations for acceptable/unacceptable use of data and IT resources.

6. User education and awareness: Aside from baseline security awareness training, organizations should educate users about policies and communicate the risks of data leakage to reduce risk caused by user error.

Info-Tech Insight

Consider DLP as a secondary layer of protection; a safety net. Your existing security program should do most of the work to prevent data misuse.

Cloud service models

A fundamental challenge with implementing DLP with cloud services is the reduced flexibility that comes with managing less of the technology stack. Each cloud model offers varying levels of abstraction and control to the user.

Infrastructure as a service (IaaS): This service model provides customers with virtualized technology resources, such as servers and networking infrastructure. IaaS allows users to have complete control over their virtualized infrastructure without needing to purchase and maintain hardware resources or server space. Popular examples include Amazon Web Servers, Google Cloud Engine, and Microsoft Azure.

Platform as a service (PaaS): This service model provides users with an environment to develop and manage their own applications without needing to manage an underlying infrastructure. Popular examples include Google Cloud Engine, OpenShift, and SAP Cloud.

Software as a service (SaaS): This service model provides customers with access to software that is hosted and maintained by the cloud provider. SaaS offers the least flexibility and control over the environment. Popular examples include Salesforce, Microsoft Office, and Google Workspace.

A diagram that shows cloud models, including IaaS, PaaS, and SaaS.

Info-Tech Insight

Cloud service providers may include DLP controls and functionality for their environments with the subscription. These tools are usually well suited for DLP functions on that platform.

Different DLP tools

DLP products often fall into general categories defined by where those tools provide protection. Some tools fit into more than one category.

Cloud DLP refers to DLP products that are designed to protect data in cloud environments.

  • Cloud access security broker (CASB): This system, either in-cloud or on-premises, sits between cloud service users and cloud service providers and acts as a point of control to enforce policies on cloud-based resources. CASBs act on data in motion, for the most part, but can detect and act on data at rest through APIs.
  • Existing tools integrated within a service: Many cloud services provide DLP tools to manage data loss in their service.

Endpoint DLP: This DLP solution runs on an endpoint computing device and is suited to detecting and controlling data at rest on a computer as well as data being uploaded or downloaded. Endpoint DLP would be feasible for IaaS.

Network DLP: Network DLP, deployed on-premises or as a cloud service, enforces policies on network flows between local infrastructure and the internet.

  • “Email DLP”: Detects and enforces security policies specifically on data in motion as emails.

A diagram of CASB

Choosing a DLP solution

You will also find that some DLP solutions are better suited for some cloud service models than others.


DLP solution types that are better suited for SaaS: CASB and Integrated Tools

DLP solution types that are better suited for PaaS: CASB, Integrated Tools, Network DLP

DLP solution types that are better suited for IaaS: CASB, Integrated Tools, Network DLP, and Endpoint DLP

Your approach for DLP will vary depending on the data state you’ll be acting on and whether you are trying to detect or prevent.

A diagram that shows DLP tactics by approach and data state

Click to download the Data Loss Prevention Strategy Planner
Check the tab labeled “6. DLP Features Reference” for a list of common DLP features.

Activity: Plan DLP methods

Input: Knowledge of data states for data types
Output: A set of technical DLP policy rules for each data type by environment
Materials: The same Data Loss Prevention Strategy Planner worksheet from the earlier activity
Participants: Security leader, Data owners

1-2 hours

Continue with the same workbook used in the previous activity.

  1. On tab “4. DLP Methods,” indicate the expected data state the DLP control will act on. Then, select the type of DLP control your organization intends to use for that data type in that data environment.
  2. DLP actions are suggested based on the classification of the data type, but these may be overridden by manually selecting your preferred action.
  3. You will find more detail on this activity on the following slide, and you will find some additional guidance in the instructional text at the top of the worksheet.
  4. Once you have populated the columns on this worksheet, a summary of suggested DLP rules can be found on tab “5. Results.”

Click to download the Data Loss Prevention Strategy Planner

Activity: Plan DLP methods

Use tab “4. DLP Methods” to plan DLP rules and technical policies.

A diagram that shows tab 4 DLP Methods

See tab “5. Results” for a summary of your DLP policies.

A diagram that shows tab 5 Results.

Click to download the Data Loss Prevention Strategy Planner

Implement your DLP program

Take the steps to properly implement your DLP program

  1. It’s important to shift the culture. You will need leadership’s support to implement controls and you’ll need stakeholders’ participation to ensure DLP controls don’t negatively affect business processes.
  2. Integrate DLP tools with your security program. Most cloud service providers, like Amazon, Microsoft, and Google provide DLP controls in their native environment. Many of your other security controls, such as firewalls and mail gateways, can be used to achieve DLP objectives.
  3. DLP is best implemented with a crawl, walk, then run approach. Following change management processes can reduce friction.
  4. Communicating controls to users will also reduce friction.

A diagram of implementing DLP program

Info-Tech Insight

After a DLP program is implemented, alerts will need to be investigated and incidents will need a response. Be prepared for DLP to be a work multiplier!

Measure and improve

Metrics of effectiveness

DLP attempts to tackle the challenge of promptly detecting and responding to an incident.
To measure the effectiveness of your DLP program, compare the number of events, number of incidents, and mean time to respond to incidents from before and after DLP implementation.

Metrics that indicate friction

A high number of false positives and rule exceptions may indicate that the rules are not working well and may be interfering with legitimate use.
It’s important to address these issues as the frustration felt by employees can undermine the DLP program.

Tune DLP rules

Establish a process for routinely using metrics to tune rules.
This will improve performance and reduce friction.

Info-Tech Insight

Aside from performance-based tuning, it’s important to evaluate your DLP program periodically and after major system or business changes to maintain an awareness of your data environment.

Related Info-Tech Research

Photo of Discover and Classify Your Data

Discover and Classify Your Data

Understand where your data lives and who has access to it. This blueprint will help you develop an appropriate data classification system by conducting interviews with data owners and by incorporating vendor solutions to make the process more manageable and end-user friendly.

Photo of Identify the Components of Your Cloud Security Architecture

Identify the Components of Your Cloud Security Architecture

This blueprint and associated tools are scalable for all types of organizations within various industry sectors. It allows them to know what types of risk they are facing and what security services are strongly recommended to mitigate those risks.

Photo of Data Loss Prevention on SoftwareReviews

Data Loss Prevention on SoftwareReviews

Quickly evaluate top vendors in the category using our comprehensive market report. Compare product features, vendor strengths, user-satisfaction, and more.

Don’t settle for just any vendor – find the one you can trust. Use the Emotional Footprint report to see which vendors treat their customers right.

Research Contributors

Andrew Amaro
CSO and Founder
Klavan Physical and Cyber Security Services

Arshad Momin
Cyber Security Architect
Unicom Engineering, Inc.

James Bishop
Information Security Officer
StructureFlow

Michael Mitchell
Information Security and Privacy Compliance Manager
Unicom Engineering, Inc.

One Anonymous Contributor

Bibliography

Alhindi, Hanan, Issa Traore, and Isaac Woungang. "Preventing Data Loss by Harnessing Semantic Similarity and Relevance." jisis.org Journal of Internet Services and Information Security, 31 May 2021. Accessed 2 March 2023. https://jisis.org/wp-content/uploads/2022/11/jisis-2021-vol11-no2-05.pdf

Cash, Lauryn. "Why Modern DLP is More Important Than Ever." Armorblox, 10 June 2022. Accessed 10 February 2023. https://www.armorblox.com/blog/modern-dlp-use-cases/

Chavali, Sai. "The Top 4 Use Cases for a Modern Approach to DLP." Proofpoint, 17 June 2021. Accessed 7 February 2023. https://www.proofpoint.com/us/blog/information-protection/top-4-use-cases-modern-approach-dlp

Crowdstrike. "What is Data Loss Prevention?" Crowdstrike, 27 Sept. 2022. Accessed 6 Feb. 2023. https://www.crowdstrike.com/cybersecurity-101/data-loss-prevention-dlp/

De Groot, Juliana. "What is Data Loss Prevention (DLP)? Definition, Types, and Tips." Digital Guardian, 8 February 2023. Accessed 9 Feb. 2023. https://digitalguardian.com/blog/what-data-loss-prevention-dlp-definition-data-loss-prevention

Denise. "Learn More About DLP Key Use Cases." CISO Platform, 28 Nov. 2019. Accessed 10 February 2023. https://www.cisoplatform.com/profiles/blogs/learn-more-about-dlp-key-use-cases

Google. "Cloud Data Loss Prevention." Google Cloud Google, n.d. Accessed 7 Feb. 2023. https://cloud.google.com/dlp#section-6

Gurucul. "2023 Insider Threat Report." Cybersecurity Insiders, 13 Jan. 2023. Accessed 23 Feb. 2023. https://gurucul.com/2023-insider-threat-report

IBM Security. "Cost of a Data Breach 2022." IBM Security, 1 Aug. 2022. Accessed 13 Feb. 2023. https://www.ibm.com/downloads/cas/3R8N1DZJ

Mell, Peter & Grance, Tim. "The NIST Definition of Cloud Computing." NIST CSRC NIST, Sept. 2011. Accessed 7 Feb. 2023. https://csrc.nist.gov/publications/detail/sp/800-145/final

Microsoft. "Plan for Data Loss Prevention (DLP)." Microsoft 365 Solutions and Architecture Microsoft, 6 Feb. 2023. Accessed 14 Feb. 2023. https://learn.microsoft.com/en-us/microsoft-365/compliance/dlp-overview-plan-for-dlp

Nanchengwa, Christopher. "The Four Questions for Successful DLP Implementation." ISACA Journal ISACA, 1 Jan. 2019. Accessed 6 Feb. 2023. https://www.isaca.org/resources/isaca-journal/issues/2019/volume-1/the-four-questions-for-successful-dlp-implementation

Palo Alto Networks. "The State of Cloud Native Security 2023." Palo Alto Networks, 2 March 2023. Accessed 23 March 2023. https://www.paloaltonetworks.com/content/dam/pan/en_US/assets/pdf/reports/state-of-cloud-native-security-2023.pdf

Pritha. "Top Six Metrics for your Data Loss Prevention Program." CISO Platform, 27 Nov. 2019. Accessed 10 Feb. 2023. https://www.cisoplatform.com/profiles/blogs/top-6-metrics-for-your-data-loss-prevention-program

Raghavarapu, Mounika. "Understand DLP Key Use Cases." Cymune, 12 June 2021. Accessed 7 Feb. 2023. https://www.cymune.com/blog-details/DLP-key-use-cases

Sheela, G. P., & Kumar, N. "Data Leakage Prevention System: A Systematic Report." International Journal of Recent Technology and Engineering BEIESP, 30 Nov. 2019. Accessed 2 March 2023. https://www.ijrte.org/wp-content/uploads/papers/v8i4/D6904118419.pdf

Sujir, Shiv. "What is Data Loss Prevention? Complete Guide [2022]." Pathlock, 15 Sep. 2022. Accessed 7 February 2023. https://pathlock.com/learn/what-is-data-loss-prevention-complete-guide-2022/

Wlosinski, Larry G. "Data Loss Prevention - Next Steps." ISACA Journal, 16 Feb. 2018. Accessed 21 Feb. 2023. https://www.isaca.org/resources/isaca-journal/issues/2018/volume-1/data-loss-preventionnext-steps

Requirements Gathering

  • Buy Link or Shortcode: {j2store}49|cart{/j2store}
  • Related Products: {j2store}49|crosssells{/j2store}
  • member rating overall impact: 9.5/10
  • member rating average dollars saved: $33,901
  • member rating average days saved: 23
  • Parent Category Name: Project Portfolio Management and Projects
  • Parent Category Link: /ppm-and-projects
  • byline: Back to basics: before you build, know what they want.

The challenge

  • The number reason projects fail because from the outset, what people wanted was not clear.
  • Without proper due diligence, IT will deliver projects that fail to meet business expectations and fail to provide business value.
  • If you failed to accurately capture the needs and desires, your projects are set up for costly rework. That will hurt your business's financial performance and result in damage to your relationship with your business partners.
  • Even with requirements gathering processes in place, your business analysts may not have the required competencies to execute them.

Our advice

Insight

  • You need to gather requirements with your organizations' end-state in mind. That requires IT and business alignment.
  • You would be good to create a set of standard operating procedures around requirements gathering. But many companies fail to do so.
  • Bring standardization and conformity to your requirements gathering processes via a centralized center of excellence. That brings cohesion and uniformity to your practice.
  • It is critical that your business analysts have the necessary competencies to execute your processes and that they ask the right questions.

Impact and results 

  • Better requirements analysis will result in shorter cycle timed and reduced project rework and overhead.
  • You will enjoy better relationships with your business partners, greater stakeholder satisfaction, and gradually a better standing of IT.
  • Most importantly, the applications and systems you deliver will contain all must-haves and some nice-to-haves. Your minimal viable deliverable will start to create business value immediately.

The roadmap

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

Get started.

Read our executive brief to understand why you should invest in optimizing requirements gathering in your company. We show you how we can support you.

Build the target state

Fully understand the target needs of the requirements gathering process.

  • Build a Strong Approach to Business Requirements Gathering – Phase 1: Build the Target State for the Requirements Gathering Process (ppt)
  • Requirements Gathering SOP and BA Playbook (doc)
  • Requirements Gathering Maturity Assessment (xls)
  • Project Level Selection Tool (xls)
  • Business Requirements Analyst (doc)
  • Requirements Gathering Communication Tracking Template (xls)

Develop best practices to gather business requirements

  • Build a Strong Approach to Business Requirements Gathering – Phase 2: Define the Elicitation Process (ppt)
  • Business Requirements Document Template (xls)
  • Scrum Documentation Template (doc)

Analyze and validate requirements

Standardize your frameworks for analysis and validation of the business requirements

  • Build a Strong Approach to Business Requirements Gathering – Phase 3: Analyze and Validate Requirements (ppt)
  • Requirements Gathering Documentation Tool (xls)
  • Requirements Gathering Testing Checklist (doc)

Build your requirements gathering governance action plan

Formalize governance.

  • Build a Strong Approach to Business Requirements Gathering – Phase 4: Create a Requirements Governance Action Plan (ppt)
  • Requirements Traceability Matrix (xls)

 

 

Transition Projects Over to the Service Desk

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  • member rating overall impact: N/A
  • member rating average dollars saved: N/A
  • member rating average days saved: N/A
  • Parent Category Name: Service Desk
  • Parent Category Link: /service-desk
  • IT suffers from a lack of strategy and plan for transitioning support processes to the service desk.
  • Lack of effective communication between the project delivery team and the service desk, leads to an inefficient knowledge transfer to the service desk.
  • New service is not prioritized and categorized, negatively impacting service levels and end-user satisfaction.

Our Advice

Critical Insight

Make sure to build a strong knowledge management strategy to identify, capture, and transfer knowledge from project delivery to the service desk.

Impact and Result

  • Build touchpoints between the service desk and project delivery team and make strategic points in the project lifecycles to ensure service support is done effectively following the product launch.
  • Develop a checklist of action items on the initiatives that should be done following project delivery.
  • Build a training plan into the strategy to make sure service desk agents can handle tickets independently.

Transition Projects Over to the Service Desk Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Transition Projects Over to the Service Desk – A guideline to walk you through transferring project support to the service desk.

This storyboard will help you craft a project support plan to document information to streamline service support.

  • Transition Projects Over to the Service Desk Storyboard

2. Project Handover and Checklist – A structured document to help you record information on the project and steps to take to transfer support.

Use these two templates as a means of collaboration with the service desk to provide information on the application/product, and steps to take to make sure there are efficient service processes and knowledge is appropriately transferred to the service desk to support the service.

  • Project Handover Template
  • Service Support Transitioning Checklist
[infographic]

Further reading

Transition Projects Over to the Service Desk

Increase the success of project support by aligning your service desk and project team.

Analyst Perspective

Formalize your project support plan to shift customer service to the service desk.

Photo of Mahmoud Ramin, Senior Research Analyst, Infrastructure and Operations, Info-Tech Research Group

As a service support team member, you receive a ticket from an end user about an issue they’re facing with a new application. You are aware of the application release, but you don’t know how to handle the issue. So, you will need to either spend a long time investigating the issue via peer discussion and research or escalate it to the project team.

Newly developed or improved services should be transitioned appropriately to the support team. Service transitioning should include planning, coordination, and communication. This helps project and support teams ensure that upon a service failure, affected end users receive timely and efficient customer support.

At the first level, the project team and service desk should build a strategy around transitioning service support to the service desk by defining tasks, service levels, standards, and success criteria.

In the second step, they should check the service readiness to shift support from the project team to the service desk.

The next step is training on the new services via efficient communication and coordination between the two parties. The project team should allocate some time, according to the designed strategy, to train the service desk on the new/updated service. This will enable the service desk to provide independent service handling.

This research walks you through the above steps in more detail and helps you build a checklist of action items to streamline shifting service support to the service desk.

Mahmoud Ramin, PhD

Senior Research Analyst
Infrastructure and Operations
Info-Tech Research Group

Executive Summary

Your Challenge

  • IT suffers from a lack of strategy and planning for transitioning support processes to the service desk.
  • Lack of effective communication between the project delivery team and the service desk leads to an inefficient knowledge transfer to the service desk.
  • New service is not prioritized and categorized, negatively impacting service levels and end-user satisfaction.

Common Obstacles

  • Building the right relationship between the service desk and project team is challenging, making support transition tedious.
  • The service desk is siloed; tasks and activities are loosely defined. Service delivery is inconsistent, which impacts customer satisfaction.
  • Lack of training on new services forces the service desk to unnecessarily escalate tickets to other levels and delays service delivery.

Info-Tech’s Approach

  • Build touchpoints between the service desk and project delivery team and make strategic points in the project lifecycles to ensure service support is done effectively following the product launch.
  • Develop a checklist of action items on the initiatives that should be done following project delivery.
  • Build a training plan into the strategy to make sure service desk agents can handle tickets independently.

Info-Tech Insight

Make sure to build a strong knowledge management strategy to identify, capture, and transfer knowledge from project delivery to the service desk.

A lack of formal service transition process presents additional challenges

When there is no formal transition process following a project delivery, it will negatively impact project success and customer satisfaction.

Service desk team:

  • You receive a request from an end user to handle an issue with an application or service that was recently released. You are aware of the features but don’t know how to solve this issue particularly.
  • You know someone in the project group who is familiar with the service, as he was involved in the project. You reach out to him, but he is very busy with another project.
  • You get back to the user to let them know that this will be done as soon as the specialist is available. But because there is no clarity on the scope of the issue, you cannot tell them when this will be resolved.
  • Lack of visibility and commitment to the service recovery will negatively impact end-user satisfaction with the service desk.

Project delivery team:

  • You are working on an exciting project, approaching the deadline. Suddenly, you receive a ticket from a service desk agent asking you to solve an incident on a product that was released three months ago.
  • Given the deadline on the current project, you are stressed, thinking about just focusing on the projects. On the other hand, the issue with the other service is impacting multiple users and requires much attention.
  • You spend extra time handling the issue and get back to your project. But a few days later the same agent gets back to you to take care of the same issue.
  • This is negatively impacting your work quality and causing some friction between the project team and the service desk.

Link how improvement in project transitioning to the service desk can help service support

A successful launch can still be a failure if the support team isn't fully informed and prepared.

  • In such a situation, the project team sends impacted users a mass notification without a solid plan for training and no proper documentation.
  • To provide proper customer service, organizations should involve several stakeholder groups to collaborate for a seamless transition of projects to the service desk.
  • This shift in service support takes time and effort; however, via proper planning there will be less confusion around customer service, and it will be done much faster.
    • For instance, if AppDev is customizing an ERP solution without considering knowledge transfer to the service desk, relevant tickets will be unnecessarily escalated to the project team.
  • On the other hand, the service desk should update configuration items (CIs) and the service catalog and related requests, incidents, problems, and workarounds to the relevant assets and configurations.
  • In this transition process, knowledge transfer plays a key role. Users, the service desk, and other service support teams need to know how the new application or service works and how to manage it when an issue arises.
  • Without a knowledge transfer, service support will be forced to either reinvent the wheel or escalate the ticket to the development team. This will unnecessarily increase the time for ticket handling, increase cost per ticket, and reduce end-user satisfaction.

Info-Tech Insight

Involve the service desk in the transition process via clear communication, knowledge transfer, and staff training.

Integrate the service desk into the project management lifecycle for a smooth transition of service support

Service desk involvement in the development, testing, and maintenance/change activity steps of your project lifecycle will help you logically define the category and priority level of the service and enable service level improvement accordingly after the project goes live.

Project management lifecycle

As some of the support and project processes can be integrated, responsibility silos should be broken

Processes are done by different roles. Determine roles and responsibilities for the overlapping processes to streamline service support transition to the service desk.

The project team is dedicated to projects, while the support team focuses on customer service for several products.

Siloed responsibilities:

  • Project team transfers the service fully to the service desk and leaves technicians alone for support without a good knowledge transfer.
  • Specialists who were involved in the project have deep knowledge about the product, but they are not involved in incident or problem management.
  • Service desk was not involved in the planning and execution processes, which leads to lack of knowledge about the product. This leaves the support team with some vague knowledge about the service, which negatively impacts the quality of incident and problem management.

How to break the silos:

Develop a tiered model for the service desk and include project delivery in the specialist tier.

  • Use tier 1 (service desk) as a single point of contact to support all IT services.
  • Have tier 2/3 as experts in technology. These agents are a part of the project team. They are also involved in incident management, root-cause analysis, and change management.

Determine the interfaces

At the project level, get a clear understanding of support capabilities and demands, and communicate them to the service desk to proactively bring them into the planning step.

The following questions help you with an efficient plan for support transition

Questions for support transition

Clear responsibilities help you define the level of involvement in the overlapping processes

Conduct a stakeholder analysis to identify the people that can help ensure the success of the transition.

Goal: Create a prioritized list of people who are affected by the new service and will provide support.

Why is stakeholder analysis essential?

Why is stakeholder analysis essential

Identify the tasks that are required for a successful project handover

Embed the tasks that the project team should deliver before handing support to the service desk.

Task/Activity Example

Conduct administrative work in the application
  • New user setup
  • Password reset

Update documentation
  • Prepare for knowledge transfer>
Service request fulfillment/incident management
  • Assess potential bugs
Technical support for systems troubleshooting
  • Configure a module in ITSM solution

End-user training
  • FAQs
  • How-to questions
Service desk training
  • Train technicians for troubleshooting

Support management (monitoring, meeting SLAs)
  • Monitoring
  • Meeting SLAs

Report on the service transitioning
  • Transition effectiveness
  • Four-week warranty period
Ensure all policies follow the transition activities
  • The final week of transition, the service desk will be called to a meeting for final handover of incidents and problems

Integrate project description and service priority throughout development phase

Include the service desk in discussions about project description, so it will be enabled to define service priority level.

  • Project description will be useful for bringing the project forward to the change advisory board (CAB) for approval and setting up the service in the CMDB.
  • Service priority is used for adding the next layer of attributes to the CMDB for the service and ensuring the I&O department can set up systems monitoring.
  • This should be done early in the process in conjunction with the project manager and business sponsors.
  • It should be done as the project gets underway and the team can work on specifically where that milestone will be in each project.
  • What to include in the project description:
    • Name
    • Purpose
    • Publisher
    • Departments that will use the service
    • Service information
    • Regulatory constrains
  • What to include in the service priority information:
    • Main users
    • Number of users
    • Service requirements
    • System interdependencies
    • Criticality of the dependent systems
    • Service category
    • Service SME and support backup
    • System monitoring resources
    • Alert description and flow

Document project description and service priority in the Project Handover Template.

Embed service levels and maintenance information

Include the service desk in discussions about project description, so it will be enabled to define service priority level.

  • Service level objectives (SLOs) will be added to CMDB to ensure the product is reviewed for business continuity and disaster recovery and that the service team knows what is coming.
  • This step will be good to start thinking about training agents and documenting knowledgebase (KB) articles.
  • What to include in SLO:
    • Response time
    • Resolution time
    • Escalation time
    • Business owner
    • Service owner
    • Vendor(s)
    • Vendor warranties
    • Data archiving/purging
    • Availability list
    • Business continuity/recovery objectives
    • Scheduled reports
    • Problem description
  • Maintenance and change requirements: You should add maintenance windows to the change calendar and ensure the maintenance checklist is added to KB articles and technician schedules.
  • What to include in maintenance and change requirements:
    • Scheduled events for the launch
    • Maintenance windows
    • Module release
    • Planned upgrades
    • Anticipated intervals for changes and trigger points
    • Scheduled batches

Document service level objectives and maintenance in the Project Handover Template.

Enhance communication between the project team and the service desk

Communicating with the service desk early and often will ensure that agents fully get a deep knowledge of the new technology.

Transition of a project to the service desk includes both knowledge transfer and execution transfer.

01

Provide training and mentoring to ensure technical knowledge is passed on.

02

Transfer leadership responsibilities by appointing the right people.

03

Transfer support by strategically assigning workers with the right technical and interpersonal skills.

04

Transfer admin rights to ensure technicians have access rights for troubleshooting.

05

Create support and a system to transfer work process. For example, using an online platform to store knowledge assets is a great way for support to access project information.

Info-Tech Insight

A communication plan and executive presentation will help project managers outline recommendations and communicate their benefits.

Communicate reasons for projects and how they will be implemented

Proactive communication of the project to affected stakeholders will help get their buy-in for the new technology and feedback for better support.

Leaders of successful change spend considerable time developing a powerful change message, i.e. a compelling narrative that articulates the desired end state, that makes the change concrete and meaningful to staff.

The message should:

  • Explain why the change or new application is needed.
  • Summarize what will stay the same.
  • Highlight what will be left behind.
  • Emphasize what is being changed due to the new or updated product.
  • Explain how the application will be implemented.
  • Address how this will affect various roles in the organization.
  • Discuss the staff’s role in making the project successful.
  • Communicate the supporting roles in the early implementation stages and later on.

Five elements of communicating change

Implement knowledge transfer to the service desk to ensure tickets won’t be unnecessarily escalated

The support team usually uses an ITSM solution, while the project team mostly uses a project management solution. End users’ support is done and documented in the ITSM tool.

Even terminologies used by these teams are different. For instance, service desk’s “incident” is equivalent to a project manager’s “defect.” Without proper integration of the development and support processes, the contents get siloed and outdated over time.

Potential ways to deal with this challenge:

Use the same platform for both project and service support

This helps you document information in a single platform and provides better visibility of the project status to the support team as well. It also helps project team find out change-related incidents for a faster rollback.

Note: This is not always feasible because of the high costs incurred in purchasing a new application with both ITSM and PM capabilities and the long time it takes for implementing such a solution.

Integrate the PM and ITSM tools to improve transition efficiency

Note: Consider the processes that should be integrated. Don’t integrate unnecessary steps in the development stage, such as design, which will not be helpful for support transition.

Build a training plan for the new service

When a new system is introduced or significant changes are applied, describe the steps and timeline for training.

Training the service desk has two-fold benefits:
Improve support:
  • Support team gets involved in user acceptance testing, which will provide feedback on potential bugs or failures in the technology.
  • Collaboration between specialists and tier 1 technicians will allow the service desk to gather information for handling potential incidents on the application.
Shift-left enablement:
  • At the specialist level, agents will be more focused on other projects and spend less time on application issues, as they are mostly handled by the service desk.
  • As you shift service support left:
    • Cost per ticket decreases as more of the less costly resources are doing the work.
    • Average time to resolve decreases as the ticket is handled by the service desk.
    • End-user satisfaction increases as they don’t need to wait long for resolution.

Who resolves the incident

For more information about shift-left enablement, refer to InfoTech’s blueprint Optimize the Service Desk With a Shift-Left Strategy.

Integrate knowledge management in the transition plan

Build a knowledge transfer process to streamline service support for the newly developed technology.

Use the following steps to ensure the service desk gets trained on the new project.

  1. Identify learning opportunities.
  2. Prioritize the identified opportunities based on:
  • Risk of lost knowledge
  • Impact of knowledge on support improvement
  • Define ways to transfer knowledge from the project team to the service desk. These could be:
    • One-on-one meetings
    • Mentoring sessions
    • Knowledgebase articles
    • Product road test
    • Potential incident management shadowing
  • Capture and transfer knowledge (via the identified means).
  • Support the service desk with further training if the requirement arises.
    		•
    Info-Tech Insight

    Allocate knowledge transfer within ticket handling workflows. When incident is resolved by a specialist, they will assess if it is a good candidate for technician training and/or a knowledgebase article. If so, the knowledge manager will be notified of the opportunity to assign it to a SME for training and documentation of an article.

    For more information about knowledge transfer, refer to phase 3 of Info-Tech’s blueprint Standardize the Service Desk.

    Focus on the big picture first

    Identify training functions and plan for a formal knowledge transfer

    1. Brainstorm training functions for each group.
    2. Determine the timeline needed to conduct training for the identified training topics.
    RoleTraining FunctionTimeline

    Developer/Technical Support
    • Coach the service desk on the new application
    • Document relevant KB articles
    Business Analysts
    • Conduct informational interviews for new business requirements

    Service Desk Agents
    • Conduct informational interviews
    • Shadow incident management procedures
    • Document lessons learned
    Vendor
    • Provide cross-training to support team

    Document your knowledge transfer plan in the Project Handover Template.

    Build a checklist of the transition action items

    At this stage, the project is ready to go live and support needs to be independently done by the service desk.

    Checklist of the transition action items

    Info-Tech Insight

    No matter how well training is done, specialists may need to work on critical incidents and handle emergency changes. With effective service support and transition planning, you can make an agreement between the incident manager, change manager, and project manager on a timeline to balance critical incident or emergency change management and project management and define your SLA.

    Activity: Prepare a checklist of initiatives before support transition

    2-3 hours

    Document project support information and check off each support transition initiative as you shift service support to the service desk.

    1. As a group, review the Project Handover Template that you filled out in the previous steps.
    2. Download the Service Support Transitioning Checklist, and review the items that need to be done throughout the development, testing, and deployment steps of your project.
    3. Brainstorm at what step service desk needs to be involved.
    4. As you go through each initiative and complete it, check it off to make sure you are following the agreed document for a smooth transition of service support.
    Input Output
    • Project information
    • Support information for developed application/service
    • List of transitioning initiatives
    MaterialsParticipants
    • Project Handover Template
    • Service Support Transitioning Checklist
    • Project Team
    • Service Desk Manager
    • IT Lead

    Download the Project Handover Template

    Download the Service Support Transitioning Checklist

    Define metrics to track the success of project transition

    Consider key metrics to speak the language of targeted end users.

    You won’t know if transitioning support processes are successful unless you measure their impact. Find out your objectives for project transition and then track metrics that will allow you to fulfill these goals.

    Determine critical success factors to help you find out key metrics:

    High quality of the service

    Effectiveness of communication of the transition

    Manage risk of failure to help find out activities that will mitigate risk of service disruption

    Smooth and timely transition of support to the service desk

    Efficient utilization of the shared services and resources to mitigate conflicts and streamline service transitioning

    Suggested metrics:

    • Time to fulfill requests and resolve incidents for the new project
    • Time spent training the service desk
    • Number of knowledgebase articles created by the project team
    • Percentage of articles used by the service desk that prevented ticket escalation
    • First-level resolution
    • Ratio of escalated tickets for the new project
    • Problem ticket volume for the new project
    • Average customer satisfaction with the new project support
    • SLA breach rate

    Summary of Accomplishment

    Problem Solved

    Following the steps outlined in this research has helped you build a strategy to shift service support from the project team to the service desk, resulting in an improvement in customer service and agent satisfaction.

    You have also developed a plan to break the silo between the service desk and specialists and enable knowledge transfer so the service desk will not need to unnecessarily escalate tickets to developers. In the meantime, specialists are also responsible for service desk training on the new application.

    Efficient communication of service levels has helped the project team set clear expectations for managers to create a balance between their projects and service support.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information

    workshops@infotech.com

    1-888-670-8889

    Related Info-Tech Research

    Standardize the Service Desk

    Improve customer service by driving consistency in your support approach and meeting SLAs.

    Optimize the Service Desk With a Shift-Left Strategy

    The best type of service desk ticket is the one that doesn’t exist.

    Tailor IT Project Management Processes to Fit Your Projects

    Right-size PMBOK for all of your IT projects.

    Works Cited

    Brown, Josh. “Knowledge Transfer: What it is & How to Use it Effectively.” Helpjuice, 2021. Accessed November 2022.

    Magowan, Kirstie. “Top ITSM Metrics & KPIs: Measuring for Success, Aiming for Improvement.” BMC Blogs, 2020. Accessed November 2022.

    “The Complete Blueprint for Aligning Your Service Desk and Development Teams (Process Integration and Best Practices).” Exalate, 2021. Accessed October 2022.

    “The Qualities of Leadership: Leading Change.” Cornelius & Associates, 2010. Web.

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    Foster Data-Driven Culture With Data Literacy

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    • Parent Category Name: Data Management
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    Organizations are joining the wave and adopting machine learning and artificial intelligence (AI) to unlock the value in their data and power their competitive advantage. But to succeed with these complex analytics programs, they need to begin by looking at their data – empowering their people to realize and embrace the valuable insights within the organization’s data.

    The key to achieve becoming a data-driven organization is to foster a strong data culture and equip employees with data skills through an organization-wide data literacy program.

    Our Advice

    Critical Insight

    • Start with real business problems in a hands-on format to demonstrate the value of data.
    • Use a formalized organization-wide approach to data literacy program to bridge the data skills gap.
    • Provide relevant and practical training programs tailored to different learning styles and tenures (e.g. onboarding, development plan).

    Impact and Result

    Data literacy is critical to the success of digital transformation and AI analytics. Info-Tech’s approach to creating a sustainable and effective data literacy program is recognizing it is:

    • More than just technical training. A data literacy program isn’t just about data; it encompasses aspects of business, IT, and data.
    • More than a one-off exercise. To keep the literacy skills alive the program must be regular, sustainable, and tailored to different needs across all levels of the organization.
    • More than one delivery format. Different delivery methods need to be considered to suit various learning styles to ensure an effective delivery.

    Foster Data-Driven Culture With Data Literacy Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Foster Data-Driven Culture With Data Literacy Storyboard – A step-by-step guide to help organizations build an effective and sustainable data literacy program that benefits all employees who work with data.

    Data literacy as part of the data governance strategic program should be launched to all levels of employees that will help your organization bridge the data knowledge gap at all levels of the organization. This research recommends approaches to different learning styles to address data skill needs and helps members create a practical and sustainable data literacy program.

    • Foster Data-Driven Culture With Data Literacy Storyboard

    2. Fundamental Data Literacy Program Template – A document that provides an example of a fundamental data literacy program.

    Kick off a data awareness program that explains the fundamental understanding of data and its lifecycle. Explore ways to create or mature the data literacy program with smaller amounts of information on a more frequent basis.

    • Fundamental Data Literacy Program Template
    [infographic]

    Further reading

    Foster Data-Driven Culture With Data Literacy

    Data literacy is an essential part of a data-driven culture, bridging the data knowledge gaps across all levels of the organization.

    Analyst Perspective

    Data literacy is the missing link to becoming a data-driven organization.

    “Digital transformation” and “data driven” are two terms that are inseparable. With organizations accelerating in their digital transformation roadmap implementation, organizations need to invest in developing data skills with their people. Talent is scarce and the demand for data skills is huge, with 70% of employees expected to work heavily with data by 2025. There is no time like the present to launch an organization-wide data literacy program to bridge the data knowledge gap and foster a data-driven culture.

    Data literacy training is as important as your cybersecurity training. It impacts all levels of the organization. Data literacy is critical to success with digital transformation and AI analytics.

    Annabel Lui

    Principal Advisory Director, Data & Analytics Practice
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Organizations are joining the wave and adopting machine learning (ML) and artificial intelligence (AI) to unlock the value in their data and power their competitive advantage. But to succeed with these complex analytics programs, they need to begin by empowering their people to realize and embrace the valuable insights within the organization’s data.

    The key to becoming a data-driven organization is to foster a strong data culture and equip people with data skills through an organization-wide data literacy program.

    Common Obstacles

    Challenges the data leadership is likely to face as digital transformation initiatives drive intensified competition:

    • Resistance to change
    • Technological distractions
    • “Shadow data”
    • Difficulty securing resources and skilled data professionals
    • Inability to appreciate the value of data and its meaning for users – even fear of it

    Info-Tech's Approach

    We interviewed data leaders and instructors to gather insights about investing in data:

    • Start with real business problems in a hands-on format to demonstrate the value of data.
    • Implement a formalized organization-wide approach to data literacy program to bridge the data skill gap.
    • Provide relevant and practical training programs tailored to different learning styles and tenures (e.g. onboarding,development plan).

    Info-Tech Insight

    By thoughtfully designing a data literacy training program for the audience's own experience, maturity level, and learning style, organizations build the data-driven and engaged culture that helps them to unlock their data's full potential and outperform other organizations.

    Your Challenge

    Data literacy is the missing link to drive business outcomes from data.

    • Having a data-driven culture as an organization’s mission statement without implementing a data literacy program is like making an empty promise and leaving the value unrealized and unattainable.
    • A study conducted by the Data Literacy Project clearly indicates that organizations with aggressive data literacy programs will outperform those who do not have such programs. By 2030, data literacy will be one of the most sought-after skill sets. All employees require data literacy skills.
    • Everyone has a role in data. From employees who are actively involved in data collection to operational teams who create reports with analytics tools and finally to executives who use data to make business decisions – they all require continuous data literacy training in a data-driven organization. Because of differences in maturity, data literacy strategies cannot be one-size-fits-all.

    “Data literacy is the ability to read, work with, analyze, and communicate with data. It's a skill that empowers all levels of workers to ask the right questions of data and machines, build knowledge, make decisions, and communicate meaning to others.” – Qlik, n.d.

    75% of organizational employees have access to data tools – only 21% demonstrated confidence in their data skills.

    Source: Accenture, 2020.

    89% of C-level executives expect team members to explain how data has informed their decisions, but only 11% employees are fully confident in their ability to read, analyze, work with, and communicate with data

    Source: Qlik, 2022.

    Data debt or data asset?

    Manage your data as strategic assets.

    “[Data debt is] when you have undocumented, unused, incomplete, and inconsistent data,” according to Secoda (2023). “When … data debt is not solved, data teams could risk wasting time managing reports no one uses and producing data that no one understands.”

    Signs of data debt when considering investing in data literacy:

    • Lack of definition and understanding of data terms, therefore they don’t speak the same language. Without data literacy, an organization will not succeed in becoming a data-driven organization.
    • Putting data literacy as a low priority. Organization sees this as “another” training to put on the list and keeps it on the back burner.
    • Data literacy is not seen as the number one skill set needed in the organization. However, anyone who works with data requires data skills.
    • End users are not trained on self-serve features and tools.
    • Focusing on a minority group of people rather than everyone in the organization or seeing it as a one-off exercise.
    • Delays or failure to deliver digital transformation projects due to lack of data skills and data access issues.

    66%

    of organizations say a backlog of data debt is impacting new data management initiatives.

    40%

    of organizations say individuals within the business do not trust data insights.

    30%

    of organizations are unable to become data-driven.

    Source: Experian, 2020

    Info-Tech’s Approach

    Data literacy is critical to success with digital transformation and AI analytics.

    Diagram showing components of Data literacy: 1 - Data: understand your data, 2 - Business: define the purpose, 3 - IT: Introduce new ways of working

    The Info-Tech difference:

    1. More than just technical training. Data literacy program isn’t just about data but rather encompasses aspects of business, IT, and data.
    2. More than a one-off exercise. To keep literacy skills alive, the program must be routine and sustainable, tailored to different needs across all levels of the organization.
    3. More than one delivery format. Different delivery methods need to be considered to suit various learning styles.

    Data needs to be processed

    Data – facts – are organized, processed, and given meaning to become insights.

    Data, information, knowledge, insight, wisdom

    Image source: Welocalize, 2020.

    Data represents a discrete fact or event without relation to other things (e.g. it is raining). Data is unorganized and not useful on its own.

    Information organizes and structures data so that it is meaningful and valuable for a specific purpose (i.e. it answers questions). Information is a refined form of data.

    When information is combined with experience and intuition, it results in knowledge. It is our personal map/model of the world.

    Knowledge set with context generates insight. We become knowledgeable as a result of reading, researching, and memorizing (i.e. accumulating information).

    Wisdom means the ability to make sound judgments. Wisdom synthesizes knowledge and experiences into insights.

    Investment in data literacy is a game changer.

    Data literacy is the ability to collect, manage, evaluate, and apply data in a critical manner.

    A data-driven culture is “an operating environment that seeks to leverage data whenever and wherever possible to enhance business efficiency and effectiveness” (Forbes).

    Info-Tech Insight

    Data-driven culture refers to a workplace where decisions are made based on data evidence, not on gut instinct.

    Info-Tech’s methodology for building a data literacy program

    Phase Steps

    1. Define Data Literacy Objectives

    1.1 Understand organization’s needs

    1.2 Create vision and objective for data literacy program

    2. Assess Learning Style and Align to Program Design

    2.1 Create persona and identify audience

    2.2 Assess learning style and align to program design

    2.3 Determine the right delivery method

    3. Socialize Roadmap and Milestones

    3.1 Establish a roadmap

    3.2 Set key performance metrics and milestones

    Phase Outcomes

    Identify key objectives to establish and grow the data literacy program by articulating the problem and solutions proposed.

    Assess each audience’s learning style and adapt the program to their unique needs.

    Show a roadmap with key performance indicators to track each milestone and tell a data story.

    Insight Summary

    “In a world of more data, the companies with more data-literate people are the ones that are going to win.”

    – Miro Kazakoff, senior lecturer, MIT Sloan, in MIT Sloan School of Management, 2021

    Overarching insight

    By thoughtfully designing a data literacy training program personalized to each audience's maturity level, learning style, and experience, organizations can develop and grow a data-driven culture that unlocks the data's full potential for competitive differentiation.

    Module 1 insight

    We can learn a lot from each other. Literacy works both ways – business data stewards learn to “speak data” while IT data custodians understand the business context and value. Everyone should strive to exchange knowledge.

    Module 2 insight

    Avoid traditional classroom teaching – create a data literacy program that is learner-centric to allow participants to learn and experiment with data.

    Aligning program design to those learning styles will make participants more likely to be receptive to learning a new skill.

    Module 3 insight

    A data literacy program isn’t just about data but rather encompasses aspects of business, IT, and data. With executive support and partnership with business, running a data literacy program means that it won’t end up being just another technical training. The program needs to address why, what, how questions.

    Tactical insight

    A lot of programs don’t include the fundamentals. To get data concepts to stick, focus on socializing the data/information/knowledge/wisdom foundation.

    Tactical insight

    Many programs speak in abstract terms. We present case studies and tangible use cases to personalize training to the audience’s world and showcase opportunities enabled through data.

    Key performance indicators (KPIs) for your data literacy program

    How do you know if your data literacy program is successful? Here are some useful KPIs:

    Program Adoption Metrics

    • Percentage of employees attending data literacy training
    • Percentage of participants who report gains in data management knowledge after training sessions
    • Maturity assessment result
    • Survey and diagnostic feedback before and after training
    • Trend analysis of overall data literacy program

    Operational Metrics

    • Number of requests for analytics/reporting services
    • Number of reports created by users
    • Speed and quality of business decisions
    • User satisfaction with reports and analytics services
    • Improved business performance (customer satisfaction)
    • Improved valuation of organization data

    A data-driven culture builds tools and skills, builds users’ trust in the quality of data across sources, and raises the skills and understanding among the frontlines by encouraging everyone to leverage data for critical thinking and innovation.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

    Guided Implementation

    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of the project."

    Diagnostics and consistent frameworks are used throughout all four options.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Session 1

    Session 2

    Session 3

    Session 4

    Activities

    Define Data Literacy Objectives

    1.1 Review Data Culture Diagnostic results

    1.2 Identify business context: business goals, initiatives

    1.3 Create vision and objective for data literacy program

    Assess Learning Style and Align to Program Design

    2.1 Identify audience

    2.2 Assess learning style and align to program design

    2.3 Determine the right delivery method

    Build a Data Literacy Roadmap and Milestones

    3.1 Identify program initiatives and topics

    3.2 Determine delivery methods

    3.3 Build the data literacy roadmap

    Operational Strategy to implement Data Literacy

    4.1 Identify key performance metrics

    4.2 Identify owners and document RACI matrix

    4.3 Discuss next steps and wrap up.

    Deliverables

    1. Diagnostics reports (data culture survey)
    2. Vision and value statement
    1. Assessment of audience covering all levels of organization
    1. List of key program initiatives and topics
    2. Allocation of delivery methods
    3. Roadmap
    1. Data literacy metrics
    2. List of owners and roles and responsibilities
    3. Next step and implementation schedule

    Phase 1

    Define Data Literacy Objectives

    Phase 1: step 1 - Understand organization's needs, step 2 - Create vision and objective for data literacy program.

    Foster Data-Driven Culture With Data Literacy

    This phase will walk you through the following activities:

    • Understand the organization’s needs.
    • Create vision and objective for data literacy program.

    This phase involves the following participants:

    • Data governance sponsor
    • Data owners
    • Data stewards
    • Data custodians

    1.1 Gauge your organization’s current data culture

    Conduct data culture survey or diagnostic.

    1. Identify members of the data user base, data consumers, and other key stakeholders for surveying.
    2. Conduct an information session to introduce Info-Tech’s Data Culture Diagnostic survey. Explain the objective and importance of the survey and its role in helping to understand the organization’s current data culture and inform the improvement of that culture.
    3. Roll out the Info-Tech Data Culture Diagnostic survey to the identified users and stakeholders.
    4. Debrief and document the results and scorecard in the Data Strategy Stakeholder Interview Guide and Findings document.

    Input

    • Email addresses of participants in your organization who should receive the survey

    Output

    • Your organization’s Data Culture Scorecard for understanding current data culture as it relates to the use and consumption of data
    • An understanding of whether data is currently perceived to be an asset to the organization

    Materials

    • Info-Tech’s Data Culture Diagnostic service

    Participants

    • Participants include those at the senior leadership level through to middle management, as well as other business stakeholders at varying levels across the organization
    • Data owners, stewards, and custodians
    • Core data users and consumers

    Contact your Info-Tech Account Representative for details on launching a Data Culture Diagnostic.

    1.2 Define data literacy objectives

    1. Understand the organization’s needs by identifying opportunities and challenges relating to data. Document the described real-life examples.
    2. Categorize the list and identify areas where data literacy can address the business problem.
    3. Create a vision statement for the data literacy program, ensuring that it covers all levels of the organization.
    4. Articulate the intended targets and goals in planning for a data literacy program.

    Input

    • List of opportunities and challenges relating to data
    • Relevant business real-life examples

    Output

    • Categorized list of data literacy needs
    • Vision for literacy program
    • Targets and goals

    Materials

    • Whiteboard/flip charts
    • Sticky notes

    Participants

    • CDO or sponsor
    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data governance working group

    Quick wins for improving data literacy

    Data collected through Info-Tech’s Data Culture Diagnostic suggests three ways to improve data literacy:

    87%

    think more can be done to define and document commonly used terms with methods such as a business data glossary.

    68%

    think they can have a better understanding of the meaning of all data elements that are being captured or managed.

    86%

    feel that they can have more training in terms of tools as well as on what data is available at the organization.

    Source: Info-Tech Research Group's Data Culture Diagnostic, 2022; N=2,652

    Quick Wins

    • Create a business data glossary to document and define common terms.
    • Provide easy access to the business data glossary and procedures on how data is captured and managed.
    • Launch an organization-wide data literacy program.

    Delivering value is a means and the goal

    Start with real business problems in a hands-on format to demonstrate the value of data.

    Identify business problem:

    • Business decisions without facts are just guesses.
    • Management spends a lot of time finding and fixing data.
    • Unknown challenges on data assets and risk.
    • Incomplete view of customer/client and industry.
    • Not ready for modern data opportunities (e.g. artificial intelligence).

    Create an objective

    Treat data as a strategic asset to gain insight into our customers for all levels of organization.

    The solution: Data-driven culture powered by people who speak data.

    • Data dictionary
    • Data literacy
    • Trusted single source
    • Access to analytics tools
    • Decision making

    "According to Forrester, 91% of organizations find it challenging to improve the use of data insights for decision-making – even though 90% see it as a priority. Why the disconnect? A lack of data literacy."

    – Alation, 2020

    Fundamental data literacy

    Data literacy is more than just a technical training or a one-off exercise.

    Info-Tech provides various topics suited for a data literacy program that can accommodate different data skill requirements and encompasses relevant aspects of business, IT, and data.

    Info-Tech Research Group’s Data Literacy Program

    Use discovery and diagnostics to understand users’ comfort level and maturity with data.

    Data lunch 'n' learn

    • The power and value of data
    • Everyone is a data steward
    • Becoming data literate
    • Data 101
    • The future is data
    1 hour
    For: General audience, senior leadership, data leads, change management

    Speak data

    • What is data
    • Meet the data team
    • Day in the life of a steward
    • How data impacts you
    • Tools of the trade
    1/2 day
    For: New stewards, data owners, pre-data strategy workshop

    Your data story

    • Ask the right questions
    • Find the top five data elements
    • Understand your data
    • Present your data story
    • Lessons from COVID-19
    1/2 day
    For: New stewards, business data owners, pre-BI/analytics workshop

    Phase 2

    Assess Learning Style and Align to Program Design

    Phase 2: step 1 - Identify audience, step 2 - Access learning style and align to program design, step 3 - Determine the right delivery method.

    Foster Data-Driven Culture With Data Literacy

    This phase will walk you through the following activities:

    • Identify your audience.
    • Assess learning styles and align them to the data program design.
    • Determine the right delivery method.

    This phase involves the following participants:

    • Data governance sponsor
    • Data owners
    • Data stewards
    • Data custodians

    Avoid common pitfalls

    75%

    feel that training was too long to remember or to apply in their day-to-day work.

    21%

    find training had insufficient follow-up to help them apply on the job.

    Source: Grovo, 2018.

    1. Information Overload

      Trying to cover too much useful information results in overwhelm and does not deliver on key training objectives.

    2. Limited Implementation

      Learning is only the beginning. The real results are obtained when learning is followed by practice, which turns new knowledge into reliable habits.

    3. Lack of Organizational Alignment

      Implementing training without a clear link to organizational objectives leaves you unable to clearly communicate its value, undermines your ability to secure buy-in from attendees and executives, and leaves you unable to verify that the training is actually improving effectiveness.

    2.1 Understand learning style

    1. Create persona and identify the audiences and their roles in data across all levels of the organization.
    2. Identify the data program initiatives and assign the best delivery method to each initiative.
    3. Assign participants to each program initiative based on their skill gap and learning style.

    Input

    • List of audiences, their roles, and tenures
    • Data skill gap assessment
    • List of literacy program initiatives/topics

    Output

    • Target audience grouping
    • List of program initiatives with assigned groups

    Materials

    • Whiteboard/flip charts
    • Sticky notes

    Participants

    • CDO or sponsor
    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data governance working group

    You and data

    Is data an integral part of your work?

    Do you feel comfortable finding and using data in your organization?

    • Many people feel intimidated by data and therefore miss out on what data can do for them.
    • Often the obstacle is language. If you don’t understand the semantics around data, you will not feel confident to contribute to discussions around data.
    • You use data every day but need additional vocabulary to understand how to handle it properly.
    • Data literacy is the ability to “speak data” and to understand what data means (i.e. how to read charts and graphs, draw valid conclusions, and recognize when data is misinterpreted or used inappropriately to be misleading).
    • The business often doesn’t understand its role in data governance and how it informs and assists IT in responsible data management.

    Info-Tech Insight

    IT and data professionals need to understand the business as much as business needs to talk about data. Bidirectional learning and feedback improves the synergy between business and IT.

    Create personas

    Persona creation is a way to brainstorm ideas for the data literacy program.

    Choose a data role (e.g. data steward, data owner, data scientist).

    Describe the persona based on goals, priorities, tenures, preferred learning style, type of work with data.

    Identify data skill and level of skills required.

    Persona 1: Denise - Manager, People and Culture. Goals, priorities, tenure, data role, learning style, skill level

    Consider these other ways to brainstorm:

    • Review current in-flight projects.
    • Analyze types of data requests.
    • Understand needs by department.
    • Share learnings in a community of practice.

    Program design

    Categorize into six data skill areas

    Not everyone needs the same level of skill sets

    Bullseye board with skill levels (Innermost going outward): Expert, advanced, intermediate and Basic. The six data skill areas: 1. Understanding Data, 2. Find and Obtain Data, 3. Read, Interpret and Evaluate Data, 4. Manage Data, 5. Create and Use Data, 6. Tell a Story and Share Data are placed equally around in sections.

    Map the personas to the program

    Bridging the data knowledge gap.

    • Each component will promote the value of data to all levels of employees when demonstrating the right way for data to be understood, managed, and consumed in the organization.
    • Categorizing the data literacy program into six areas and levels of skill sets will provide clarity into which areas to focus on.
    • The program is intended to be implemented in stages, allowing the audience to learn and adopt the new skills. Leveraging in-flight projects for rolling out training will have a higher success because the need is already built into the project.
    Personas are placed at different points in the data skill area and skill level.

    Align program design to learning styles

    The four methods (Discussion, Information, Coaching, and Self-Discovery) are based on learner-centered model design rather than the traditional teacher-centered model.

    Info-Tech Insight

    Tailor your data literacy program to meet your organization’s needs, filling your range of knowledge gaps and catering to different levels of users.

    When it comes to rolling out a data literacy program, there is no one-size-fits-all solution. Your data literacy program is intended to spread knowledge throughout your organization. It should target everyone from executive leadership to management to subject matter experts across all functions of the business.

    Discussion method

    Delivery Method

    • Interactive format between instructor and learner
    • Instructor empowers and motivates learner through dialogues and exercises

    The imaginative learner

    The imaginative learner group likes to engage in feelings and spend time on reflection. This type of learner desires personal meaning and involvement. They focus on personal values for themselves and others and make connections quickly.

    For this group of learners, their question is: why should I learn this?

    Learning characteristics

    • Seek meaning
    • Need to be personally involved
    • Learn by listening and sharing ideas
    • Function through social interaction

    Information method

    Delivery Method

    • Instructor does most of the talking in the training
    • Instructor is teaching the content, delivering the training content, and demonstrating

    Analytical learner

    The analytical learner group likes to listen, to think about information, and to come up with ideas. They are interested in acquiring facts and delving into concepts and processes. They can learn effectively and enjoy doing independent research.

    For this group of learners, their question is: what should I learn?

    Learning characteristics

    • Seek and examine the facts
    • Need to know what experts think
    • Interested in ideas and concepts
    • Critique information and collect data
    • Function by adapting to experts

    Coaching method

    Delivery Method

    • Learning has on-the-job training or learning through role-play exercises
    • Instructor is coaching and facilitating learner

    Common sense learner

    The common sense learner group likes thinking and doing. They are satisfied when they can carry out experiments, build and design, and create usability. They like tinkering and applying useful ideas.

    For this group of learners, their question is: how should I learn?

    Learning characteristics

    • Seek usability
    • Need to know how things work
    • Learn by testing theories using practical methods
    • Use factual data to build concepts
    • Enjoy hands-on experience

    Self-discovery method

    Delivery Method

    • Interactive format between instructor and learner
    • Instructor provides evaluation and remedial instruction

    Common sense learner

    The dynamic learner group learns through doing and experiencing. They are continually looking for hidden possibilities and researching ideas to make original adjustments. They learn through trial and error and self-discovery.

    For this group of learners, their question is: what if I learn this?

    Learning characteristics

    • Seek hidden possibilities
    • Need to know what can be done with things
    • Learn by trial and error
    • Enjoy variety and excel in being flexible

    Delivery method considerations

    There are four common ways to learn a new skill: by watching, conceptualizing, doing, and experiencing. The following are some suggestions on ways to implement your data literacy program through different delivery methods.

    There are four common ways to learn a new skill: by watching, conceptualizing, doing, and experiencing. The following are some suggestions on ways to implement your data literacy program through different delivery methods.

    Phase 3

    Map Out Data Literacy Roadmap and Milestones

    Phase 3: step 1 - Roadmap exercise, step 2 - Set key performance metrics and milestones.

    Foster Data-Driven Culture With Data Literacy

    This phase will walk you through the following activities:

    • Complete a roadmap exercise.
    • Set key performance metrics and milestones.

    This phase involves the following participants:

    • Data governance sponsor
    • Data owners
    • Data stewards
    • Data custodians

    3.1 Build the data literacy roadmap and milestones

    1-3 hours
    1. Gather the data literacy objectives and list of program initiatives with their assigned groups.
    2. Discuss each program initiative with the data literacy creation team, assigning content owners and estimating effort required to build the content.

    For the Gantt chart:

    • Input the roadmap start year.
    • List each data literacy topic and delivery method.
    • Populate the planned start and end dates for the prepopulated list of program initiatives.

    Input

    • List of data literacy topics with assigned groups
    • Vision statement of data literacy program
    • Data literacy objectives

    Output

    • Roadmap Gantt chart
    • List of program initiatives with start and end date
    • Content owner assignment

    Materials

    • Whiteboard/flip charts
    • Sticky notes
    • MS Projects/Excel

    Participants

    • CDO or sponsor
    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data governance working group

    Data literacy journey mapping

    Making it sustainable

    • Deliver the literacy program in stages to make it easier for the audience to consume the content.
    • Allow opportunities to apply the learnings at work.
    • Map out the data literacy trainings as they get delivered and identify gaps, if any. Continue to refine and adjust the program and delivery method for better outcome.
    • Set clear goals and KPIs measurement up front.
    • Conduct Info-Tech Research Group’s Data Culture Diagnostics to set the baseline and repeat the assessment in 12 to 18 months.
    • Assign champions to lead change and influence end users to adopt better processes.
    Data Literacy journey mapping. Different departments need different skills in data literacy.

    Research contributors

    Name

    Position
    Andrea Malick Advisory Director, Info-Tech Research Group
    Andy Neill AVP, Data and Analytics, Chief Enterprise Architect, Info-Tech Research Group
    Crystal Singh Research Director, Info-Tech Research Group
    Imad Jawadi Senior Manager, Consulting Advisory, Info-Tech Research Group
    Irina Sedenko Research Director, Info-Tech Research Group
    Reddy Doddipalli Senior Workshop Director, Info-Tech Research Group
    Sherwick Min Technical Counselor, Info-Tech Research Group
    Wayne Cain Principal Advisory Director, Info-Tech Research Group

    Info-Tech’s Data Literacy Program

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Session 1

    Session 2

    Session 3

    Session 4

    Activities

    Understand the WHY and Value of Data

    1.1 Business context, business objectives, and goals

    1.2 You and data

    1.3 Data journey from data to insights

    1.4 Speak data – common terminology

    Learn about the WHAT Through Data Flow

    2.1 Data creation

    2.2 Data ingestion

    2.3 Data accumulation

    2.4 Data augmentation

    2.5 Data delivery

    2.6 Data consumption

    Explore the HOW Through Data Visualization Training

    3.1 Ask the right questions

    3.2 Find the top five data elements

    3.3 Understand your data

    3.4 Present your data story

    3.5 Sharing of lessons learned

    Put Them All Together Through Data Governance Awareness

    4.1 Data governance framework

    4.2 Data roles and responsibilities

    4.3 Data domain and owners

    Deliverables
    1. Learning material for understanding the data fundamental and its terminology
    1. Learning material for data flow elements
    1. Learning material for data visualization
    1. Learning material for data governance awareness program

    Related Info-Tech Research

    Establish Data Governance

    Deliver measurable business value.

    Build a Robust and Comprehensive Data Strategy

    Key to building and fostering a data-driven culture.

    Create a Data Management Roadmap

    Streamline your data management program with our simplified framework.

    Bibliography

    About Learning. “4MAT overview.” About Learning., 16 Aug. 2001. Web.

    Accenture. “The Human Impact of Data Literacy,” Accenture, 2020. Web.

    Anand, Shivani. “IDC Reveals India Data and Content Technologies Predictions for 2022 and onwards; Focus on Data Literacy for an Elevated data Culture.” IDC, 14 Mar. 2022. Web.

    Belissent, Jennifer, and Aaron Kalb. “Data Literacy: The Key to Data-Driven Decision Making.” Alation, April 2020. Web.

    Brown, Sara. “How to build data literacy in your company.” MIT Sloan School of Management, 9 Feb 2021. Web.

    ---. “How to build a data-driven company.” MIT Sloan School of Management, 24 Sept. 2020. Web.

    Domo. “Data Never Sleeps 9.0.” Domo, 2021. Web.

    Dykes, Brent. “Creating A Data-Driven Culture: Why Leading By Example Is Essential.” Forbes, 26 Oct. 2017. Web.

    Experian. “10 signs you are sitting on a pile of data debt.” Experian, 2020. Accessed 25 June 2021. Web.

    Experian. “2019 Global Data Management Research.” Experian, 2019. Web.

    Knight, Michelle. “Data Literacy Trends in 2023: Formalizing Programs.” Dataversity, 3 Jan. 2023. Web.

    Ghosh, Paramita. “Data Literacy Skills Every Organization Should Build.” Dataversity, 2 Nov. 2022. Web.

    Johnson, A., et al., “How to Build a Strategy in a Digital World,” Compact, 2018, vol. 2. Web.

    LifeTrain. “Learning Style Quiz.” EMTrain, Web.

    Lambers, E., et al. “How to become data literate and support a data-drive culture.” Compact, 2018, vol. 4. Web.

    Marr, Benard. “Why is data literacy important for any business?” Bernard Marr & Co., 16 Aug. 2022. Web.

    Marr, Benard. “8 simple ways to enhance your data literacy skills.” Bernard Marr & Co., 16 Aug. 2022. Web/

    Mendoza, N.F. “Data literacy: Time to cure data phobia” Tech Republic, 27 Sept. 2022. Web.

    Mizrahi, Etai. “How to stay ahead of data debt and downtime?” Secoda, 17 April 2023. Web.

    Needham, Mass., “IDC FutureScape: Top 10 Predictions for the Future of Intelligence.” IDC, 5 Dec. 2022. Web.

    Paton, J., and M.A.P. op het Veld. “Trusted Analytics.” Compact, 2017, vol. 2. Web.

    Qlik. “Data Literacy to be Most In-Demand Skill by 2030 as AI Transforms Global Workplaces.” Qlik., 16 Mar 2022. Web.

    Qlik. “What is data literacy?” Qlik, n.d. Web.

    Reed, David. Becoming Data Literate. Harriman House Publishing, 1 Sept. 2021. Print.

    Salomonsen, Summer. “Grovo’s First-Time Manager Microlearning® Program Will Help Your New Managers Thrive in 2018.” Grovos Blog, 5 Dec. 2018. Web.

    Webb, Ryan. “More Than Just Reporting: Uncovering Actionable Insights From Data.” Welocalize, 1 Sept. 2020. Web.

    Choose Your Mobile Platform and Tools

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    • Parent Category Name: Mobile Development
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    • Organizations see the value of mobile applications in improving productivity and reach of day-to-day business and IT operations. This motivates leaders to begin the planning of their first application.
    • However, organizations often lack the critical foundational knowledge and skills to deliver and maintain high quality and valuable applications that meet business and user priorities and technical requirements.
    • Mobile technologies and trends are continually evolving and maturing. It is hard to predict which trends will make a significant impact and to prepare current mobile investments to harness their value of these trends.

    Our Advice

    Critical Insight

    • Mobile applications can stress the stability, reliability, and overall quality of your enterprise systems and services. They will also increase your security risks because of the exposure of your enterprise technology assets to unsecured networks and devices.
    • High costs of entry may restrict what built-in features your users can have in their mobile experience. Workarounds may not be sufficient to offset the costs of certain built-in feature needs.
    • Many operating models do not enable or encourage the collaboration required to fully understand user needs and behaviors and evaluate mobile opportunities and underlying operational systems from multiple perspectives.

    Impact and Result

    • Establish the right expectations. Understand your mobile users by learning their needs, challenges, and behaviors. Discuss the current state of your systems and your high priority non-functional requirements to determine what to expect from your mobile applications.
    • Choose the right mobile platform approach and shortlist your mobile delivery solutions. Obtain a thorough view of the business and technical complexities of your mobile opportunities, including current mobile delivery capabilities and system compatibilities.
    • Create your mobile roadmap. Describe the gradual rollout of your mobile technologies through minimal valuable products (MVPs).

    Choose Your Mobile Platform and Tools Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Choose Your Mobile Platform and Tools Storyboard

    This blueprint helps you develop an approach to understand the mobile experience your stakeholders want your users to have and select the appropriate platform and delivery tools to meet these expectations.

    • Choose Your Mobile Platform and Tools Storyboard

    2. Mobile Application Delivery Communication Template – Clearly communicate the goal and approach of your mobile application implementation in a language your audience understands.

    This template narrates a story to describe the need and expectations of your low- and no-code initiative to get buy-in from stakeholders and interested parties.

    • Mobile Application Delivery Communication Template

    Infographic

    Workshop: Choose Your Mobile Platform and Tools

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Choose Your Platform and Delivery Solution

    The Purpose

    Choose the right mobile platform.

    Shortlist your mobile delivery solution and desired features and services.

    Key Benefits Achieved

    A chosen mobile platform that meets user and enterprise needs.

    Candidate mobile delivery solutions that meet your delivery needs and capacity of your teams.

    Activities

    1.1 Select your platform approach.

    1.2 Shortlist your mobile delivery solution.

    1.3 Build your feature and service lists.

    Outputs

    Desired mobile platform approach.

    Shortlisted mobile delivery solutions.

    Desired list of vendor features and services.

    2 Create Your Roadmap

    The Purpose

    Design the mobile application minimal viable product (MVP).

    Create your mobile roadmap.

    Key Benefits Achieved

    An achievable and valuable mobile application that is scalable for future growth.

    Clear intent of business outcome delivery and completing mobile delivery activities.

    Activities

    2.1 Define your MVP release.

    2.2 Build your roadmap.

    Outputs

    MVP design.

    Mobile delivery roadmap.

    3 Set the Mobile Context

    The Purpose

    Understand your user’s environment needs, behaviors, and challenges.

    Define stakeholder expectations and ensure alignment with the holistic business strategy.

    Identify your mobile application opportunities.

    Key Benefits Achieved

    Thorough understanding of your mobile user and opportunities where mobile applications can help.

    Level set stakeholder expectations and establish targeted objectives.

    Prioritized list of mobile opportunities.

    Activities

    3.1 Generate user personas with empathy maps.

    3.2 Build your mobile application canvas.

    3.3 Build your mobile backlog.

    Outputs

    User personas.

    Mobile objectives and metrics.

    Mobile opportunity backlog.

    4 Identify Your Technical Needs

    The Purpose

    Define the mobile experience you want to deliver and the features to enable it.

    Understand the state of your current system to support mobile.

    Identify your definition of mobile application quality.

    List the concerns with mobile delivery.

    Key Benefits Achieved

    Clear understanding of the desired mobile experience.

    Potential issues and risks with enabling mobile on top of existing systems.

    Grounded understanding of mobile application quality.

    Holistic readiness assessment to proceed with mobile delivery.

    Activities

    4.1 Discuss your mobile needs.

    4.2 Conduct a technical assessment.

    4.3 Define mobile application quality.

    4.4 Verify your decision to deliver mobile applications.

    Outputs

    List of mobile features to enable the desired mobile experience.

    System current assessment.

    Mobile application quality definition.

    Verification to proceed with mobile delivery.

    Further reading

    Choose Your Mobile Platform and Tools

    Maximize the value of your mobile investments by prioritizing technology decisions on user experience, business priorities, and system quality.

    EXECUTIVE BRIEF

    Analyst Perspective

    Mobile is the way of working.

    Workers require access to enterprise products, data, and services anywhere at anytime on any device. Give them the device-specific features, offline access, desktop-like interfaces, and automation capabilities they need to be productive.

    To be successful, you need to instill a collaborative business-IT partnership. Only through this partnership will you be able to select the right mobile platform and tools to balance desired outcomes with enterprise security, performance, integration, quality, and other delivery capacity concerns.

    This is a picture of Andrew Kum-Seun Senior Research Analyst, Application Delivery and Application Management Info-Tech Research Group

    Andrew Kum-Seun
    Senior Research Analyst,
    Application Delivery and Application Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Organizations see the value of mobile applications in improving productivity and reach of day-to-day business and IT operations. This motivates leaders to begin the planning of their first application.
    • However, organizations often lack the critical foundational knowledge and skills to deliver and maintain high quality and valuable applications that meet business and user priorities and technical requirements.
    • Mobile technologies and trends are continually evolving and maturing. It is hard to predict which trends will make a significant impact and to prepare current mobile investments to harness the value of these trends.

    Common Obstacles

    • Mobile applications can stress the stability, reliability and overall quality of your enterprise systems and services. They will also increase your security risks because of the exposure of your enterprise technology assets to unsecured networks and devices.
    • High costs of entry may restrict what native features your users can have in their mobile experience. Workarounds may not be sufficient to offset the costs of certain native feature needs.
    • Many operating models do not enable or encourage the collaboration required to fully understand user needs and behaviors and evaluate mobile opportunities and underlying operational systems from multiple perspectives.

    Info-Tech's Approach

    • Establish the right expectations. Understand your mobile users by learning their needs, challenges, and behaviors. Discuss the current state of your systems and your high priority non-functional requirements to determine what to expect from your mobile applications.
    • Choose the right mobile platform approach and shortlist your mobile delivery solutions. Obtain a thorough view of the business and technical complexities of your mobile opportunities, including current mobile delivery capabilities and system compatibilities.
    • Create your mobile roadmap. Describe the gradual rollout of your mobile technologies through minimal valuable products (MVPs).

    Insight Summary

    Overarching Info-Tech Insight

    Treat your mobile applications as digital products. Digital products are continuously modernized to ensure they are fit-for-purpose, secured, accessible, and immersive. A successful mobile experience involves more than just the software and supporting system. It involves good training and onboarding, efficient delivery turnaround, and a clear and rational vision and strategy.

    Phase 1: Set the Mobile Context

    • Build applications your users need and desire – Design the right mobile application that enables your users to address their frustrations and productivity challenges.
    • Maximize return on your technology investments – Build your mobile applications with existing web APIs, infrastructure, and services as much as possible.
    • Prioritize mobile security, performance and integration requirements – Understand the unique security, performance, and integration influences has on your desired mobile user experience. Find the right balance of functional and non-functional requirements through business and IT collaboration.

    Phase 2: Define Your Mobile Approach

    • Start with a mobile web platform - Minimize disruptions to your existing delivery process and technical stack by building against common web standards. Select a hybrid platform or cross-platform if you need device hardware access or have complicated non-functional requirements.
    • Focus your mobile solution decision on vendor support and functional complexity – Verify that your solution is not only compatible with the architecture, data, and policies of existing business systems, but satisfies IT's concerns with access to restricted technology and data, and with IT's ability to manage and operate your applications.
    • Anticipate changes, defects & failures in your roadmap - Quickly shift your mobile roadmaps according to user feedback, delivery challenges, value, and stability.

    Mobile is how the business works today

    Mobile adoption continues to grow in part due to the need to be a mobile workforce, and the shift in customer behaviors. This reality pushed the industry to transform business processes and technologies to better support the mobile way of working.

    Mobile Builds Interests
    61%
    Mobile devices drove 61% of visits to U.S. websites
    Source: Perficient, 2021

    Mobile Maintains Engagement
    54%
    Mobile devices generated 54.4% of global website traffic in Q4 2021.
    Source: Statista, 2022

    Mobile Drives Productivity
    82%
    According to 82% of IT executives, smartphones are highly important to employee productivity
    Source: Samsung and Oxford Economics, 2022

    Mobile applications enable and drive your digital business strategy

    Organizations know the criticality of mobile applications in meeting key business and digital transformation goals, and they are making significant investments. Over half (58%) of organizations say their main strategy for driving application adoption is enabling mobile access to critical enterprise systems (Enterprise CIO, 2016). The strategic positioning and planning of mobile applications are key for success.

    Mobile Can Motivate, Support and Drive Progress in Key Activities Underpinning Digital Transformation Goals

    Goal: Enhance Customer Experience

    • A shift from paper to digital communications
    • Seamless, omni-channel client experiences across devices
    • Create Digital interactive documents with sections that customers can customize to better understand their communications

    Goal: Increase Workflow Throughput & Efficiency

    • Digitized processes and use of data to improve process efficiency
    • Modern IT platforms
    • Automation through robotic process automation (RPA) where possible
    • Use of AI and machine learning for intelligent automation

    Source: Broadridge, 2022

    To learn more, visit Info-Tech's Define Your Digital Business Strategy blueprint.

    Well developed mobile applications bring unique opportunities to drive more value

    Role

    Opportunities With Mobile Applications

    Expected Value

    Stationary Worker

    Design flowcharts and diagrams, while abandoning paper and desktop applications in favor of easy-to-use, drawing tablet applications.

    Multitask by checking the application to verify information given by a vendor during their presentation or pitch.

    • Reduce materials cost to complete administrative responsibilities.
    • Digitally and automatically store and archive frequently used documents.

    Roaming Worker
    (Engineer)

    Replace physical copies of service and repair manuals with digital copies, and access them with mobile applications.

    Scan or input product bar code to determine whether a replacement part is available or needs to be ordered.

    • Readily access and update corporate data anywhere at anytime.
    • Expand employee responsibilities with minimal skills impact.

    Roaming Worker
    (Nurse)

    Log patient information according to HIPAA standards and complete diagnostics live to propose medication for a patient.

    Receive messages from senior staff about patients and scheduling while on-call.

    • Quickly and accurately complete tasks and update patient data at site.
    • Be readily accessible to address urgent issues.

    Info-Tech Insight

    If you build it, they may not come. Design and build the applications your user wants and needs, and ensure users are properly onboarded and trained. Learn how your applications are leveraged, capture feedback from the user and system dashboards, and plan for enhancements, fixes, and modernizations.

    Workers expect IT to deliver against their high mobile expectations

    Workers want sophisticated mobile applications like what they see their peers and competitors use.

    Why is IT considering building their own applications?

    • Complex and Unique Workflows: Canned templates and shells are viewed as incompatible to the workflows required to complete worker responsibilities outside the office, with the same level of access to corporate data as on premise.
    • Supporting Bring Your Own Device (BYOD): Developing your own mobile applications around your security protocols and standards can help mitigate the risks with personal devices that are already in your workforce.
    • Long-Term Architecture Misalignment: Outsourcing mobile development risks the mobile application misaligned with your quality standards or incompatible with other enterprise and third-party systems.

    Continuously meeting aggressive user expectations will not be easy

    Value Quickly Wears Off
    39.9% of users uninstall an application because it is not in use.
    40%
    Source: n=2,000, CleverTap, 2021

    Low Tolerance to Waiting
    Keeping a user waiting for 3 seconds is enough to dissatisfy 43% of users.
    43%
    Source: AppSamurai, 2018

    Quick Fixes Are Paramount
    44% of defects are found by users
    44%
    Source: Perfecto Mobile, 2014

    Mobile emphasizes the importance of good security, performance, and integration

    Today's mobile workers are looking for new ways to get more work done quickly. They want access to enterprise solutions and data directly on their mobile devices, which can reside on multiple legacy systems and in the cloud and third-party infrastructure. This presents significant performance, integration, and security risks.

    Cloud Solutions: Can I use my existing APIs?. Solutions in Corporate Networks: Do my legacy systems have the capacity to support mobile?; How do I integrate solutions and data from multiple sources into a single view?; Third Party Solutions: Will I have a significant performance bottleneck?; Single View on Mobile Devices: How is corporate data stored on the device?; What new technology dependencies must I account for in my architecture and operational support capabilities?

    Accept change as the norm

    IT is challenged with keeping up with disruptive technologies, such as mobile, which are arriving and changing faster and faster.

    What is the issue? Mobile priorities, concepts, and technologies do not remain static. For example, current Google's Pixels benefit from at least three versions of Android updates and at least three years of monthly security patches after their release (NextPit, 2022). Keeping up to date with anything mobile is difficult if you do not have the right delivery and product management practices in place.

    What is the impact on IT? Those who fail to prepare for changing requirements and technologies will quickly run into maintainability, extensibility, and flexibility issues. Mobile applications will quickly become stale and misaligned with the maturity of other enterprise infrastructure and applications.

    Continuously look at the trends, vendor roadmaps, and your user's feedback to envision where your mobile applications should be. Learning from your past attempts gives you insights on the opportunities and impacts changes will have on your people, process, and technology.

    How do I address this issue? A well-defined mobile vision and roadmap ensures your initiatives are aligned with your holistic business and technology strategies, the right problem is being solved, and resources are available to deliver high priority changes.

    To learn more, visit Info-Tech's Deliver on Your Digital Product Vision blueprint.

    Address the difficulties in managing enterprise mobile technologies

    Adaptability During Development

    Teams must be ready to alter their mobile approach when new insights and issues arise during and after the delivery of your mobile application and its updates.

    High Cybersecurity Standards

    Cybersecurity should be a top priority given the high security exposure of mobiles and the sensitive data mobile applications need to operate. Role-based access, back-up systems, advanced scanning, and protection software and encryption should all be implemented.

    Integration with Other Systems

    Your application will likely be integrated with other systems to expand service offerings and optimize performance and user experience. Your enterprise integration strategy ensures all systems connect against a common pattern with compatible technologies.

    Finding the Right Mobile Developers

    Enterprise mobile delivery requires a broad skillset to build valuable applications against extensive non-functional requirements in complex and integration environments. The right resources are even harder to find when native applications are preferred over web-based ones.

    Source: Radoslaw Szeja, Netguru, 2022.

    Build and manage the right experience by treating mobile as digital products

    Digital products are continuously modernized to ensure they are fit-for-purpose, secured, insightful, accessible, and interoperable. A good experience involves more than just technology.

    First, deliver the experience end users want and expect by designing the application against digital application principles.

    Business Value

    Continuous modernization

    • Fit for purpose
    • User-centric
    • Adaptable
    • Accessible
    • Private and secured
    • Informative and insightful
    • Seamless application connection
    • Relationship and network building

    To learn more, visit Info-Tech's Modernize Your Applications blueprint.

    Then, deliver a long-lasting experience by supporting your applications with key governance and management capabilities.

    • Product Strategy and Roadmap
    • External Relationships
    • User Adoption and Organizational Change Management
    • Funding
    • Knowledge Management
    • Stakeholder Management
    • Product Governance
    • Maintenance & Enhancement
    • User Support
    • Managing and Governing Data
    • Requirements Analysis and Design
    • Research & Development

    To learn more, visit Info-Tech's Make the Case for Product Delivery blueprint.

    Choose Your Mobile Platform and Tools

    Maximize the value of your mobile investments by prioritizing technology decisions on user experience, business priorities, and system quality.

    WORKFLOW

    1. Capture Your User Personas and Journey workflow: Trigger: Step 1; Step 2; Step 3; Step 4; Outcome
    2. Select Your Platform Nine datapoints are arranged on a graph where the x axis s labeled: User Centric Needs; and the Y axis is labeled: Enterprise-centric needs. The datapoints are, in order from left to right, top to bottom: Hybrid; Cross- Platform; Native; Web; Hybrid or Cross- Platform; Cros-s Platform; Web; Web; Hybrid or Cross- Platform.
    3. Shortlist Your Solutions A quadrant analysis is depicted. the top data is labeled Complex Mobile Features; the right side is labeled Organization-Managed Stack; the bottom is labeled Simple Mobile Features; and the left side is labeled Vendor-Managed Stack. The quadrants are labeled the following, in order from left to right, top to bottom. Vendor- Hosted Mobile Platform; Custom Native Development Solutions; Commercial-Off-the-Shelf Solutions; Custom Web Development Solutions. In the middle of the graph are the following, in order from top to bottom: Cross-Platform Development Solutions; Hybrid Development Solutions

    Strategic Perspective
    Business and Product Strategies

    1. End-User Perspective

    End User Needs

    • Productivity
    • Innovation
    • Transformation

    Native User Experience

    • Anytime, Anywhere
    • Visually Pleasing & Fulfilling
    • Personalized & Insightful
    • Hands-Off & Automated
    • Integrated Ecosystem

    2. Platform Perspective

    Technical Requirements

    Security

    Performance

    Integration

    Mobile Platform

    3. Solution Perspective

    Vendor Support

    Services

    Stack Mgmt.

    Quality & Risk

    Mobile Delivery Solutions

    Make user experience (UX) the standard

    User experience (UX) focuses on a user's emotions, beliefs, and physical and psychological responses that occur before, during, or after interacting with a service or product.

    For a mobile application to be meaningful, the functions, aesthetics and content must be:

    • Usable
      • Users can intuitively navigate through your mobile application and complete their desired tasks.
    • Desirable
      • The application elements are used to evoke positive emotions and appreciation.
    • Accessible
      • Users can easily use your mobile application, including those with disabilities.
    • Valuable
      • Users find the content useful, and it fulfills a need.

    Enable a greater experience with UX-driven thinking

    Designing for a high-quality experience requires more than just focusing on the UI. It also requires the merging of multiple business, technical, and social disciplines in order to create an immersive, practical, and receptive application. The image on the right explains the disciplines involved in UX. This is critical for ensuring users have a strong desire to use the mobile application, it is adequately supported technically, and it supports business objectives.

    To learn more, visit Info-Tech's Implement and Mature Your User Experience Design Practice blueprint.

    A Venn diagram is depicted, demonstrating the inputs that lead to an interactive design, with interactive elements, usability, and accessibility. This work by Mark Roden is licensed under a Creative Commons Attribution 3.0 Unported License.

    Source: Marky Roden, Xomino, 2018

    Define the mobile experience your end users want

    • Anytime, Anywhere
      • The user can access, update and analyze data and corporate products and services whenever they want, in all networks, and on any device.
    • Hands-Off and Automated
      • The application can perform various workflows and tasks without the user's involvement and notify the user when specific triggers are hit.
    • Personalized and Insightful
      • Content presentation and subject are tailored for the user based on specific inputs from the user, device hardware, or predicted actions.
    • Integrated Ecosystem
      • The application supports a seamless experience across various third-party and enterprise applications and services the user needs.
    • Visually Pleasing and Fulfilling
      • The UI is intuitive and aesthetically gratifying, with little security and performance trade-offs to use the full breadth of its functions and services.

    Each mobile platform has its own take on the mobile native experience. The choice ultimately depends on whether the costs and effort are worth the anticipated value.

    Mobile value is dependent on the platform you choose

    What is a platform?

    "A platform is a set of software and a surrounding ecosystem of resources that helps you to grow your business. A platform enables growth through connection: its value comes not only from its own features, but from its ability to connect external tools, teams, data, and processes." (Source: Emilie Nøss Wangen, 2021) In the mobile context, applications in a platform execute and communicate through a loosely-coupled API architecture, whether the supporting system is managed and supported by your organization or by third-party providers.

    Web

    Mobile web applications are deployed and executed within the mobile web browser. They are often developed with a combination of web and scripting languages, such as HTML, CSS, and JavaScript. Web often takes two forms on mobile:

    • Progressive Web Applications (PWA)
    • Mobile Web Sites

    Hybrid

    Hybrid applications are developed with web technologies but are deployed as native applications. The code is wrapped using a framework so that it runs locally within a native container. It uses the device's browser runtime engine to support more sophisticated designs and features than to the web approach.

    Cross-Platform

    Cross-platform applications are developed within a distinct programming or scripting environment that uses its own scripting language (often like web languages) and APIs. The solution compiles the code into device-specific builds for native deployment.

    Native

    Native applications are developed and deployed to specific devices and OSs using platform-specific software development kits (SDKs) provided by the operating system vendors. The programming language and framework are dictated by the targeted device, such as Java for Android.

    Start mobile development on a mobile web platform

    Start with what you have: begin with a mobile web platform to minimize impacts to your existing delivery skill sets and technical stack while addressing business needs. Resort to a hybrid first. Then consider a cross-platform application if you require device access or need to meet specific non-functional requirements.

    Why choose a mobile web platform?

    Pros

    The latest versions of the most popular web languages (HTML5, CSS3, JavaScript) abstract away from the granular, physical components of the application, simplifying the development process. HTML5 offer some mobile features (e.g. geolocation, accelerometer) that can meet your desired experience without the need for native development skills. Native look-and-feel, high performance, and full device access are just a few tradeoffs of going with web languages.

    Cons

    Native mobile platforms depend on device-specific code which follows specific frameworks and leverages unique programming libraries, such as Objective C for iOS and Java for Android. Each language requires a high level of expertise in the coding structure and hardware of specific devices. This requires resources with specific skillsets and different tools to support development and testing.

    Other Notable Benefits with Web Languages

    • Modern browsers in most mobile devices can execute and render many mobile features developed in web languages, allowing for greater portability and sophistication of code across multiple devices. However, this flexibility comes at the cost of performance since the browser's runtime engine will not perform as well as a native engine.
    • Web languages are well known by developers, minimizing skills and resourcing impacts. Consequently, changes can be quickly accommodated and updated uniformly across all end users.

    Select your mobile platform

    Drive your mobile platform selection against user-centric needs (e.g. device access, aesthetics) and enterprise-centric needs (e.g. security, system performance).

    When does a platform makes sense to use?

    Web

    • Desire to maximize current web technologies investments (people, process, and technologies).
    • Use cases do not require significant computational resources on the device or are tightly constrained by non-functional requirements.
    • Limited budget to acquire mobile development resources.
    • Access to device hardware is not a high priority.

    Hybrid / Cross-Platform

    • The need to quickly spin up native-like applications for multiple platforms and devices.
    • Desire to leverage existing web development skills, but also a need for device access and meeting specific non-functional requirements.
    • Vendor support is needed for the entire mobile delivery process.

    Native

    • Developers are experts in the target programming language and with the device's hardware.
    • Strong need for high performance, security, and device-specific access and customizations.
    • Application use cases require significant computing resources.

    Nine datapoints are arranged on a graph where the x axis s labeled: User Centric Needs; and the Y axis is labeled: Enterprise-centric needs. The datapoints are, in order from left to right, top to bottom: Hybrid; Cross- Platform; Native; Web; Hybrid or Cross- Platform; Cros-s Platform; Web; Web; Hybrid or Cross- Platform.

    Understand the common attributes of a mobile delivery solution

    • Source Code Management – Built-in or having the ability to integrate with code management solutions for branching, merging, and versioning. Debugging and coding assistance capabilities may be available.
    • Single Code Base – Capable of programming in a standard coding and scripting language for deployment into several platforms and devices. This code base is aligned to a common industry framework (e.g. AngularJS, Java) or a vendor-defined one.
    • Out-of-the-Box Connectors & Plug-ins – Pre-built APIs enhance the solution's capabilities with third-party tools and systems to deliver and manage high quality and valuable mobile applications.
    • Emulators – Ability to virtualize an application's execution on a target platform and device.
    • Support for Native Features – Supports plug-ins and APIs for access to device-specific features.

    What are mobile delivery solutions?

    A mobile delivery solution provides the tools, resources, and support to enable or build your mobile application. It can provide pre-built applications, vendor supported components to allow some configurations, or resources for full stack customizations. Solutions can be barebone software development kits (SDKs), or comprehensive suites offering features to support the entire software delivery lifecycle, such as:

    • Mobile application management
    • Testing and publishing to app stores
    • Content management
    • Cloud hosting
    • Application performance management

    Info-Tech Insight

    Mobile enablement and development capabilities are already embedded in many common productivity tools and enterprise applications, such as Microsoft PowerApps and ERP modules. They can serve as a starting point in the initial rollout of new management and governance practices without the need to acquire new tools.

    Select your mobile delivery solutions

    1. Set the scope of your framework.
    • The initial context of this framework is based on the mobile functions needed to support your desired mobile experience and on the current state of your enterprise and 3rd party systems.
  • Define the decision factors for your solution selection.
    • Review the decision factors that will influence the selection of your mobile delivery solution for each mobile opportunity:
    • Stack Management – Who will be hosting and supporting your mobile application stack?
    • Workflows Complexity & Native Experience – How complex is your desired mobile experience and how will native device features be leveraged?
  • Select your solution type.
    • Mobile delivery solutions are broadly defined in the following groups:
    • Commercial-Off-The-Shelf (COTS) – Pre-built mobile applications requiring little to no configurations or implementation effort.
    • Vendor Hosted Mobile Platform – Back-end and mid-tier infrastructure and operational support are managed by a vendor.
    • Cross-Platform Development – Frameworks that transform a single code base into platform-specific builds.
    • Hybrid Development – Tools that wrap a single code base into a locally deployable build.
    • Custom Web Development – Environment enabling full stack development for mobile web applications.
    • Custom Native Development – Environment enabling full stack development for mobile native applications.
    • A quadrant analysis is depicted. the top data is labeled Complex Mobile Features; the right side is labeled Organization-Managed Stack; the bottom is labeled Simple Mobile Features; and the left side is labeled Vendor-Managed Stack. The quadrants are labeled the following, in order from left to right, top to bottom. Vendor- Hosted Mobile Platform; Custom Native Development Solutions; Commercial-Off-the-Shelf Solutions; Custom Web Development Solutions. In the middle of the graph are the following, in order from top to bottom: Cross-Platform Development Solutions; Hybrid Development Solutions

    Optimize your software delivery process

    Mobile brings new delivery and management challenges that are often difficult for organizations that are tied to legacy systems, hindered by rigid and slow delivery lifecycles, and are unable to adopt leading-edge technologies. Many of these challenges stem from the fact that mobile is a significant shift from desktop development:

    • Mobile devices and operating systems are heavily fragmented, especially in the Android space.
    • Test coverage is significantly expanded to include physical environments and multiple network connections.
    • Mobile devices do not have the same performance capabilities and memory storage as their desktop counterparts.
    • The user interface must be strategically designed to accommodate the limited screen size.
    • Mobile applications are highly susceptible to security breaches.
    • Mobile users often expect quick turnaround time on fixes and enhancements due to continuously changing technology, business priorities, and user needs.

    To learn more, visit Info-Tech's Modernize Your SDLC blueprint.

    How should the process change?

    • Cross-functional collaboration – Bringing business and IT together at the most opportune times to clarify user needs and business priorities, and set realistic expectations given technology and capacity constraints. The appropriate tactics and techniques are used to improve decision making and delivery effectiveness according to the type of work.
    • Iterative delivery – Frequent delivery of progressive changes minimizes the risk of low-quality features by containing and simplifying scope, and enables responsive turnarounds of fixes, enhancements, and priority changes.
    • Feedback loops –Mobile application owners constantly review, update and refine their backlog of mobile features and changes to reflect user feedback and system performance metrics. Delivery teams proactively prepare the application for future scaling based on lessons and feedback learned from earlier releases.

    Achieve mobile success with MVPs

    By delivering mobile capabilities in small iterations, teams recognize value sooner and reduce accumulated risk. Both benefits are realized as the iteration enters validation testing and release.

    This image depicts a graph of the learn-build-measure cycle over time, adapted from Managing the Development of Large Software Systems, Dr. Winston W. Royce, 1970

    An MVP focuses on a small set of functions, involves minimal possible effort to deliver a working and valuable solution, and is designed to satisfy a specific user group. Its purpose is to:

    • Maximize learning.
    • Evaluate the value and acceptance of mobile applications.
    • Inform the building of a mobile delivery practice.

    The build-measure-learn loop suggests mobile delivery teams should perpetually take an idea and develop, test, and validate it with the mobile development solution, then expand on the MVP using the lessons learned and evolving ideas. In this sense the MVP is just the first iteration in the loop.

    Gauge the value with the right metrics

    Metrics are a powerful way to drive behavior change in your organization. But metrics are highly prone to creating unexpected outcomes so they must be used with great care. Use metrics judiciously to avoid gaming or ambivalent behavior, productivity loss, and unintended consequences.

    To learn more, visit Info-Tech's Select and Use SDLC Metrics Effectively blueprint.

    What should I measure?

    1. Mobile Application Engagement, Retention and User Satisfaction
      1. The activeness of users on the applications, the number of returning users, and the happiness of the users.
      2. Example: Number of tasks completed, number of active and returning users, session length and intervals, user satisfaction
    2. Value Driven from Mobile Applications
      1. The business value that the user directly or indirectly receives with the mobile application.
      2. Example: Mobile application revenue, business operational costs, worker productivity, business reputation and image
    3. Delivery Throughput and Quality
      1. The health and quality of your mobile applications throughout their lifespan and the speed to deliver working applications that meet stakeholder expectations.
      2. Example: Frequency of release, lead time, request turnaround, escaped defects, test coverage.

    Use Info-Tech's diagnostic to evaluate the reception of your mobile applications

    Info-Tech's Application Portfolio Assessment (APA) Diagnostic is a canned end-user satisfaction survey used to evaluate your application portfolio health to support data-driven decisions.

    This image contains a screenshot from Info-Tech's Application Portfolio Assessment (APA) Diagnostic

    USE THE PROGRAM DIAGNOSTIC TO:

    • Assess the importance and satisfaction of enterprise applications.
    • Solicit feedback from your end users on applications being used.
    • Understand the strengths and weaknesses of your current applications.
    • Perform a high-level application rationalization initiative.

    INTEGRATE DIAGNOSTIC RESULTS TO:

    • Target which applications to analyze in greater detail.
    • Expand on the initial application rationalization results with a more comprehensive and business-value-focused criteria.

    Grow your mobile delivery practice

    Level 1: Mobile Delivery Foundations

    You understand the opportunities and impacts mobile has on your business operations and its disruptive nature on your enterprise systems. Your software delivery lifecycle was optimized to incorporate the specific practices and requirements needed for mobile. A mobile platform was selected based on stakeholder needs that are weighed against current skillsets, high priority non-functional requirements, the available capacity and scalability of your stack, and alignment to your current delivery process.

    Level 2: Scaled Mobile Delivery

    New features and mobile use cases are regularly emerging in the industry. Ensuring your mobile platform and delivery process can easily scale to incorporate constantly changing mobile features and technologies is key. This can help minimize the impact these changes will have on your mobile stack and the resulting experience.

    Achieving this state requires three competencies: mobile security, performance optimization, and integration practices.

    Level 3: Leading-Edge Mobile Delivery

    Many of today's mobile trends involve, in one form or another, hardware components on the mobile device (e.g., NFC receivers, GPS, cameras). You understand the scope of native features available on your end user's mobile device and the required steps and capabilities to enable and leverage them.

    Hit a home run with your stakeholders

    Use a data-driven approach to select the right tooling vendor for your needs – fast.

    Awareness Education & Discovery Evaluation Selection

    Negotiation & Configuration

    1.1 Proactively Lead Technology Optimization & Prioritization 2.1 Understand Marketplace Capabilities & Trends 3.1 Gather & Prioritize Requirements & Establish Key Success Metrics 4.1 Create a Weighted Selection Decision Model 5.1 Initiate Price Negotiation with Top Two Venders
    1.2 Scope & Define the Selection Process for Each Selection Request Action 2.2 Discover Alternate Solutions & Conduct Market Education 3.2 Conduct a Data Driven Comparison of Vendor Features & Capabilities 4.2 Conduct Investigative Interviews Focused on Mission Critical Priorities with Top 2-4 Vendors 5.2 Negotiate Contract Terms & Product Configuration

    1.3 Conduct an Accelerated Business Needs Assessment

    		2.3 Evaluate Enterprise Architecture & Application Portfolio Narrow the Field to Four Top Contenders 4.3 Validate Key Issues with Deep Technical Assessments, Trial Configuration & Reference Checks 5.3 Finalize Budget Approval & Project
    1.4 Align Stakeholder Calendars to Reduce Elapsed Time & Asynchronous Evaluation 2.4 Validate the Business Case 5.4 Invest in Training & Onboarding Assistance

    Investing time improving your software selection methodology has big returns.

    Info-Tech Insight

    Not all software selection projects are created equal – some are very small, some span the entire enterprise. To ensure that IT is using the right framework, understand the cost and complexity profile of the application you're looking to select. Info-Tech's Rapid Application Selection Framework approach is best for commodity and mid-tier enterprise applications; selecting complex applications is better handled by the methodology in Info-Tech's Implement a Proactive and Consistent Vendor Selection Process.

    Pitch your mobile delivery approach with Info-Tech's template

    Communicate the justification of your approach to mobile applications with Info-Tech's Mobile Application Delivery Communication Template:

    • Level set your mobile application goals and objectives by weighing end user expectations with technical requirements.
    • Define the high priority opportunities for mobile applications.
    • Educate decision makers of the limitations and challenges of delivering specific mobile experiences with the various mobile platform options.
    • Describe your framework to select the right mobile platform and delivery tools.
    • Lay out your mobile delivery roadmap and initiatives.

    INFO-TECH DELIVERABLE

    This is a screenshot from Info-Tech's Mobile Application Delivery Communication Template

    Info-Tech's methodology for mobile platform and delivery solution selection

    1. Set the Mobile Context

    2. Define Your Mobile Approach

    Phase Steps

    Step 1.1 Build Your Mobile Backlog

    Step 1.2 Identify Your Technical Needs

    Step 1.3 Define Your Non-Functional Requirements

    Step 2.1 Choose Your Platform Approach

    Step 2.2 Shortlist Your Mobile Delivery Solution

    Step 2.3 Create a Roadmap for Mobile Delivery

    Phase Outcomes

    • User personas
    • Mobile objectives and metrics
    • Mobile opportunity backlog
    • List of mobile features to enable the desired mobile experience
    • System current assessment
    • Mobile application quality definition
    • Readiness for mobile delivery
    • Desired mobile platform approach
    • Shortlisted mobile delivery solutions
    • Desired list of vendor features and services
    • MVP design
    • Mobile delivery roadmap

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

    Guided Implementation

    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2

    Call #1: Understand the case and motivators for mobile applications.

    Call #2: Discuss the end user and desired mobile experience.

    Call #5: Discuss the desired mobile platform.

    Call #8: Discuss your mobile MVP.

    Call #3: Review technical complexities and non-functional requirements.

    Call #6: Shortlist mobile delivery solutions and desired features.

    Call #9: Review your mobile delivery roadmap.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is 6 to 9 calls over the course of 2 to 3 months.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Module 1 Module 2 Module 3 Module 4 Post-Workshop
    Activities Set the Mobile Context Identify Your Technical Needs Choose Your Platform & Delivery Solution Create Your Roadmap Next Steps andWrap-Up (offsite)

    1.1 Generate user personas with empathy maps

    1.2 Build your mobile application canvas

    1.3 Build your mobile backlog

    2.1 Discuss your mobile needs

    2.2 Conduct a technical assessment

    2.3 Define mobile application quality

    2.4 Verify your decision to deliver mobile applications

    3.1 Select your platform approach

    3.2 Shortlist your mobile delivery solution

    3.3 Build your feature and service lists

    4.1 Define your MVP release

    4.2 Build your roadmap

    5.1 Complete in-progress deliverables from previous four days.

    5.2 Set up review time for workshop deliverables and to discuss next steps.

    Deliverables

    • User personas
    • Mobile objectives and metrics
    • Mobile opportunity backlog
    • List of mobile features to enable the desired mobile experience
    • System current assessment
    • Mobile application quality definition
    • Verification to proceed with mobile delivery
    • Desired mobile platform approach
    • Shortlisted mobile delivery solutions
    • Desired list of vendor features and services
    • MVP design
    • Mobile delivery roadmap
    • Completed workshop output deliverable
    • Next steps

    Phase 1

    Set the Mobile Context

    Choose Your Mobile Platform and Tools

    This phase will walk you through the following steps:

    • Step 1.1 – Build Your Mobile Backlog
    • Step 1.2 – Identify Your Technical Needs
    • Step 1.3 – Define Your Non-Functional Requirements

    This phase involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Step 1.1

    Build Your Mobile Backlog

    Activities

    1.1.1 Generate user personas with empathy maps

    1.1.2 Build your mobile application canvas

    1.1.3 Build your mobile backlog

    Set the Mobile Context

    This step involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Outcomes of this step

    • User personas
    • Mobile objectives and metrics
    • Mobile opportunity backlog

    Users expect your organization to support their mobile way of working

    Today, users expect sophisticated and personalized features, immersive interactions, and cross-platform capabilities from their mobile applications and be able to access information and services anytime, anywhere and on any device. These demands are pushing organizations to become more user-driven, placing greater importance on user experience (UX) with enterprise-grade technologies.

    How has technologies evolved to easily enable mobile capabilities?

    • Desktop-Like Features
      • Native-like features, such as geolocation and local caching, are supported through web language or third-party plugins and extensions.
    • Extendable & Scalable
      • Plug-and-play architecture is designed to allow software delivery teams to explore new use cases and mobile capabilities with out-of-the-box connectors and/or customizable REST APIs.
    • Low Barrier to Entry
      • Low- and no-code development tools, full-stack solutions, and plug-and-play architectures allow non-technical users to easily build and implement applications without direct IT involvement.
    • Templates & Shells
      • Vendors provide UI templates and application shells that contain pre-built native features and multiple aesthetic layouts in a publishing-friendly and configurable way.
    • Personalized Content
      • Content can be uniquely tailored to a user's preference or be automatically generated based on the user's profile or activity history.
    • Hands-Off Operations
      • Many mobile solutions operate in a as-a-service model where the underlying and integrated technologies are managed by the vendor and abstracted away.

    Make user experience (UX) the standard

    User experience (UX) focuses on a user's emotions, beliefs, and physical and psychological responses that occur before, during, or after interacting with a service or product.

    For a mobile application to be a meaningful experience, the functions, aesthetics and content must be:

    • Usable
      • Users can intuitively navigate through your mobile application and complete their desired tasks.
    • Desirable
      • The application elements are used to evoke positive emotions and appreciation.
    • Accessible
      • Users can easily use your mobile application, including those with disabilities.
    • Valuable
      • Users find the content useful, and it fulfills a need.

    Enable a greater experience with UX-driven thinking

    Designing for a high-quality experience requires more than just focusing on the UI. It also requires the merging of multiple business, technical, and social disciplines in order to create an immersive, practical, and receptive application. The image on the right explains the disciplines involved in UX. This is critical for ensuring users have a strong desire to use the mobile application, it is adequately supported technically, and it supports business objectives.

    To learn more, visit Info-Tech's Implement and Mature Your User Experience Design Practice blueprint.

    A Venn diagram is depicted, demonstrating the inputs that lead to an interactive design, with interactive elements, usability, and accessibility. This work by Mark Roden is licensed under a Creative Commons Attribution 3.0 Unported License.

    Source: Marky Roden, Xomino, 2018

    UX-driven mobile apps bring together a compelling UI with valuable functionality

    Info-Tech Insight

    Organizations often over-rotate on the UI. Receptive and satisfying applications require more than just pretty pictures, bold colors, and flashy animations. UX-driven mobile applications require the seamless merging of enticing design elements and valuable functions that are specifically tailored to the behaviors of the users. Take a deep look at how each design element and function is used and perceived by the user, and how your application can sufficiently support user needs.

    UI-Function Balance to Achieve Highly Satisfying Mobile Applications

    An application's UI and function both contribute to UX, but they do so in different ways.

    • The UI generates the visual, audio, and vocal cues to draw the attention of users to key areas of the application while stimulating the user's emotions.
    • Functions give users the means to satisfy their needs effortlessly.

    Finding the right balance of UI and function is dependent on the organization's understanding of user emotions, needs, and tendencies. However, these factors are often left out of an application's design. Having the right UX competencies is key in assuring user behaviors are appropriately accommodated early in the delivery process.

    To learn more, visit Info-Tech's Modernize Your Corporate Website to Drive Business Value blueprint.

    Focus your efforts on all items that drive high user experience and satisfaction

    UX-driven mobile applications involve all interaction points and system components working together to create an immersive experience while being actively supported by delivery and operations teams. Many organizations commonly focus on visual and content design to improve the experience, but this is only a small fraction of the total UX design. Look beyond the surface to effectively enhance your application's overall UX.

    Typical Focus of Mobile UX

    Aesthetics
    What Are the Colors & Fonts?

    Relevance & Modern
    Will Users Receive Up to Date Content and Trending Features?

    UI Design
    Where Are the Interaction Points?

    Content Layout
    How Is Content Organized?

    Critical Areas of Mobile UX That Are Often Ignored

    Web Infrastructure
    How Will Your Application Be Operationally Supported?

    Human Behavior
    What Do the Users Feel About Your Application?

    Coding Language
    What Is the Best Language to Use?

    Cross-Platform Compatibility
    How Does It Work in a Browser Versus Each Mobile Platform?

    Application Quality
    How are Functional and Non-Functional Needs Balanced?

    Adoption & Retention
    How Do I Promote Adoption and Maintain User Engagement?

    Application Support
    How Will My Requests and Issues Be Handled?

    Use personas to envision who will be using your mobile application

    What Are Personas?

    Personas are detailed descriptions of the targeted audience of your mobile application. It represents a type of user in a particular scenario. Effective personas:

    • Express and focus on the major needs and expectations of the most important user groups.
    • Give a clear picture of the typical user's behavior.
    • Aid in uncovering critical features and functionalities.
    • Describe real people with backgrounds, goals, and values.

    Why Are Personas Important to UX?

    They are important because they help:

    • Focus the development of mobile application features on the immediate needs of the intended audience.
    • Detail the level of customization needed to ensure content is valuable to and resonates with the user.
    • Describe how users may behave when certain audio and visual stimulus are triggered from the mobile application.
    • Outline the special design considerations required to meet user accessibility needs.

    Key Elements of a Persona:

    • Professional and Technical Skills and Experiences (e.g., knowledge of mobile applications, area of expertise)
    • Persona Group (e.g., executives)
    • Technological Environment of User (e.g., devices, browsers, network connection)
    • Demographics (e.g., nationality, age, language spoken)
    • Typical Behaviors and Tendencies (e.g., goes to different website when cannot find information in 20 seconds)
    • Purpose of Using the Mobile Application (e.g., search for information, submit registration form)

    Create empathy maps to gain a deeper understanding of stakeholder personas

    Empathy mapping draws out the characteristics, motivations, and mannerisms of a potential end user.

    This image contains an image of an empathy map from XPLANE, 2017. it includes the following list: 1. Who are we empathizing with; 2. What do they need to DO; 3. What do they SEE; 4. What do they SAY?; 5. What do they DO; 6. What do they HEAR; 7. What do they THINK and FEEL.

    Source: XPLANE, 2017

    Empathy mapping focuses on identifying the problems, ambitions, and frustrations they are looking to resolve and describes their motivations for wanting to resolve them. This analysis helps your teams:

    • Better understand the reason behind the struggles, frustrations and motivators through a user's perspective.
    • Verify the accuracy of assertions made about the user.
    • Pinpoint the specific problem the mobile application will be designed to solve and the constraints to its successful adoption and on-going use.
    • Read more about empathy mapping and download the empathy map PDF template here.

    To learn more, visit Info-Tech's Use Experience Design to Drive Empathy with the Business blueprint.

    1.1.1 Generate user personas with empathy maps

    1-3 hours

    1. Download the Empathy Map Canvas and draw the map on a whiteboard or project it on the screen.
    2. Choose an end user to be the focus of your empathy map. Using sticky notes, fill out the sections of the empathy map in the following order:
      1. Start by filling out the goals section. State who the subject of the empathy map will be and what activity or task you would like them to do.
        1. Focus on activities and tasks that may benefit from mobile.
      2. Next, complete the outer sections in clockwise order (see, say, do, hear). The purpose of this is to think in terms of what the subject of your empathy map is observing, sensing, and experiencing.
        1. Indicate the mobile devices and OS users will likely use and the environments they will likely be in (e.g., places with poor connections)
        2. Discuss accessibility needs and how user prefer to consume content.
      3. Last, complete the inner circle of the empathy map (pains and gains). Since you spent the last step of the exercise thinking about the external influences on your stakeholder, you can think about how those stimuli affect their emotions.
    3. Document your end user persona into Info-Tech's Mobile Application Delivery Communication Template.

    Input

    		Output
    • List of potential mobile application users
    • User personas
    Materials Participants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    1.1.1 cont'd

    This image contains an image of an empathy map from XPLANE, 2017. it includes the following list: 1. Who are we empathizing with; 2. What do they need to DO; 3. What do they SEE; 4. What do they SAY?; 5. What do they DO; 6. What do they HEAR; 7. What do they THINK and FEEL.

    Download the Empathy Map Canvas

    Many business priorities are driving mobile

    Mobile Applications

    • Product Roadmap
      • Upcoming enterprise technology releases and updates offer mobile capabilities to expand its access to a broader userbase.
    • Cost Optimization
      • Maximizing business value in processes and technologies through disciplined and strategic cost and spending reduction practices with mobile applications.
    • Competitive Differentiation
      • Developing and optimizing your organization's distinct products and services quickly with mobile applications.
    • Digital Transformation
      • Transitioning processes, data and systems to a digital environment to broaden access to enterprise data and services anywhere at anytime.
    • Operational Efficiency
      • Improving software delivery and business process throughput by increasing worker productivity with mobile applications.
    • Other Business Priorities
      • New corporate products and services, business model changes, application rationalization and other priorities may require modernization, innovation and a mobile way of working.

    Focus on the mobile business and end user problem, not the solution

    People are naturally solution-focused. The onus isn't on them to express their needs in the form of a problem statement!

    When refining your mobile problem statement, attempt to answer the following four questions:

    • Who is impacted?
    • What is the (user or organizational) challenge that needs to be addressed?
    • Where does it happen?
    • Why does it matter?

    There are many ways of writing problem statements, a clear approach follows the format:

    • "Our (who) has the problem that (what) when (where). Our solution should (why)."
    • Example: "Our system analysts has the problem that new tickets take too long to update when working on user requests. Our approach should enable the analyst to focus on working with customers and not on administration."

    Adapted from: "Design Problem Statements – What and How to Frame Them"

    How to write a vision statement

    It's ok to dream a little!

    When thinking about a vision statement, think about:

    • Who is it for?
    • What does the customer need?
    • What can we do for them?
    • And why is this special?

    There are different statement templates available to help form your vision statements. Some include:

    1. For [our target customer], who [customer's need], the [product] is a [product category or description] that [unique benefits and selling points]. Unlike [competitors or current methods], our product [main differentiators]. (Crossing the Chasm)
    2. "We believe (in) a [noun: world, time, state, etc.] where [persona] can [verb: do, make, offer, etc.], for/by/with [benefit/goal].
    3. To [verb: empower, unlock, enable, create, etc.] [persona] to [benefit, goal, future state].
    4. Our vision is to [verb: build, design, provide], the [goal, future state], to [verb: help, enable, make it easier to...] [persona]."

    (Numbers 2-4 from: How to define a product vision)

    Info-Tech Best Practice

    A vision shouldn't be so far out that it doesn't feel real and so short term that it gets bogged down in minutiae and implementation details. Finding that right balance will take some trial and error and will be different depending on your organization.

    Ensure mobile supports ongoing value delivery and stakeholder expectations

    Success hinges on your team's ability to deliver business value. Well-developed mobile applications instill stakeholder confidence in ongoing business value delivery and stakeholder buy-in, provided proper expectations are set and met.

    Business value defines the success criteria of an organization, and it is interpreted from four perspectives:

    • Profit Generation – The revenue generated from a business capability with mobile applications.
    • Cost Reduction – The cost reduction when performing business capabilities with mobile applications.
    • Service Enablement – The productivity and efficiency gains of internal business operations with mobile applications.
    • Customer and Market Reach – Metrics measuring the improved reach and insights of the business in existing or new markets.

    See our Build a Value Measurement Framework blueprint for more information about business value definition.

    This image contains a quadrant analysis with the following labels: Left - Improved Capabilities; Top - Outward; Right - Financial Benefit; Bottom - Inward. the quadrants are labeled the following, in order from left to right, top to bottom. Customer and Market Reach; Profit Generation; Service Enhancement; Cost Reduction

    Set realistic mobile goals

    Mobile applications enables the exploration of new and different ways to improve worker productivity and deliver business value. However, the realities of mobile applications may limit your ability to meet some of your objectives:

    • On the day of installation, the average retention rate for public-facing applications was 25.3%. By day 30, the retention rate drops to 5.7%. (Source: Statista, 2020)
    • 63% of 3,335 most popular Android mobile applications on the Google Play Store contained open-source components with known security vulnerabilities and other pervasive security concerns including exposing sensitive data (Source: Synopsys, 2021)
    • 62% of users would delete the application because of performance issues, such as crashes, freezes and other errors (Source: Intersog, 2021).

    These realities are not guaranteed to occur or impede your ability to deliver valuable mobile applications, but they can lead to unachievable expectations. Ensure your stakeholders are not oversold on advertised benefits and hold you accountable for unrealistic objectives. Recognize that the organization must also change how it works and operates to see the full benefit and adoption of mobile applications and overcome the known and unknown challenges and hurdles that often come with mobile delivery.

    Benchmarks present enticing opportunities, but should be used to set reasonable expectations

    66%
    Improve Market Reach
    66% of the global population uses a mobile device
    Source: DataReportal, 2021

    20%
    Connected Workers are More Productive
    Nearly 20 percent of mobile professionals estimate they miss more than three hours of working time a week not being able to get connected to the internet
    Source: iPass, 2017

    80%
    Increase Brand Recognition
    80% of smartphone users are more likely to purchase from companies whose mobile sites of apps help them easily find answers to their questions
    Source: Google, 2018

    Gauge the value with the right metrics

    Metrics are a powerful way to drive behavior change in your organization. But metrics are highly prone to creating unexpected outcomes so they must be used with great care. Use metrics judiciously to avoid gaming or ambivalent behavior, productivity loss, and unintended consequences.

    To learn more, visit Info-Tech's Select and Use SDLC Metrics Effectively blueprint.

    What should I measure?

    1. Mobile Application Engagement, Retention and User Satisfaction
      • The activeness of users on the applications, the number of returning users, and the happiness of the users.
      • Example: Number of tasks completed, number of active and returning users, session length and intervals, user satisfaction
    2. Value Driven from Mobile Applications
      • The business value that the user directly or indirectly receives with the mobile application.
      • Example: Mobile application revenue, business operational costs, worker productivity, business reputation and image
    3. Delivery Throughput and Quality
      • The health and quality of your mobile applications throughout their lifespan and the speed to deliver working applications that meet stakeholder expectations.
      • Example: Frequency of release, lead time, request turnaround, escaped defects, test coverage.

    Use Info-Tech's diagnostic to evaluate the reception of your mobile applications

    Info-Tech's Application Portfolio Assessment (APA) Diagnostic is a canned end user satisfaction survey used to evaluate your application portfolio health to support data-driven decisions.

    This image contains a screenshot from Info-Tech's Application Portfolio Assessment (APA) Diagnostic

    USE THE PROGRAM DIAGNOSTIC TO:

    • Assess the importance and satisfaction of enterprise applications.
    • Solicit feedback from your end users on applications being used.
    • Understand the strengths and weaknesses of your current applications.
    • Perform a high-level application rationalization initiative.

    INTEGRATE DIAGNOSTIC RESULTS TO:

    • Target which applications to analyze in greater detail.
    • Expand on the initial application rationalization results with a more comprehensive and business-value-focused criteria.

    Use a canvas to define key elements of your mobile initiative

    Mobile Application Initiative Name

    Owner:
    Parent Initiative:
    Updated:

    NAME
    LINK
    October 05, 2022

    Problem Statement

    Vision

    The problem or need mobile applications are addressing

    Vision, unique value proposition, elevator pitch, or positioning statement

    Business Goals & Metrics

    Capabilities, Processes & Application Systems

    List of business objectives or goals for the mobile application initiative.

    List of business capabilities, processes and application systems related to this initiative.

    Personas/Customers/Users

    Stakeholders

    List of groups who consume the mobile application

    List of key resources, stakeholders, and teams needed to support the process, systems and services

    To learn more, visit Info-Tech's Deliver on Your Digital Product Vision blueprint.

    1.1.2 Build your mobile application canvas

    1-3 hours

    1. Complete the following fields to build your mobile application canvas:
      • Mobile application initiative name
      • Mobile application owner
      • Parent initiative name
      • Problem that mobile applications are intending to solve and your vision. See the outcome from the previous exercise.
      • Mobile application business goals and metrics.
      • Capabilities, processes and application systems involved
      • Primary customers/users (For additional help with your product personas, download and complete to Deliver on Your Digital Product Vision.)
    2. Stakeholders
    3. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    Input

    		Output
    • User personas
    • Business strategy
    • Problem and vision statements
    • Mobile objectives and metrics
    • Mobile application canvas
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    1.1.2 cont'd

    Mobile Application Initiative Name

    Owner:
    Parent Initiative:
    Updated:

    NAME
    LINK
    October 05, 2022

    Problem Statement

    Vision

    [Problem Statement]

    [Vision]

    Business Goals & Metrics

    Capabilities, Processes & Application Systems

    [Business Goal 1, Metric]
    [Business Goal 2, Metric]
    [Business Goal 3, Metric]

    [Business Capability]
    [Business Process]
    [Application System]

    Personas/Customers/Users

    Stakeholders

    [User 1]
    [User 2]
    [User 3]

    [Stakeholder 1]
    [Stakeholder 2]
    [Stakeholder 3]

    Create your mobile backlog

    Your backlog gives you a holistic understanding of the demand for mobile applications across your organization.

    Opportunities
    Trends
    MVP

    External Sources

    Internal Sources

    • Market Trends Analysis
    • Competitive Analysis
    • Regulations & Industry Standards
    • Customer & Reputation Analysis
    • Application Rationalization
    • Capability & Value Stream Analysis
    • Business Requests & Incidents
    • Discovery & Mining Capabilities

    A mobile application minimum viable product (MVP) focuses on a small set of functions, involves minimal possible effort to deliver a working and valuable solution, and is designed to satisfy a specific user group. Its purpose is to maximize learning, evaluate value and acceptance, and inform the development of a full-fledged mobile delivery practice.

    Find your mobile opportunities

    Modern mobile technologies enable users to access, analyze and change data anywhere with native device features, which opens the door to enhanced processes and new value sources.

    Examples of Mobile Opportunities:

    • Mobile Payment
      • Cost alternative to credit card transaction fees.
      • Loyalty systems are updated upon payment without need of a physical card.
      • Quicker completion of transactions.
    • Inventory Management
      • Update inventory database when shipments arrive or deliveries are made.
      • Inform retailers and consumers of current stock on website.
      • Alert staff of expired or outdated products.
    • Quick and Small Data Transfer
      • Embed tags into posters to transfer URIs, which sends users to sites containing product or location information.
      • Replace entry tags, fobs, or smart cards at doors.
      • Exchange contact details.
    • Location Sensitive Information
      • Proactively send promotions and other information (e.g. coupons, event details) to users within a defined area.
      • Inform employees of nearby prospective clients.
    • Supply Chain Management
      • Track the movement and location of goods and delivery trucks.
      • Direct drivers to the most optimal route.
      • Location-sensitive billing apps such as train and bus ticket purchases.
    • Education and Learning
      • Educate users about real-world objects and places with augmented books and by pushing relevant learning materials.
      • Visualize theories and other text with dynamic 3D objects.
    • Augmented Reality (AR)
      • Provide information about the user's surroundings and the objects in the environment through the mobile device.
      • Interactive and immersive experiences with the inclusion of virtual reality.
    • Architecture and Planning
      • Visualize historic buildings or the layout of structural projects and development plans.
      • Develop a digital tour with location-based audio initiated with location-based services or a camera.
    • Navigation
      • Provide directions to users to navigate and provide contextual travelling instructions.
      • Push traffic notifications and route changes to travelling users.
    • Tracking User Movement
      • Predict the future location of users based on historic information and traffic modelling.
      • Proactively push information to users before they reach their destination.

    1.1.3 Build your mobile backlog

    1-3 hours

    1. As a group, discuss the use and value mobile already has within your organization for each persona.
      1. What are some of the apps being used?
      2. What enterprise systems and applications are already exposed to the web and accessible by mobile devices?
      3. How critical is mobile to business operations, marketing campaigns, etc.?
    2. Discuss how mobile can bring additional business value to other areas of your organization for each persona.
      1. Can mobile enhance your customer reach? Do your customers care that your services are offered through mobile?
      2. Are employees asking for better access to enterprise systems in order to improve their productivity?
    3. Write your mobile opportunities in the following form: As a [end user persona], I want to [process or capability to enable with mobile applications], so that [organizational benefit]. Prioritize each opportunity against feasibility, desirability, and viability.
    4. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Input

    		Output
    • Problem and vision statements
    • Mobile objectives and metrics
    • Mobile application canvas
    • Mobile opportunities backlog
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Manage your mobile backlog

    Your backlog stores and organizes your mobile opportunities at various stages of readiness. It must be continuously refined to address new requests, maintenance and changing priorities.

    3 – IDEAS
    Composed of raw, vague, and potentially large ideas that have yet to go through any formal valuation.

    2 – QUALIFIED
    Researched and qualified opportunities awaiting refinement.

    1 READY
    Discrete, refined opportunities that are ready to be placed in your team's delivery plans.

    Adapted from Essential Scrum

    A well-formed backlog can be thought of as a DEEP backlog

    • Detailed Appropriately: opportunities are broken down and refined as necessary
    • Emergent: The backlog grows and evolves over time as opportunities are added and removed.
    • Estimated: The effort an opportunity requires is estimated at each tier.
    • Prioritized: The opportunity's value and priority are determined at each tier.

    (Source Perforce, 2018)

    See our Deliver on Your Digital Product Vision for more information on backlog practices.

    Step 1.2

    Identify Your Technical Needs

    Activities

    1.2.1 Discuss your mobile needs

    1.2.2 Conduct a technical assessment

    Set the Mobile Context

    This step involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Outcomes of this step

    • List of mobile features to enable the desired mobile experience
    • System current assessment

    Describe your desired mobile experiences with journey maps

    A journey map tells the story of the user's experience with an existing or prospective product or service, starting with a trigger, through the process of engagement, to create an outcome. Journey maps can focus on a particular part of the user's or the entire experience with your organization's products or services. All types of maps capture key interactions and motivations of the user in chronological order.

    Why are journey maps an important for mobile application delivery?

    Everyone has their own preferred method for completing their tasks on mobile devices – often, what differentiates one persona from another has to do with how users privately behave. Understand that the activities performed outside of IT's purview develop context for your persona's pain points and position IT to meet their needs with the appropriate solution.

    To learn more, visit Info-Tech's Use Experience Design to Drive Empathy with the Business blueprint.

    Two charts are depicted, the first shows the path from Trigger, through steps 1-4, to the outcome, and the Activities and Touchpoints for each. The second chart shows the Expectation analysis, showing which steps are must-haves, nice-to-haves, and hidden-needs.

    Pinpoint specific mobile needs in your journey map

    Realize that mobile applications may not precisely fit with your personas workflow or align to their expectations due to device and system limitations and restrictions. Flag the mobile opportunities that require significant modifications to underlying systems.

    Consider these workflow scenarios that can influence your persona's desire for mobile:

    Workflow Scenarios Ask Yourself The Key Questions Technology Constraints or Restrictions to Consider Examples of Mobile Opportunities

    Data View – Data is queried, prepared and presented to make informed decisions, but it cannot be edited.

    Where is the data located and can it be easily gathered and prepared?

    Is the data sensitive and can it be locally stored?

    What is the level of detail in my view?

    Multi-factor authentication required.

    Highly sensitive data requires encryption in transit and at rest.

    Minor calculations and preparation needed before data view.

    Generate a status report.

    View social media channels.

    View contact information.

    Data Collection – Data is inputted directly into the application and updates back-end system or integrated 3rd party services.

    Do I need special permission to add, delete and overwrite data?

    How much data can I edit?

    Is the data automatically gathered?

    Bandwidth restrictions.

    Multi-factor authentication required.

    Native device access required (e.g., camera).

    Multiple types and formats of gathered data.

    Manual and automatic data gathering

    Book appointments with clients.

    Update inventory.

    Tracking movement of company assets.

    Data Analysis & Modification – Data is evaluated, manipulated and transformed through the application, back-end system or 3rd party service.

    How complex are my calculations?

    Can computations be offloaded?

    What resources are needed to complete the analysis?

    Memory and processing limitations on device.

    Inability to configure device and enterprise hardware to support system resource demand.

    Scope and precision of analysis and modifications.

    Evaluate and propose trends.

    Gauge user sentiment.

    Propose next steps and directions.

    Define the mobile experience your end users want

    Anytime, Anywhere
    The user can access, update and analyze data, and corporate products and services whenever they want, in all networks, and on any device.

    Hands-Off & Automated
    The application can perform various workflows and tasks without the user's involvement and notify the user when specific triggers are hit.

    Personalized & Insightful
    Content presentation and subject are tailored for the user based on specific inputs from the user, device hardware or predicted actions.

    Integrated Ecosystem
    The application supports a seamless experience across various 3rd party and enterprise applications and services the user needs.

    Visually Pleasing & Fulfilling
    The UI is intuitive and aesthetically gratifying with little security and performance trade-offs to use the full breadth of its functions and services.

    Each mobile platform has its own take on the mobile native experience. The choice ultimately depends on whether the costs and effort are worth the anticipated value.

    1.2.1 Discover your mobile needs

    1-3 hours

    1. Define the workflow of a high priority opportunity in your mobile backlog. This workflow can be pertaining to an existing mobile application or a workflow that can benefit with a mobile application.
      1. Indicate the trigger that will initiate the opportunity and the desired outcome.
      2. Break down the persona's desired outcome into small pieces of value that are realized in each workflow step.
    2. Identify activities and touchpoints the persona will need to complete to finish each step in the workflow. Indicate the technology used to complete the activity or to facilitate the touchpoint.
    3. Indicate which activities and touchpoints can be satisfied, complimented or enhanced with mobile.

    Input

    		Output
    • User personas
    • Mobile application canvas
    • Desired mobile experience
    • List of mobile features
    • Journey map
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    1.2.1 cont'd

    Workflow

    Trigger

    Conduct initial analysis

    Get planning help

    Complete and submit RFP

    Design and implement solution

    Implement changes

    Activities, Channels, and Touchpoints

    Need is recognized in CIO council meeting

    See if we have a sufficient solution internally

    Seek planning help (various channels)

    *Meet with IT shared services business analyst

    Select the appropriate vendor

    Follow action plan

    Compliance rqmt triggered by new law

    See if we have a sufficient solution internally

    *Hold in-person initial meeting with IT shared services

    *Review and approve rqmts (email)

    Seek miscellaneous support

    Implement project and manage change

    Research potential solutions in the marketplace

    Excess budget identified for utilization

    Pick a "favorite" solution

    *Negotiate and sign statement of work (email)

    Prime organization for the change

    Create action plan

    If solution is unsatisfactory, plan remediation

    Current Technology

    • Email
    • Video conferencing
    • Phone
    • Meeting transcripts and recordings
    • ERP
    • IT asset management
    • Internet browser for research
    • Virtual environment to demonstrate solutions
    • Email
    • Vendor assessment and procurement solution
    • Email
    • Video conferencing
    • Phone
    • Meeting transcripts and recordings
    • PDF documents and reader
    • Digital signature
    • Email
    • Video conferencing
    • Phone
    • Meeting transcripts and recordings
    • PDF documents and reader
    • Digital signature
    • Email
    • Video conferencing
    • Phone
    • Vendor assessment and procurement solution
    • Project management solution
    • Team collaboration solution
    • Email
    • Video conferencing
    • Phone
    • Project management solution
    • Team collaboration solution
    • Vendor's solution

    Legend:

    Bold – Touchpoint

    * – Activities or Touchpoints That Can Benefit with Mobile

    1.2.1 cont'd

    1-3 hours

    1. Analyze persona expectations. Identify the persona's must-haves, then nice-to-haves, and then hidden needs to effectively complete the workflow.
      1. Must-haves. The necessary outcomes, qualities, and features of the workflow step.
      2. Nice-to-haves. Desired outcomes, qualities, or features that your persona is able to articulate or express.
      3. Hidden needs. Outcomes, qualities, or features that your persona is not aware they have a desire for; benefits that they are pleasantly surprised to receive. These will usually be unknown for your first-iteration journey map.
    2. Indicate which persona expectations can be satisfied with mobile. Discuss what would the desired mobile experience be.
    3. Discuss feedback and experiences your team has heard from the personas they engage with regularly.
    4. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    1.2.1 cont'd

    Example

    This image contains an example workflow for determining mobile needs.

    1.2.1 cont'd

    Template:

    Workflow

    		TriggerStep 1Step 2Step 3Step 4

    Desired Outcome

    Journey Map

    Activities & Touch-points

    <>

    <>

    <>

    <>

    <>

    <>

    Must-Haves

    <>

    <>

    <>

    <>

    <>

    <>

    Nice-to-Haves

    <>

    <>

    <>

    <>

    <>

    <>

    Hidden Needs

    <>

    <>

    <>

    <>

    <>

    <>

    Emotional Journey

    <>

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    If you need more than four steps in the workflow, duplicate this slide.

    Understand how mobile fits with your current system

    Evaluate the risks and impacts of your desired mobile features by looking at your enterprise system architecture from top to bottom. Is your mobile vision and needs compatible with your existing business capabilities and technologies?

    An architecture is usually represented by one or more architecture views that together provide a coherent description of the application system, including demonstrating the full impact mobile will have. A single, comprehensive model is often too complex to be understood and communicated in its most detailed form, and a model too high level hides the underlying complexity of an application's structure and deployment (The Open Group, TOGAF 8.1.1 - Developing Architecture Views). Obtain a complete understanding of your architecture by assessing it through multiple levels of views to reveal different sets of concerns:

    Application Architecture Views

    1. Use Case View
    • How does your business operate, and how will users interact with your mobile applications?
  • . Process View
    • What is the user workflow impacted by mobile, and how will it change?
  • Component View
    • How are my existing applications structured? What are its various components? How will mobile expand the costs of the existing technical debt?
  • Data View
    • What is the relationship of the data and information consumed, analyzed, and transmitted? Will mobile jeopardize the quality and reliability of the data?
  • Deployment View
    • In what environment are your mobile application components deployed? How will the existing systems operate with your mobile applications?
  • System View
    • How does your mobile application communicate with other internal and external systems? How will dependencies change with mobile?

    • See our Enhance Your Solution Architecture for more information.

    Ask key questions in your current system assessment

    • How do the various components of your system communicate with each other (e.g., web APIs, middleware, and point to point)?
    • What information is exchanged during the conversation?
    • How does the data flow from one component to the next? Is the data read-only or can application and users edit and modify it?
    • What are the access points to your mid- and back-tier systems (e.g., user access through web interface, corporate networks and third-party application access through APIs)?
    • Who has access to your enterprise systems?
    • Which components are managed and operated by third-party providers? What is your level of control?
    • What are the security protocols currently enforced in your system?
    • How often are your databases updated? Is it real-time or periodic extract, transfer, and load (ETL)?
    • What are the business rules?
    • Is your mobile stack dependent on other systems?
    • Is a mobile middleware, web server, or API gateway needed to help facilitate the integration between devices and your back-end support?

    1.2.2 Conduct a technical assessment

    1-3 hours

    1. Evaluate your current systems that will support the journey map of your mobile opportunities based on two categories: system quality and system management. Use the tables on the following slides and modify the questions if needed.
    2. Discuss if the current state of your system will impede your ability to succeed with mobile. Use this discussion to verify the decision to continue with mobile applications in your current state.
    3. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    Input

    		Output
    • Journey map
    • Understanding of current system
    • Assessment of current system
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    1.2.2 cont'd

    Current State System Quality Assessment

    Factors Definitions Survey Responses
    Fit-for-Purpose System functionalities, services and integrations are designed and implemented for the purpose of satisfying the end users' needs and technology compatibilities. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Response Rate The system completes computation and processing requests within acceptable timeframes. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Data Quality The system delivers consumable, accurate, and trustworthy data. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Usability The system provides functionalities, services and integrations that are rewarding, engaging, intuitive, and emotionally satisfying. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Reliability The system is resilient or quickly recovers from issues and defects. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Accessible The system is available on demand and on the end user's preferred interface and device. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Secured End-user activity and data is protected from unauthorized access. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Adaptable The system can be quickly tailored to meet changing end-user and technology needs with reusable and customizable components. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)

    1.2.2 cont'd

    Current State System Management Assessment

    Factors Definitions Survey Responses
    Documentation The system is documented, accurate, and shared in the organization. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Measurement The system is continuously measured against clearly defined metrics tied to business value. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Compliance The system is compliant with regulations and industry standards. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Continuous Improvement The system is routinely rationalized and enhanced. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Architecture There is a shared overview of how the process supports business value delivery and its dependencies with technologies and other processes. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Ownership & Accountability The process has a clearly defined owner who is accountable for its risks and roadmap. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Support Resources are available to address adoption and execution challenges. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)
    Organizational Change Management Communication, onboarding, and other change management capabilities are available to facilitate technology and related role and process changes. 1 (Very Poor) – 2 – 3 (Fair) – 4 – 5 (Excellent)

    Step 1.3

    Define Your Non-Functional Requirements

    Activities

    1.3.1 Define mobile application quality

    1.3.2 Verify your decision to deliver mobile applications

    Set the Mobile Context

    This step involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams

    Outcomes of this step

    • Mobile application quality definition
    • Readiness for mobile delivery

    Build a strong foundation of mobile application quality

    Functionality and aesthetics often take front seats in mobile application delivery. Applications are then frequently modified and changed, not because they are functionally deficient or visually displeasing, but because they are difficult to maintain or scale, too slow, vulnerable or compromised. Implementing clear quality principles (i.e., non-functional requirements) and strong quality assurance practices throughout delivery are critical to minimize the potential work of future maintenance and to avoid, mitigate and manage IT risks.

    What is Mobile Application Quality?

    • Quality requirements (i.e., non-functional requirements) are properties of a system or product that dictate how it should behave at runtime and how it should be designed, implemented, and maintained.
    • These requirements should be involved in decision making around architecture, UI and functional design changes.
    • Functionality should not dictate the level of security, availability, or performance of a product, thereby risking system quality. Functionality and quality are viewed orthogonally, and trade-offs are discussed when one impacts the other.
    • Quality attributes should never be achieved in isolation as one attribute can have a negative or positive impact on another (e.g. security and availability).

    Why is Mobile Quality Assurance Critical?

    • Quality assurance (QA) is a necessity for the validation and verification of mobile delivery, whether you are delivering applications in an Agile or Waterfall fashion. Effective QA practices implemented across the software development lifecycle (SDLC) are vital, as all layers of the mobile stack need to readily able to adjust to suddenly evolving and changing business and user needs and technologies without risking system stability and breaking business standards and expectations.
    • However, investments in QA optimizations are often afterthoughts. QA is commonly viewed as a lower priority compared to other delivery capabilities (e.g., design and coding) and is typically the first item cut when delivery is under pressure.

    See our Build a Software Quality Assurance Program for more information.

    Mobile emphasizes the importance of good security, performance and integration

    Today's mobile workforce is looking for new ways to get more work done quickly. They want access to enterprise solutions and data directly on their mobile device, which can reside on multiple legacy systems and in the cloud and third-party infrastructure. This presents significant performance, integration, and security risks.

    Cloud Solutions: Can I use my existing APIs?. Solutions in Corporate Networks: Do my legacy systems have the capacity to support mobile?; How do I integrate solutions and data from multiple sources into a single view?; Third Party Solutions: Will I have a significant performance bottleneck?; Single View on Mobile Devices: How is corporate data stored on the device?; What new technology dependencies must I account for in my architecture and operational support capabilities?

    Mobile risks opening and widening existing security gaps

    New mobile technologies and the continued expansion of the enterprise environment increase the number of entry points attackers to your corporate data and networks. The ever-growing volume, velocity, and variety of new threats puts significant pressure on mobile delivery teams who are responsible for implementing mobile security measures and maintaining alignment to your security policies and those of app stores.

    Mobile attacks can come from various vectors:

    Attack Surface: Mobile Device

    Attack Surface: Network

    Attack Surface: Data Center

    Browser:
    Phishing
    Buffer Overflow
    Data Caching

    System:
    No Passcode
    Jailbroken and Rooted OS
    No/Weak Encryption
    OS Data Caching

    Phone:
    SMSishing
    Radio Frequency Attacks

    Apps:
    Configuration Manipulation
    Runtime Injection
    Improper SSL Validation

    • Packet Sniffing
    • Session Hijacking
    • Man-in-the-Middle (circumvent password verification systems)
    • Fake SSL Certificate
    • Rogue Access Points

    Web Server:
    Cross-Site Scripting (XSS)
    Brute Force Attacks
    Server Misconfigurations

    Database:
    SQL Injection
    Data Dumping

    Understand the top web security risks and vulnerabilities seen in the industry

    Recognize mobile applications are exposed to the same risks and vulnerabilities as web applications. Learn of OWASP's top 10 web security risks.

    • Broken Access Control
      • Failures typically lead to unauthorized information disclosure, modification, or destruction of all data or performing a business function outside the user's limits.
    • Cryptographic Failures
      • Improper and incorrect protection of data in transit and at rest, especially proprietary and confidential data and those that fall under privacy laws.
    • Injection
      • Execution of malicious code and injection of hostile or unfiltered data on the mobile device via the mobile application.
    • Insecure Design
      • Missing or ineffective security controls in the application design. An insecure design cannot be fixed by a perfect implementation,. Needed security controls were never created to defend against specific attacks.
    • Security Misconfiguration
      • The security settings in the application are not securely set or configured, including poor security hardening and inadequate system upgrading practices.
    • Vulnerable and Outdated Components
      • System components are vulnerable because they are unsupported, out of date, untested or not hardened against current security concerns.
    • Identification and Authentication Failures
      • Improper or poor protection against authentication-related attacks, particularly to the user's identity, authentication and session management.
    • Software and Data Integrity Failures
      • Failures related to code and infrastructure that does not protect against integrity violations, such as an application relying upon plugins, libraries, or modules from untrusted sources, repositories, and content delivery networks
    • Security Logging and Monitoring Failures
      • Insufficient logging, detection, monitoring, and active response that hinders the ability to detect, escalate, and respond to active breaches.
    • Server-Side Request Forgery (SSRF)
      • SSRF flaws occur whenever a web application is fetching a remote resource without validating the user-supplied URL.

    Good mobile application performance drives satisfaction and value delivery

    Underperforming mobile applications can cause your users to be unproductive. Your mobile applications should always aim to satisfy the productivity requirements of your end users.

    Users quickly notice applications that are slow and difficult to use. Providing a seamless experience for the user is now heavily dependent on how well your application performs. Optimizing your mobile application's processing efficiency can help your users perform their jobs properly in various environment conditions.

    Productive Users Need
    Performant Mobile Applications

    Persona

    Mobile Application Use Case

    Optimized Mobile Application

    Stationary Worker

    • Design flowcharts and diagrams, while abandoning paper and desktop apps in favor of easy-to-use, drawing tablet applications.
    • Multitask by checking the application to verify information given by a vendor during their presentation or pitch.
    • Flowcharts and diagrams are updated in real time for team members to view and edit
    • Compare vendors under assessment with a quick look-up app feature

    Roaming Worker (Engineer)

    • Replace physical copies of service and repair manuals physically stored with digital copies and access them with mobile applications.
    • Scan or input product bar code to determine whether a replacement part is available or needs to be ordered.
    • Worker is capable of interacting with other features of the mobile web app while product bar code is being verified

    Enhance the performance of the entire mobile stack

    Due to frequently changing mobile hardware, users' high performance expectations and mobile network constraints, mobile delivery teams must focus on the entire mobile stack for optimizing performance.

    Fine tune your enterprise mobile applications using optimization techniques to improve performance across the full mobile stack.

    This image contains a bar graph ranking the importance of the following datapoints: Minimize render blocking resources; Configure the mobile application viewport; Determine the right image file format ; Determine above-the-fold content; Minimize browser reflow; Adopt UI techniques to improve perceived latency; Resource minification; Data compression; Asynchronous programming; Resource HTTP caching; Minimize network roundtrips for first time to render.

    Info-Tech Insight

    Some user performance expectations can be managed with clever UI design (e.g., spinning pinwheels to indicate loading in progress and directing user focus to quick loading content) and operational choices (e.g. graceful degradation and progressive enhancements).

    Create an API-centric integration strategy

    Mobile delivery teams are tasked to keep up with the changing needs of end users and accommodate the evolution of trending mobile features. Ensuring scalable APIs is critical in quickly releasing changes and ensuring availability of corporate services and resources.

    As your portfolio of mobile applications grows, and device platforms and browsers diversify, it will become increasingly complex to provide all the data and service capabilities your mobile apps need to operate. It is important that your APIs are available, reliable, reusable, and secure for multiple uses and platforms.

    Take an API-centric approach to retain control of your mobile development and ensure reliability.

    APIs are the underlying layer of your mobile applications, enabling remote access of company data and services to end users. Focusing design and development efforts on the maintainability, reliability and scalability of your APIs enables your delivery teams to:

    • Reuse tried-and-tested APIs to deliver, test and harden applications and systems quicker by standardizing on the use and structure of REST APIs.
    • Ensure a consistent experience and performance across different applications using the same API.
    • Uniformly apply security and access control to remain compliant to security protocols, industry standards and regulations.
    • Provide reliable integration points when leveraging third-party APIs and services.

    See our Build Effective Enterprise Integration on the Back of Business Process for more information.

    Guide your integration strategy with principles

    Craft your principles around good API management and integration practices

    Expose Enterprise Data And Functionality in API-Friendly Formats
    Convert complex on-premises application services into developer-friendly RESTful APIs

    Protect Information Assets Exposed Via APIs to Prevent Misuse
    Ensure that enterprise systems are protected against message-level attack and hijack

    Authorize Secure, Seamless Access for Valid Identities
    Deploy strong access control, identity federation and social login functionality

    Optimize System Performance and Manage the API Lifecycle
    Maintain the availability of backend systems for APIs, applications and end users

    Engage, Onboard, Educate and Manage Developers
    Give developers the resources they need to create applications that deliver real value

    Source: 5 Pillars of API Management, Broadcom, 2021

    Clarify your definition of mobile quality

    Quality does not mean the same thing to everyone

    Do not expect a universal definition of mobile quality. Each department, person and industry standard will have a different interpretation of quality, and they will perform certain activities and enforce policies that meet those interpretations. Misunderstanding of what is defined as a high quality mobile application within business and IT teams can lead to further confusion behind governance, testing priorities and compliance.

    Each interpretation of quality can lead to endless testing, guardrails and constraints, or lack thereof. Be clear on the priority of each interpretation and the degree of effort needed to ensure they are met.

    For example:

    Mobile Application Owner
    What does an accessible mobile application mean?

    Persona: Customer
    I can access it on mobile phones, tablets and the web browser

    Persona: Developer
    I have access to each layer of the mobile stack including the code & data

    Persona: Operations
    The mobile application is accessible 24/7 with 95% uptime

    Example: A School Board's Quality Definition

    Quality Attribute Definitions
    Usability The product is an intuitive solution. Usability is the ease with which the user accomplishes a desired task in the application system and the degree of user support the system provides. Limited training and documentation are required.
    Performance Usability and performance are closely related. A solution that is slow is not usable. The application system is able to meet timing requirements, which is dependent on stable infrastructure to support it regardless of where the application is hosted. Baseline performance metrics are defined and changes must result in improvements. Performance is validated against peak loads.
    Availability The application system is present, accessible, and ready to carry out its tasks when needed. The application is accessible from multiple devices and platforms, is available 24x7x365, and teams communicate planned downtimes and unplanned outages. IT must serve teachers international student's parents, and other users who access the application outside normal business hours. The application should never be down when it should be up. Teams must not put undue burden on end users accessing the systems. Reasonable access requirements are published.
    Security Applications handle both private and personal data, and must be able to segregate data based on permissions to protect privacy. The application system is able to protect data and information from unauthorized access. Users want it to be secure but seamless. Vendors need to understand and implement the District School Board's security requirements into their products. Teams ensure access is authorized, maintain data integrity, and enforce privacy.
    Reusability Reusability is the capability for components and subsystems to be suitable for use in other applications and in other scenarios. This attribute minimizes the duplication of components and implementation time. Teams ensure a modular design that is flexible and usable in other applications.
    Interoperability The degree to which two or more systems can usefully exchange meaningful information via interfaces in a particular context.

    Scalability

    There are two kinds of scalability:

    • Horizontal scalability (scaling out): Adding more resources to logical units, such as adding another server to a cluster of servers.
    • Vertical scalability (scaling up): Adding more resources to a physical unit, such as adding more memory to a single computer.

    Ease of maintenance and enhancements are critical. Additional care is given to custom code because of the inherent difficulty to make it scale and update.

    Modifiability The capability to manage the risks and costs of change, considering what can be changed, the likelihood of change, and when and who makes the change. Teams minimize the barriers to change, and get business buy in to keep systems current and valuable.
    Testability The ease with which software are made to demonstrate its faults through (typically execution-based) testing. It cannot be assumed that the vendor has already tested the system against District School Board's requirements. Testability applies to all applications, operating systems, and databases.
    Supportability The ability of the system to provide information helpful for identifying and resolving issues when it fails to work correctly. Supportability applies to all applications and systems within the District School Board's portfolio, whether that be custom developed applications or vendor provided solutions. Resource investments are made to better support the system.
    Cost Efficiency The application system is executed and maintained in such a way that each area of cost is reduced to what is critically needed. Cost efficiency is critical (e.g. printers cost per page, TCO, software what does downtime cost us), and everyone must understand the financial impact of their decisions.
    Self-Service End users are empowered to make configurations, troubleshoot and make changes to their application without the involvement of IT. The appropriate controls are in place to manage the access to unauthorized access to corporate systems.
    Modifiability The capability to manage the risks and costs of change, considering what can be changed, the likelihood of change, and when and who makes the change. Teams minimize the barriers to change, and get business buy in to keep systems current and valuable.
    Testability The ease with which software are made to demonstrate its faults through (typically execution-based) testing. It cannot be assumed that the vendor has already tested the system against District School Board's requirements. Testability applies to all applications, operating systems, and databases.
    Supportability The ability of the system to provide information helpful for identifying and resolving issues when it fails to work correctly. Supportability applies to all applications and systems within the District School Board's portfolio, whether that be custom developed applications or vendor provided solutions. Resource investments are made to better support the system.

    1.3.1 Define mobile application quality

    1-3 hours

    1. List 5 quality attributes that your organization sees as important for a successful mobile application.
    2. List the core personas that will support mobile delivery and that will consume the mobile application. Start with development, operations and support, and end user.
    3. Describe each quality attributes from the perspective of each persona by asking, "What does quality mean to you?".
    4. Review each description from each persona to come to an acceptable definition.
    5. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    Input

    		Output
    • User personas
    • Mobile application canvas
    • Journey map
    • Mobile application quality definition
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    1.3.1 cont'd

    Example: Info-Tech Guided Implementation with a Legal and Professional Services Organization

    Quality AttributeDeveloperOperations & Support TeamEnd Users

    Usability

    • Architecture and frameworks are aligned with industry best practices
    • Regular feedback through analytics and user feedback
    • Faster development and less technical debt
    • Pride in the product
    • Satisfaction that the product is serving its purpose and is actually being used by the user
    • Increased update of product use and feedback for future lifecycle
    • Standardization and positive perception of IT processes
    • Simpler to train users to adopt products and changes
    • Trust in system and ability to promote the product in a positive light
    • Trusted list of applications
    • Intuitive (easy to use, no training required)
    • Encourage collaboration and sharing ideas between end users and delivery teams
    • The information presented is correct and accurate
    • Users understand where the data came from and the algorithms behind it
    • Users learn features quickly and retain their knowledge longer, which directly correlates to decreased training costs and time
    • High uptake in use of the product
    • Seamless experience, use less energy to work with product

    Security

    • Secure by design approach
    • Testing across all layers of the application stack
    • Security analysis of our source code
    • Good approach to security requirement definition, secure access to databases, using latest libraries and using semantics in code
    • Standardized & clear practices for development
    • Making data access granular (not all or none)
    • Secure mission critical procedures which will reduce operational cost, improve compliance and mitigate risks
    • Auditable artifacts on security implementation
    • Good data classification, managed secure access, system backups and privacy protocols
    • Confidence of protection of user data
    • Encryption of sensitive data
    Availability
    • Good access to the code
    • Good access to the data
    • Good access to APIs and other integration technologies
    • Automatic alerts when something goes wrong
    • Self-repairing/recovering
    • SLAs and uptimes
    • Code documentation
    • Proactive support from the infrastructure team
    • System availability dashboard
    • Access on any end user device, including mobile and desktop
    • 24/7 uptime
    • Rapid response to reported defects or bugs
    • Business continuity

    1.3.2 Verify your decision to deliver mobile applications

    1-3 hours

    1. Review the various end user, business and technical expectations for mobile its achievability given the current state of your system and non-functional requirements.
    2. Complete the list of questions on the following slide as an indication for your readiness for mobile delivery.

    Input

    		Output
    • Mobile application canvas
    • Assessment to proceed with mobile
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    1.3.2 cont'd

    Skill Sets
    Software delivery teams have skills in creating mobile applications that stakeholders are expecting in value and quality. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Architects look for ways to reuse existing technical asset and design for future growth and maturity in mobile. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Resources can be committed to implement and manage a mobile platform. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Software delivery teams and resources are adaptable and flexible to requirements and system changes. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Delivery Process
    My software delivery process can accommodate last minute and sudden changes in mobile delivery tasks. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Business and IT requirements for the mobile are clarified through collaboration between business and IT representatives. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Mobile will help us fill the gaps and standardize our software delivery process process. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    My testing practices can be adapted to verify and validate the mobile functional and non-functional requirements. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Technical Stack
    My mid-tier and back-end support has the capacity to accommodate additional traffic from mobile. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    I have access to my web infrastructure and integration technologies, and I am capable of making configurations. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    My security approaches and capabilities can be enhanced address specific mobile application risks and vulnerabilities. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    I have a sound and robust integration strategy involving web APIs that gives me the flexibility to support mobile applications. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)

    Phase 2

    Define Your Mobile Approach

    Choose Your Mobile Platform and Tools

    This phase will walk you through the following activities:

    • Step 2.1 – Choose Your Platform Approach
    • Step 2.2 – Shortlist Your Mobile Delivery Solution
    • Step 2.3 – Create a Roadmap for Mobile Delivery

    This phase involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Step 2.1

    Choose Your Platform Approach

    Activities

    2.1.1 Select your platform approach

    Define Your Mobile Approach

    This step involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Outcomes of this step

    • Desired mobile platform approach

    Mobile value is dependent on the platform you choose

    What is a platform?

    "A platform is a set of software and a surrounding ecosystem of resources that helps you to grow your business. A platform enables growth through connection: its value comes not only from its own features, but from its ability to connect external tools, teams, data, and processes." (Source: Emilie Nøss Wangen, 2021) In the mobile context, applications in a platform execute and communicate through a loosely coupled API architecture whether the supporting system is managed and supported by your organization or by 3rd party providers.

    Web

    The mobile web often takes on one of the following two approaches:

    • Responsive websites – Content, UI and other website elements automatically adjusts itself according to the device, creating a seamless experience regardless of the device.
    • Progressive web applications (PWAs) – PWAs uses the browser's APIs and features to offer native-like experiences.

    Mobile web applications are often developed with a combination of HTML, CSS, and JavaScript languages.

    Hybrid

    Hybrid applications are developed with web technologies but are deployed as native applications. The code is wrapped using a framework so that it runs locally within a native container, and it uses the device's browser runtime engine to support more sophisticated designs and features compared to the web approach. Hybrid mobile solutions allows teams to code once and deploy to multiple platforms.

    Some notable examples:

    • Gmail
    • Instagram

    Cross-Platform

    Cross-platform applications are developed within a distinct programming or scripting environment that uses its own scripting language (often like web languages) and APIs. Then the solution will compile the code into device-specific builds for native deployment.

    Some notable examples:

    • Facebook
    • Skype
    • Slack

    Native

    Native applications are developed and deployed to specific devices and OSs using platform-specific software development kits (SDKs) provided by the operating system vendors. The programming language and framework are dictated by the targeted device, such as Java for Android.

    With this platform, developers have direct access to local device features allowing customized operations. This enables the use of local resources, such as memory and runtime engines, which will achieve a higher performance than hybrid and cross-platform applications.

    Each platform offers unique pros and cons depending on your mobile needs

    WebHybridCross-PlatformNative

    Pros

    Cons

    Pros

    Cons

    Pros

    Cons

    Pros

    Cons

    • Modern browsers support the popular of web languages (HTML, CSS, and JavaScript).
    • Ubiquitous across multiple form factors and devices.
    • Mobile can be easily integrated into traditional web development processes and technical stacks.
    • Installations are not required, and updates are immediate.
    • Sensitive data can be wiped from memory after app is closed.
    • Limited access to local device hardware and software.
    • Local caching is available for limited offline capabilities, but the scope of tasks that can be completed in this scenario is restricted.
    • The browser's runtime engine is limited in computing power.
    • Not all browsers fully support the latest versions of HTML, CSS, or JavaScript.
    • Web languages can be used to develop a complete application.
    • Code can be reused for multiple platforms, including web.
    • Access to commonly-used native features that are not available through the web platform.
    • Quick delivery and maintenance updates compared to native and cross-platform platforms.
    • Consistent internet access is needed due to its reliance heavily reliance on web technologies to operate.
    • Limited ability to support complex workflows and features.
    • Sluggish performance compared to cross-platform and native applications.
    • Certain features may not operate the same across all platforms given the code once, deploy everywhere approach.
    • More cost-effective to develop than using native development approaches to gain similar features. Platform-specific developers are not needed.
    • Common codebase to develop applications on different applications.
    • Enables more complex application functionalities and technical customizations compared to hybrid applications.
    • Code is not portable across cross-platform delivery solutions.
    • The framework is tied to the vendor solution which presents the risk of vendor lock-in.
    • Deployment is dependent on an app store and the delivery solution may not guarantee the application's acceptance into the application store.
    • Significant training and onboarding may be needed using the cross-platform framework.
    • Tight integration with the device's hardware enables high performance and greater use of hardware features.
    • Computationally-intensive and complex tasks can be completed on the device.
    • Available offline access.
    • Apps are available through easy-to-access app stores.
    • Requires additional investments, such as app stores, app-specific support, versioning, and platform-specific extensions.
    • Developers skilled in a device-specific language are difficult to acquire and costly to train.
    • Testing is required every time a new device or OS is introduced.
    • Higher development and maintenance costs are tradeoffs for native device features.

    Start mobile development on a mobile web platform

    Start with what you have: begin with a mobile web platform to minimize impacts to your existing delivery skill sets and technical stack while addressing business needs. Resort to a hybrid first and then consider a cross-platform application if you require device access or the need to meet specific non-functional requirements.

    Why choose a mobile web platform?

    Pros

    The latest versions of the most popular web languages (HTML5, CSS3, JavaScript) abstract away from the granular, physical components of the application, simplifying the development process. HTML5 offer some mobile features (e.g., geolocation, accelerometer) that can meet your desired experience without the need for native development skills. Native look-and-feel, high performance, and full device access are just a few tradeoffs of going with web languages.

    Cons

    Native mobile platforms depend on device-specific code which follows specific frameworks and leverages unique programming libraries, such as Objective C for iOS and Java for Android. Each language requires a high level of expertise in the coding structure and hardware of specific devices requiring resources with specific skillsets and different tools to support development and testing.

    Other Notable Benefits with Web Languages

    • Modern browsers in most mobile devices are capable of executing and rendering many mobile features developed in web languages, allowing for greater portability and sophistication of code across multiple devices. However, this flexibility comes at the cost of performance since the browser's runtime engine will not perform as well as a native engine.
    • Web languages are well known by developers, minimizing skills and resourcing impacts. Consequently, changes can be quickly accommodated and updated uniformly across all end users.

    Do you need a native platform?

    Consider web workarounds if you choose a web platform but require some native experiences.

    The web platform does not give you direct access or sophisticated customizations to local device hardware and services, underlying code and integrations. You may run into the situation where you need some native experiences, but the value of these features may not offset the costs to undertake a native, hybrid or cross-platform application. When developing hybrid and cross-platform applications with a mobile delivery solution, only the APIs of the commonly used device features are available. Note that some vendors may not offer a particular native feature across all devices, inhibiting your ability to achieve feature parity or exploiting device features only available in certain devices. Workarounds are then needed.

    Consider the following workarounds to address the required native experiences on the web platform:

    Native Function Description Web Workaround Impact
    Camera Takes pictures or records videos through the device's camera. Create an upload form in the web with HTML5. Break in workflow leading to poor user experience (UX).
    Geolocation Detects the geographical location of the device. Available through HTML5. Not Applicable.
    Calendar Stores the user's calendar in local memory. Integrate with calendaring system or manually upload contacts. Costly integration initiative. Poor user experience.
    Contacts Stores contact information in local memory. Integrate app with contact system or manually upload contacts. Costly integration initiative. Poor user experience.
    Near Field Communication (NFC) Communication between devices by touching them together or bringing them into proximity. Manual transfer of data. A lot of time is consumed transferring simple information.
    Native Computation Computational power and resources needed to complete tasks on the device. Resource-intensive requests are completed by back-end systems and results sent back to user. Slower application performance given network constraints.

    Info-Tech Insight

    In many cases, workarounds are available when evaluating the gaps between web and native applications. For example, not having application-level access to the camera does not negate the user option to upload a picture taken by the camera through a web form. Tradeoffs like this will come down to assessing the importance of each platform gap for your organization and whether a workaround is good enough as a native-like experience.

    Architect and configure your entire mobile stack with a plan

    • Assess your existing technology stack that will support your mobile platform. Determine if it has the capacity to handle mobile traffic and the necessary integration between devices and enterprise and 3rd party systems are robust and reliable. Reach out to your IT teams and vendors if you are missing key mobile components, such as:
    • The acquisition and provisioning of physical or virtual mobile web servers and middleware from existing vendors.
    • Cloud services [e.g., Mobile Back-end as a Service (mBaaS)] that assists in the mobilization of back-end data sources with API SDKs, orchestration of data from multiple sources, transformation of legacy APIs to mobile formats, and satisfaction of other security, integration and performance needs.
    • Configure the services of your web server or middleware to facilitate the translation, transformation, and transfer of data between your mobile front-end and back-end. If your plan involves scripts, maintenance and other ongoing costs will likely increase.
    • Leverage the APIs or adapters provided by your vendors or device manufacturers to integrate your mobile front-end and back-end support to your web server or middleware. If you are reusing a web server, the back-end integration should already be in place. Remember, APIs implement business rules to maintain the integrity of data exchange within your mobile stack.
    • See Appendix A for examples of reference architectures of mobile platforms.

    See our Enhance Your Solution Architecture for more information.

    Do Not Forget Your Security and Performance Requirements

    Security: New threats from mobile put organizations into a difficult situation beyond simply responding to them in a timely matter. Be careful not to take the benefits of security out of the mobile context. You need to make security a first-order citizen during the scoping, design, and optimization of your systems supporting mobile. It must also be balanced with other functional and non-functional requirements with the right roles taking accountability for these decisions.

    See our Strengthen the SSDLC for Enterprise Mobile Applications for more information.

    Performance: Within a distributed mobile environment, performance has a risk of diminishing due to limited device capacity, network hopping, lack of server scalability, API bottlenecks, and other device, network and infrastructure issues. Mobile web APIs suffer from the same pain points as traditional web browsing and unplanned API call management in an application will lead to slow performance.

    See our Develop Enterprise Mobile Applications With Realistic and Relevant Performance for more information.

    Enterprise platform selection requires a shift in perspective

    Your mobile platform selection must consider both user and enterprise (i.e., non-functional) needs. Use a two-step process for your analysis:

    Begin Platform Selection with a User-Centric Approach

    Organizations appealing to end users place emphasis on the user experience: the look and appeal of the user interface, and the satisfaction, ease of use, and value of its functionalities. In this approach, IT concerns and needs are not high priorities, but many functions are completed locally or isolated from mission critical corporate networks and sensitive data. Some needs include:

    • Performance: quick execution of tasks and calculations made on the device or offloaded to web servers or the cloud.
    • User Interface: cross-platform compatibility and feature-rich design and functionality. The right native experience is critical to the user adoption and satisfaction.
    • Device Access: use of local device hardware and software to complete app use cases, such as camera, calendar, and contact lists.

    Refine Platform Selection with an Enterprise-Centric Approach

    From the enterprise perspective, emphasis is on security, system performance, integration, reuse and other non-functional requirements as the primary motivations in the selection of a mobile platform. User experience is still a contributing factor because of the mobile application's need to drive value but its priority is not exclusive. Some drivers include:

    • Openness: agreed-upon industry standards and technologies that can be applied to serve enterprise needs which support business processes.
    • Integration: increase the reuse of legacy investments and existing applications and services with integration capabilities.
    • Flexibility: support for multiple data types from applications such as JSON format for mobile.
    • Capacity: maximize the utilization of your software delivery resources beyond the initial iteration of the mobile application.

    Info-Tech Insight

    Selecting a mobile platform should not solely be made on business requirements. Key technical stakeholders should be at the table in this discussion to provide insight on the implementation and ongoing costs and benefits of each platform. Both business and technical requirements should be considered when deciding on a final platform.

    Select your mobile platform

    Drive your mobile platform selection against user-centric needs (e.g. device access, aesthetics) and enterprise-centric needs (e.g. security, system performance).

    When does a platform makes sense to use?

    Web

    • Desire to maximize current web technologies investments (people, process, and technologies).
    • Use cases do not require significant computational resources on the device or are tightly constrained by non-functional requirements.
    • Limited budget to acquire mobile development resources.
    • Access to device hardware is not a high priority.

    Hybrid / Cross-Platform

    • The need to quickly spin up native-like applications for multiple platforms and devices.
    • Desire to leverage existing web development skills, but also a need for device access and meeting specific non-functional requirements.
    • Vendor support is needed for the entire mobile delivery process.

    Native

    • Developers are experts in the target programming language and with the device's hardware.
    • Strong need for high performance, security and device-specific access and customizations.
    • Application use cases requiring significant computing resources.

    Nine datapoints are arranged on a graph where the x axis s labeled: User Centric Needs; and the Y axis is labeled: Enterprise-centric needs. The datapoints are, in order from left to right, top to bottom: Hybrid; Cross- Platform; Native; Web; Hybrid or Cross- Platform; Cros-s Platform; Web; Web; Hybrid or Cross- Platform.

    2.1.1 Select your platform approach

    1-3 hours

    1. Review your mobile objectives, end user needs and non-functional requirements.
    2. Determine which mobile platform is appropriate for each mobile opportunity or use case by answering the following questions on the following slides against two factors: user-centric and enterprise-centric needs.
    3. Calculate an average score for user-centric and one for enterprise-centric. Then, map them on the matrix to indicate possible platform options. Consider all options around the plotted point.
    4. Further discuss which platforms should be the preferred choice.
    5. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    Input

    		Output
    • Desired mobile experience
    • List of desired mobile features
    • Current state assessments
    • Mobile platform approach
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    2.1.1 cont'd

    User-Centric Needs: Functional Requirements

    Factors Definitions Survey Responses
    Device Hardware Access The scope of access to native device hardware features. Basic features include those that are available through current web languages (e.g., geolocation) whereas comprehensive features are those that are device-specific. 1 (Basic) – 2 – 3 (Moderate) – 4 – 5 (Comprehensive)
    Customized Execution of Device Hardware The degree of changes to the execution of local device hardware to satisfy functional needs. 1 (Use as Is) – 2 – 3 (Configure) – 4 – 5 (Customize)
    Device Software Access The scope of access to software on the user's device, such as calendars and contact. 1 (Basic) – 2 – 3 (Moderate) – 4 – 5 (Comprehensive)
    Customized Execution of Device Software The degree of changes to the execution of local device software to satisfy functional needs. 1 (Use as Is) – 2 – 3 (Configure) – 4 – 5 (Customize)
    Use Case Complexity Workflow tasks and decisions are simple and straightforward. Complex computation is not needed to acquire the desired outcome. 1 (Strongly Agree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Disagree)
    Computational Resources The resources needed on the device to complete desired functional needs. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Use Case Ambiguity The mobile use case and technical requirements are well understood and documented. Changes to the mobile application is likely. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Mobile Application Access Enterprise systems and data are accessible to the broader organization through the mobile application. This factor does not necessarily mean that anyone can access it untracked. You may still need to identify yourself or log in, etc. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Scope of Adoption & Impact The extent to which the mobile application is leveraged in the organization. 1 (Enterprise) – 2 – 3 (Department) – 4 – 5 (Team)
    Installable The need to locally install the mobile application. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Targeted Devices & Platforms Mobile applications are developed for a defined set of mobile platform versions and types and device. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Output Audience The mobile application transforms an input into a valuable output for high-priority internal or external stakeholders. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)

    2.1.1 cont'd

    User-Centric Needs: Native User Experience Factors

    Factors Definitions Survey Responses
    Immersive Experience The need to bridge physical world with the virtual and digital environment, such as geofencing and NFC. 1 (Internally Delivered) – 2 – 3 (3rd Party Supported) – 4 – 5 (Business Implemented)
    Timeliness of Content and Updates The speed of which the mobile application (and supporting system) responds with requested information, data and updates from enterprise systems and 3rd party services. 1 (Reasonable Delayed Response) – 2 – 3 (Partially Outsourced) – 4 – 5 (Fully Outsourced)
    Application Performance The speed of which the mobile application completes tasks is critical to its success. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Network Accessibility The needed ability to access and use the mobile application in various network conditions. 1 (Only Available When Online) – 2 – 3 (Partially Available When Online) – 4 – 5 (Available Online)
    Integrated Ecosystem The approach to integrate the mobile application with enterprise or 3rd party systems and services. 1 (Out-of-the-Box Connectors) – 2 – 3 (Configurable Connectors) – 4 – 5 (Customized Connectors)
    Desire to Have a Native Look-and-Feel The aesthetics and UI features (e.g., heavy animations) that are only available through native and cross-platform applications. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    User Tolerance to Change The degree of willingness and ableness for a user to change their way of working to maximize the value of the mobile application. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Mission Criticality The business could not execute its main strategy if the mobile application was removed. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Business Value The mobile application directly adds business value to the organization. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Industry Differentiation The mobile application provides a distinctive competitive advantage or is unique to your organization. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)

    2.1.1 cont'd

    Enterprise-Centric Needs: Non-Functional Requirements

    Factors Definitions Survey Responses
    Legacy Compatibility The need to integrate and operate with legacy systems. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Code Portability The need to enable the "code once and deploy everywhere" approach. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)
    Vendor & Technology Lock-In The tolerance to lock into a vendor mobile delivery solution or technology framework. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Data Sensitivity The data used by the mobile application does not fall into the category of sensitive data – meaning nothing financial, medical, or personal identity (GDPR and worldwide equivalents). The disclosure, modification, or destruction of this data would cause limited harm to the organization. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Data Policies Policies of the mobile application's data are mandated by internal departmental standards (e.g. naming standards, backup standards, data type consistency). Policies only mandated in this way usually have limited use in a production capacity. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Security Risks Mobile applications are connected to private data sources and its intended use will be significant if underlying data is breached. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    Business Continuity & System Integrity Risks The mobile application in question does not have much significance relative to the running of mission critical processes in the organization. 1 (Strongly Disagree) – 2 – 3 (Neutral) – 4 – 5 (Strongly Agree)
    System Openness Openness of enterprise systems to enable mobile applications from the user interface to the business logic and backend integrations and database. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)
    Mobile Device Management The organization's policy for the use of mobile devices to access and leverage enterprise data and services. 1 (Bring-Your-Own-Device) – 2 – 3 (Hybrid) – 4 – 5 (Corporate Devices)

    2.1.1 cont'd

    Enterprise-Centric Needs: Delivery Capacity

    Factors Definitions Survey Responses
    Ease of Mobile Delivery The desire to have out-of-the-box and packaged tools to expedite mobile application delivery using web technologies. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Solution Competency The capability for internal staff to and learn how to implement and administer mobile delivery tools and deliver valuable, high-quality applications. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Ease of Deployment The desire to have the mobile applications delivered by the team or person without specialized resources from outside the team. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Delivery Approach The capability to successfully deliver mobile applications given budgetary and costing, resourcing, and supporting services constraints. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Maintenance & Operational Support The capability of the resources to responsibly maintain and operate mobile applications, including defect fixes and the addition and extension of modules to base implementations of the digital product. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Domain Knowledge Support The availability and accessibility of subject and domain experts to guide facilitate mobile application implementation and adoption. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Delivery Urgency The desire to have the mobile application delivered quickly. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)
    Reusable Components The desire to reuse UI elements and application components. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)

    2.1.1 cont'd

    Example:

    Score Factors (Average) Mobile Opportunity 1: Inventory Management Mobile Opportunity 2: Remote Support
    User-Centric Needs 4.25 3
    Functional Requirements 4.5 2.25
    Native User Experience Factors 4 1.75
    Enterprise-Centric Needs 4 2
    Non-Functional Requirements 3.75 3.25
    Delivery Capacity 4.25 2.75
    Possible Mobile Platform Cross-Platform Native PWA Hybrid

    Nine datapoints are arranged on a graph where the x axis s labeled: User Centric Needs; and the Y axis is labeled: Enterprise-centric needs. The datapoints are, in order from left to right, top to bottom: Hybrid; Cross- Platform; Native; Web; Hybrid or Cross- Platform; Cros-s Platform; Web; Web; Hybrid or Cross- Platform. Two yellow circles are overlaid, one containing the phrase: Remote Support - over the box containing Progressive Web Applications (PWA) or Hybrid; and a yellow circle containing the phrase Inventory MGMT, partly covering the box containing Native; and the box containing Cross-Platform.

    Build a scalable and manageable platform

    Long-term mobile success depends on the efficiency and reliability of the underlying operational platform. This platform must support the computational and performance demands in a changing business environment, whether it is composed of off-the-self or custom-developed solutions, or a single vendor or best-of-breed.

    • Application
      • The UI design and content language is standardized and consistently applied
      • All mobile configurations and components are automatically versioned
      • Controlled administration and tooling access, automation capabilities, and update delivery
      • Holistic portfolio management
    • Data
      • Automated data management to preserve data quality (e.g. removal of duplications)
      • Defined single source of truth
      • Adherence to data governance, and privacy and security policies
      • Good content management practices, governance and architecture
    • Infrastructure
      • Containers and sandboxes are available for development and testing
      • Self-healing and self-service environments
      • Automatic system scaling and load balancing
      • Comply to budgetary and licensing constraints
    • Integration
      • Backend database and system updates are efficient
      • Loosely coupled architecture to minimize system regressions and delivery effort
      • Application, system and data monitoring

    Step 2.2

    Shortlist Your Mobile Delivery Solution

    Activities

    2.2.1 Shortlist your mobile delivery solution

    2.2.2 Build your feature and service lists

    Define Your Mobile Approach

    This step involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Outcomes of this step

    • Shortlisted mobile delivery solutions
    • Desired list of vendor features and services

    Ask yourself: should I build or buy?

    Build Buy

    Multi-Source Best-of-Breed

    Vendor Add-Ons & Integrations

    Integrate various technologies that provide subset(s) of the features needed for supporting the business functions.

    Enhance an existing vendor's offerings by using their system add-ons either as upgrades, new add-ons or integrations.

    Pros

    • Flexibility in choice of tools.
    • In some cases, cost may be lower.
    • Easier to enhance with in-house teams.

    Cons

    • Introduces tool sprawl.
    • Requires resources to understand tools and how they integrate.
    • Some of the tools necessary may not be compatible with each other.

    Pros

    • Reduces tool sprawl.
    • Supports consistent tool stack.
    • Vendor support can make enhancement easier.
    • Total cost of ownership may be lower.

    Cons

    • Vendor Lock-In.
    • The processes to enhance may require tweaking to fit tool capability.

    Multi-Source Custom

    Single Source

    Integrate systems built in-house with technologies developed by external organizations.

    Buy an application/system from one vendor only.

    Pros

    • Flexibility in choice of tools.
    • In some cases, cost may be lower.
    • Easier to enhance with in-house teams.

    Cons

    • May introduce tool sprawl.
    • Requires resources to have strong technical skills
    • Some of the tools necessary may
    • not be compatible with each other.

    Pros

    • Reduces tool sprawl.
    • Supports consistent tool stack.
    • Vendor support can make enhancement easier.
    • Total cost of ownership may be lower.

    Cons

    • Vendor Lock-In.
    • The processes to enhance may require tweaking to fit tool capability.

    Weigh the pros and cons of mobile enablement versus development

    Mobile Enablement

    Mobile Development

    Description Mobile interfaces that heavily rely on enterprise or 3rd party systems to operate. Mobile does not expand the functionality of the system but complements it with enhanced access, input and consumption capabilities. Mobile applications that are custom built or configured in a way that can operate as a standalone entity, whether they are locally deployed to a user's device or virtually hosted.
    Mobile Platform Mobile web, locally installed mobile application provided by vendor Mobile web, hybrid, cross-platform, native
    Typical Audience Internal staff, trusted users Internal and external users, general public
    Examples of Tooling Flavors Enterprise applications, point solutions, robotic & process automation Mobile enterprise application platform, web development, low and no code development, software development kits (SDKs)
    Technical Skills Required Little to no mobile delivery experience and skillsets are needed, but teams must be familiar with the supporting system to understand how a mobile interface can improve the value of the system. Have good UX-driven and quality-first practices in the mobile context. In-depth coding, networking, system and UX design, data management and security skills are needed for complex designs, functions, and architectures.
    Architecture & Integration Architecture is standardized by the vendor or enterprise with UI elements that are often minimally configurable. Extensions and integrations must be done through the system rather than the mobile interface. Much of application stack and integration approach can be customized to meet the specific functional and non-functional needs. It should still leverage web and design standards and investments currently used.
    Functional Scope Functionality is limited to the what the underlying system allows the interface to do. This often is constrained to commodity web application features (e.g., reporting) or tied to minor configurations to the vendor-provided point solution Functionality is only constrained by the platform and the targeted mobile devices whether it is performance, integration, access or security related. Teams should consider feature and content parity across all products within the organization portfolio.
    Delivery Pipeline End-to-end delivery and automated pipeline is provided by the vendor to ensure parity across all interfaces. Many vendors provide cloud-based services for hosting. Otherwise, it is directly tied to the SDLC of the supporting system. End-to-end delivery and automated pipeline is directly tied to enterprise SDLC practices or through the vendor. Some vendors provide cloud-based services for hosting. Updates are manually or automatically (through a vendor) published to app stores and can be automatically pushed to corporate users through mobile application management capabilities.
    Standards & Guardrails Quality standards and technology governance are managed by the vendor or IT with limited capabilities to tailor them to be mobile specific. Quality standards and technology governance are managed by the mobile delivery teams. The degree of customizations to these standards and guardrails is dependent on the chosen platform and delivery team competencies.

    Understand the common attributes of a mobile delivery solution

    • Source Code Management – Built-in or having the ability to integrate with code management solutions for branching, merging, and versioning. Debugging and coding assistance capabilities may be available.
    • Single Code Base – Capable of programming in a standard coding and scripting language for deployment into several platforms and devices. This code base is aligned to a common industry framework (e.g., AngularJS, Java) or a vendor-defined one.
    • Out-of-the-Box Connectors & Plug-ins – Pre-built APIs enhance the solution's capabilities with 3rd party tools and systems to deliver and manage high quality and valuable mobile applications.
    • Emulators – Ability to virtualize an application's execution on a target platform and device.
    • Support for Native Features – Supports plug-ins and APIs for access to device-specific features.

    What are mobile delivery solutions?

    A mobile delivery solution gives you the tools, resources and support to enable or build your mobile application. They can provide pre-built applications, vendor supported components to allow some configurations, or resources for full stack customizations. Some solutions can be barebone software development kits (SDKs) or comprehensive suites offering features to support the entire software delivery lifecycle, such as:

    • Mobile application management
    • Testing and publishing to app stores
    • Content management
    • Cloud hosting
    • Application performance management

    Info-Tech Insight

    Mobile enablement and development capabilities are already embedded in many common productivity tools and enterprise applications, such as Microsoft PowerApps and ERP modules. They can serve as a starting point in the initial rollout of new management and governance practices without the need of acquiring new tools.

    Select your mobile delivery solutions

    1. Set the scope of your framework.
    • The initial context of this framework is based on the mobile functions needed to support your desired mobile experience and on the current state of your enterprise and 3rd party systems.
  • Define the decision factors for your solution selection.
    • Review the decision factors that will influence the selection of your mobile delivery solution for each mobile opportunity:
    • Stack Management – Who will be hosting and supporting your mobile application stack?
    • Workflows Complexity & Native Experience – How complex is your desired mobile experience and how will native device features be leveraged?
  • Select your solution type.
    • Mobile delivery solutions are broadly defined in the following groups:
    • Commercial-Off-The-Shelf (COTS) – Pre-built mobile applications requiring little to no configurations or implementation effort.
    • Vendor Hosted Mobile Platform – Back-end and mid-tier infrastructure and operational support are managed by a vendor.
    • Cross-Platform Development – Frameworks that transform a single code base into platform-specific builds.
    • Hybrid Development – Tools that wrap a single code base into a locally deployable build.
    • Custom Web Development – Environment enabling full stack development for mobile web applications.
    • Custom Native Development – Environment enabling full stack development for mobile native applications.

    • A quadrant analysis is depicted. the top data is labeled Complex Mobile Features; the right side is labeled Organization-Managed Stack; the bottom is labeled Simple Mobile Features; and the left side is labeled Vendor-Managed Stack. The quadrants are labeled the following, in order from left to right, top to bottom. Vendor- Hosted Mobile Platform; Custom Native Development Solutions; Commercial-Off-the-Shelf Solutions; Custom Web Development Solutions. In the middle of the graph are the following, in order from top to bottom: Cross-Platform Development Solutions; Hybrid Development Solutions

    Explore the various solution options

    Vendor Hosted Mobile Platform

    • Cloud Services (Mobile Backend-as-a-Service) (Amazon Amplify, Kinvey, Back4App, Google Firebase, Apache Usergrid)
    • Low Code Mobile Platforms (Outsystems, Mendix, Zoho Creator, IBM Mobile Foundation, Pega Mobile, HCL Volt MX, Appery)
    • Mobile Development via Enterprise Application (SalesForce Heroku, Oracle Application Accelerator MAX, SAP Mobile Development Kit, NetSuite Mobile)
    • Mobile Development via Business Process Automation (PowerApps, Appian, Nintex, Quickbase)

    Cross-Platform Development SDKs

    React Native, NativeScript, Xamarin Forms, .NET MAUI, Flutter, Kotlin Multiplatform Mobile, jQuery Mobile, Telerik, Temenos Quantum

    Custom Native Development Solutions

    • Native Development Languages and Environments (Swift, Java, Objective-C, Kotlin, Xcode, NetBeans, Android Studio, AppCode, Microsoft Visual Studio, Eclipse, DriodScript, Compose, Atom)
    • Mobile Application Utilities (Unity, MonoGame, Blender, 3ds Max Design, Maya, Unreal Engine, Amazon Lumberyard, Oculus)

    Commercial-Off-the-Shelf Solutions

    • No Code Mobile Platforms (Swiftic, Betty Blocks, BuildFire, Appy Pie, Plant an App, Microsoft Power Apps, AppSheet, Wix, Quixy)
    • Mobile Application Point Solutions and Enablement via Enterprise Applications

    Hybrid Development SDKs

    Cordova Project, Sencha Touch, Electron, Ionic, Capacitor, Monaca, Voltbuilder

    Custom Web Development Solutions

    Web Development Frameworks (React, Angular, Vue, Express, Django, Rails, Spring, Ember, Backbone, Bulma, Bootstrap, Tailwind CSS, Blade)

    Get the most out of your solutions by understanding their core components

    While most of the heavy lifting is handled by the vendor or framework, understanding how the mobile application is built and operates can identify where further fine-tuning is needed to increase its value and quality.

    Platform Runtime

    Automatic provisioning, configurations, and tuning of organizational and 3rd party infrastructure for high availability, performance, security and stability. This can include cloud management and non-production environments.

    Extensions

    • Mobile delivery solutions can be extended to allow:
    • Custom development of back-end code
    • Customizable integrations and hooks where needed
    • Integrations with CI/CD pipelines and administrative services
    • Integrations with existing databases and authentication services

    Platform Services

    The various services needed to support mobile delivery and enable continuous delivery, such as:

    • Configuration & Change Management – Verifies, validates, and monitors builds, deployments and changes across all components.
    • Code Generator – Transforms UI and data models into native application components that are ready to be deployed.
    • Deployment Services – Deploys application components consistently across all target environments and app stores.
    • Application Services – Manages the mobile application at runtime, including executing scheduled tasks and instrumentation.

    Application Architecture

    Fundamentally, mobile application architecture is no different than any other application architecture so much of your design standards still applies. The trick is tuning it to best meet your mobile functional and non-functional needs.

    This image contains an example of mobile application architecture.

    Source: "HCL Volt MX", HCL.

    Build your shortlist decision criteria

    The decision on which type of mobile delivery solution to use is dependent on several key questions?

    Who is the Mobile Delivery Team?

    • Is it a worker, business or IT?
    • What skills and knowledge does this person have?
    • Who is supporting mobile delivery and management?
    • Are other skills and tools needed to support, extend or mature mobile delivery adoption?

    What are the Use Cases?

    • What is the value and priority of the use cases?
    • What native features do we need?
    • Who is the audience of the output and who is impacted?
    • What systems, data and services do I need access?
    • Is it best to build it or buy it?
    • What are the quality standards?
    • How strategic is the use case?

    How Complex is the System?

    • Is the mobile application a standalone or integrated with enterprise systems?
    • What is the system's state and architecture?
    • What 3rd party services do we need integrated?
    • Are integrations out-of-the-box or custom?
    • Is the data standardized and who can edit its definition?
    • Is the system monolithic or loosely coupled?

    How Much Can We Tolerate?

    • Risks: What are the business and technical risks involved?
    • Costs: How much can we invest in implementation, training and operations?
    • Change: What organizational changes am I expecting to make? Will these changes be accepted and adopted?

    2.2.1 Shortlist your mobile delivery solution

    1-3 hours

    1. Determine which mobile delivery solutions is appropriate for each mobile opportunity or use case by answering the following questions on the following slides against two factors: complexity of mobile workflows and native features and management of the mobile stack.
      1. Take the average of the enterprise-centric and user-centric scores from step 2.1 for your complexity of mobile workflows and native features scores.
    2. Calculate an average score for the management of the mobile stack. Then, map them on the matrix to indicate possible solution options alongside your user-centric scores. Consider all options around the plotted point.
    3. Further discuss which solution should be the preferred choice and compare those options with your selected platform approach.
    4. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    Input

    		Output
    • Current state assessment
    • Mobile platform approach
    • Shortlist of mobile delivery solution
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    2.2.1 cont'd

    Stack Management

    Factors Definitions Survey Responses
    Cost of Delayed Delivery The expected cost if a vendor solution or update is delayed. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Vendor Negotiation Organization's ability to negotiate favorable terms from vendors. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)
    Controllable Delivery Timeline Organization's desire to control when solutions and updates are delivered. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Solution Hosting The desired approach to host the mobile application. 1 (Fully Outsourced) – 2 – 3 (Partially Outsourced) – 4 – 5 (Internally Hosted)
    Vendor Lock-In The tolerance to be locked into a specific technology stack or vendor ecosystem. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Operational Cost Target The primary target of the mobile application's operational budget. 1 (External Resources) – 2 – 3 (Hybrid) – 4 – 5 (Internal Resources)
    Platform Management The desired approach to manage the mobile delivery solution, platform or underlying technology. 1 (Decentralized) – 2 – 3 (Federated) – 4 – 5 (Centralized)
    Skill & Competency of Mobile Delivery Team The ability of the team to create and manage valuable and high-quality mobile applications. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Current Investment in Enterprise Technologies The need to maximize the ROI of current enterprise technologies or integrate with legacy technologies. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)
    Ease of Extensibility Need to have out-of-the-box connectors and plug-ins to extend the mobile delivery solution beyond its base implementation. 1 (High) – 2 – 3 (Moderate) – 4 – 5 (Low)
    Holistic Application Strategy Organizational priorities on the types of applications the portfolio should be comprised. 1 (Buy) – 2 – 3 (Hybrid) – 4 – 5 (Build)
    Control of Delivery Pipeline The desire to control the software delivery pipeline from design to development, testing, publishing and support. 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)
    Specific Quality Requirements Software and mobile delivery is constrained to your unique quality standards (e.g., security, performance, availability) 1 (Low) – 2 – 3 (Moderate) – 4 – 5 (High)

    2.2.1 cont'd

    Example:

    Score Factors (Average) Mobile Opportunity 1: Inventory Management Mobile Opportunity 2: Remote Support
    User-Centric & Enterprise Centric Needs (From Step 2.1) 4.125 2.5
    Stack Management 2 2.5
    Desired Mobile Delivery Solution Vendor-Hosted Mobile Platform

    Commercial-Off-the-Shelf Solution

    Hybrid Development Solution

    A quadrant analysis is depicted. the top data is labeled Complex Mobile Features; the right side is labeled Organization-Managed Stack; the bottom is labeled Simple Mobile Features; and the left side is labeled Vendor-Managed Stack. The quadrants are labeled the following, in order from left to right, top to bottom. Vendor- Hosted Mobile Platform; Custom Native Development Solutions; Commercial-Off-the-Shelf Solutions; Custom Web Development Solutions. In the middle of the graph are the following, in order from top to bottom: Cross-Platform Development Solutions; Hybrid Development Solutions.

    Consider the following in your solution selection and implementation

    • Vendor lock in – Each solution has its own approach, frameworks, and data schemas to convert designs and logic into an executable build that is stable in the targeted environment. Consequently, moving application artifacts (e.g., code and designs) from one solution or environment to another may not be easily accomplished without significant modifications or the use of application modernization or migration services.
    • Conflicting priorities and viewpoints of good delivery practices – Mobile delivery solutions are very particular on how they generate applications from designs and configurations. The solution's approach may not accommodate your interpretation of high-quality code (e.g., scalability, maintainability, extensibility, security). Technical experts should be reviewing and refactoring the generated code.
    • Incompatibility with enterprise applications and systems – The true benefit of mobile delivery solutions is their ability to connect your mobile application to enterprise and 3rd party technologies and services. This capability often requires enterprise technologies and services to be architected in a way that is compatible with your delivery solution while ensuring data, security protocols and other standards and policies are consistently enforced.
    • Integration with current application development and management tools – Mobile delivery solutions should be extensions from your existing application development and management tools that provides the versioning, testing, monitoring, and deployment capabilities to sustain a valuable application portfolio. Without this integration, IT will be unable to:
      • Root cause issues found on IT dashboards or reported to help desk.
      • Rollback defective applications to a previous stable state.
      • Obtain a complete application portfolio inventory.
      • Execute comprehensive testing for high-risk applications.
      • Trace artifacts throughout the development lifecycle.
      • Generate reports of the status of releases.

    Enhance your SDLC to support mobile delivery

    What is the SDLC?

    The software development lifecycle (SDLC) is a process that ensures valuable software products are efficiently delivered to customers. It contains a repeatable set of activities needed to intake and analyze requirements to design, build, test, deploy, and maintain software products.

    How will mobile delivery influence my SDLC?

    • Cross-functional collaboration – Bringing business and IT together at the most opportune times to clarify user needs and business priorities, and set realistic expectations given technology and capacity constraints. The appropriate tactics and techniques are used to improve decision making and delivery effectiveness according to the type of work.
    • Iterative delivery – Frequent delivery of progressive changes minimizes the risk of low-quality features by containing and simplifying scope, and enables responsive turnarounds of fixes, enhancements, and priority changes.
    • Feedback loops –Mobile application owners constantly review, update and refine their backlog of mobile features and changes to reflect user feedback and system performance metrics. Delivery teams proactively prepare the application for future scaling based on lessons and feedback learned from earlier releases.

    To learn more, visit Info-Tech's Modernize Your SDLC blueprint.

    Example: Low- & No-Code Mobile Delivery Pipeline

    Low Code

    		Data Modeling & Configuration

    No Code

    Visual Interface with Complex Data Models

    		Data Modeling & Configuration

    Visual Interfaces with Simple Data Models

    GUI Designer with Customizable Components & Entities

    UI Definition & Design

    GUI Designer with Canned Templates

    Visual Workflow and Custom Scripting

    		Business Logic Rules and Workflow Specification

    Visual Workflow and Natural Language Scripting

    Out-of-the-Box Plugins & Custom Integrations

    		Integration of External Services (via 3rd Party APIs)

    Out-of-the-Box Plugins

    Automated and Manual Build & Packaging

    		Build & Package

    Automated Build & Packaging

    Automated & Manual Testing

    		Test

    Automated Testing

    One-Click Push or IT Push to App Store

    		Publish to App Store

    One-Click Push to App Store

    Use Info-Tech's research to address your delivery gaps

    Mobile success requires more than a set of good tools.

    Overcome the Common Challenges Faced with Building Mobile Applications

    Common Challenges with Digital Applications

    Suggested Solutions

    • Time & Resource Constraints
    • Buy-In From Internal Stakeholders
    • Rapidly Changing Requirements
    • Legacy Systems
    • Low-Priority for Internal Tools
    • Insufficient Data Access

    Source: DronaHQ, 2021

    Learn the differentiators of mobile delivery solutions

    • Native Program Languages – Supports languages other than web (Java, Ruby, C/C++/C#, Objective-C).
    • IDE Integration – Available plug-ins for popular development suites and editors.
    • Debugging Tools – Finding and eliminating bugs (breakpoints, single stepping, variable inspection, etc.).
    • Application Packaging via IDE – Digitally sign applications through the IDE for it to be packaged and published in app stores.
    • Automated Testing Tools – Native or integration with automated functional and unit testing tools.
    • Low- and No- Code Designer – Tools for designing graphical user interfaces and features and managing data with drag-and-drop functionalities.
    • Publishing and Deployment Capabilities – Automated deployment to mobile device management (MDM) systems, mobile application management (MAM) systems, mobile application stores, and web servers.
    • Third-Party and Open-Source Integration – Integration with proprietary and open-source third-party modules, development tools, and systems.
    • Developer Marketplace – Out-of-the-box plug-ins, templates, and integration are available through a marketplace.
    • Mobile Application Support Capabilities – Ability to gather, manage, and address application issues and defects.
    • API Gateway, Monitoring, and Management – Services that enable the creation, publishing, maintenance, monitoring, and securing of APIs through a common interface.
    • Mobile Analytics and Monitoring – View the adoption, usage, and performance of deployed mobile applications through graphical dashboards.
    • Mobile Content Management – Publish and manage mobile content through a centralized system.
    • Mobile Application Security – Supports the securing of application access and usage, data encryption, and testing of security controls.

    Define your mobile delivery vendor selection criteria

    Focus on the key vendor attributes and capabilities that enable mobile delivery scaling and growth in your organization

    Considerations in Mobile Delivery Vendor Selection
    Platform Features & Capabilities Price to Implement & Operate Platform
    Types of Mobile Applications That Can Be Developed Ease of IT Administration & Management
    User Community & Marketplace Size Security, Privacy & Access Control Capabilities
    SME in Industry Verticals & Business Functions Vendor Product Roadmap & Corporate Strategy
    Pre-Built Designs, Templates & Application Shells Scope of Device- and OS-Specific Compatibilities
    Regulatory & Industry Compliance Integration & Technology Partners
    Importing Artifacts From and Exporting to Other Solutions Platform Architecture & Underlying Technology
    End-to-End Support for the Entire Mobile SDLC Relevance to Current Mobile Trends & Practices

    Build your features list

    Incorporate different perspectives when defining the list of mandatory and desired features of your target solution.

    Appendix B contains a list of features for low- and no-code solutions that can be used as a starting point.

    Visit Info-Tech's Implement a Proactive and Consistent Vendor Selection Process blueprint.

    Mobile Developer

    • Visual, drag-and-drop models to define data models, business logic, and user interfaces.
    • One-click deployment.
    • Self-healing capabilities.
    • Vendor-managed infrastructure.
    • Active community and marketplace.
    • Pre-built templates and libraries.
    • Optical character recognition and natural language processing.
    • Knowledgebase and document management.
    • Business value, operational costs, and other KPI monitoring.
    • Business workflow automation.

    Mobile IT Professional

    • Audit and change logs.
    • Theme and template builder.
    • Template management.
    • Role-based access.
    • Regulatory compliance.
    • Consistent design and user experience across applications.
    • Application and system performance monitoring.
    • Versioning and code management.
    • Automatic application and system refactoring and recovery.
    • Exception and error handling.
    • Scalability (e.g. load balancing) and infrastructure management.
    • Real-time debugging.
    • Testing capabilities.
    • Security management.
    • Application integration management.

    2.2.2 Build your feature and service lists

    1-3 hours

    Review the key outcomes in the previous exercises to help inform the features and vendor support you require to support your mobile delivery needs:

    End user personas and desired mobile experience

    Objectives and expectations

    Desired mobile features and platform

    Mobile delivery solutions

    Brainstorm a list of features and functionalities you require from your ideal solution vendors. Prioritize these features and functionalities. See our Implement a Proactive and Consistent Vendor Selection Process blueprint for more information on vendor procurement.

    Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Download the Mobile Application Delivery Communication Template

    Input

    		Output
    • Shortlist of mobile solutions
    • Quality definitions
    • Mobile objectives and metrics
    • List of desired features and services of mobile delivery solution vendors
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Hit a home run with your stakeholders

    Use a data-driven approach to select the right tooling vendor for your needs – fast.

    AwarenessEducation & DiscoveryEvaluationSelection

    Negotiation & Configuration

    1.1 Proactively Lead Technology Optimization & Prioritization2.1 Understand Marketplace Capabilities & Trends3.1 Gather & Prioritize Requirements & Establish Key Success Metrics4.1 Create a Weighted Selection Decision Model5.1 Initiate Price Negotiation with Top Two Venders
    1.2 Scope & Define the Selection Process for Each Selection Request Action2.2 Discover Alternate Solutions & Conduct Market Education3.2 Conduct a Data Driven Comparison of Vendor Features & Capabilities4.2 Conduct Investigative Interviews Focused on Mission Critical Priorities with Top 2-4 Vendors5.2 Negotiate Contract Terms & Product Configuration

    1.3 Conduct an Accelerated Business Needs Assessment

    		2.3 Evaluate Enterprise Architecture & Application PortfolioNarrow the Field to Four Top Contenders4.3 Validate Key Issues with Deep Technical Assessments, Trial Configuration & Reference Checks5.3 Finalize Budget Approval & Project
    1.4 Align Stakeholder Calendars to Reduce Elapsed Time & Asynchronous Evaluation2.4 Validate the Business Case5.4 Invest in Training & Onboarding Assistance

    Investing time improving your software selection methodology has big returns.

    Info-Tech Insight

    Not all software selection projects are created equal – some are very small, some span the entire enterprise. To ensure that IT is using the right framework, understand the cost and complexity profile of the application you're looking to select. Info-Tech's Rapid Application Selection Framework approach is best for commodity and mid-tier enterprise applications; selecting complex applications is better handled by the methodology in Info-Tech's Implement a Proactive and Consistent Vendor Selection Process.

    Step 2.3

    Create a Roadmap for Mobile Delivery

    Activities

    2.3.1 Define your MVP release

    2.3.2 Build your roadmap

    Define Your Mobile Approach

    This step involves the following participants:

    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    Outcomes of this step

    • MVP design
    • Mobile delivery roadmap

    Achieve mobile success with MVPs

    By delivering mobile capabilities in small iterations, teams recognize value sooner and reduce accumulated risk. Both benefits are realized as the iteration enters validation testing and release.

    This image depicts a graph of the learn-build-measure cycle over time, adapted from Managing the Development of Large Software Systems, Dr. Winston W. Royce, 1970

    An MVP focuses on a small set of functions, involves minimal possible effort to deliver a working and valuable solution, and is designed to satisfy a specific user group. Its purpose is to:

    • Maximize learning.
    • Evaluate the value and acceptance of mobile applications.
    • Inform the building of a mobile delivery practice.

    The build-measure-learn loop suggests mobile delivery teams should perpetually take an idea and develop, test, and validate it with the mobile development solution, then expand on the MVP using the lessons learned and evolving ideas. In this sense the MVP is just the first iteration in the loop.

    Leverage a canvas to detail your MVP

    Use the release canvas to organize and align the organization around your MVP!

    This is an example of a release canvas which can be used to detail your MVP.

    2.3.1 Define your MVP release

    1-3 hours

    1. Create a list of high priority use cases slated for mobile application delivery. Brainstorm the various supporting activities required to implement your use cases including the shortlisting of mobile delivery tools.
    2. Prioritize these use cases based on business priority (from your canvas). Size the effort of these use cases through collaboration.
    3. Define your MVPs using a release canvas as shown on the following slide.
    4. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Input

    		Output
    • High priority mobile opportunities
    • Mobile platform approach
    • Shortlist of mobile solutions
    • List of potential MVPs
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    2.3.1 cont'd

    MVP Name

    Owner:
    Parent Initiative:
    Updated:

    NAME
    LINK
    October 05, 2022

    MVP Theme/Goals

    [Theme / Goal]

    Use Cases

    Value

    Costs

    [Use Case 1]
    [Use Case 2]
    [Use Case 3]

    [Business Value 1]
    [Business Value 2]
    [Business Value 3]

    [Cost Item 1]
    [Cost Item 2]
    [Cost Item 3]

    Impacted Personas

    Impacted Workflows

    Stakeholders

    [Persona 1]
    [Persona 2]
    [Persona 3]

    [Workflow 1]
    [Workflow 2]
    [Workflow 3]

    [Stakeholder 1]
    [Stakeholder 2]
    [Stakeholder 3]

    Build your mobile roadmap

    It's more than a set of colorful boxes. It's the map to align everyone to where you are going

    Your mobile roadmap

    • Lays out a strategy for your mobile application, platform and practice implementation and scaling.
    • Is a statement of intent for your mobile adoption.
    • Communicates direction for the implementation and use of mobile delivery tools, mobile applications and supporting technologies.
    • Directly connects to the organization's goals

    However, it is not:

    • Representative of a hard commitment.
    • A simple combination of your current product roadmaps

    Roadmap your MVPs against your milestones and release dates

    This is an image of an example of a roadmap for your MVPS, with milestones across Jan 2022, Feb 2022, Mar 2022, Apr 2022. under milestones, are the following points: Points in the timeline when an established set of artifacts is complete (feature-based), or to check status at a particular point in time (time-based); Typically assigned a date and used to show progress; Plays an important role when sequencing different types of artifacts. Under Release Dates are the following points: Releases mark the actual delivery of a set of artifacts packaged together in a new version of processes and applications or new mobile application and delivery capabilities. ; Release dates, firm or not, allow stakeholders to anticipate when this is coming.

    To learn more, visit Info-Tech's Deliver on Your Digital Product Vision blueprint.

    Understand what is communicated in your roadmap

    WHY is the work being done?

    Explains the overarching goal of work being done to a specific audience.

    WHO is doing the work?

    Categorizes the different groups delivering the work on the product.

    WHAT is the work being done?

    Explains the artifacts, or items of work, that will be delivered.

    WHEN is the work being done?

    Explains when the work will be delivered within your timeline.

    To learn more, visit Info-Tech's Deliver on Your Digital Product Vision blueprint.

    Pay attention to organizational changes

    Be prepared to answer:

    "How will mobile change the way I do my job?"

    • Plan how workers will incorporate mobile applications into their way of working and maximize the features it offers.
    • Address the human concerns regarding the transition to a digital world involving modern and mobile technologies and automation.
    • Accept changes, challenges and failures with open arms and instill tactics to quickly address them.
    • Build and strengthen business-IT trust, empowerment, and collaborative culture by adopting the right practices throughout the mobile delivery process.
    • Ensure continuous management and leadership support for business empowerment, operational changes, and shifts in role definitions to best support mobile delivery.
    • Establish a committee to manage the growth, adoption, and delivery of mobile as part of a grandeur digital application portfolio and address conflicts among business units and IT.

    Anticipate and prepare for changes and issues

    Verify and validate the flexibility and adaptability of your mobile applications, strategy and roadmap against various scenarios

    • Scenarios
      • Application Stores Rejecting the Application
      • Security Incidents & Risks
      • Low User Adoption, Retention & Satisfaction
      • Incompatibility with User's Device & Other Systems
      • Device & OS Patches & Updates
      • Changes in Industry Standards & Regulations

    Use the "Now, Next, Later" roadmap

    Use this when deadlines and delivery dates are not strict. This is best suited for brainstorming a product plan when dependency mapping is not required.

    Now

    What are you going to do now?

    Next

    What are you going to do very soon?

    Later

    What are you going to do in the future?

    This is a roadmap showing various points in the following categories: Now; Next; Later

    Adapted From: "Tips for Agile product roadmaps & product roadmap examples," Scrum.org, 2017

    2.3.2 Build your roadmap

    1-3 hours

    1. Identify the business outcomes your mobile application delivery and MVP is expected to deliver.
    2. Build your strategic roadmap by grouping each business outcome by how soon you need to deliver it:
      1. Now: Let's achieve this ASAP.
      2. Next: Sometime very soon, let's achieve these things.
      3. Later: Much further off in the distance, let's consider these things.
    3. Identify what the critical steps are for the organization to embrace mobile application delivery and deliver your MVP.
    4. Build your tactical roadmap by grouping each critical step by how soon you need to address it:
      1. Now: Let's do this ASAP.
      2. Next: Sometime very soon, let's do these things.
      3. Later: Much further off in the distance, let's consider these things.
    5. Document your findings and discussions into Info-Tech's Mobile Application Delivery Communication Template.

    Input

    		Output
    • List of potential MVPs
    • Mobile roadmap
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • Mobile Application Delivery Communication Template
    • Applications Manager
    • Product and Platform Owners
    • Software Delivery Teams
    • Business and IT Leaders

    2.3.2 cont'd

    Example: Tactical Roadmap

    Milestone 1

    • Modify the business processes of the MVP to best leverage mobile technologies. Streamline the business processes by removing the steps that do not directly support value delivery.
    • Develop UI templates using the material design framework and the organization's design standards. Ensure it is supported on mobile devices through the mobile browser and satisfy accessibility design standards.
    • Verify and validate current security controls against latest security risks using the W3C as a starting point. Install the latest security patches to maintain compliance.
    • Acquire the Ionic SDK and upskill delivery teams.

    Milestone 2

    • Update the current web framework and third-party libraries with the latest version and align web infrastructure to latest W3C guidelines.
    • Verify and validate functionality and stability of APIs with third-party applications. Begin transition to REST APIs where possible.
    • Make minor changes to the existing data architecture to better support the data volume, velocity, variety, and veracity the system will process and deliver.
    • Update the master data management with latest changes. Keep changes to a minimum.
    • Develop and deliver the first iteration of the MVP with Ionic.

    Milestone 3

    • Standardize the initial mobile delivery practice.
    • Continuously monitor the system and proactively address business continuity, system stability and performance, and security risks.
    • Deliver a hands-on and facilitated training session to end users.
    • Develop intuitive user manuals that are easily accessible on SharePoint.
    • Consult end users for their views and perspectives of suggested business model and technology changes.
    • Regularly survey end users and the media to gauge industry sentiment toward the organization.

    Pitch your roadmap initiatives

    There are multiple audiences for your pitch, and each audience requires a different level of detail when addressed. Depending on the outcomes expected from each audience, a suitable approach must be chosen. The format and information presented will vary significantly from group to group.

    Audience

    Key Contents

    Outcome

    Outcome

    • Costs or benefits estimates

    Sign off on cost and benefit projections

    Executives and decision makers

    • Business value and financial benefits
    • Notable business risks and impacts
    • Business rationale and strategic roadmap

    Revisions, edits, and approval

    IT teams

    • Notable technical and IT risks
    • IT rationale and tactical roadmap
    • Proposed resourcing and skills capacity

    Clarity of vision and direction and readiness for delivery

    Business workers

    • Business rationale
    • Proposed business operations changes
    • Application roadmap

    Verification on proposed changes and feedback

    Continuously measure the benefits and value realized in your mobile applications

    Success hinges on your team's ability to deliver business value. Well-developed mobile applications instill stakeholder confidence in ongoing business value delivery and stakeholder buy-in, provided proper expectations are set and met.

    Business value defines the success criteria of an organization, and it is interpreted from four perspectives:

    • Profit Generation – The revenue generated from a business capability with mobile applications.
    • Cost Reduction – The cost reduction when performing business capabilities with mobile applications.
    • Service Enablement – The productivity and efficiency gains of internal business operations with mobile applications.
    • Customer and Market Reach – Metrics measuring the improved reach and insights of the business in existing or new markets.

    See our Build a Value Measurement Framework blueprint for more information about business value definition.

    Business Value Matrix

    This image contains a quadrant analysis with the following labels: Left - Improved Capabilities; Top - Outward; Right - Financial Benefit; Bottom - Inward. the quadrants are labeled the following, in order from left to right, top to bottom. Customer and Market Reach; Profit Generation; Service Enhancement; Cost Reduction

    Grow your mobile delivery practice

    We are Here
    Level 1: Mobile Delivery Foundations Level 2: Scaled Mobile Delivery Level 3: Leading-Edge Mobile Delivery

    You understand the opportunities and impacts mobile has on your business operations and its disruptive nature on your enterprise systems. Your software delivery lifecycle was optimized to incorporate the specific practices and requirements needed for mobile. A mobile platform was selected based on stakeholder needs that are weighed against current skillsets, high priority non-functional requirements, the available capacity and scalability of your stack, and alignment to your current delivery process.

    New features and mobile use cases are regularly emerging in the industry. Ensuring your mobile platform and delivery process can easily scale to incorporate constantly changing mobile features and technologies is key. This can help minimize the impact these changes will have on your mobile stack and the resulting experience.

    Achieving this state requires three competencies: mobile security, performance optimization, and integration practices.

    Many of today's mobile trends involve, in one form or another, hardware components on the mobile device (e.g., NFC receivers, GPS, cameras). You understand the scope of native features available on your end user's mobile device and the required steps and capabilities to enable and leverage them.

    Grow your mobile delivery practice (cont'd)

    Ask yourself the following questions:
    Level 1: Mobile Delivery Foundations Level 2: Scaled Mobile Delivery Level 3: Leading-Edge Mobile Delivery

    Checkpoint questions shown at the end of step 1.2 of this blueprint

    You should be at this point upon the successful delivery of your first mobile application.

    Security

    • Your mobile stack (application, data, and infrastructure) is updated to incorporate the security risks mobile apps will have on your systems and business operations.
    • Leading edge encryption, authentication management (e.g., multi-factor), and access control systems are used to bolster existing mobile security infrastructure.
    • Network traffic to and from mobile application is monitored and analyzed.

    Performance Optimization

    • Performance enhancements are made with the entire mobile stack in mind.
    • Mobile performance is monitored and assessed with both proactive (data flow) and retroactive (instrumentation) approaches.
    • Development and testing practices and technologies accommodate the performance differences between mobile and desktop applications.

    API Development

    • Existing web APIs are compatible with mobile applications, or a gateway / middleware is used to facilitate communication with backend and third-party services.
    • APIs are secured to prevent unauthorized access and misuse.
    • Web APIs are documented and standardized for reuse in multiple mobile applications.
    • Implementing APIs of native features in native and/or cross-platform and/or hybrid platforms is well understood.
    • All leading-edge mobile features are mapped to and support business requirements and objectives.
    • The new mobile use cases are well understood and account for the various scenarios/environments a user may encounter with the leading-edge mobile features.
    • The relevant non-mobile devices, readers, sensors, and other dependent systems are shortlisted and acquired to enable and support your new mobile capabilities.
    • Delivery teams are prepared to accommodate the various security, performance, and integration risks associated with implementing leading-edge mobile features. Practices and mechanisms are established to minimize the impact to business operations.
    • Metrics are used to measure the success of your leading-edge mobile features implementation by comparing its performance and acceptance against past projects.
    • Business stakeholders and development teams are up to date with the latest mobile technologies and delivery techniques.

    Summary of Accomplishment

    Choose Your Mobile Platform and Tools

    • User personas
    • Mobile objectives and metrics
    • Mobile opportunity backlog
    • List of mobile features to enable the desired mobile experience
    • System current assessment
    • Mobile application quality definition
    • Readiness for mobile delivery
    • Desired mobile platform approach
    • Shortlisted mobile delivery solutions
    • Desired list of vendor features and services
    • MVP design
    • Mobile delivery roadmap

    If you would like additional support, have our analysts guide you through other phases as part of Info-Tech workshop.

    Contact your account representative for more information

    workshops@infotech.com

    1-888-670-8889

    Research Contributors and Experts

    This is a picture of Chaim Yudkowsky, Chief Information Officer for The American Israel Public Affairs Committee

    Chaim Yudkowsky
    Chief Information Officer
    The American Israel Public Affairs Committee

    Chaim Yudkowsky is currently Chief information Officer for American Israel Public Affairs Committee (AIPAC), the DC headquartered not-for-profit focused on lobbying for a strong US-Israel relationship. In that role, Chaim is responsible for all traditional IT functions including oversight of IT strategy, vendor relationships, and cybersecurity program. In addition, Chaim also has primary responsibility for all physical security technology and strategy for US offices and event technology for the many AIPAC events.

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    Appendix A

    Sample Reference Frameworks

    Reference Framework: Web Platform

    Most of the operations of the applications on a web platform are executed in the mid-tier or back-end servers. End users interact with the platform through the presentation layer, developed with web languages, in the browser.

    This is an image of the Reference Framework: Web Platform

    Reference Framework: Mobile Web Application

    Many mobile web applications are composed of JavaScript (the muscle of the app), HTML5 (the backbone of the app), and CSS (the aesthetics of the app). The user will make a request to the web server which will interact with the application to provide a response. Since each device has unique attributes, consider a device detection service to help adjust content for each type of device.

    this is an image of the Reference Framework: Mobile Web Application

    Source: MaLavolta, Ivono, 2012.

    Web Platform: Anatomy of a Web Server

    Web Server Services

    • Mediation Services: Perform transformation of data/messages.
    • Boundary Services: Provide interface protocol and data/message conversion capabilities.
    • Event Distribution: Provides for the enterprise-wide adoption of content and topic-based publish/subscribe event distribution.
    • Transport Services: Facilitate data transmission across the middleware/server.
    • Service Directory: Manages multiple service identifiers and locations.

    This image shows the relationships of the various web server services listed above

    Reference Framework: Hybrid Platform

    Unlike the mobile web platform, most of an application's operations on the hybrid platform is on the device within a native container. The container leverages the device browser's runtime engine and is based on the framework of the mobile delivery solution.

    This is an image of the Reference Framework: Hybrid Platform

    Reference Framework: Native Platform

    Applications on a native platform are installed locally on the device giving it access to native device hardware and software. The programming language depends on the operating system's or device's SDK.

    This is an image of the Reference Framework: Native Platform

    Appendix B

    List of Low- and No- Code Software Delivery Solution Features

    Supplementary List of Features

    Graphical user interface

    • Drag-and-drop designer - This feature enhances the user experience by permitting to drag all the items involved in making an app including actions, responses, connections, etc.
    • Point and click approach - This is similar to the drag-and-drop feature except it involves pointing on the item and clicking on the interface rather than dragging and dropping the item.
    • Pre-built forms/reports - This is off-the-shelf and most common reusable editable forms or reports that a user can use when developing an application.
    • Pre-built dashboards - This is off-the-shelf and most common dashboards that a user can use when developing an application.
    • Forms - This feature helps in creating a better user interface and user experience when developing applications. A form includes dashboards, custom forms, surveys, checklists, etc. which could be useful to enhance the usability of the application being developed.
    • Progress tracking - This features helps collaborators to combine their work and track the development progress of the application.
    • Advanced Reporting - This features enables the user to obtain a graphical reporting of the application usage. The graphical reporting includes graphs, tables, charts, etc.
    • Built-in workflows - This feature helps to concentrate the most common reusable workflows when creating applications.
    • Configurable workflows - Besides built-in workflows, the user should be able to customize workflows according to their needs.

    Interoperability support

    • Interoperability with external services - This feature is one of the most important features to incorporate different services and platforms including that of Microsoft, Google, etc. It also includes the interoperability possibilities among different low-code platforms.
    • Connection with data sources - This features connects the application with data sources such as Microsoft Excel, Access and other relational databases such as Microsoft SQL, Azure and other non-relational databases such as MongoDB.

    Security Support

    • Application security - This feature enables the security mechanism of an application which involves confidentiality, integrity and availability of an application, if and when required.
    • Platform security - The security and roles management is a key part in developing an application so that the confidentiality, integrity and authentication (CIA) can be ensured at the platform level.

    Collaborative development support

    • Off-line collaboration - Different developers can collaborate on the specification of the same application. They work off-line locally and then they commit to a remote server their changes, which need to be properly merged.
    • On-line collaboration - Different developers collaborate concurrently on the specification of the same application. Conflicts are managed at run-time.

    Reusability support

    • Built-in workflows - This feature helps to concentrate the most common reusable workflows in creating an application.
    • Pre-built forms/reports - This is off-the-shelf and most common reusable editable forms or reports that a user might want to employ when developing an application.
    • Pre-built dashboards - This is off-the-shelf and most common dashboards that a user might want to employ when developing an application.

    Scalability

    • Scalability on number of users - This features enables the application to scale-up with respect to the number of active users that are using that application at the same time.
    • Scalability on data traffic - This features enables the application to scale-up with respect to the volume of data traffic that are allowed by that application in a particular time.
    • Scalability on data storage - This features enables the application to scale-up with respect to the data storage capacity of that application.

    Business logic specification mechanisms

    • Business rules engine - This feature helps in executing one or more business rules that help in managing data according to user's requirements.
    • Graphical workflow editor - This feature helps to specify one or more business rules in a graphical manner.
    • AI enabled business logic - This is an important feature which uses Artificial Intelligence in learning the behavior of an attributes and replicate those behaviors according to learning mechanisms.

    Application build mechanisms

    • Code generation - According to this feature, the source code of the modeled application is generated and subsequently deployed before its execution.
    • Models at run-time - The model of the specified application is interpreted and used at run-time during the execution of the modeled application without performing any code generation phase.

    Deployment support

    • Deployment on cloud - This features enables an application to be deployed online in a cloud infrastructure when the application is ready to deployed and used.
    • Deployment on local infrastructures - This features enables an application to be deployed locally on the user organization's infrastructure when the application is ready to be deployed and used.

    Kinds of supported applications

    • Event monitoring - This kind of applications involves the process of collecting data, analyzing the event that can be caused by the data, and signaling any events occurring on the data to the user.
    • Process automation - This kind of applications focuses on automating complex processes, such as workflows, which can take place with minimal human intervention.
    • Approval process control - This kind of applications consists of processes of creating and managing work approvals depending on the authorization of the user. For example, payment tasks should be managed by the approval of authorized personnel only.
    • Escalation management - This kind of applications are in the domain of customer service and focuses on the management of user viewpoints that filter out aspects that are not under the user competences.
    • Inventory management - This kind of applications is for monitoring the inflow and outflow of goods and manages the right amount of goods to be stored.
    • Quality management - This kind of applications is for managing the quality of software projects, e.g., by focusing on planning, assurance, control and improvements of quality factors.
    • Workflow management - This kind of applications is defined as sequences of tasks to be performed and monitored during their execution, e.g., to check the performance and correctness of the overall workflow.

    Source: Sahay, Apurvanand et al., 2020

    Develop an IT Asset Management Strategy

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    • Parent Category Name: Asset Management
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    You have a mandate to create an accurate and actionable database of the IT assets in your environment, but:

    • The data you have is often incomplete or wrong.
    • Processes are broken or non-existent.
    • Your tools aren’t up to the task of tracking ever more hardware, software, and relevant metadata.
    • The role of stakeholders outside the core ITAM team isn’t well defined or understood.

    Our Advice

    Critical Insight

    ITAM is a foundational IT service that provides accurate, accessible, actionable data on IT assets. But there’s no value in data for data’s sake. Enable collaboration between IT asset managers, business leaders, and IT leaders to develop an ITAM strategy that maximizes the value they can deliver as service providers.

    Impact and Result

    • Develop an approach and strategy for ITAM that is sustainable and aligned with your business priorities.
    • Clarify the structure for the ITAM program, including scope, responsibility and accountability, centralization vs. decentralization, outsourcing vs. insourcing, and more.
    • Create a practical roadmap to guide improvement.
    • Summarize your strategy and approach using Info-Tech’s templates for review with stakeholders.

    Develop an IT Asset Management Strategy Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Develop an IT Asset Management Strategy – A methodology to create a business-aligned, coherent, and durable approach to ITAM.

    This two-phase, step-by-step methodology will guide you through the activities to build a business-aligned, coherent, and durable approach to ITAM. Review the executive brief at the start of the slide deck for an overview of the methodology and the value it can provide to your organization.

    • Develop an IT Asset Management Strategy – Phases 1-2

    2. ITAM Strategy Template – A presentation-ready repository for the work done as you define your ITAM approach.

    Use this template to document your IT asset management strategy and approach.

    • ITAM Strategy Template

    3. IT Asset Estimations Tracker – A rough-and-ready inventory exercise to help you evaluate the work ahead of you.

    Use this tool to estimate key data points related to your IT asset estate, as well as your confidence in your estimates.

    • IT Asset Estimations Tracker

    Infographic

    Workshop: Develop an IT Asset Management Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Identify ITAM Priorities & Goals, Maturity, Metrics and KPIs

    The Purpose

    Align key stakeholders to the potential strategic value of the IT asset management practice.

    Ensure the ITAM practice is focused on business-aligned goals.

    Key Benefits Achieved

    Define a business-aligned direction and expected outcomes for your ITAM program.

    Activities

    1.1 Brainstorm ITAM opportunities and challenges.

    1.2 Conduct an executive alignment working session.

    1.3 Set ITAM priorities, goals and tactics.

    1.4 Identify target and current state ITAM maturity.

    Outputs

    ITAM opportunities and challenges

    Align executive priorities with ITAM opportunities.

    ITAM metrics and KPIs

    ITAM maturity

    2 Identify Your Approach to Support ITAM Priorities and Goals

    The Purpose

    Translate goals into specific and coherent actions to enable your ITAM practice to deliver business value.

    Key Benefits Achieved

    A business-aligned approach to ITAM, encompassing scope, structure, tools, audits, budgets, documentation and more.

    A high-level roadmap to achieve your vision for the ITAM practice.

    Activities

    2.1 Define ITAM scope.

    2.2 Acquire ITAM services (outsourcing and contracting).

    2.3 Centralize or decentralize ITAM capabilities.

    2.4 Create a RACI for the ITAM practice.

    2.5 Align ITAM with other service management practices.

    2.6 Evaluate ITAM tools and integrations.

    2.7 Create a plan for internal and external audits.

    2.8 Improve your budget processes.

    2.9 Establish a documentation framework.

    2.10 Create a roadmap and communication plan.

    Outputs

    Your ITAM approach

    ITAM roadmap and communication plan

    Further reading

    Develop an IT Asset Management Strategy

    Define your business-aligned approach to ITAM.

    Table of Contents

    4 Analyst Perspective

    5 Executive Summary

    17 Phase 1: Establish Business-Aligned ITAM Goals and Priorities

    59 Phase 2: Support ITAM Goals and Priorities

    116 Bibliography

    Develop an IT Asset Management Strategy

    Define your business-aligned approach to ITAM.

    EXECUTIVE BRIEF

    Analyst Perspective

    Track hardware and software. Seems easy, right?

    It’s often taken for granted that IT can easily and accurately provide definitive answers to questions like “how many laptops do we have at Site 1?” or “do we have the right number of SQL licenses?” or “how much do we need to budget for device replacements next year?” After all, don’t we know what we have?

    IT can’t easily provide these answers because to do so you must track hardware and software throughout its lifecycle – which is not easy. And unfortunately, you often need to respond to these questions on very short notice because of an audit or to support a budgeting exercise.

    IT Asset Management (ITAM) is the solution. It’s not a new solution – the discipline has been around for decades. But the key to success is to deploy the practice in a way that is sustainable, right-sized, and maximizes value.

    Use our practical methodology to develop and document your approach to ITAM that is aligned with the goals of your organization.

    Photo of Andrew Sharp, Research Director, Infrastructure & Operations Practice, Info-Tech Research Group.

    Andrew Sharp
    Research Director
    Infrastructure & Operations Practice
    Info-Tech Research Group

    		Realize the value of asset management

    Cost optimization, application rationalization and reduction of technical debt are all considered valuable to right-size spending and improve service outcomes. Without access to accurate data, these activities require significant investments of time and effort, starting with creation of point-in-time inventories, which lengthens the timeline to reaching project value and may still not be accurate.

    Cost optimization and reduction of technical debt should be part of your culture and technical roadmap rather than one-off projects. Why? Access to accurate information enables the organization to quickly make decisions and pivot plans as needed. Through asset management, ongoing harvest and redeployment of assets improves utilization-to-spend ratios. We would never see any organization saying, “We’ve closed our year end books, let’s fire the accountants,” but often see this valuable service relegated to the back burner. Similar to the philosophy that “the best time to plant a tree is 20 years ago and the next best time is now,” the sooner you can start to collect, validate, and analyze data, the sooner you will find value in it.

    Photo of Sandi Conrad, Principal Research Director, Infrastructure & Operations Practice, Info-Tech Research Group.

    Sandi Conrad
    Principal Research Director
    Infrastructure & Operations Practice
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    You have a mandate to create an accurate and actionable database of the IT assets in your environment, but:

    • The data you have is often incomplete or wrong.
    • Processes are broken or non-existent.
    • Your tools aren’t up to the task of tracking ever more hardware, software, and relevant metadata.
    • The role of stakeholders outside the core ITAM team isn’t well defined or understood.
    		 Common Obstacles

    It is challenging to make needed changes because:

    • There’s cultural resistance to asset tracking, it’s seen as busywork that doesn’t clearly create value.
    • Decentralized IT teams aren’t generating the data required to track hardware and licenses.
    • ITAM can’t direct needed tool improvements because the admins don’t report to ITAM.
    • It’s hard to find time to improve processes given the day-to-day demands on your time.
    		 Info-Tech’s Approach
    • Develop an approach and strategy for ITAM that is sustainable and aligned with your business priorities.
    • Clarify the structure for the ITAM program, including scope, responsibility and accountability, centralization vs. decentralization, outsourcing vs. insourcing, and more.
    • Create a practical roadmap to guide improvement.
    • Summarize your strategy and approach using Info-Tech’s templates for review with stakeholders.

    Info-Tech Insight

    ITAM is a foundational IT service that provides accurate, accessible, actionable data on IT assets. But there’s no value in data for data’s sake. Enable collaboration between IT asset managers, business leaders, and IT leaders to develop an ITAM strategy that maximizes the value they can deliver as service providers.

    Unlock business value with IT asset management

    • IT asset management (ITAM) is the practice of maintaining accurate, accessible, and actionable data on the assets within the organization’s IT estate. Each IT asset will have a record that tracks it across its lifecycle from purchase to disposal.
    • ITAM’s value is realized through other processes and practice areas that can leverage ITAM data to manage risk, improve IT services, and control costs.
    • Develop an approach to ITAM that maximizes the value delivered to the business and IT. ITAM succeeds when its partners succeed at delivering business value, and it fails when it doesn’t show value to those partners.

    This blueprint will help you develop your approach for the management of IT hardware and software, including cloud services. Leverage other Info-Tech methodologies to dive directly into developing hardware asset management procedures, software asset management procedures, or to implement configuration management best practices.

    Info-Tech Members report significant savings from implementing our hardware and software asset management frameworks. In order to maximize value from the process-focused methodologies below, develop your ITAM strategy first.

    Implement Hardware Asset Management (Based on Info-Tech Measured Value Surveys results from clients working through these blueprints, as of February 2022.)

    9.6/10

    $23k

    32
    Overall Impact Average $ Saved Average Days Saved
    Implement Software Asset Management (Based on Info-Tech Measured Value Surveys results from clients working through these blueprints, as of February 2022.)

    9.0/10

    $12k

    5
    Overall Impact Average $ Saved Average Days Saved

    ITAM provides both early and ongoing value

    ITAM isn’t one-and-done. Properly supported, your ITAM practice will deliver up-front value that will help demonstrate the value ongoing ITAM can offer through the maintenance of an accurate, accessible, and actionable ITAM database.

    Example: Software Savings from ITAM



    This chart shows the money saved between the first quote and the final price for software and maintenance by a five-person ITAM team. Over a year and a half, they saved their organization a total of $7.5 million from a first quote total of $21 million over that period.

    This is a perfect example of the direct value that ITAM can provide on an ongoing basis to the organization, when properly supported and integrated with IT and the business.

    Examples of up-front value delivered in the first year of the ITAM practice:

    • Save money by reviewing and renegotiating critical, high-spend, and undermanaged software and service contracts.
    • Redeploy or dispose of clearly unused hardware and software.
    • Develop and enforce standards for basic hardware and software.
    • Improve ITAM data quality and build trust in the results.

    Examples of long-term value from ongoing governance, management, and operational ITAM activities:

    • Optimize spend: Reallocate unused hardware and software, end unneeded service agreements, and manage renewals and audits.
    • Reduce risk: Provide comprehensive asset data for security controls development and incident management; manage equipment disposal.
    • Improve IT service: Support incident, problem, request, and change management with ITAM data. Develop new solutions with an understanding of what you have already.

    Common obstacles

    The rulebook is available, but hard to follow
    • ITAM takes a village, but stakeholders aren’t aware of their role. ITAM processes rely on technicians to update asset records, vendors to supply asset data, administrators to manage tools, leadership to provide direction and support, and more.
    • Constant change in the IT and business environment undermines the accuracy of ITAM records (e.g. licensing and contract changes, technology changes that break discovery tools, personnel and organizational changes).
    • Improvement efforts are overwhelmed by day-to-day activities. One study found that 83% of SAM teams’ time is consumed by audit-related activities. (Flexera State of ITAM Report 2022) A lack of improvement becomes a vicious cycle when stakeholders who don’t see the value of ITAM decline to dedicate resources for improvement.
    • Stakeholders expect ITAM tools to be a cure-all, but even at their best, they can’t provide needed answers without some level of configuration, manual input, and supervision.
    • There’s often a struggle to connect ITAM to value. For example, respondents to Info-Tech’s Management & Governance Diagnostic consistently rank ITAM as less important than other processes that ITAM directly supports (e.g. budget management and budget optimization). (Info-Tech MGD Diagnostic (n=972 unique organizations))
    		 ITAM is a mature discipline with well-established standards, certifications, and tools, but we still struggle with it.
    • Only 28% of SAM teams track IaaS and PaaS spend, and only 35% of SAM teams track SaaS usage.
    • Increasing SAM maturity is a challenge for 76% of organizations.
    • 10% of organizations surveyed have spent more than $5 million in the last three years in audit penalties and true-ups.
    • Half of all of organizations lack a viable SAM tool.
    • Seventy percent of SAM teams have a shortfall of qualified resources.
      • (Flexera State of ITAM Report 2022)

    Info-Tech's IT Asset Management Framework (ITAM)

    Adopt, manage, and mature activities to enable business value thorugh actionable, accessible, and accurate ITAM data

    Logo for Info-Tech Research Group. Enable Business Value Logo for #iTRG.
    Business-Aligned Spend
    Optimization and Transparency
    Facilitate IT Services
    and Products
    Actionable, Accessible,
    and Accurate Data
    Context-Aware Risk Management
    and Security Controls

    Plan & Govern

    Business Goals, Risks, and Structure
    • ITAM Goals & Priorities
    • Roles, Accountability, Responsibilities
    • Scope
    Ongoing Management Commitment
    • Resourcing & Funding
    • Policies & Enforcement
    • Continuous Improvement
    Culture
    • ITAM Education, Awareness & Training
    • Organizational Change Management
    		 Section title 'Operate' with a cycle surrounding key components of Operate: 'Data Collection & Validation', 'Tool Administration', 'License Management', and 'Lease Management'. The cycle consists of 'Request', 'Procure', 'Receive', 'Deploy', 'Manage', 'Retire & Dispose', and back to 'Request'.

    Build & Manage

    Tools & Data
    • ITAM Tool Selection & Deployment
    • Configuration Management Synchronization
    • IT Service Management Integration
    Process
    • Process Management
    • Data & Process Audits
    • Document Management
    People, Policies, and Providers
    • Stakeholder Management
    • Technology Standardization
    • Vendor & Contract Management

    Info-Tech Insight

    ITAM is a foundational IT service that provides actionable, accessible, and accurate data on IT assets. But there's no value in data for data's sake. Use this methodology to enable collaboration between ITAM, the business, and IT to develop an approach to ITAM that maximizes the value the ITAM team can deliver as service providers.

    Key deliverable

    IT asset management requires ongoing practice – you can’t just implement it and walk away.

    Our methodology will help you build a business-aligned strategy and approach for your ITAM practice with the following outputs:

    • Business-aligned ITAM priorities, opportunities, and goals.
    • Current and target state ITAM maturity.
    • Metrics and KPIs.
    • Roles, responsibilities, and accountability.
    • Insourcing, outsourcing, and (de)centralization.
    • Tools and technology.
    • A documentation framework.
    • Initiatives, a roadmap, and a communication plan.
    		 Each step of this blueprint is designed to help you create your IT asset management strategy:
    Sample of Info-Tech's key deliverable 'IT Asset Management' blueprint.

    Info-Tech’s methodology to develop an IT asset management strategy

    1. Establish business-aligned ITAM goals and priorities 2. Identify your approach to support ITAM priorities and goals
    Phase Steps
    • 1.1 Define ITAM and brainstorm opportunities and challenges.
      • Executive Alignment Working Session:
    • 1.2 Review organizational priorities, strategy, and key initiatives.
    • 1.3 Align executive priorities with ITAM opportunities and priorities.
    • 1.4 Identify business-aligned ITAM goals and target maturity.
    • 1.5 Write mission and vision statements.
    • 1.6 Define ITAM metrics and KPIs.
    • 2.1 Define ITAM scope.
    • 2.2 Acquire ITAM services (outsourcing and contracting).
    • 2.3 Centralize or decentralize ITAM capabilities.
    • 2.4 Create a RACI for the ITAM practice.
    • 2.5 Align ITAM with other service management practices.
    • 2.6 Evaluate ITAM tools and integrations.
    • 2.7 Create a plan for internal and external audits.
    • 2.8 Improve your budget processes.
    • 2.9 Establish a documentation framework.
    • 2.10 Create a roadmap and communication plan.
    Phase Outcomes Defined, business-aligned goals and priorities for ITAM. Establish an approach to achieving ITAM goals and priorities including scope, structure, tools, service management integrations, documentation, and more.
    Project Outcomes Develop an approach and strategy for ITAM that is sustainable and aligned with your business priorities.

    Insight Summary

    There’s no value in data for data’s sake

    ITAM is a foundational IT service that provides accurate, accessible, actionable data on IT assets. Enable collaboration between IT asset managers, business leaders, and IT leaders to develop an approach to ITAM that maximizes the value they can deliver as service providers.

    Service provider to a service provider

    ITAM is often viewed (when it’s viewed at all) as a low-value administrative task that doesn’t directly drive business value. This can make it challenging to build a case for funding and resources.

    Your ITAM strategy is a critical component to help you define how ITAM can best deliver value to your organization, and to stop creating data for the sake of data or just to fight the next fire.

    Collaboration over order-taking

    To align ITAM practices to deliver organizational value, you need a very clear understanding of the organization’s goals – both in the moment and as they change over time.

    Ensure your ITAM team has clear line of sight to business strategy, objectives, and decision-makers, so you can continue to deliver value as priorities change

    Embrace dotted lines

    ITAM teams rely heavily on staff, systems, and data beyond their direct area of control. Identify how you will influence key stakeholders, including technicians, administrators, and business partners.

    Help them understand how ITAM success relies on their support, and highlight how their contributions have created organizational value to encourage ongoing support.

    Project benefits

    Benefits for IT
    • Set a foundation and direction for an ITAM practice that will allow IT to manage risk, optimize spend, and enhance services in line with business requirements.
    • Establish accountability and responsibility for essential ITAM activities. Decide where to centralize or decentralize accountability and authority. Identify where outsourcing could add value.
    • Create a roadmap with concrete, practical next steps to develop an effective, right-sized ITAM practice.
    		 Stock image of a trophy. Benefits for the business
    • Plan and control technology spend with confidence based on trustworthy ITAM data.
    • Enhance IT’s ability to rapidly and effectively support new priorities and launch new projects. Effective ITAM can support more streamlined procurement, deployment, and management of assets.
    • Implement security controls that reflect your total technology footprint. Reduce the risk that a forgotten device or unmanaged software turns your organization into the next Colonial Pipeline.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI around 12 calls over the course of 6 months.

    What does a typical GI on this topic look like?

    Call #1: Scope requirements, objectives, and your specific challenges.

    Call #2: Review business priorities.

    Call #3: Identify ITAM goals & target maturity.

    		Call #4: Identify metrics and KPIs. Call #5: Define ITAM scope.

    Call #6: Acquire ITAM services.

    		Call #7: ITAM structure and RACI.

    Call #8: ITAM and service management.

    Tools and integrations.

    		Call #10: Internal and external audits.

    Call #11: Budgets & documentation

    Call #12: Roadmap, comms plan. Wrap-up.

    Phase 1 Phase 2

    Workshop Overview
    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889
    Day 1 Day 2 Day 3 Day 4 Day 5
    Identify ITAM priorities & goals, maturity, metrics and KPIs
    Identify your approach to support ITAM priorities and goals
    Next Steps and wrap-Up (offsite)
    Activities

    1.1 Define ITAM.

    1.2 Brainstorm ITAM opportunities and challenges.

    Conduct an executive alignment working session:

    1.3 Review organizational priorities, strategy, and key initiatives.

    1.4 Align executive priorities with ITAM opportunities.

    1.5 Set ITAM priorities.

    2.1 Translate opportunities into ITAM goals and tactics.

    2.2 Identify target and current state ITAM maturity.

    2.3 Create mission and vision statements.

    2.4 Identify key ITAM metrics and KPIs.

    3.1 Define ITAM scope.

    3.2 Acquire ITAM services (outsourcing and contracting)

    3.3 Centralize or decentralize ITAM capabilities.

    3.4 Create a RACI for the ITAM practice.

    3.5 Align ITAM with other service management practices.

    3.6 Evaluate ITAM tools and integrations.

    4.1 Create a plan for internal and external audits.

    4.2 Improve your budget processes.

    4.3 Establish a documentation framework and identify documentation gaps.

    4.4 Create a roadmap and communication plan.

    5.1 Complete in-progress deliverables from previous four days.

    5.2 Set up review time for workshop deliverables and to discuss next steps.

    Deliverables
    1. ITAM opportunities and challenges.
    2. Align executive priorities with ITAM opportunities.
    3. Set ITAM priorities.
    1. ITAM goals and tactics.
    2. Current and target ITAM maturity.
    3. Mission and vision statements.
    4. ITAM metrics and KPIs.
    1. Decisions that will shape your ITAM approach, including:
      1. What’s in scope (hardware, software, and cloud services).
      2. Where to centralize, decentralize, or outsource ITAM activities.
      3. Accountability, responsibility, and structure for ITAM activities.
      4. Service management alignment, tooling gaps, audit plans, budget processes, and required documentation.
    2. A roadmap and communication plan.
    1. Your completed ITAM strategy template.
    Develop an IT Asset Management Strategy

    Phase 1:

    Establish business-aligned ITAM goals and priorities

    Phase 1

    1.1 Define ITAM and brainstorm opportunities and challenges.

    Executive Alignment Working Session:

    1.2 Review organizational priorities, strategy, and key initiatives.

    1.3 Align executive priorities with ITAM opportunities & priorities.

    1.4 Identify business-aligned ITAM goals and target maturity.

    1.5 Write mission and vision statements.

    1.6 Define ITAM metrics and KPIs.

    Phase 2

    2.1 Define ITAM scope.

    2.2 Acquire ITAM services (outsourcing and contracting).

    2.3 Centralize or decentralize ITAM capabilities.

    2.4 Create a RACI for the ITAM practice.

    2.5 Align ITAM with other service management practices.

    2.6 Evaluate ITAM tools and integrations.

    2.7 Create a plan for internal and external audits.

    2.8 Improve your budget processes.

    2.9 Establish a documentation framework.

    2.10 Create a roadmap and communication plan.

    Phase Outcomes:

    Defined, business-aligned goals, priorities, and KPIs for ITAM. A concise vision and mission statement. The direction you need to establish a practical, right-sized, effective approach to ITAM for your organization.

    Before you get started

    Set yourself up for success with these three steps:
    • This methodology and the related slides are intended to be executed via intensive, collaborative working sessions using the rest of this slide deck.
    • Ensure the working sessions are a success by working through these steps before you start work on your IT asset management strategy.

    1. Identify participants

    Review recommended roles and identify who should participate in the development of your ITAM strategy.

    2. Estimate assets managed today

    Work through an initial assessment to establish ease of access to ITAM data and your level of trust in the data available to you.

    3. Create a working folder

    Create a repository to house your notes and any work in progress, including your copy of the ITAM Strategy Template.

    0.1 Identify participants

    30 minutes

    Output: List of key roles for the strategy exercises outlined in this methodology

    Participants: Project sponsor, Lead facilitator, ITAM manager and SMEs

    This methodology relies on having the right stakeholders in the room to identify ITAM goals, challenges, roles, structure, and more. On each activity slide in this deck, you’ll see an outline of the recommended participants. Use the table below to translate the recommended roles into specific people in your organization. Note that some people may fill multiple roles.

    Role Expectations People
    Project Sponsor Accountable for the overall success of the methodology. Ideally, participates in all exercises in this methodology. May be the asset manager or whoever they report to. Jake Long
    Lead Facilitator Leads, schedules, and manages all working sessions. Guides discussions and ensures activity outputs are completed. Owns and understands the methodology. Has a working knowledge of ITAM. Robert Loblaw
    Asset Manager(s) SME for the ITAM practice. Provides strategic direction to mature ITAM practices in line with organizational goals. Supports the facilitator. Eve Maldonado
    ITAM Team Hands-on ITAM professionals and SMEs. Includes the asset manager. Provide input on tactical ITAM opportunities and challenges. Bruce Wayne, Clark Kent
    IT Leaders & Managers Leaders of key stakeholder groups from across the IT department – the CIO and direct reports. Provide input on what IT needs from ITAM, and the role their teams should play in ITAM activities. May include delegates, particularly those familiar with day-to-day processes relevant to a particular discussion or exercise. Marcelina Hardy, Edmund Broughton
    ITAM Business Partners Non-IT business stakeholders for ITAM. This could include procurement, vendor management, accounting, and others. Zhang Jin, Effie Lamont
    Business Executives Organizational leaders and executives (CFO, COO, CEO, and others) or their delegates. Will participate in a mini-workshop to identify organizational goals and initiatives that can present opportunities for the ITAM practice. Jermaine Mandar, Miranda Kosuth

    0.2 Estimate asset numbers

    1 hour

    Output: Estimates of quantity and spend related to IT assets, Confidence/margin of error on estimates

    Participants: IT asset manager, ITAM team

    What do you know about your current IT environment, and how confident are you in that knowledge?

    This exercise will help you evaluate the size of the challenge ahead in terms of the raw number of assets in your environment, the spend on those assets, and the level of trust your organization has in the ITAM data.

    It is also a baseline snapshot your ability to relay key ITAM metrics quickly and confidently, so you can measure progress (in terms of greater confidence) over time.

    1. Download the estimation tracker below. Add any additional line items that are particularly important to the organization.
    2. Time-box this exercise to an hour. Use your own knowledge and existing data repositories to identify count/spend for each line item, then add a margin of error to your guess. Larger margins of error on larger counts will typically indicate larger risks.
    3. Track any assumptions, data sources used, or SMEs consulted in the comments.

    Download the IT Asset Estimation Tracker

    “Any time there is doubt about the data and it doesn’t get explained or fixed, then a new spreadsheet is born. Data validation and maintenance is critical to avoid the hidden costs of having bad data”

    Allison Kinnaird,
    Operations Practice Lead,
    Info-Tech Research Group

    0.3 Create a working folder

    15 minutes

    Output: A repository for templates and work in progress

    Participants: Lead facilitator

    Create a central repository for collaboration – it seems like an obvious step, but it’s one that gets forgotten about
    1. Download a copy of the ITAM Strategy Template.
      1. This will be the repository for all the work you do in the activities listed in this blueprint; take a moment to read it through and familiarize yourself with the contents.
    2. House the template in a shared repository that can house other related work in progress. Share this folder with participants so they can check in on your progress.
    3. You’ll see this callout box: Add your results to your copy of the ITAM Strategy Template as you work through activities in this blueprint. Copy the output to the appropriate slide in the ITAM Strategy Template.
    		 Stock image of a computer screen with a tiny person putting likes on things.

    Collect action items as you go

    Don’t wait until the end to write down your good ideas.
    • The last exercise in this methodology is to gather everything you’ve learned and build a roadmap to improve the ITAM practice.
    • The output of the exercises will inform the roadmap, as they will highlight areas with opportunities for improvement.
    • Write them down as you work through the exercises, or you risk forgetting valuable ideas.
    • Keep an “idea space” – a whiteboard with sticky notes or a shared document – to which any of your participants can post an idea for improvement and that you can review and consolidate later.
    • Encourage participants to add their ideas at any time during the exercises.
    		 Pad of sticky notes, the top of which reads 'Good ideas go here!'

    Step 1.1: Brainstorm ITAM opportunities and challenges

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Rally the working group around a collection of ideas that, when taken together, create a vision for the future ITAM practice.
    • Identify your organization’s current ITAM challenges.

    “ITAM is a cultural shift more than a technology shift.” (Rory Canavan, SAM Charter)

    What is an IT Asset?

    Any piece of technology can be considered an asset, but it doesn’t mean you need to track everything. Image of three people building a computer from the inside.
    Icon of a power button.

    According to the ISO 19770 standard on ITAM, an IT Asset is “[an] item, thing, or entity that can be used to acquire, process, store and distribute digital information and has potential or actual value to an organization.”
    These are all things that IT is expected to support and manage, or that have the potential to directly impact services that IT supports and manages.

    Icon of a half-full battery.

    IT assets are distinct from capital assets. Some IT assets will also be capital assets, but not all will be. And not all capital assets are IT assets, either.

    Icon of a microphone.

    IT assets are typically tracked by IT, not by finance or accounting.
    IT needs more from their IT asset tracking system than the typical finance department can deliver.
    This can include end-user devices, software, IT infrastructure, cloud-based resources, third-party managed IT services, Internet-of-Things devices, embedded electronics, SCADA equipment, “smart” devices, and more.

    Icon of a fingerprint.

    It’s important to track IT assets in a way that enables IT to deliver value to the business – and an important part of this is understanding what not to track. This list should be aligned to the needs of your organization.

    What is IT asset management?

    • IT asset management is the practice of maintaining accurate, accessible, and actionable data on IT hardware, software, and cloud assets from procurement to disposal.
    • Trustworthy data maintained by an IT asset management practice will help your business meet its goals by managing risk, controlling costs, and enabling IT services and products.
    • ITAM tends to focus on the asset itself – its technical, financial, contractual, lifecycle, and ownership attributes – rather than its interactions or connections to other IT assets, which tends to be part of configuration management.

    What IT Asset Management is NOT:

    Configuration Management: Configuration management databases (CMDBs) often draw from the same data pool as ITAM (many configuration items are assets, and vice versa), but they focus on the interaction, interconnection, and interoperation of configuration items within the IT estate.

    In practice, many configuration items will be IT assets (or parts of assets) and vice versa. Configuration and asset teams should work closely together as they develop different but complementary views of the IT environment. Use Info-Tech’s methodology to harness configuration management superpowers.

    Organizational Data Management: Leverage a different Info-Tech methodology to develop a digital and data asset management program within Info-Tech’s DAM framework.

    “Asset management’s job is not to save the organization money, it’s not to push back on software audits.

    It’s to keep the asset database as up-to-date and as trustworthy as possible. That’s it.” (Jeremy Boerger, Consultant & Author)

    “You can’t make any real decisions on CMDB data that’s only 60% accurate.

    You start extrapolating that out, you’re going to get into big problems.” (Mike Austin, Founder & CEO, MetrixData 360)

    What is an ITAM strategy?

    Our strategy document will outline a coherent, sustainable, business-aligned approach to ITAM.

    No single approach to ITAM fits all organizations. Nor will the same approach fit the same organization at different times. A world-leading research university, a state government, and a global manufacturer all have very different goals and priorities that will be best supported by different approaches to ITAM.

    This methodology will walk you through these critical decisions that will define your approach to ITAM:

    • Business-aligned priorities, opportunities, and goals: What pressing opportunities and challenges do we face as an organization? What opportunities does this create that ITAM can seize?
    • Current and future state maturity, challenges: What is the state of the practice today? Where do we need to improve to meet our goals? What challenges stand in the way of improvement?
    • Responsibility, accountability, sourcing and (de)centralization: Who does what? Who is accountable? Where is there value to outsourcing? What authority will be centralized or decentralized?
    • Tools, policies, and procedures: What technology do we need? What’s our documentation framework?
    • Initiatives, KPIs, communication plan, and roadmap: What do we need to do, in what order, to build the ITAM practice to where we need it to be? How long do we expect this to take? How will we measure success?

    “A good strategy has coherence, coordinating actions, policies, and resources so as to accomplish an important end. Most organizations, most of the time, don’t have this.

    Instead, they have multiple goals and initiatives that symbolize progress, but no coherent approach to accomplish that progress other than ‘spend more and try harder.’” (Good Strategy, Bad Strategy, Richard Rumelt)

    Enable business value with IT asset management

    If you’ve never experienced a mature ITAM program before, it is almost certainly more rewarding than you’d expect once it’s functioning as intended.

    Each of the below activities can benefit from accessible, actionable, and accurate ITAM data.

    • Which of the activities, practices, and initiatives below have value to your organization?
    • Which could benefit most from ITAM data?
    Manage Risk: Effective ITAM practices provide data and processes that help mitigate the likelihood and impact of potentially damaging IT risks.

    ITAM supports the following practices that help manage organizational risk:

    • Security Controls Development
    • Security Incident Response
    • Security Audit Reports
    • Regulatory Compliance Reports
    • IT Risk Management
    • Technical Debt Management
    • M&A Due Diligence
    		 Optimize Spend: Asset data is essential to maintaining oversight of IT spend, ensuring that scarce resources are allocated where they can have the most impact.

    ITAM supports these activities that help optimize spend:

    • Vendor Management & Negotiations
    • IT Budget Management & Variance Analysis
    • Asset Utilization Analysis
    • FinOps & Cloud Spend Optimization
    • Showback & Chargeback
    • Software Audit Defense
    • Application Rationalization
    • Contract Consolidation
    • License and Device Reallocation
    		 Improve IT Services: Asset data can help inform solutions development and can be used by service teams to enhance and improve IT service practices.

    Use ITAM to facilitate these IT services and initiatives:

    • Solution and Enterprise Architecture
    • Service Level Management
    • Technology Procurement
    • Technology Refresh Projects
    • Incident & Problem Management
    • Request Management
    • Change Management
    • Green IT

    1.1 Brainstorm ideas to create a vision for the ITAM practice

    30 minutes

    Input: Stakeholders with a vision of what ITAM could provide, if resourced and funded adequately

    Output: A collection of ideas that, when taken together, create a vision for the future ITAM practice

    Materials: ITAM strategy template, Whiteboard or virtual whiteboard

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    It can be easy to lose sight of long-term goals when you’re stuck in firefighting mode. Let’s get the working group into a forward-looking mindset with this exercise.

    Think about what ITAM could deliver with unlimited time, money, and technology.

    1. Provide three sticky notes to each participant.
    2. Add the headings to a whiteboard, or use a blank slide as a digital whiteboard
    3. On each sticky note, ask participants to outline a single idea as follows:
      1. We could: [idea]
      2. Which would help: [stakeholder]
      3. Because: [outcome]
    4. Ask participants to present their sticky notes and post them to the whiteboard. Ask later participants to group similar ideas together.

    As you hear your peers describe what they hope and expect to achieve with ITAM, a shared vision of what ITAM could be will start to emerge.

    1.1 Identify structural ITAM challenges

    30 minutes

    Input: The list of common challenges on the next slide, Your estimated visibility into IT assets from the previous exercise, The experience and knowledge of your participants

    Output: Identify current ITAM challenges

    Materials: Your working copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    What’s standing in the way today of delivering the ITAM practices you want to achieve?

    Review the list of common challenges on the next slide as a group.

    1. Delete any challenges that don’t apply to your organization.
    2. Modify any challenges as required to reflect your organization.
    3. Add further challenges that aren’t on the list, as required.
    4. Highlight challenges that are particularly painful.

    Add your results to your copy of the ITAM Strategy Template

    “The problem – the reason why asset management initiatives keep falling on their face – is that people attack asset management as a problem to solve, instead of a practice and epistemological construct.” (Jeremy Boerger, Consultant & Author)

    1.1 Identify structural ITAM challenges

    Review and update the list of common challenges below to reflect your own organization.

    • Leadership and executives don’t understand the value of asset management and don’t fund or resource it.
    • Tools aren’t fit for purpose, don’t scale, or are broken.
    • There’s a cultural tendency to focus on tools over processes.
    • ITAM data is fragmented across multiple repositories.
    • ITAM data is widely viewed as untrustworthy.
    • Stakeholders respond to vendor audits before consulting ITAM, which leads to confusion and risks penalties.
    • No time for improvement; we’re always fighting fires.
    • We don’t audit our own ITAM data for accuracy.
    • End-user equipment is shared, re-assigned, or disposed without notifying or involving IT.
    • No dedicated resources.
    • Lack of clarity on roles and responsibilities.
    • Technicians don’t track assets consistently; ITAM is seen as administrative busywork.
    • Many ITAM tasks are manual and prone to error.
    • Inconsistent organizational policies and procedures.
    • We try to manage too many hardware types/software titles.
    • IT is not involved in the procurement process.
    • Request and procurement is seen as slow and excessively bureaucratic.
    • Hardware/software standards don’t exist or aren’t enforced.
    • Extensive rogue purchases/shadow IT are challenging to manage via ITAM tools and processes.
    What Else?

    Copy results to your copy of the ITAM Strategy Template

    Step 1.2: Review organizational priorities, strategy, initiatives

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • Business executives or their delegates

    Outcomes

    • Review organizational priorities and strategy.
    • Identify key initiatives.

    Enter the executives

    Deliver on leadership priorities

    • Your business’ major transformative projects and executive priorities might seem far removed from hardware and software tracking. Why would we start with business strategy and executive priorities as we’re setting goals for the ITAM program?
    • While business executives have (likely) no interest in how software and hardware is tracked, they are accountable for the outcomes ITAM can enable. They are the most likely to understand why and how ITAM can deliver value to the organization.
    • ITAM succeeds by enabling its stakeholders to achieve business outcomes. The next three activities are designed to help you identify how you can enable your stakeholders, and what outcomes are most important from their point of view. Specifically:
      • What are the business’ planned transformational initiatives?
      • What are your highest priority goals?
      • What should the priorities of the ITAM practice be?
    • The answers to these questions will shape your approach to ITAM. Direct input from your leadership and executives – or their delegates – will help ensure you’re setting a solid foundation for your ITAM practice.

    “What outcomes does the organization want from IT asset management? Often, senior managers have a clear vision for the organization and where IT needs to go, and the struggle is to communicate that down.” (Kylie Fowler, ITAM Intelligence)

    Stock image of many hands with different puzzle pieces.

    Executive Alignment Session Overview

    ITAM Strategy Working Sessions

    • Discover & Brainstorm
    • Executive Alignment Working Session
      • 1.2 Review organizational strategy, priorities, and key initiatives
      • 1.3 Align executive priorities with ITAM opportunities, set ITAM priorities
    • ITAM Practice Maturity, Vision & Mission, Metrics & KPIs
    • Scope, Outsourcing, (De)Centralization, RACI
    • Service Management Integration
    • ITAM Tools
    • Audits, Budgets, Documents
    • Roadmap & Comms Plan

    A note to the lead facilitator and project sponsor:
    Consider working through these exercises by yourself ahead of time. As you do so, you’ll develop your own ideas about where these discussions may go, which will help you guide the discussion and provide examples to participants.

    1.2 Review organizational strategy and priorities

    30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The diagram in the next slide, and/or a whiteboard, Your copy of the ITAM Strategy Template

    Participants: Asset manager, IT leadership, Business executives or delegates

    Welcome your group to the working session and outline the next few exercises using the previous slide.

    Ask the most senior leader present to provide a summary of the following:

    1. What is the vision for the organization?
    2. What are our priorities and what must we absolutely get right?
    3. What do we expect the organization to look like in three years?

    The facilitator or a dedicated note-taker should record key points on a whiteboard or flipchart paper.

    1.2 Identify transformational initiatives

    30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The diagram in the next slide, and/or a whiteboard, Your copy of the ITAM Strategy Template

    Participants: Asset manager, IT leadership, Business executives or delegates

    Ask the most senior leader present to provide a summary of the following: What transformative business and IT initiatives are planned? When will they begin and end?

    Using one box per initiative, draw the initiatives in a timeline like the one below.

    Sample timeline for ITAM initiatives.

    Add your results to your copy of the ITAM Strategy Template

    Step 1.3: Set business-aligned ITAM priorities

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • Business executives

    Outcomes

    • Connect executive priorities to ITAM opportunities.
    • Set business-aligned priorities for the ITAM practice.

    1.3 Align executive priorities with ITAM opportunities

    45 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The diagram in the next slide, and/or a whiteboard, Your copy of the ITAM Strategy Template

    Participants: Asset manager, IT leaders and managers, Business executives or delegates

    In this exercise, we’ll use the table on the next slide to identify the top priorities of key business and IT stakeholders and connect them to opportunities for the ITAM practice.

    1. Ask your leadership or executive delegates – what are their goals? What are they trying to accomplish? List roles and related goals in the table.
    2. Brainstorm opportunities for IT asset management to support listed goals:
      1. Can ITAM provide an enhanced level of service, access, or insight?
      2. Can ITAM address an existing issue or mitigate an existing risk?

    Add your results to your copy of the ITAM Strategy Template

    1.3 Align executive priorities with ITAM opportunities (example)

    ITAM is for the… Who wants to… Which presents these ITAM opportunities
    CEO Deliver transformative business initiatives Acquire the right tech at the right time to support transformational initiatives.
    Establish a data-driven culture of stewardship Improve data to increase IT spend transparency.
    COO Improve organizational efficiency Increase asset use.
    Consolidate major software contracts to drive discounts.
    CFO Accurately forecast spending Track and anticipate IT asset spending.
    Control spending Improve data to increase IT spend transparency.
    Consolidate major software contracts to drive discounts.
    CIO Demonstrate IT value Use data to tell a story about value delivered by IT assets.
    Govern IT use Improve data to increase IT spend transparency.
    CISO Manage IT security and compliance risks Identify abandoned or out-of-spec IT assets.
    Provide IT asset data to support controls development.
    Respond to security incidents Support security incident teams with IT asset data.
    Apps Leader Build, integrate, and support applications Identify opportunities to retire applications with redundant functionality.
    Connect applications to relevant licensing and support agreements.
    IT Infra Leader Build and support IT infrastructure. Provide input on opportunities to standardize hardware and software.
    Provide IT asset data to technicians supporting end users.

    1.3 Categorize ITAM opportunities

    10-15 minutes

    Input: The outputs from the previous exercise

    Output: Executive priorities, sorted into the three categories at the right

    Materials: The table in this slide, The outputs from the previous exercise

    Participants: Lead facilitator

    Give your participants a quick break. Quickly sort the identified ITAM opportunities into the three main categories below as best you can.

    We’ll use this table as context for the next exercise.

    Example: Optimize Spend Enhance IT Services Manage Risk
    ITAM Opportunities
    • Improve data to increase IT spend transparency.
    • Consolidate major software contracts to drive discounts.
    • Increase asset utilization.
    • Identify opportunities to retire applications with redundant functionality
    • Acquire the right tech at the right time to support transformational initiatives.
    • Provide IT asset data to technicians supporting end users.
    • Identify abandoned or out-of-spec IT assets.
    • Provide IT asset data to support controls development.
    • Support security incident teams with IT asset data.

    Add your results to your copy of the ITAM Strategy Template

    1.3 Set ITAM priorities

    30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: Whiteboard, The template on the next slide, Your copy of the ITAM Strategy Template

    Participants: Asset manager, IT leaders and managers, Business executives or delegates

    The objective of this exercise is to prioritize the outcomes your organization wants to achieve from its ITAM practice, given the context from the previous exercises.

    Review the image below. The three points of the triangle are the three core goals of ITAM: Enhance IT Service, Manage Risk, and Optimize Spend. This exercise was first developed by Kylie Fowler of ITAM Intelligence. It is an essential exercise to understand ITAM priorities and the tradeoffs associated with those priorities. These priorities aren’t set in stone and should be revisited periodically as technology and business priorities change.

    Draw the diagram on the next slide on a whiteboard. Have the most senior leader in the room place the dot on the triangle – the closer it is to any one of the goals, the more important that goal is to the organization. Note: The center of the triangle is off limits! It’s very rarely possible to deliver on all three at once.
    Track notes on what’s being prioritized – and why – in the template on the next slide.     		Triangle with the points labelled 'Enhance IT Service', 'Manage Risk', and 'Optimize Spend'.

    Add your results to your copy of the ITAM Strategy Template

    1.3 Set ITAM Priorities

    The priorities of the ITAM practice are to:
    • Optimize Spend
    • Manage Risk
    Why?
    • We believe there is significant opportunity right now to rationalize spend by consolidating key software contracts.
    • Major acquisitions are anticipated in the near future. Effective ITAM processes are expected to mitigate acquisition risk by supporting due diligence and streamlined integration of acquired organizations.
    • Ransomware and supply chain security threats have increased demands for a comprehensive accounting of IT assets to support security controls development and security incident response.
    (Update this section with notes from your discussion.)     		Triangle with the points labelled 'Enhance IT Service', 'Manage Risk', and 'Optimize Spend'. There is a dot close to the 'Optimize Spend' corner, a legend labelling the dot as 'Our Target', and a note reading 'Move this dot to reflect your priorities'.

    Step 1.4: Identify ITAM goals, target maturity

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers

    Outcomes

    • Connect executive priorities to ITAM opportunities.
    • Set business-aligned priorities for the ITAM practice.

    “ITAM is really no different from the other ITIL practices: to succeed, you’ll need some ratio of time, treasure, and talent… and you can make up for less of one with more of the other two.” (Jeremy Boerger, Consultant and Author)

    1.4 Identify near- and medium-term goals

    15-30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Narrow down the list of opportunities to identify specific goals for the ITAM practice.

    1. Use one color to highlight opportunities you will seize in the next year.
    2. Use a second color to highlight opportunities you plan to address in the next three years.
    3. Leave blank anything you don’t intend to address in this timeframe.

    The highlighted opportunities are your near- and medium-term objectives.

    Optimize Spend Enhance IT Services Manage Risk
    Priority Critical Normal High
    ITAM Opportunities
    • Improve data to increase IT spend transparency.
    • Increase asset utilization.
    • Consolidate major software contracts to drive discounts.
    • Identify opportunities to retire applications with redundant functionality
    • Acquire the right tech at the right time to support transformational initiatives.
    • Provide IT asset data to technicians supporting end users.
    • Identify abandoned or out-of-spec IT assets.
    • Provide IT asset data to support controls development.
    • Support security incident teams with IT asset data.

    1.4 Connect ITAM goals to tactics

    30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Let’s dig down a little deeper. Connect the list of opportunities from earlier to specific ITAM tactics that allow the team to seize those opportunities.

    Add another row to the earlier table for ITAM tactics. Brainstorm tactics with your participants (e.g. sticky notes on a whiteboard) and align them with the priorities they’ll support.

    Optimize SpendEnhance IT ServicesManage Risk
    PriorityCriticalNormalHigh
    ITAM Opportunities
    • Improve data to increase IT spend transparency.
    • Increase asset utilization.
    • Consolidate major software contracts to drive discounts.
    • Identify opportunities to retire applications with redundant functionality
    • Acquire the right tech at the right time to support transformational initiatives.
    • Provide IT asset data to technicians supporting end users.
    • Identify abandoned or out-of-spec IT assets.
    • Provide IT asset data to support controls development.
    • Support security incident teams with IT asset data.
    ITAM Tactics to Seize Opportunities
    • Review and improve hardware budgeting exercises.
    • Reallocate unused licenses, hardware.
    • Ensure ELP reports are up to date.
    • Validate software usage.
    • Data to support software renewal negotiations.
    • Use info from ITAM for more efficient adds, moves, changes.
    • Integrate asset records with the ticket intake system, so that when someone calls the service desk, the list of their assigned equipment is immediately available.
    • Find and retire abandoned devices or services with access to the organization’s network.
    • Report on lost/stolen devices.
    • Develop reliable disposal processes.
    • Report on unpatched devices/software.

    Add your results to your copy of the ITAM Strategy Template

    1.4 Identify current and target state

    20 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    We’ll use this exercise to identify the current and one-year target state of ITAM using Info-Tech’s ITAM maturity framework.

    1. Review the maturity framework on the next slide as a group.
    2. In one color, highlight statements that reflect your organization today. Summarize your current state. Are you in firefighter mode? Between “firefighter” and “trusted operator”?
    3. In a second color, highlight statements that reflect where you want to be one year from today, taking into consideration the goals and tactics identified in the last exercise.
    4. During a break, copy the highlighted statements to the table on the slide after next, then add this final slide to your working copy of the ITAM Strategy Template.

    Add your results to your copy of the ITAM Strategy Template

    Establish current and target ITAM maturity

    IT maturity ladder with five color-coded levels. Innovator – Optimized Asset Management
    • All items from Business & Technology Partner, plus:
    • Business and IT stakeholders collaborate regularly with the ITAM team to identify new opportunities to leverage or deploy ITAM practices and data to mitigate risks, optimize spend, and improve service. The ITAM program scales with the business.
    Business & Technology Partner – Proactive Asset Management
    • All items from Trusted Operator, plus:
    • The ITAM data is integral to decisions related to budget, project planning, IT architecture, contract renewal, and vendor management. Software and cloud assets are reviewed as frequently as required to manage costs. ITAM data consumers have self-serve access to ITAM data.
    • Continuous improvement practices strengthen ITAM efficiency and effectiveness.
    • ITAM processes, standards, and related policies are regularly reviewed and updated. ITAM teams work closely with SMEs for key tools/systems integrated with ITAM (e.g. AD, ITSM, monitoring tools) to maximize the value and reliability of integrations.
    Trusted Operator – Controls Assets
    • ITAM data for deployed hardware and software is regularly audited for accuracy.
    • Sufficient staff and skills to support asset tracking, including a dedicated IT asset management role. Teams responsible for ITAM data collection cooperate effectively. Policies and procedures are documented and enforced. Key licenses and contracts are available to the ITAM team. Discovery, tracking, and analysis tools support most important use cases.
    Firefighter – Reactive Asset Tracking
    • Data is often untrustworthy, may be fragmented across multiple repositories, and typically requires significant effort to translate or validate before use.
    • Insufficient staff, fragmented or incomplete policies or documentation. Data tracking processes are extremely highly manual. Effective cooperation for ITAM data collection is challenging.
    • ITAM tools are in place, but additional configuration or tooling is needed.
    Unreliable - Struggles to Support
    • No data, or data is typically unusable.
    • No allocated staff, no cooperation between parties responsible for ITAM data collection.
    • No related policies or documentation.
    • Tools are non-existent or not fit-for-purpose.

    Current and target ITAM maturity

    Today:
    Firefighter
    • Data is often untrustworthy, is fragmented across multiple repositories, and typically requires significant effort to translate or validate before use.
    • Insufficient staff, fragmented or incomplete policies or documentation.
    • Tools are non-existent.
    In One Year:
    Trusted Operator
    • ITAM data for deployed hardware and software is regularly audited for accuracy.
    • Sufficient staff and skills to support asset tracking, including a dedicated IT asset management role.
    • Teams responsible for ITAM data collection cooperate effectively.
    • Discovery, tracking, and analysis tools support most important use cases.
    		IT maturity ladder with five color-coded levels.

    Innovator – Optimized Asset Management

    Business & Technology Partner – Proactive Asset Management

    Trusted Operator – Controls Assets

    Firefighter – Reactive Asset Tracking

    Unreliable - Struggles to Support

    Step 1.5: Write mission and vision statements

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers

    Outcomes

    • Write a mission statement that encapsulates the purpose and intentions of the ITAM practice today.
    • Write a vision statement that describes what the ITAM practice aspires to become and achieve.

    Write vision and mission statements

    Create two statements to summarize the role of the ITAM practice today – and where you want it to be in the future.

    Create two short, compelling statements that encapsulate:
    • The vision for what we want the ITAM practice to be in the future; and
    • The mission – the purpose and intentions – of the ITAM practice today.

    Why bother creating mission and vision statements? After all, isn’t it just rehashing or re-writing all the work we’ve just done? Isn’t that (at best) a waste of time?

    There are a few very important reasons to create mission and vision statements:

    • Create a compass that can guide work today and your roadmap for the future.
    • Focus on the few things you must do, rather than the many things you could do.
    • Concisely communicate a compelling vision for the ITAM practice to a larger audience who (let’s face it) probably won’t read the entire ITAM Strategy deck.

    “Brevity is the soul of wit.” (Hamlet, Act 2, Scene 2)

    “Writing is easy. All you have to do is cross out the wrong words.” (Mark Twain)

    1.5 Write an ITAM vision statement

    30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: A whiteboard, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT Leaders and managers

    Your vision statement describes the ITAM practice as it will be in the far future. It is a target to aspire to, beyond your ability to achieve in the near or medium term.

    Examples of ITAM vision statements:

    Develop the single accurate view of IT assets, available to anyone who needs it.

    Indispensable data brokers that support strategic decisions on the IT environment.

    Provide sticky notes to participants. Write out the three questions below on a whiteboard side by side. Have participants write their answers to the questions and post them below the appropriate question. Give everyone 10 minutes to write and post their ideas.

    1. What’s the desired future state of the ITAM practice?
    2. What needs to be done to achieved this desired state?
    3. How do we want ITAM to be perceived in this desired state?

    Review the answers and combine them into one focused vision statement. Use the 20x20 rule: take no more than 20 minutes and use no more than 20 words. If you’re not finished after 20 minutes, the ITAM manager should make any final edits offline.

    Document your vision statement in your ITAM Strategy Template.

    Add your results to your copy of the ITAM Strategy Template

    1.5 Write an ITAM mission statement

    30 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Your ITAM mission statement is an expression of what your IT asset management function brings to your organization today. It should be presented in straightforward language that is compelling, easy to understand, and sharply focused.

    Examples of ITAM mission statements:

    Maintain accurate, actionable, accessible on data on all IT assets.

    Support IT and the business with centralized and integrated asset data.

    Provide sticky notes to participants. Write out the questions below on a whiteboard side by side. Have participants write their answers to the questions and post them below the appropriate question. Give everyone 10 minutes to write and post their ideas.

    1. What is our role as the asset management team?
    2. How do we support the IT and business strategies?
    3. What does our asset management function offer that no one else can?

    Review the answers and combine them into one focused vision statement. Use the 20x20 rule: take no more than 20 minutes and use no more than 20 words. If you’re not finished after 20 minutes, the ITAM manager should make any final edits offline.

    Document your vision statement in your ITAM Strategy Template.

    Add your results to your copy of the ITAM Strategy Template

    Step 1.6: Define ITAM metrics and KPIs

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers

    Outcomes

    • Identify metrics, data, or reports that may be of interest to different consumers of ITAM data.
    • Identify the key performance indicators (KPIs) for the ITAM practice, based on the goals and priorities established earlier.

    Navigate a universe of ITAM metrics

    When you have the data, how will you use it?

    • There’s a dizzying array of potential metrics you can develop and track across your ITAM environment.
    • Different stakeholders will need different data feeds, metrics, reports, and dashboards.
    • Different measures will be useful at different times. You will often need to filter or slice the data in different ways (by department, timeframe, equipment type, etc.)
    • We’ll use the next few exercises to identify the types of metrics that may be useful to different stakeholders and the KPIs to measure progress towards ITAM goals and priorities.

    ITAM Metrics

    • Quantity
      e.g. # of devices or licenses
    • Cost
      e.g. average laptop cost
    • Compliance
      e.g. effective license position reports
    • Progress
      e.g. ITAM roadmap items completed
    • Quality
      e.g. ITAM data accuracy rate
    • Time
      e.g. time to procure/ deploy

    Drill down by:

    • Vendor
    • Date
    • Dept.
    • Product
    • Location
    • Cost Center
    • …

    Develop different metrics for different teams

    A few examples:

    • CIOs — CIOs need asset data to govern technology use, align to business needs, and demonstrate IT value. What do we need to budget for hardware and software in the next year? Where can we find money to support urgent new initiatives? How many devices and software titles do we manage compared to last year? How has IT helped the business achieve key goals?
    • Asset Managers — Asset managers require data to help them oversee ITAM processes, technology, and staff, and to manage the fleet of IT assets they’re expected to track. What’s the accuracy rate of ITAM data? What’s the state of integrations between ITAM and other systems and processes? How many renewals are coming up in the next 90 days? How many laptops are in stock?
    • IT Leaders — IT managers need data that can support their teams and help them manage the technology within their mandate. What technology needs to be reviewed or retired? What do we actually manage?
    • Technicians — Service desk technicians need real-time access to data on IT assets to support service requests and incident management – for example, easy access to the list of equipment assigned to a particular user or installed in a particular location.
    • Business Managers and Executives — Business managers and executives need concise, readable dashboards to support business decisions about business use of IT assets. What’s our overall asset spend? What’s our forecasted spend? Where could we reallocate spend?

    1.6 Identify useful ITAM metrics and reports

    60 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Use this exercise to identify as many potentially useful ITAM metrics and reports as possible, and narrow them down to a few high-priority metrics. Leverage the list of example metrics on the next slide for your own exercise. If you have more than six participants, consider splitting into two or more groups, and divide the table between groups to minimize overlap.

    1. List potential consumers of ITAM data in the column on the left.
    2. What type of information do we think this role needs? What questions about IT assets do we get on a regular basis from this role or team?
    3. Review and consolidate the list as a group. Discuss and highlight any metrics the group thinks are a particularly high priority for tracking.
    Role Compliance Quality Quantity Cost Time Progress
    IT Asset Manager Owned devices not discovered in last 60 days Discrepancies between discovery data and ITAM DB records # of corporate-owned devices Spend on hardware (recent and future/ planned) Average time, maximum time to deploy end-user devices Number of ITAM roadmap items in progress
    Service Desk …

    Add your results to your copy of the ITAM Strategy Template

    Examples of ITAM metrics

    Compliance Quality Quantity Cost Time/Duration/Age Progress
    Owned devices not discovered in last 60 days Discrepancies between discovery data and ITAM DB records # of corporate-owned devices Spend on hardware (recent and future/planned) Average time, maximum time to deploy end-user devices Number of ITAM roadmap items in progress or completed
    Disposed devices without certificate of destruction Breakage rates (in and out of warranty) by vendor # of devices running software title X, # of licenses for software title X Spend on software (recent and future/planned) Average time, maximum time to deploy end user software Number of integrations between ITAM DB and other sources
    Discrepancies between licenses and install count, by software title RMAs by vendor, model, equipment type Number of requests by equipment model or software title Spend on cloud (recent and future/planned) Average & total time spent on software audit responses Number of records in ITAM database
    Compliance reports (e.g. tied to regulatory compliance or grant funding) Tickets by equipment type or software title Licenses issued from license pool in the last 30 days Value of licenses issued from license pool in the last 30 days (cost avoidance) Devices by age Software titles with an up-to-date ELP report
    Reports on lost and stolen devices, including last assigned, date reported stolen, actions taken User device satisfaction scores, CSAT scores Number of devices retired or donated in last year Number of IT-managed capital assets Number of hardware/software request tickets beyond time-to-fulfil targets Number of devices audited (by ITAM team via self-audit)
    Number of OS versions, unpatched systems Number of devices due for refresh in the next year Spend saved by harvesting unused software Number of software titles, software vendors managed by ITAM team
    Audit accuracy rate Equipment in stock Cost savings from negotiations
    # of users assigned more than one device Number of non-standard devices or requests Dollars charged during audit or true-up

    Differentiate between metrics and KPIs

    Key performance indicators (KPIs) are metrics with targets aligned to goals.

    Targets could include one or more of:

    • Target state (e.g. completed)
    • Target magnitude (e.g. number, percent, rate, dollar amount)
    • Target direction (e.g. trending up or down)

    You may track many metrics, but you should have only a few KPIs (typically 2-3 per objective).

    A breached KPI should be a trigger to investigate and remediate the root cause of the problem, to ensure progress towards goals and priorities can continue.

    Which KPIs you track will change over the life of the practice, as ITAM goals and priorities shift. For example, KPIs may initially track progress towards maturing ITAM practices. Once you’ve reached target maturity, KPIs may shift to track whether the key service targets are being met.

    1.6 Identify ITAM KPIs

    20 minutes

    Input: Organizational strategy documents

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Good KPIs are a more objective measure of whether you’re succeeding in meeting the identified priorities for the ITAM practice.

    Identify metrics that can measure progress or success against the priorities and goals set earlier. Aim for around three metrics per goal. Identify targets for the metric you think are SMART (specific, measurable, achievable, relevant, and timebound). Track your work using the example table below.

    Goal Metric Target
    Consolidate major software contracts to drive discounts Amount spent on top 10 software contracts Decrease by 10% by next year
    Customer satisfaction scores with enterprise software Satisfaction is equal to or better than last year
    Value of licenses issued from license pool 30% greater than last year
    Identify abandoned or out-of-spec IT assets # of security incidents involving undiscovered assets Zero
    % devices with “Deployed” status in ITAM DB but not discovered for 30+ days ‹1% of all records in ITAM DB
    Provide IT asset data to technicians for service calls Customer satisfaction scores Satisfaction is equal to or better than last year
    % of end-user devices meeting minimum standards 97%

    Add your results to your copy of the ITAM Strategy Template

    Develop an IT Asset Management Strategy

    Phase 2:

    Identify your approach to support ITAM priorities and goals

    Phase 1

    1.1 Define ITAM and brainstorm opportunities and challenges.

    Executive Alignment Working Session:

    1.2 Review organizational priorities, strategy, and key initiatives.

    1.3 Align executive priorities with ITAM opportunities & priorities.

    1.4 Identify business-aligned ITAM goals and target maturity.

    1.5 Write mission and vision statements.

    1.6 Define ITAM metrics and KPIs.

    Phase 2

    2.1 Define ITAM scope.

    2.2 Acquire ITAM services (outsourcing and contracting).

    2.3 Centralize or decentralize ITAM capabilities.

    2.4 Create a RACI for the ITAM practice.

    2.5 Align ITAM with other service management practices.

    2.6 Evaluate ITAM tools and integrations.

    2.7 Create a plan for internal and external audits.

    2.8 Improve your budget processes.

    2.9 Establish a documentation framework.

    2.10 Create a roadmap and communication plan.

    Phase Outcomes:

    Establish an approach to achieving ITAM goals and priorities, including scope, structure, tools, service management integrations, documentation, and more.

    Create a roadmap that enables you to realize your approach.

    Step 2.1: Define ITAM Scope

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Establish what types of equipment and software you’ll track through the ITAM practice.
    • Establish which areas of the business will be in scope of the ITAM practice.

    Determine ITAM Scope

    Focus on what’s most important and then document it so everyone understands where they can provide the most value.

    Not all categories of assets require the same level of tracking, and some equipment and software should be excluded from the ITAM practice entirely.

    In some organizations, portions of the environment won’t be tracked by the asset management team at all. For example, some organizations will choose to delegate tracking multi-function printers (MFPs) or proprietary IoT devices to the department or vendor that manages them.

    Due to resourcing or technical limitations, you may decide that certain equipment or software is out of scope for the moment.

    What do other organizations typically track in detail?
    • Installs and entitlements for major software contracts that represent significant spend and/or are highly critical to business goals.
    • Equipment managed directly by IT that needs to be refreshed on a regular cycle:
      • End-user devices such as laptops, desktops, and tablets.
      • Server, network, and telecoms devices.
    • High value equipment that is not regularly refreshed may also be tracked, but in less detail – for example, you may not refresh large screen TVs, but you may need to track date of purchase, deployed location, vendor, and model for insurance or warranty purposes.

    2.1 Establish scope for ITAM

    45 minutes

    Input: Organizational strategy documents

    Output: ITAM scope, in terms of types of assets tracked and not tracked

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    Establish the hardware and software that are within the scope of the ITAM program by updating the tables below to reflect your own environment. The “out of scope” category will include asset types that may be of value to track in the future but for which the capability or need don’t exist today.

    Hardware Software Out of Scope
    • End-user devices housing data or with a dollar value of more than $300, which will be replaced through lifecycle refresh.
    • Infrastructure devices, including network, telecom, video conferencing, servers and more
    • End-user software purchased under contract
    • Best efforts on single license purchases
    • Infrastructure software, including solutions used by IT to manage the infrastructure
    • Enterprise applications
    • Cloud (SaaS, IaaS, PaaS)
    • Departmental applications
    • Open-source applications
    • In-house developed applications
    • Freeware & shareware
    • IoT devices

    The following locations will be included in the ITAM program: All North and South America offices and retail locations.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.2: Acquire ITAM Services

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Define the type of work that may be more effectively or efficiently delivered by an outsourcer or contractor.

    “We would like our clients to come to us with an idea of where they want to get to. Why are you doing this? Is it for savings? Because you want to manage your security attack surface? Are there digital initiatives you want to move forward? What is the end goal?” (Mike Austin, MetrixData 360)

    Effectively acquire ITAM services

    Allow your team to focus on strategic, value-add activities by acquiring services that free them from commodity tasks.
    • When determining which asset capabilities and activities are best kept in-house and which ones are better handled by a supplier, it is imperative to keep the value to the business in mind.
    • Activities/capabilities that are challenging to standardize and are critical to enabling business goals are better kept in-house.
    • Activities/capabilities that are (or should be) standardized and automated are ideal candidates for outsourcing.
    • Outsourcing can be effective and successful with a narrow scope of engagement and an alignment to business outcomes.
    • Organizations that heavily weigh cost reduction as a significant driver for outsourcing are far less likely to realize the value they expected to receive.
    		 Business Enablement
    • Supports business-aligned ITAM opportunities & priorities
    • Highly specialized
    • Offers competitive advantages
    		 Map with axes 'Business Enablement' and 'Vendor's Performance Advantage' for determining whether or not to outsource.
    Vendor’s Performance Advantage
    • Talent or access to skills
    • Economies of scale
    • Access to technology
    • Does not require deep knowledge of your business

    Decide what to outsource

    It’s rarely all or nothing.

    Ask yourself:
    • How important is this activity or capability to ITAM, IT, and business priorities and goals?
    • Is it a non-commodity IT service that can improve customer satisfaction?
    • Is it a critical service to the business and the specialized knowledge must remain in-house?
    • Does the function require access to talent or skills not currently available in-house, and is cost-prohibitive to obtain?
    • Are there economies of scale that can help us meet growing demand?
    • Does the vendor provide access to best-of-breed tools and solutions that can handle the integration, management, maintenance and support of the complete system?

    You may ultimately choose to engage a single vendor or a combination of multiple vendors who can best meet your ITAM needs.

    Establishing effective vendor management processes, where you can maximize the amount of service you receive while relying on the vendor’s expertise and ability to scale, can help you make your asset management practice a net cost-saver.

    		ITAM activities and capabilities
    • Contract review
    • Software audit management
    • Asset tagging
    • Asset disposal and recycling
    • Initial ITAM record creation
    • End-user device imaging
    • End-user device deployment
    • End-user software provisioning
    • End-user image management
    • ITAM database administration
    • ELP report creation
    • ITAM process management
    • ITAM report generation
    		 ITAM-adjacent activities and capabilities
    • Tier 1 support/service desk
    • Deskside/field support
    • Tier 3 support
    • IT Procurement
    • Device management/managed IT services
    • Budget development
    • Applications development, maintenance
    • Infrastructure hosting (e.g. cloud or colocation)
    • Infrastructure management and support
    • Discovery/monitoring tools management and support

    2.2 Identify outsourcing opportunities

    1-2 hours

    Input: Understanding of current ITAM processes and challenges

    Output: Understanding of potential outsourcing opportunities

    Materials: The table in this slide, and insight in previous slides, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    At a high level, discuss which functions of ITAM are good candidates for outsourcing.

    Start with the previous slide for examples of outsourcing activities or capabilities directly related to or adjacent to the ITAM practice. Categorize these activities as follows:

    Outsource Potentially Outsource Insource
    • Asset disposal/recycling
    • ELP report creation
    • ITAM process management

    Go through the list of activities to potentially or definitely outsource and confirm:

    1. Will outsourcing solve a resourcing need for an existing process, or can you deliver this adequately in-house?
    2. Will outsourcing improve the effectiveness and efficiency of current processes? Will it deliver more effective service channels or improved levels of reliability and performance consistency?
    3. Will outsourcing provide or enable enhanced service capabilities that your IT customers could use, and which you cannot deliver in-house due to lack of scale or capacity?

    Answering “no” to more than one of these questions suggests a need to further review options to ensure the goals are aligned with the potential value of the service offerings available.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.3: Centralize or decentralize ITAM capabilities

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Outline where the team(s) responsible for ITAM sit across the organization, who they report to, and who they need to work with across IT and the business.

    Align ITAM with IT’s structure

    ITAM’s structure will typically align with the larger business and IT structure. The wrong structure will undermine your ability to meet ITAM goals and lead to frustration, missed work, inefficiency, and loss of value.

    Which of the four archetypes below reflects the structure you need?

    1. Centralized — ITAM is entirely centralized in a single function, which reports into a central IT department.
    2. Decentralized — Local IT groups are responsible and accountable for ITAM. They may coordinate informally but do not report to any central team.
    3. Hybrid-Shared Services — Local IT can opt in to shared services but must follow centrally set ITAM practices to do so, usually with support from a shared ITAM function.
    4. Hybrid-Federated — Local IT departments are free to develop their own approach to ITAM outside of core, centrally set requirements.

    Centralized ITAM

    Total coordination, control, and oversight

    • ITAM accountability, policies, tools, standards, and expertise – in this model, they’re all concentrated in a single, specialized IT asset management practice. Accountability, authority, and oversight are concentrated in the central function as well.
    • A central ITAM team will benefit from knowledge sharing and task specialization opportunities. They are a visible single point of contact for ITAM-related questions
    • The central ITAM team will coordinate ITAM activities across the organization to optimize spend, manage risk, and enhance service. Any local IT teams are supported by and directly answerable to the central ITAM team for ITAM activities.
    • There is a single, centrally managed ITAM database. Wherever possible, this database should be integrated with other tools to support cross-solution automation (e.g. integrate AD to automatically reflect user identity changes in the ITAM database).
    • This model drives cross-organization coordination and oversight, but it may not be responsive to specific and nuanced local requirements.
    		 Example: Centralized
    Example of a Centralized ITAM.

    Solid line. Direct reporting relationship

    Dotted line. Dotted line working or reporting relationship

    Decentralized ITAM

    Maximize choice

    • ITAM accountability and oversight are entirely devolved to local or regional IT and/or ITAM organizations, which are free to set their own priorities, goals, policies, and standards. This model maximizes the authority of local groups to build practices that meet local requirements.
    • It may be challenging to resource and mature local practices. ITAM maturity will vary from one local organization to the next.
    • It is more likely that ITAM managers are a part-time role, and sometimes even a non-IT role. Local ITAM teams or coordinators may coordinate and share knowledge informally, but specialization can be challenging to build or leverage effectively across the organization.
    • There is likely no central ITAM tool. Local tools may be acquired, implemented, and integrated by local IT departments to suit their own needs, which can make it very difficult to report on assets organization-wide – for example, to establish compliance on an enterprise software contract.
    		Example: Decentralized


    Example of a Decentralized ITAM.

    Solid line. Direct reporting relationship

    Dotted line. Dotted line working or reporting relationship

    Blue dotted line. Informal working relationships, knowledge sharing

    Hybrid: Federation

    Centralization with a light touch

    • A middle ground between centralized and decentralized ITAM, this model balances centralized decision making, specialization, and governance with local autonomy.
    • A central team will define organization-wide ITAM goals, develop capabilities, policies, and standards, and monitor compliance by local and central teams. All local teams must comply with centrally defined requirements, but they can also develop further capabilities to meet local goals.
    • For example, there will typically be a central ITAM database that must be used for at least a subset of assets, but other teams may build their own databases for day-to-day operations and export data to the central database as required.
    • There are often overlapping responsibilities in this model. A strong collaborative relationship between central and local ITAM teams is especially important here, particularly after major changes to requirements, processes, tools, or staffing when issues and breakdowns are more likely.
    		Example: Federation


    Example of a Federation ITAM.

    Solid line. Direct reporting relationship

    Purple solid line. Oversight/governance

    Dotted line. Dotted line working or reporting relationship

    Hybrid: Shared Services

    Optional centralization

    • A special case of federated ITAM that balances central control and local autonomy, but with more power given to local IT to opt out of centralized shared services that come with centralized ITAM requirements.
    • ITAM requirements set by the shared services team will support management, allocation, and may have showback or chargeback implications. Following the ITAM requirements is a condition of service. If a local organization chooses to stop using shared services, they are (naturally) no longer required to adhere to the shared services ITAM requirements.
    • As with the federated model, local teams may develop further capabilities to meet local goals.
    		Example: Shared Services


    Example of a Shared Services ITAM.

    Solid line. Direct reporting relationship

    Dotted line. Dotted line working relationship

    Blue dotted line. Informal working relationships, knowledge sharing

    Structure data collection & analysis

    Consider the implications of structure on data.

    Why centralize?
    • There is a need to build reports that aggregate data on assets organization-wide, rather than just assets within a local environment.
    • Decentralized ITAM tracking isn’t producing accurate or usable data, even for local purposes.
    • Tracking tools have overlapping functionality. There’s an opportunity to rationalize spend, management and support for ITAM tools.
    • Contract centralization can optimize spend and manage risks, but only with the data required to manage those contracts.
    		 Why decentralize?
    • Tracking and reporting on local assets is sufficient to meet ITAM goals; there is limited or no need to track assets organization-wide.
    • Local teams have the skills to track and maintain asset data; subsidiaries have appropriate budgets and tools to support ITAM tracking.
    • Decentralized ITSM/ITAM tools are in place, populated, and accurate.
    • The effort to consolidate tools and processes may outweigh the benefits to data centralization.
    • Lots of variability in types of assets and the environment is stable.
    Requirements for success:
    • A centralized IT asset management solution is implemented and managed.
    • Local teams must understand the why and how of centralized data tracking and be held accountable for assigned responsibilities.
    • The asset tool should offer both centralized and localized views of the data.
    		 Requirements for success:
    • Guidelines and expectations for reporting to centralized asset management team will be well defined and supported.
    • Local asset managers will have opportunity to collaborate with others in the role for knowledge transfer and asset trading, where appropriate.

    Structure budget and contract management

    Contract consolidation creates economies of scale for vendor management and license pooling that strengthen your negotiating position with vendors and optimize spend.

    Why centralize?
    • Budgeting, governance, and accountability are already centralized. Centralized ITAM practices can support the existing governance practices.
    • Centralizing contract management and negotiation can optimize spend and/or deliver access to better service.
    • Centralize management for contracts that cover most of the organization, are highly complex, involve large spend and/or higher risk, and will benefit from specialization of asset staff.
    		 Why decentralize?
    • Budgeting, governance, and accountability rest with local organizations.
    • There may be increased need for high levels of customer responsiveness and support.
    • Decentralize contract management for contracts used only by local groups (e.g. a few divisions, a few specialized functions), and that are smaller, low risk, and come with standard terms and conditions.
    Requirements for success:
    • A centralized IT asset management solution is implemented and managed.
    • Contract terms must be harmonized across the organization.
    • Centralized fulfillment is as streamlined as possible. For example, software contracts should include the right to install at any time and pay through a true-up process.
    		 Requirements for success:
    • Any expectations for harmonization with the centralized asset management team will be well defined and supported.
    • Local asset managers can collaborate with other local ITAM leads to support knowledge transfer, asset swapping, etc.

    Structure technology management

    Are there opportunities to centralize or decentralize support functions?

    Why centralize?
    • Standard technologies are deployed organization-wide.
    • There are opportunities to improve service and optimize costs by consolidating knowledge, service contracts, and support functions.
    • Centralizing data on product supply allows for easier harvest and redeployment of assets by a central support team.
    • A stable, central support function can better support localized needs during seasonal staffing changes, mergers and acquisitions.
    		 Why decentralize?
    • Technology is unique to a local subset of users or customers.
    • Minimal opportunity for savings or better support by consolidating knowledge, service contracts, or support functions.
    • Refresh standards are set at a local level; new tech adoption may be impeded by a reliance on older technologies, local budget shortfalls, or other constraints.
    • Hardware may need to be managed locally if shipping costs and times can’t reasonably be met by a distant central support team.
    Requirements for success:
    • Ensure required processes, technologies, skills, and knowledge are in place to enable centralized support.
    • Keep a central calendar of contract renewals, including reminders to start work on the renewal no less than 90 days prior. Prioritize contracts with high dollar value or high risk.
    • The central asset management solution should be configured to provide data that can enable the central support team.
    		 Requirements for success:
    • Ensure required processes, technologies, skills, and knowledge are in place to enable decentralized support.
    • Decentralized support teams must understand and adhere to ITAM activities that are part of support work (e.g. data entry, data audits).
    • The central asset management solution should be configured to provide data that can enable the central support team, or decentralized asset solutions must be funded, and teams trained on their use.

    2.3 Review ITAM Structure

    1-2 hours

    Input: Understanding of current organizational structure, Understanding of challenges and opportunities related to the current structure

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    Outline the current model for your organization and identify opportunities to centralize or decentralize ITAM-related activities.

    1. What model best describes how ITAM should be structured in your organization? Modify the slide outlining structure as a group to outline your own organization, as required.
    2. In the table below, outline opportunities to centralize or decentralize data tracking, budget and contract management, and technology management activities.
    Centralize Decentralize
    Data collection & analysis
    • Make better use of central ITAM database.
    • Support local IT departments building runbooks for data tracking during lifecycle activities (create templates, examples)
    Budget and contract management
    • Centralize Microsoft contracts.
    • Create a runbook to onboard new companies to MSFT contracts.
    • Create tools and data views to support local department budget exercises.
    Technology management
    • Ensure all end-user devices are visible to centrally managed InTune, ConfigMgr.
    • Enable direct shipping from vendor to local sites.
    • Establish disposal/pickup at local sites.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.4: Create a RACI

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Review the role of the IT asset manager.
    • Identify who’s responsible, accountable, consulted, and informed for key ITAM activities.

    Empower your asset manager

    The asset manager is the critical ITAM role. Ensure they’re positioned to succeed.

    There’s too much change in the technology and business environment to expect ITAM to be “a problem to solve.” It is a practice that requires care and feeding through regular iteration to achieve success. At the helm of this practice is your asset manager, whose approach and past experience will have a significant impact on how you approach ITAM.

    The asset manager role requires a variety of skills, knowledge, and abilities including:

    • Operations, process, and practice management.
    • An ability to communicate, influence, negotiate, and facilitate.
    • Organizational knowledge and relationship management.
    • Contract and license agreement analysis, attention to detail.
    • Natural curiosity and a willingness to learn.
    • A strong understanding of technologies in use by the organization, and how they fit into the asset management program.
    Where the asset manager sits in the organization will also have an impact on their focus and priorities. When the asset manager reports into a service team, their focus will often reflect their team’s focus: end-user devices and software, customer satisfaction, request fulfillment. Asset teams that report into a leadership or governance function will be more likely to focus on organization-wide assets, governance, budget management, and compliance.

    “Where your asset manager sits, and what past experience they have, is going to influence how they do asset management.” (Jeremy Boerger, Consultant & Author)

    “It can be annoying at times, but a good IT asset manager will poke their nose into activities that do not obviously concern them, such as programme and project approval boards and technical design committees. Their aim is to identify and mitigate ITAM risks BEFORE the technology is deployed as well as to ensure that projects and solutions ‘bake in’ the necessary processes and tools that ensure IT assets can be managed effectively throughout their lifecycle.” (Kylie Fowler, ITAM by Design, 2017)

    IT asset managers must have a range of skills and knowledge

    • ITAM Operations, Process, and Practice Management
      The asset manager is typically responsible for managing and improving the ITAM practice and related processes and tools. The asset manager may administer the ITAM tool, develop reports and dashboards, evaluate and implement new technologies or services to improve ITAM maturity, and more.
    • Organizational Knowledge
      An effective IT asset manager has a good understanding of your organization and its strategy, products, stakeholders, and culture.
    • Technology & Product Awareness
      An IT asset manager must learn about new and changing technologies and products adopted by the organization (e.g. IoT, cloud) and develop recommendations on how to track and manage them via the ITAM practice.
    		 A book surrounded by icons corresponding to the bullet points.
    • People Management
      Asset managers often manage a team directly and have dotted-line reports across IT and the business.
    • Communication
      Important in any role, but particularly critical where learning, listening, negotiation, and persuasion are so critical.
    • Finance & Budgeting
      A foundational knowledge of financial planning and budgeting practices is often helpful, where the asset manager is asked to contribute to these activities.
    • Contract Review & Analysis
      Analyze new and existing contracts to evaluate changes, identify compliance requirements, and optimize spend.

    Assign ITAM responsibilities and accountabilities

    Align authority and accountability.
    • A RACI exercise will help you discuss and document accountability and responsibility for critical ITAM activities.
    • When responsibility and accountability are not currently well documented, it’s often useful to invite a representative of the roles identified to participate in this alignment exercise. The discussion can uncover contrasting views on responsibility and governance, which can help you build a stronger management and governance model.
    • The RACI chart can help you identify who should be involved when making changes to a given activity. Clarify the variety of responsibilities assigned to each key role.
    • In the future, you may need to define roles in more detail as you change your hardware and software asset management procedures.

    R

    		 Responsible: The person who actually gets the job done.

    Different roles may be responsible for different aspects of the activity relevant to their role.

    A

    		 Accountable: The one role accountable for the activity (in terms completion, quality, cost, etc.)

    Must have sufficient authority to be held accountable; responsible roles are often accountable to this role.

    C

    		 Consulted: Must have the opportunity to provide meaningful input at certain points in the activity.

    Typically, subject matter experts or stakeholders. The more people you must consult, the more overhead and time you’ll add to a process.

    I

    		 Informed: Receives information regarding the task, but has no requirement to provide feedback.

    Information might relate to process execution, changes, or quality.

    2.4 Conduct a RACI Exercise

    1-2 hours

    Input: An understanding of key roles and activities in ITAM practices, An understanding of your organization, High-level structure of your ITAM program

    Output: A RACI diagram for IT asset management

    Materials: The table in the next slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    Let’s face it – RACI exercises can be dry. We’ve found that the approach below is more collaborative, engaging, and effective compared to filling out the table as a large group.

    1. Create a shared working copy of the RACI charts on the following slides (e.g. write it out on a whiteboard or provide a link to this document and work directly in it).
    2. Review the list of template roles and activities as a group. Add, change, or remove roles and activities from the table as needed.
    3. Divide into small groups. Assign each group a set of roles, and have them define whether that role is accountable, responsible, consulted, or informed for each activity in the chart. Refer to the previous slide for context on RACI. Give everyone 15 minutes to update their section of the chart.
    4. Come back together as a large group to review the chart. First, check for accountability – there should generally be just one role accountable for each activity. Then, have each small group walk through their section, and encourage participants to ask questions. Is there at least one role responsible for each task, and what are they responsible for? Does everyone listed as consulted or informed really need to be? Make any necessary adjustments.

    Add your results to your copy of the ITAM Strategy Template

    Define ITAM governance activities

    RACI Chart for ITAM governance activities. In the first column is a list of governance activities, and the row headers are positions within a company. Fields are marked with an R, A, C, or I.

    Document asset management responsibilities and accountabilities

    RACI Chart for ITAM asset management responsibilities and accountabilities. In the first column is a list of responsibilities and accountabilities, and the row headers are positions within a company. Fields are marked with an R, A, C, or I.

    Step 2.5: Align ITAM with other Service Management Practices

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers

    Outcomes

    • Establish shared and separate responsibilities for asset and configuration management.
    • Identify how ITAM can support other practices, and how other practices can support ITAM.

    Asset vs. Configuration

    Asset and configuration management look at the same world through different lenses.
    • IT asset management tends to focus on each IT asset in its own right: assignment or ownership, its lifecycle, and related financial obligations and entitlements.
    • Configuration management is focused on configuration items (CIs) that must be managed to deliver a service and the relationships and integrations to other CIs.
    • ITAM and configuration management teams and practices should work closely together. Though asset and configuration management focus on different outcomes, they tend use overlapping tools and data sets. Each practice, when working effectively, can strengthen the other.
    • Many objects will exist in both the CMDB and AMDB, and the data on those shared objects will need to be kept in sync.
    Asset and Configuration Management: An Example

    Configuration Management Database (CMDB)

    A database of uniquely identified configuration items (CIs). Each CI record may include information on:
    Service Attributes

    Supported Service(s)
    Service Description, Criticality, SLAs
    Service Owners
    Data Criticality/Sensitivity

    CI Relationships

    Physical Connections
    Logical Connections
    Dependencies

    		Arrow connector.

    Discovery, Normalization, Dependency Mapping, Business Rules*

    Manual Data Entry
    Arrow connector.
    This shared information could be attached to asset records, CI records, or both, and it should be synchronized between the two databases where it’s tracked in both.
    Hardware Information

    Serial, Model and Specs
    Network Address
    Physical Location

    Software Installations

    Hypervisor & OS
    Middleware & Software
    Software Configurations

    		Arrow connector.

    Asset Management Database (AMDB)

    A database of uniquely identified IT assets. Each asset record may include information on:
    Procurement/Purchasing

    Purchase Request/Purchase Order
    Invoice and Cost
    Cost Center
    Vendor
    Contracts and MSAs
    Support/Maintenance/Warranties

    Asset Attributes

    Model, Title, Product Info, License Key
    Assigned User
    Lifecycle Status
    Last ITAM Audit Date
    Certificate of Disposal

    Arrows connecting multiple fields.

    IT Security Systems

    Vulnerability Management
    Threat Management
    SIEM
    Endpoint Protection

    IT Service Management (ITSM) System

    Change Tickets
    Request Tickets
    Incident Tickets
    Problem Tickets
    Project Tickets
    Knowledgebase

    Financial System/ERP

    General Ledger
    Accounts Payable
    Accounts Receivable
    Enterprise Assets
    Enterprise Contract Database

    (*Discovery, dependency mapping, and data normalization are often features or modules of configuration management, asset management, or IT service management tools.)

    2.5 Integrate ITAM and configuration practices

    45 minutes

    Input: Knowledge of the organization’s configuration management processes

    Output: Define how ITAM and configuration management will support one another

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, Configuration manager

    Work through the table below to identify how you will collaborate and synchronize data across ITAM and configuration management practices and tools.

    What are the goals (if any currently exist) for the configuration management practice? Connect configuration items to services to support service management.
    How will configuration and asset management teams collaborate? Weekly status updates. As-needed working sessions.
    Shared visibility on each others’ Kanban tracker.
    Create tickets to raise and track issues that require collaboration or attention from the other team.
    How can config leverage ITAM? Connect CIs to financial, contractual, and ownership data.
    How can ITAM leverage config? Connect assets to services, changes, incidents.
    What key fields will be primarily tracked/managed by ITAM? Serial number, unique ID, user, location, PO number, …
    What key fields will be primarily tracked/managed by configuration management? Supported service(s), dependencies, service description, service criticality, network address…

    Add your results to your copy of the ITAM Strategy Template

    ITAM supports service management

    Decoupling asset management from other service management practices can result in lost value. Establish how asset management can support other service management practices – and how those practices can support ITAM.

    Incident Management

    What broke?
    Was it under warranty?
    Is there a service contract?
    Was it licensed?
    Who was it assigned to?
    Is it end-of-life?

    ITAM
    Practice

    		 Request Management

    What can this user request or purchase?
    What are standard hardware and software offerings?
    What does the requester already have?
    Are there items in inventory to fulfil the request?
    Did we save money by reissuing equipment?
    Is this a standard request?
    What assets are being requested regularly?

    What IT assets are related to the known issue?
    What models and vendors are related to the issue?
    Are the assets covered by a service contract?
    Are other tickets related to this asset?
    What end-of-life assets have been tied to incidents recently?

    Problem Management

    What assets are related to the change?
    Is the software properly licensed?
    Has old equipment been properly retired and disposed?
    Have software licenses been returned to the pool?
    Is the vendor support on the change part of a service contract?

    Change Enablement

    2.5. Connect with other IT service practices

    45 minutes

    Input: Knowledge of existing organizational IT service management processes

    Output: Define how ITAM will help other service management processes, and how other service management processes will help ITAM

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, Service leads

    Complete the table below to establish what ITAM can provide to other service management practices, and what other practices can provide to ITAM.

    Practice ITAM will help Will help ITAM
    Incident Management Provide context on assets involved in an incident (e.g. ownership, service contracts). Track when assets are involved in incidents (via incident tickets).
    Request Management Oversee request & procurement processes. Help develop asset standards. Enter new assets in ITAM database.
    Problem Management Collect information on assets related to known issues. Report back on models/titles that are generating known issues.
    Change Enablement Provide context on assets for change review. Ensure EOL assets are retired and licenses are returned during changes.
    Capacity Management Identify ownership, location for assets at capacity. Identify upcoming refreshes or purchases.
    Availability Management Connect uptime and reliability to assets. Identify assets that are causing availability issues.
    Monitoring and Event Management Provide context to events with asset data. Notify asset of unrecognized software and hardware.
    Financial Management Establish current and predict future spending. Identify upcoming purchases, renewals.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.6: Evaluate ITAM tools and integrations

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers

    Outcomes

    • Create a list of the ITAM tools currently in use, how they’re used, and their current limitations.
    • Identify new tools that could provide value to the ITAM practice, and what needs to be done to acquire and implement them.

    “Everything is connected. Nothing is also connected.” (Dirk Gently’s Holistic Detective Agency)

    Establish current strengths and gaps in your ITAM toolset

    ITAM data quality relies on tools and integrations that are managed by individuals or teams who don’t report directly to the ITAM function.

    Without direct line of sight into tools management, the ITAM team must influence rather than direct improvement initiatives that are in some cases critical to the performance of the ITAM function. To more effectively influence improvement efforts, you must explicitly identify what you need, why you need it, from which tools, and from which stakeholders.

    Data Sources
    Procurement Tools
    Discovery Tools
    Active Directory
    Purchase Documents
    Spreadsheets     		Input To Asset System(s) of Record
    ITAM Database
    ITSM Tool
    CMDB     		Output To Asset Data Consumption
    ITFM Tools
    Security Tools
    TEM Tools
    Accounting Tools
    Spreadsheets
    		“Active Directory plays a huge role in audit defense and self-assessment, but no-one really goes out there and looks at Active Directory.

    I was talking to one organization that has 1,600,000 AD records for 100,000 employees.” (Mike Austin, Founder, MetrixData 360)

    2.6 Evaluate ITAM existing technologies

    30 minutes

    Input: Knowledge of existing ITAM tools

    Output: A list of prioritized organizational goals, An initial assessment of how ITAM can support these goals

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Identify the use, limitations, and next steps for existing ITAM tools, including those not directly managed by the ITAM team.

    1. What tools do we have today?
    2. What are they used for? What are their limitations?
    3. Who manages them?
    4. What actions could we take to maximize the value of the tools?
    Existing Tool Use Constraints Owner Proposed Action?
    ITAM Module
    • Track HW/SW
    • Connect assets to incident, request
    • Currently used for end-user devices only
    • Not all divisions have access
    • SAM capabilities are limited
    		 ITAM Team/Service Management
    • Add license for additional read/write access
    • Start tracking infra in this tool
    Active Directory
    • Store user IDs, organizational data
    		 Major data quality issues IT Operations
    • Work with AD team to identify issues creating data issues

    Add your results to your copy of the ITAM Strategy Template

    2.6 Identify potential new tools

    30 minutes

    Input: Knowledge of tooling gaps, An understanding of available tools that could remediate gaps

    Output: New tools that can improve ITAM capabilities, including expected value and proposed next steps

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers

    Identify tools that are required to support the identified goals of the ITAM practice.

    1. What types of tools do we need that we don’t have?
    2. What could these tools help us do?
    3. What needs to be done next to investigate or acquire the appropriate tool?
    New Tool Expected Value Proposed Next Steps
    SAM tool
    • Automatically calculate licensing entitlements from contract data.
    • Automatically calculate licensing requirements from discovery data.
    • Support gap analyses.
    • Further develop software requirements.
    • Identify vendors in the space and create a shortlist.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.7: Create a plan for internal and external audits

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Establish your approach to internal data audits.
    • Create a high-level response plan for external audits.

    Validate ITAM data via internal audits

    Data audits provide assurance that the records in the ITAM database are as accurate as possible. Consider these three approaches:

    Compare Tool Records

    Audit your data by comparing records in the ITAM system to other discovery sources.

    • Ideally, use three separate data sources (e.g. ITAM database, discovery tool, security tool). Use a common field, such as the host name, to compare across fields. (To learn more about discovery tool analysis, see Jeremy Boerger’s book, Rethinking IT Asset Management.)
    • Run reports to compare records and identify discrepancies. This could include assets missing from one system or metadata differences such as different users or installed software.
    • Over time, discrepancies between tools should be well understood and accepted; otherwise, they should be addressed and remediated.
    		 IT-led Audit

    Conduct a hands-on investigation led by ITAM staff and IT technicians.

    • In-person audits require significant effort and resources. Each audit should be scoped and planned ahead of time to focus on known problem areas.
    • Provide the audit team with exact instructions on what needs to be verified and recorded. Depending on the experience and attention to detail of the audit team, you may need to conduct spot checks to ensure you’re catching any issues in the audit process itself.
    • Automation should be used wherever possible (e.g. through barcodes, scanners, and tables for quick access to ITAM records).
    		 User-led audit

    Have users validate the IT assets assigned to them.

    • Even more than IT-led audits: don’t use this approach too frequently; keep the scope as narrow as possible and the process as simple as possible.
    • Ensure users have all the information and tools they’ll need readily available to complete this task, or the result will be ineffective and will only frustrate your users.
    • Consider a process integrated with your ITSM tool: once a year, when a user logs in to the portal, they will be asked to enter the asset code for their laptop (and provided with instructions on where to find that code). Investigate discrepancies between assignments and ITAM records.

    2.7 Set an approach to internal data audits

    30 minutes

    Input: An understanding of current data audit capabilities and needs

    Output: An outline of how you’ll approach data audits, including frequency, scope, required resources

    Materials: Your copy of the ITAM Strategy Template

    Participants: ITAM team

    Review the three internal data audit approaches outlined on the previous slide, and identify which of the three approaches you’ll use. For each approach, complete the fields in the table below.

    Audit Approach How often? What scope? Who’s involved? Comments
    Compare tool records Monthly Compare ITAM DB, Intune/ConfigMgr, and Vulnerability Scanner Data; focus on end-user devices to start Asset manager will lead at first.
    Work with tool admins to pull data and generate reports.
    IT-led audit Annual End-user devices at a subset of locations Asset manager will work with ITSM admins to generate reports. In-person audit to be conducted by local techs.
    User-led audit Annual Assigned personal devices (start with a pilot group) Asset coordinator to develop procedure with ITSM admin. Run pilot with power users first.

    Add your results to your copy of the ITAM Strategy Template

    Prepare for and respond to external audits and true-ups

    Are you ready when software vendors come knocking?

    • Vendor audits are expensive.
    • If you’re out of compliance, you will at minimum be required to pay the missing license fees. At their discretion, vendors may choose to add punitive fees and require you to cover the hourly cost of their audit teams. If you choose not to pay, the vendor could secure an injunction to cut off your service, which in many cases will be far more costly than the fines. And this is aside from the intangible costs of the disruption to your business and damaged relationships between IT, ITAM, your business, and other partners.
    • Having a plan to respond to an audit is critical to reducing audit risk. Preparation will help you coordinate your audit response, ensure the audit happens on the most favorable possible terms, and even prevent some audits from happening in the first place.
    • The best defense, as they say, is a good offense. Good ITAM and SAM processes will allow you to track acquisition, allocation, and disposal of software licenses; understand your licensing position; and ensure you remain compliant whenever possible. The vendor has no reason to audit you when there’s nothing to find.
    • Know when and where your audit risk is greatest, so you can focus your resources where they can deliver the most value.
    		“If software audits are a big part of your asset operations, you have problems. You can reduce the time spent on audits and eliminate some audits by having a proactive ITAM practice.” (Sandi Conrad, Principal Research Director)

    Info-Tech Insight

    Audit defense starts long before you get audited. For an in-depth review of your audit approach, see Info-Tech’s Prepare and Defend Against a Software Audit.

    Identify areas of higher audit risk

    Watch for these warning signs
    • Your organization is visibly fighting fires. Signs of disorder may signal to vendors that there are opportunities to exploit via an audit. Past audit failures make future audits more likely.
    • You are looking for ways to decrease spend. Vendors may counter attempts to true-down licensing by launching an audit to try to find unlicensed software that provides them leverage to negotiate maintained or even increased spending.
    • Your license/contract terms with the vendor are particularly complex or highly customized. Very complex terms may make it harder to validate your own compliance, which may present opportunities to the vendor in an audit.
    • The vendor has earned a reputation for being particularly aggressive with audits. Some vendors include audits as a standard component of their business model to drive revenue. This may include acquiring smaller vendors or software titles that may not have been audit-driven in the past, and running audits on their new customer base.

    “The reality is, software vendors prey on confusion and complication. Where there’s confusion, there’s opportunity.” (Mike Austin, Founder, MetrixData 360)

    Develop an audit response plan

    You will be on the clock once the vendor sends you an audit request. Have a plan ready to go.
    • Don’t panic: Resist knee-jerk reactions. Follow the plan.
    • Form an audit response team and centralize your response: This team should be led by a member of the ITAM group, and it should include IT leadership, software SMEs, representatives from affected business areas, vendor management, contract management, and legal. You may also need to bring on a contractor with deep expertise with the vendor in question to supplement your internal capabilities. Establish clearly who will be the point of contact with the vendor during the audit.
    • Clarify the scope of the audit: Clearly establish what the audit will cover – what products, subsidiaries, contracts, time periods, geographic regions, etc. Manage the auditors to prevent scope creep.
    • Establish who covers audit costs: Vendors may demand the auditee cover the hourly cost of their audit team if you’re significantly out of compliance. Consider asking the vendor to pay for your team’s time if you’re found to be compliant.
    • Know your contract: Vendors’ contracts change over time, and it’s no guarantee that even your vendor’s licensing experts will be aware of the rights you have in your contract. You must know your entitlements to negotiate effectively.
    1. Bring the audit request received to the attention of ITAM and IT leadership. Assemble the response team.
    2. Acknowledge receipt of audit notice.
    3. Negotiate timing and scope of the audit.
    4. Direct staff not to remove or acquire licenses for software under audit without directly involving the ITAM team first.
    5. Gather installation data and documentation to establish current entitlements, including original contract, current contract, addendums, receipts, invoices.
    6. Compare entitlements to installed software.
    7. Investigate any anomalies (e.g. unexpected or non-compliant software).
    8. Review results with the audit response team.

    2.7 Clarify your vendor audit response plan

    1 hour

    Input: Organizational knowledge on your current audit response procedures

    Output: Audit response team membership, High-level audit checklist, A list of things to start, stop, and continue doing as part of the audit response

    Materials: Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    1. Who’s on the audit response team, and what’s their role? Who will lead the team? Who will be the point of contact with the auditor?
    2. What are the high-level steps in our audit response workflow? Use the example checklist below as a starting point.
    3. What do we need to start, stop, and continue doing in response to audit requests?

    Example Audit Checklist

    • Bring the audit request received to the attention of ITAM and IT leadership. Assemble the response team.
    • Acknowledge receipt of audit notice.
    • Negotiate timing and scope of the audit.
    • Direct staff not to remove or acquire licenses for software under audit without directly involving the ITAM team first.
    • Gather installation data and documentation to establish current entitlements, including original contract, current contract, addendums, receipts, invoices.
    • Compare entitlements to installed software.
    • Investigate any anomalies (e.g. unexpected or non-compliant software).
    • Review results with the audit response team.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.8: Improve budget processes

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers
    • ITAM business partners

    Outcomes

    • Identify what you need to start, stop, and continue to do to support budgeting processes.

    Improve budgeting and forecasting

    Insert ITAM into budgeting processes to deliver significant value.

    Some examples of what ITAM can bring to the budgeting table:
    • Trustworthy data on deployed assets and spending obligations tied to those assets.
    • Projections of hardware due for replacement in terms of quantity and spend.
    • Knowledge of IT hardware and software contract terms and pricing.
    • Lists of unused or underused hardware and software that could be redeployed to avoid spend.
    • Comparisons of spend year-over-year.

    Being part of the budgeting process positions ITAM for success in other ways:

    • Helps demonstrate the strategic value of the ITAM practice.
    • Provides insight into business and IT strategic projects and priorities for the year.
    • Strengthens relationships with key stakeholders, and positions the ITAM team as trusted partners.

    “Knowing what you have [IT assets] is foundational to budgeting, managing, and optimizing IT spend.” (Dave Kish, Info-Tech, Practice Lead, IT Financial Management)

    Stock image of a calculator.

    2.8 Build better budgets

    20 minutes

    Input: Context on IT budgeting processes

    Output: A list of things to start, stop, and continue doing as part of budgeting exercises

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, ITAM business partners

    What should we start, stop, and continue doing to support organizational budgeting exercises?

    Start Stop Continue
    • Creating buckets of spend and allocating assets to those buckets.
    • Zero-based review on IaaS instances quarterly.
    • Develop dashboards plugged into asset data for department heads to view allocated assets and spend.
    • Create value reports to demonstrate hard savings as well as cost avoidance.
    • Waiting for business leaders to come to us for help (start reaching out with reports proactively, three months before budget cycle).
    • % increases on IT budgets without further review.
    • Monthly variance budget analysis.
    • What-if analysis for asset spend based on expected headcount increases.

    Add your results to your copy of the ITAM Strategy Template

    Step 2.9: Establish a documentation framework

    Participants

    • Project sponsor and lead facilitator
    • ITAM team

    Outcomes

    • Identify key documentation and gaps in your documentation.
    • Establish where documentation should be stored, who should own it, who should have access, and what should trigger a review.

    Create ITAM documentation

    ITAM documentation will typically support governance or operations.

    Long-term planning and governance
    • ITAM policy and/or related policies (procurement policy, security awareness policy, acceptable use policy, etc.)
    • ITAM strategy document
    • ITAM roadmap or burndown list
    • Job descriptions
    • Functional requirements documents for ITAM tools

    Operational documentation

    • ITAM SOPs (hardware, software) and workflows
    • Detailed work instructions/knowledgebase articles
    • ITAM data/records
    • Contracts, purchase orders, invoices, MSAs, SOWs, etc.
    • Effective Licensing Position (ELP) reports
    • Training and communication materials
    • Tool and integration documentation
    • Asset management governance, operations, and tools typically generate a lot of documentation.
    • Don’t create documentation for the sake of documentation. Prioritize building and maintaining documentation that addresses major risks or presents opportunities to improve the consistency and reliability of key processes.
    • Maximize the value of ITAM documentation by ensuring it is as current, accessible, and usable as it needs to be.
    • Clearly identify where documentation is stored and who should have access to it.
    • Identify who is accountable for the creation and maintenance of key documentation, and establish triggers for reviews, updates, and changes.

    Consider ITAM policies

    Create policies that can and will be monitored and enforced.
    • Certain requirements of the ITAM practice may need to be backed up by corporate policies: formal statements of organizational expectations that must be recognized by staff, and which will lead to sanctions/penalties if breached.
    • Some organizations will choose to create one or more ITAM-specific policies. Others will include ITAM-related statements in other existing policies, such as acceptable use policies, security training and awareness policies, procurement policies, configuration policies, e-waste policies, and more.
    • Ensure that you are prepared to monitor compliance with policies and evenly enforce breaches of policy. Failing to consistently enforce your policies exposes you and your organization to claims of negligence or discriminatory conduct.
    • For a template for ITAM-specific policies, see Info-Tech’s policy templates for Hardware Asset Management and Software Asset Management.

    2.9 Establish documentation gaps

    15-30 minutes

    Input: An understanding of existing documentation gaps and risks

    Output: Documentation gaps, Identified owners, repositories, access rights, and review/update protocols

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, Optional: IT managers, ITAM business partners

    Discuss and record the following:

    • What planning/governance, operational, and tooling documentation do we still need to create? Who is accountable for the creation and maintenance of these documents?
    • Where will the documentation be stored? Who can access these documents?
    • What will trigger reviews or changes to the documents?
    Need to Create Owner Stored in Accessible by Trigger for review
    Hardware asset management SOP ITAM manager ITAM SharePoint site › Operating procedures folder
    • All IT staff
    • Annual review
    • As-needed for major tooling changes that require a documentation update

    Add your results to your copy of the ITAM Strategy Template

    Step 2.10: Create a roadmap and communication plan

    Participants

    • Project sponsor and lead facilitator
    • ITAM team
    • IT leaders and managers

    Outcomes

    • A timeline of key ITAM initiatives.
    • Improvement ideas aligned to key initiatives.
    • A communication plan tailored to key stakeholders.
    • Your ITAM Strategy document.

    “Understand that this is a journey. This is not a 90-day project. And in some organizations, these journeys could be three or five years long.” (Mike Austin, MetrixData 360)

    2.10 Identify key ITAM initiatives

    30-45 minutes

    Input: Organizational strategy documents

    Output: A roadmap that outlines next steps

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, Project sponsor

    1. Identify key initiatives that are critical to improving practice maturity and meeting business goals.
    2. There should only be a handful of really key initiatives. This is the work that will have the greatest impact on your ability to deliver value. Too many initiatives muddy the narrative and can distract from what really matters.
    3. Plot the target start and end dates for each initiative in the business and IT transformation timeline you created in Phase 1.
    4. Review the chart and consider – what new capabilities should the ITAM practice have once the identified initiatives are complete? What transformational initiatives will you be better positioned to support?

    Add your results to your copy of the ITAM Strategy Template

    Transformation Timeline

    Example transformation timeline with row headers 'Business Inititiaves', 'IT Initiatives', and 'ITAM Initiatives'. Each initiative is laid out along the timeline appropriately.

    2.10 Align improvement ideas to initiatives

    45 minutes

    Input: Key initiatives, Ideas for ITAM improvement collected over the course of previous exercises

    Output: Concrete action items to support each initiative

    Materials: The table in the next slide, Your copy of the ITAM Strategy Template

    Participants: ITAM team, IT leaders and managers, Project sponsor

    As you’ve been working through the previous exercises, you have been tracking ideas for improvement – now we’ll align them to your roadmap.

    1. Review the list of ideas for improvement you’ve produced over the working sessions. Consolidate the list – are there any ideas that overlap or complement each other? Record any new ideas. Frame each idea as an action item – something you can actually do.
    2. Connect the action items to initiatives. It may be that not every action item becomes part of a key initiative. (Don’t lose ideas that aren’t part of key initiatives – track them in a separate burndown list or backlog.)
    3. Identify a target completion date and owner for each action item that’s part of an initiative.

    Add your results to your copy of the ITAM Strategy Template

    Example ITAM initiatives

    Initiative 1: Develop hardware/software standards
    Task Target Completion Owner
    Laptop standards Q1-2023 ITAM manager
    Identify/eliminate contracts for unused software using scan tool Q2-2023 ITAM manager
    Review O365 license levels and standard service Q3-2023 ITAM manager

    Initiative 2: Improve ITAM data quality
    Task Target Completion Owner
    Implement scan agent on all field laptops Q3-2023 Desktop engineer
    Conduct in person audit on identified data discrepancies Q1-2024 ITAM team
    Develop and run user-led audit Q1-2024 Asset manager

    Initiative 3: Acquire & implement a new ITAM tool
    Task Target Completion Owner
    Select an ITAM tool Q3-2023 ITAM manager
    Implement ITAM tool, incl. existing data migration Q1-2024 ITAM manager
    Training on new tool Q1-2024 ITAM manager
    Build KPIs, executive dashboards in new tool Q2-2024 Data analyst
    Develop user-led audit functionality in new tool Q3-2024 ITAM coordinator

    2.10 Create a communication plan

    45 minutes

    Input: Proposed ITAM initiatives, Stakeholder priorities and goals, and an understanding of how ITAM can help them meet those goals

    Output: A high-level communication plan to communicate the benefits and impact of proposed changes to the ITAM program

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: IT asset manager, Project sponsor

    Develop clear, consistent, and targeted messages to key ITAM stakeholders.

    1. Modify the list of stakeholders in the first column.
    2. What benefits should those stakeholders realize from ITAM? What impact may the proposed improvements have on them? Refer back to exercises from Phase 1, where you identified key stakeholders, their priorities, and how ITAM could help them.
    3. Identify communication channels (in-person, email, all-hands meeting, etc.) and timing – when you’ll distribute the message. You may choose to use more than one channel, and you may need to convey the message more than once.
    Group ITAM Benefits Impact Channel(s) Timing
    CFO
    • More accurate IT spend predictions
    • Better equipment utilization and value for money
    • Sponsor integration project between ITAM DB and financial system
    • Support procurement procedures review
    		 Face-to-face – based on their availability Within the next month
    CIO
    • Better oversight into IT spend
    • Data to help demonstrate IT value
    • Resources required to support tool and ITAM process improvements
    		 Standing bi-monthly 1:1 meetings Review strategy at next meeting
    IT Managers
    Field Techs

    Add your results to your copy of the ITAM Strategy Template

    2.10 Put the final touches on your ITAM Strategy

    30 minutes

    Input: Proposed ITAM initiatives, Stakeholder priorities and goals, and an understanding of how ITAM can help them meet those goals

    Output: A high-level communication plan to communicate the benefits and impact of proposed changes to the ITAM program

    Materials: The table in this slide, Your copy of the ITAM Strategy Template

    Participants: IT asset manager, Project sponsor

    You’re almost done! Do a final check of your work before you send a copy to your participants.

    1. Summarize in three points the key findings from the activities you’ve worked through. What have you learned? What are your priorities? What key message do you need to get across? Add these to the appropriate slide near the start of the ITAM Strategy Template.
    2. What are your immediate next steps? Summarize no more than five and add them to the appropriate slide near the start of the ITAM Strategy Template.
      1. Are you asking for something? Approval for ITAM initiatives? Funding? Resources? Clearly identify the ask as part of your next steps.
    3. Are the KPIs identified in Phase 1 still valid? Will they help you monitor for success in the initiatives you’ve identified in Phase 2? Make any adjustments you think are required to the KPIs to reflect the additional completed work.

    Add your results to your copy of the ITAM Strategy Template

    Research Contributors and Experts

    Kylie Fowler
    Principal Consultant
    ITAM Intelligence

    Kylie is an experienced ITAM/FinOps consultant with a track record of creating superior IT asset management frameworks that enable large companies to optimize IT costs while maintaining governance and control.

    She has operated as an independent consultant since 2009, enabling organizations including Sainsbury's and DirectLine Insurance to leverage the benefits of IT asset management and FinOps to achieve critical business objectives. Recent key projects include defining an end-to-end SAM strategy, target operating model, policies and processes which when implemented provided a 300% ROI.

    She is passionate about supporting businesses of all sizes to drive continuous improvement, reduce risk, and achieve return on investment through the development of creative asset management and FinOps solutions.

    		Rory Canavan
    Owner and Principal Consultant
    SAM Charter

    Rory is the founder, owner, and principal consultant of SAM Charter, an internationally recognized consultancy in enterprise-wide Software & IT Asset Management. As an industry leader, SAM Charter is uniquely poised to ensure your IT & SAM systems are aligned to your business requirements.

    With a technical background in business and systems analysis, Rory has a wide range of first-hand experience advising numerous companies and organizations on the best practices and principles pertaining to software asset management. This experience has been gained in both military and civil organizations, including the Royal Navy, Compaq, HP, the Federation Against Software Theft (FAST), and several software vendors.

    Research Contributors and Experts

    Jeremy Boerger
    Founder, Boerger Consulting
    Author of Rethinking IT Asset Management

    Jeremy started his career in ITAM fighting the Y2K bug at the turn of the 21st century. Since then, he has helped companies in manufacturing, healthcare, banking, and service industries build and rehabilitate hardware and software asset management practices.

    These experiences prompted him to create the Pragmatic ITAM method, which directly addresses and permanently resolves the fundamental flaws in current ITAM and SAM implementations.

    In 2016, he founded Boerger Consulting, LLC to help business leaders and decision makers fully realize the promises a properly functioning ITAM can deliver. In his off time, you will find him in Cincinnati, Ohio, with his wife and family.

    		Mike Austin
    Founder and CEO
    MetrixData 360

    Mike Austin leads the delivery team at MetrixData 360. Mike brings more than 15 years of Microsoft licensing experience to his clients’ projects. He assists companies, from Fortune 500 to organizations with as few as 500 employees, with negotiations of Microsoft Enterprise Agreements (EA), Premier Support Contracts, and Select Agreements. In addition to helping negotiate contracts, he helps clients build and implement software asset management processes.

    Previously, Mike was employed by Microsoft for more than 8 years as a member of the global sales team. With Microsoft, Mike successfully negotiated more than a billion dollars in new and renewal EAs. Mike has also negotiated legal terms and conditions for all software agreements, developed Microsoft’s best practices for global account management, and was awarded Microsoft’s Gold Star Award in 2003 and Circle of Excellence in 2008 for his contributions.

    Bibliography

    “Asset Management.” SFIA v8. Accessed 17 March 2022.

    Boerger, Jeremy. Rethinking IT Asset Management. Business Expert Press, 2021.

    Canavan, Rory. “C-Suite Cheat Sheet.” SAM Charter, 2021. Accessed 17 March 2022.

    Fisher, Matt. “Metrics to Measure SAM Success.” Snow Software, 26 May 2015. Accessed 17 March 2022.

    Flexera (2021). “State of ITAM Report.” Flexera, 2021. Accessed 17 March 2022.

    Fowler, Kylie. “ITAM by design.” BCS, The Chartered Institute for IT, 2017. Accessed 17 March 2022.

    Fowler, Kylie. “Ch-ch-ch-changes… Is It Time for an ITAM Transformation?” ITAM Intelligence, 2021. Web. Accessed 17 March 2022.

    Fowler, Kylie. “Do you really need an ITAM policy?” ITAM Accelerate, 15 Oct. 2021. Accessed 17 March 2022.

    Hayes, Chris. “How to establish a successful, long-term ITAM program.” Anglepoint, Sept. 2021. Accessed 17 March 2022.

    ISO/IEC 19770-1-2017. IT Asset Management Systems – Requirements. Third edition. ISO, Dec 2017.

    Joret, Stephane. “IT Asset Management: ITIL® 4 Practice Guide”. Axelos, 2020.

    Jouravlev, Roman. “IT Service Financial Management: ITIL® 4 Practice Guide”. Axelos, 2020.

    Pagnozzi, Maurice, Edwin Davis, Sam Raco. “ITAM Vs. ITSM: Why They Should Be Separate.” KPMG, 2020. Accessed 17 March 2022.

    Rumelt, Richard. Good Strategy, Bad Strategy. Profile Books, 2013.

    Stone, Michael et al. “NIST SP 1800-5 IT Asset Management.” Sept, 2018. Accessed 17 March 2022.

    Document and Maintain Your Disaster Recovery Plan

    • Buy Link or Shortcode: {j2store}417|cart{/j2store}
    • member rating overall impact: 9.3/10 Overall Impact
    • member rating average dollars saved: $52,224 Average $ Saved
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    • Parent Category Name: DR and Business Continuity
    • Parent Category Link: /business-continuity
    • Disaster recovery plan (DRP) documentation is often driven by audit or compliance requirements rather than aimed at the team that would need to execute recovery.
    • Between day-to-day IT projects and the difficulty of maintaining 300+ page manuals, DRP documentation is not updated and quickly becomes unreliable.
    • Inefficient publishing strategies result in your DRP not being accessible during disaster or key staff not knowing where to find the latest version.

    Our Advice

    Critical Insight

    • DR documentation fails when organizations try to boil the ocean with an all-in-one plan aimed at auditors, business leaders, and IT. It’s too long, too hard to maintain, and ends up being little more than shelf-ware.
    • Using flowcharts, checklists, and diagrams aimed at an IT audience is more concise and effective in a disaster, quicker to create, and easier to maintain.
    • Create your DRP in layers to keep the work manageable. Start with a recovery workflow to ensure a coordinated response, and build out supporting documentation over time.

    Impact and Result

    • Create visual and concise DR documentation that strips out unnecessary content and is written for an IT audience – the team that would actually be executing the recovery. Your business leaders can take the same approach to create separate business response plans. Don’t mix the two in an all-in-one plan that is not effective for either audience.
    • Determine a documentation distribution strategy that supports ease of maintenance and accessibility during a disaster.
    • Incorporate DRP maintenance into change management procedures to systematically update and refine the DR documentation. Don’t save up changes for a year-end blitz, which turns document maintenance into an onerous project.

    Document and Maintain Your Disaster Recovery Plan Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should adopt a visual-based DRP, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Streamline DRP documentation

    Start by documenting your recovery workflow. Create supporting documentation in the form of checklists, flowcharts, topology diagrams, and contact lists. Finally, summarize your DR capabilities in a DRP Summary Document for stakeholders and auditors.

    • Document and Maintain Your Disaster Recovery Plan – Phase 1: Streamline DRP Documentation

    2. Select the optimal DRP publishing strategy

    Select criteria for assessing DRP tools, and evaluate whether a business continuity management tool, document management solution, wiki site, or manually distributing documentation is best for your DR team.

    • Document and Maintain Your Disaster Recovery Plan – Phase 2: Select the Optimal DRP Publishing Strategy
    • DRP Publishing and Document Management Solution Evaluation Tool
    • BCM Tool – RFP Selection Criteria

    3. Keep your DRP relevant through maintenance best practices

    Learn how to integrate DRP maintenance into core IT processes, and learn what to look for during testing and during annual reviews of your DRP.

    • Document and Maintain Your Disaster Recovery Plan – Phase 3: Keep Your DRP Relevant Through Maintenance Best Practices
    • Sample Project Intake Form Addendum for Disaster Recovery
    • Sample Change Management Checklist for Disaster Recovery
    • DRP Review Checklist
    • DRP-BCP Review Workflow (Visio)
    • DRP-BCP Review Workflow (PDF)

    4. Appendix: XMPL Case Study

    Model your DRP after the XMPL case study disaster recovery plan documentation.

    • Document and Maintain Your Disaster Recovery Plan – Appendix: XMPL Case Study
    • XMPL DRP Summary Document
    • XMPL Notification, Assessment, and Declaration Plan
    • XMPL Systems Recovery Playbook
    • XMPL Recovery Workflows (Visio)
    • XMPL Recovery Workflows (PDF)
    • XMPL Data Center and Network Diagrams (Visio)
    • XMPL Data Center and Network Diagrams (PDF)
    • XMPL DRP Business Impact Analysis Tool
    • XMPL DRP Workbook
    [infographic]

    Workshop: Document and Maintain Your Disaster Recovery Plan

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Streamline DRP Documentation

    The Purpose

    Teach your team how to create visual-based documentation.

    Key Benefits Achieved

    Learn how to create visual-based DR documentation.

    Activities

    1.1 Conduct a table-top planning exercise.

    1.2 Document your high-level incident response plan.

    1.3 Identify documentation to include in your playbook.

    1.4 Create an initial collection of supplementary documentation.

    1.5 Discuss what further documentation is necessary for recovering from a disaster.

    1.6 Summarize your DR capabilities for stakeholders.

    Outputs

    Documented high-level incident response plan

    List of documentation action items

    Collection of 1-3 draft checklists, flowcharts, topology diagrams, and contact lists

    Action items for ensuring that the DRP is executable for both primary and backup DR personnel

    DRP Summary Document

    2 Select the Optimal DRP Publishing Strategy

    The Purpose

    Learn the considerations for publishing your DRP.

    Key Benefits Achieved

    Identify the best strategy for publishing your DRP.

    Activities

    2.1 Select criteria for assessing DRP tools.

    2.2 Evaluate categories for DRP tools.

    Outputs

    Strategy for publishing DRP

    3 Learn How to Keep Your DRP Relevant Through Maintenance Best Practices

    The Purpose

    Address the common pain point of unmaintained DRPs.

    Key Benefits Achieved

    Create an approach for maintaining your DRP.

    Activities

    3.1 Alter your project intake considerations.

    3.2 Integrate DR considerations into change management.

    3.3 Integrate documentation into performance measurement and performance management.

    3.4 Learn best practices for maintaining your DRP.

    Outputs

    Project Intake Form Addendum Template

    Change Management DRP Checklist Template

    Further reading

    Document and Maintain Your Disaster Recovery Plan

    Put your DRP on a diet – keep it fit, trim, and ready for action.

    ANALYST PERSPECTIVE

    The traditional disaster recovery plan (DRP) “red binder” is dead. It takes too long to create, it’s too hard to maintain, and it’s not usable in a crisis.

    “This blueprint outlines the following key tactics to streamline your documentation effort and produce a better result:

    • Write for an IT audience and focus on how to recover. You don’t need 30 pages of fluff describing the purpose of the document.
    • Use flowcharts, checklists, and diagrams over traditional manuals. This drives documentation that is more concise, easier to maintain, and effective in a crisis.
    • Create your DRP in layers to get tangible results faster, starting with a recovery workflow that outlines your DR strategy, and then build out the specific documentation needed to support recovery.”
      •
    (Frank Trovato, Research Director, Infrastructure, Info-Tech Research Group)

    This project is about DRP documentation after you have clarified your DR strategy; create these necessary inputs first

    These artifacts are the cornerstone for any disaster recovery plan.

    • Business Impact Analysis
    • DR Roles and Responsibilities
    • Recovery Workflow

    Missing a component? Start here. ➔ Create a Right-Sized Disaster Recovery Plan

    This blueprint walks you through building these inputs.
    Our approach saves clients on average US$16,825.22. (Clients self-reported an average saving of US$16,869.21 while completing the Create a Right-Sized Disaster Recovery Plan blueprint through advisory calls, guided implementations, or workshops (Info-Tech Research Group, 2017, N=129).)

    How this blueprint will help you document your DRP

    This Research is Designed For:

    • IT managers in charge of disaster recovery planning (DRP) and execution.
    • Organizations seeking to optimize their DRP using best-practice methodology.
    • Business continuity professionals that are involved with disaster recovery.

    This Research Will Help You:

    • Divide the process of creating DR documentation into manageable chunks, providing a defined scope for you to work in.
    • Identify an appropriate DRP document management and distribution strategy.
    • Ensure that DR documentation is up to date and accessible.

    This Research Will Also Assist:

    • IT managers preparing for a DR audit.
    • IT managers looking to incorporate components of DR into an IT operations document.

    This Research Will Help Them:

    • Follow a structured approach in building DR documentation using best practices.
    • Integrate DR into day-to-day IT operations.

    Executive summary

    Situation

    • DR documentation is often driven by audit or compliance requirements, rather than aimed at the team that would need to execute recovery.
    • Traditional DRPs are text-heavy, 300+ page manuals that are simply not usable in a crisis.
    • Compounding the problem, DR documentation is rarely updated, so it’s just shelf-ware.

    Complication

    • DRP is often given lower priority as day-to-day IT projects displace DR documentation efforts.
    • Inefficient publishing strategies result in your DRP not being accessible during disasters or key staff not knowing where to find the latest version.
    • Organizations that create traditional DRPs end up with massive manuals that are difficult to maintain, so they quickly become unreliable.

    Resolution

    • Create visual and concise DR documentation that strips out unnecessary content and is written for an IT audience – the team that would actually be executing the recovery. Your business leaders can take the same approach to create separate business response plans – don’t mix the two into an all-in-one plan that is not effective for either audience.
    • Determine a documentation distribution strategy that supports ease of maintenance and accessibility during a disaster.
    • Incorporate DRP maintenance into change management and project intake procedures to systematically update and refine the DR documentation. Don’t save up changes for a year-end blitz, which turns document maintenance into an onerous project.

    Info-Tech Insight

    1. DR documentation fails when organizations try to boil the ocean with an all-in-one plan aimed at auditors, business leaders, and IT. It’s too long, too hard to maintain, and ends up being little more than shelf-ware.
    2. Using flowcharts, checklists, and diagrams aimed at an IT audience is more concise and effective in a disaster, quicker to create, and easier to maintain.
    3. Create your DRP in layers to keep the work manageable. Start with a recovery workflow to ensure a coordinated response, and build out supporting documentation over time.

    An effective DRP that mitigates a wide range of potential outages is critical to minimizing the impact of downtime

    The criticality of having an effective DRP is underestimated.

    Cost of Downtime for the Fortune 1000
    • Cost of unplanned apps downtime per year: $1.25B to $2.5B
    • Cost of critical apps failure per hour: $500,000 to $1M
    • Cost of infrastructure failure per hour: $100,000
    • 35% reported to have recovered within 12 hours.
    • 17% of infrastructure failures took more than 24 hours to recover.
    • 13% of application failures took more than 24 hours to recover.
    Size of Impact Increasing Across Industries
    • The cost of downtime is rising across the board and not just for organizations that traditionally depend on IT (e.g. e-commerce).
    • Downtime cost increase since 2010:
      • Hospitality: 129% increase
      • Transportation: 108% increase
      • Media organizations: 104% increase
    Potential Lost Revenue
    A line graph of Potential Lost Revenue with vertical axis 'LOSS ($)' and horizontal axis 'TIME'. The line starts with low losses near the origin where 'Incident Occurs', gradually accelerates to higher losses as time passes, then decelerates before 'All Revenue Lost'. Note: 'Delay in recovery causes exponential revenue loss'.
    (Adapted from: Rothstein, Philip Jan. Disaster Recovery Testing: Exercising Your Contingency Plan (2007 Edition).)

    The impact of downtime increases significantly over time, not just in terms of lost revenue (as illustrated here) but also goodwill/reputation and health/safety. An effective DR solution and overall resiliency that mitigate a wide range of potential outages are critical to minimizing the impact of downtime.

    Without an effective DRP, your organization is gambling on being able to define and implement a recovery strategy during a time of crisis. At the very least, this means extended downtime – potentially weeks – and substantial impact.

    Only 38% of those with a full or mostly complete DRP believe their DRPs would be effective in a real crisis

    Organizations continue to struggle with creating DRPs, let alone making them actionable.

    Why are so many living with either an incomplete or ineffective DRP? For the same reasons that IT documentation in general continues to be a pain point:

    • It is an outdated model of what documentation should be – the traditional manual with detailed (lengthy) descriptions and procedures.
    • Despite the importance of DR, low priority is placed on creating a DRP and the day-to-day SOPs required to support a recovery.
    • There is a lack of effective processes for ensuring documentation stays up to date.
    A bar graph documenting percentages of survey responses about the completeness of their DRP. 'Only 20% of survey respondents indicated they have a complete DRP'. 13% said 'No DRP'. 33% said 'Partial DRP'. 34% said 'Mostly Completed'. 20% said 'Full DRP'.
    (Source: Info-Tech Research Group, N=165)     		A bar graph documenting percentages of survey responses about the level of confidence in their DRP. 'Only 38% of those who have a mostly completed or full DRP actually feel it would be effective in a crisis'. 4% said 'Low'. 58% said 'Unsure'. 38% said 'Confident'.
    (Source: Info-Tech Research Group, N=69 (includes only those who indicated DRP is mostly completed or completed))

    Improve usability and effectiveness with visual-based and more-concise documentation

    Choose flowcharts over process guides, checklists over lengthy procedures, and diagrams over descriptions.

    If you need a three-inch binder to hold your DRP, imagine having to flip through it to determine next steps during a crisis.

    DR documentation needs to be concise, scannable, and quickly understood to be effective. Visual-based documentation meets these requirements, so it’s no surprise that it also leads to higher DR success.

    DR success scores are based on:

    • Meeting recovery time objectives (RTOs).
    • Meeting recovery point objectives (RPOs).
    • IT staff’s confidence in their ability to meet RTOs/RPOs.
    A line graph of DR documentation types and their effectiveness. The vertical axis is 'DR Success', from Low to High. The horizontal axis is Documentation Type, from 'Traditional Manual' to 'Primarily flowcharts, checklists, and diagrams'. The line trends up to higher success with visual-based and more-concise documentation.(Source: Info-Tech Research Group, N=95)

    “Without question, 300-page DRPs are not effective. I mean, auditors love them because of the detail, but give me a 10-page DRP with contact lists, process flows, diagrams, and recovery checklists that are easy to follow.” (Bernard Jones, MBCI, CBCP, CORP, Manager Disaster Recovery/BCP, ActiveHealth Management)

    Maintainability is another argument for visual-based, concise documentation

    There are two end goals for your DR documentation: effectiveness and maintainability. Without either, you will not have success during a disaster.

    Organizations using a visual-based approach were 30% more likely to find that DR documentation is easy to maintain. ➔ “Easy to maintain” leads to a 46% higher rate of DR success.
    Two bar graphs documenting survey responses regarding maintenance ease of DR documentation types. The first graph compares Traditional Manual vs Visual-based. For 'Traditional Manual' 72% responded they were Difficult to maintain while 28% responded they were Easy to maintain; for 'Visual-based' 42% responded they were Difficult to maintain while 58% responded they were Easy to maintain. Visual-based DR documentation received 30% more votes for Easy to Maintain. The second graph compares success rates of 'Difficult to Maintain' vs 'Easy to Maintain' DR documentation with Difficult being 31% and Easy being 77%, a 46% difference. 'Source: Info-Tech Research Group, N=96'.

    Not only are visual-based disaster recovery plans more effective, but they are also easier to maintain.

    Overcome documentation inertia with a tiered model that allows you to eat the elephant one bite at a time

    Start with a recovery workflow to at least ensure a coordinated response. Then use that workflow to determine required supporting documentation.

    Recovery Workflow: Starting the project with overly detailed documentation can slow down the entire process. Overcome planning inertia by starting with high-level incident response plans in a flowchart format. For examples and additional information, see XMPL Medical’s Recovery Workflows.

    Recovery Procedures (Systems Recovery Playbook): For each step in the high-level flowchart, create recovery procedures where necessary using additional flowcharts, checklists, and diagrams as appropriate. Leverage Info-Tech’s Systems Recovery Playbook example as a starting point.

    Additional Reference Documentation: Reference existing IT documentation, such as network diagrams and configuration documents, as well as more detailed step-by-step procedures where necessary (e.g. vendor documentation), particularly where needed to support alternate recovery staff who may not be as well versed as the primary system owners.

    Info-Tech Insight

    Organizations that use flowcharts, checklist, and diagrams over traditional, dense DRP manuals are far more likely to meet their RTOs/RPOs because their documentation is more usable and easier to maintain.

    Use a DRP summary document to satisfy executives, auditors, and clients

    Stakeholders don’t have time to sift through a pile of paper. Summarize your overall continuity capabilities in one, easy-to-read place.

    DRP Summary Document

    • Summarize BIA results
    • Summarize DR strategy (including DR sites)
    • Summarize backup strategy
    • Summarize testing and maintenance plans

    Follow Info-Tech’s methodology to make DRP documentation efficient and effective

    Phases

    		 Phase 1: Streamline DRP documentation Phase 2: Select the optimal DRP publishing strategy Phase 3: Keep your DRP relevant through maintenance best practices

    Phases

    1.1

    		 Start with a recovery workflow

    2.1

    		 Decide on a publishing strategy

    3.1

    		 Incorporate DRP maintenance into core IT processes

    1.2

    		 Create supporting DRP documentation

    3.2

    		 Conduct an annual focused review

    1.3

    		 Write the DRP Summary

    Tools and Templates

    		 End-to-End Sample DRP DRP Publishing Evaluation Tool Project In-take/Request Form

    Change Management Checklist

    Follow XMPL Medical’s journey through DR documentation

    CASE STUDY

    Industry Healthcare
    Source Created by amalgamating data from Info-Tech’s client base

    Streamline your documentation and maintenance process by following the approach outlined in XMPL Medical’s journey to an end-to-end DRP.

    Outline of the Disaster Recovery Plan

    XMPL’s disaster recovery plan includes its business impact analysis and a subset of tier 1 and tier 2 patient care applications.

    Its DRP includes incident response flowcharts, system recovery checklists, and a communication plan. Its DRP also references IT operations documentation (e.g. asset management documents, system specs, and system configuration docs), but this material is not published with the example documentation.

    Resulting Disaster Recovery Plan

    XMPL’s DRP includes actionable documents in the form of high-level disaster response plan flowcharts and system recovery checklists. During an incident, the DR team is able to clearly see the items for which they are responsible.

    Disaster Recovery Plan
    • Recovery Workflow
    • Business Impact Analysis
    • DRP Summary
    • System Recovery Checklists
    • Communication, Assessment, and Disaster Declaration Plan

    Info-Tech Best Practice

    XMPL Medical’s disaster recovery plan illustrates an effective DRP. Model your end-to-end disaster recovery plan after XMPL’s completed templates. The specific data points will differ from organization to organization, but the structure of each document will be similar.

    Model your disaster recovery documentation off of our example

    CASE STUDY

    Industry Healthcare
    Source Created by amalgamating data from Info-Tech’s client base

    Recovery Workflow:

    • Recovery Workflows (PDF, VSDX)

    Recovery Procedures (Systems Recovery Playbook):

    • DR Notification, Assessment, and Disaster Declaration Plan
    • Systems Recovery Playbook
    • Network Topology Diagrams

    Additional Reference Documentation:

    • DRP Workbook
    • Business Impact Analysis
    • DRP Summary Document

    Use Info-Tech’s DRP Maturity Scorecard to evaluate your progress

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Document and Maintain Your Disaster Recovery Plan – Project Overview

    1. Streamline DRP Documentation 2. Select the Optimal DRP Publishing Strategy 3. Keep Your DRP Relevant
    Supporting Tool icon
    Best-Practice Toolkit

    1.1 Start with a recovery workflow

    1.2 Create supporting DRP documentation

    1.3 Write the DRP summary

    2.1 Create Committee Profiles

    3.1 Build Governance Structure Map

    3.2 Create Committee Profiles

    Guided Implementations
    • Review Info-Tech’s approach to DRP documentation.
    • Create a high-level recovery workflow.
    • Create supporting DRP documentation.
    • Write the DRP summary.
    • Identify criteria for selecting a DRP publishing strategy.
    • Select a DRP publishing strategy.
    • Optional: Select requirements for a BCM tool and issue an RFP.
    • Optional: Review responses to RFP.
    • Learn best practices for integrating DRP maintenance into day-to-day IT processes.
    • Learn best practices for DRP-focused reviews.
    Associated Activity icon
    Onsite Workshop     		Module 1:
    Streamline DRP documentation     		Module 2:
    Select the optimal DRP publishing strategy     		Module 3:
    Learn best practices for keeping your DRP relevant
    Phase 1 Outcome:
    • A complete end-to-end DRP
    		 Phase 2 Outcome:
    • Selection of a publishing and management tool for your DRP documentation
    		 Phase 3 Outcome:
    • Strategy for maintaining your DRP documentation

    Workshop Overview Associated Activity icon

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Workshop Day 5
    Info-Tech Analysts Finalize Deliverables
    Activities
    Assess DRP Maturity and Review Current Capabilities

    0.1 Assess current DRP maturity through Info-Tech’s Maturity Scorecard.

    0.2 Identify the IT systems that support mission-critical business activities, and select 2 or 3 key applications to be the focus of the workshop.

    0.3 Identify current recovery strategies for selected applications.

    0.4 Identify current DR challenges for selected applications.

    Document Your Recovery Workflow

    1.1 Create a recovery workflow: review tabletop planning, walk through DR scenarios, identify DR gaps, and determine how to fill them.

    Create Supporting Documentation

    1.2 Create supporting DRP documentation.

    1.3 Write the DRP summary.

    Establish a DRP Publishing, Management, and Maintenance Strategy

    2.1 Decide on a publishing strategy.

    3.1 Incorporate DRP maintenance into core IT.

    3.2 Considerations for reviewing your DRP regularly.

    Deliverables
    1. Baseline DRP metric (based on DRP Maturity Scorecard)
    1. High-level DRP workflow
    2. DRP gaps and risks identified
    1. Recovery workflow and/or checklist for sample of IT systems
    2. Customized DRP Summary Template
    1. Strategy for selecting a DRP publishing tool
    2. DRP management and maintenance strategy
    3. Workshop summary presentation deck

    Workshop Goal: Learn how to document and maintain your DRP.

    Use these icons to help direct you as you navigate this research

    Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

    A small monochrome icon of a wrench and screwdriver creating an X.

    This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.

    A small monochrome icon depicting a person in front of a blank slide.

    This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.


    Phase 1: Streamline DRP Documentation

    Step 1.1: Start with a recovery workflow

    PHASE 1
    PHASE 2
    PHASE 3
    1.1 1.2 1.3 2.1 3.1 3.2
    Start with a Recovery Workflow Create Supporting Documentation Write the DRP Summary Select DRP Publishing Strategy Integrate into Core IT Processes Conduct an Annual Focused Review

    This step will walk you through the following activities:

    • Review a model DRP.
    • Review your recovery workflow.
    • Identify documentation required to support the recovery workflow.

    This step involves the following participants:

    • DRP Owner
    • System SMEs
    • Alternate DR Personnel

    Outcomes of this step

    • Understanding the visual-based, concise approach to DR documentation.
    • Creating a recovery workflow that provides a roadmap for coordinating incident response and identifying required supporting documentation.

    Info-Tech Insights

    A DRP is a collection of procedures and supporting documents that allow an organization to recover its IT services to minimize system downtime for the business.

    1.1 — Start with a recovery workflow to ensure a coordinated response and identify required supporting documentation

    The recovery workflow clarifies your DR strategy and ensures the DR team is on the same page.

    Recovery Workflow

    		 ➔

    The recovery workflow maps out the incident response plan from event detection, assessment, and declaration to systems recovery and validation.

    This documentation includes:

    • Clarifying initial incident response steps.
    • Clarifying the order of systems recovery and which recovery actions can occur concurrently.
    • Estimating actual recovery timeline through each stage of recovery.
    Recovery Procedures (Playbook)
    Additional Reference Documentation

    “We use flowcharts for our declaration procedures. Flowcharts are more effective when you have to explain status and next steps to upper management.” (Assistant Director-IT Operations, Healthcare Industry)

    Review business impact analysis (BIA) results to plan your recovery workflow

    The BIA defines system criticality from the business’s perspective. Use it to guide system recovery order.

    Specifically, review the following from your BIA:

    • The list of tier 1, 2, and 3 applications. This will dictate the recovery order in your recovery workflow.
    • Application dependencies. This will outline what needs to be included as part of an application recovery workflow.
    • The recovery time objective (RTO) and recovery point objective (RPO) for each application. This will also guide the recovery, and enable you to identify gaps where the recovery workflow does not meet RTOs and RPOs.

    CASE STUDY: The XMPL DRP documentation is based on this Business Impact Analysis Tool.

    Haven’t conducted a BIA? Use Info-Tech’s streamlined approach.

    Info-Tech’s publication Create a Right-Sized Disaster Recovery Plan takes a very practical approach to BIA work. Our process gives IT leaders a mechanism to quickly get agreement on system recovery order and DR investment priorities.

    Conduct a tabletop planning exercise to determine your recovery workflow

    Associated Activity icon 1.1.1 Tabletop Planning Exercise

    1. Define a scenario to drive the tabletop planning exercise:
      • Use a scenario that forces a full failover to your DR environment, so you can capture an end-to-end recovery workflow.
      • Avoid scenarios that impact health and safety such as tornados or a fire. You want to focus on IT recovery.
      • Example scenarios: Burst water pipe that causes data-center-wide damage or a gas leak that forces evacuation and power to be shut down for at least two days.

    Note: You may have already completed this exercise as part of Create a Right-Sized Disaster Recovery Plan.

    Info-Tech Insight

    Use scenarios to provide context for DR planning, and to test your plans, but don’t create a separate plan for every possibility.

    The high-level recovery plan will be the same whether the incident is a fire, flood, or tornado. While there might be some variances and outliers, these scenarios can be addressed by adding decision points and/or separate, supplementary instructions.

    Walk through the scenario and capture the recovery workflow

    Associated Activity icon 1.1.2 Tabletop Planning Exercise
    1. Capture the following information for tier 1, tier 2, and tier 3 systems:
      1. On white cue cards, record the steps and track start and end times for each step (where 00:00 is when the incident occurred).
      2. On yellow cue cards, document gaps in people, process, and technology requirements to complete the step.
      3. On red cue cards, indicate risks (e.g. no backup person for a key staff member).

    Note:

    • Ensure the language is sufficiently genericized (e.g. refer to events, not specifically a burst water pipe).
    • Review isolated failures (e.g. hardware, software). Typically, the recovery procedure documented for individual systems covers the essence of the recovery workflow whether it’s just the one system that failed or it’s part of a site-wide recovery.

    Note: You may have already completed this exercise as part of Create a Right-Sized Disaster Recovery Plan.

    Document your current-state recovery workflow based on the results of the tabletop planning

    Supporting Tool icon 1.1.2 Incident Response Plan Flowcharts, Tabs 2 and 3

    After you finish the tabletop planning exercise, the steps on the set of cue cards define your recovery workflow. Capture this in a flowchart format.

    Use the sample DRP to guide your own flowchart. Some notes on the example are:

    • XMPL’s Incident Management to DR flowchart shows the connection between its standard Service Desk processes and DR processes.
    • XMPL’s high-level workflows outline its recovery of tier 1, 2, and 3 systems.
    • Where more detail is required, include links to supporting documentation. In this example, XMPL Medical includes links to its Systems Recovery Playbook.
    Preview of an Info-Tech Template depicting a sample flowchart.

    This sample flowchart is included in XMPL Recovery Workflows.

    Step 1.2: Create Supporting DRP Documentation

    PHASE 1
    PHASE 2
    PHASE 3
    1.11.21.32.13.13.2
    Start with a Recovery WorkflowCreate Supporting DocumentationWrite the DRP SummarySelect DRP Publishing StrategyIntegrate into Core IT ProcessesConduct an Annual Focused Review

    This step will walk you through the following activities:

    • Create checklists for your playbook.
    • Document more complex procedures with flowcharts.
    • Gather and/or write network topology diagrams.
    • Compile a contact list.
    • Ensure there is enough material for backup personnel.

    This step involves the following participants:

    • DRP Owner
    • System SMEs
    • Backup DR Personnel

    Outcomes of this step

    • Actionable supporting documentation for your disaster recovery plan.
    • Contact list for IT personnel, business personnel, and vendor support.

    1.2 — Create supporting documentation for your disaster recovery plan

    Now that you have a high-level incident response plan, collect the information you need for executing that plan.

    Recovery Workflow

    Write your recovery procedures playbook to be effective and usable. Your playbook documentation should include:

    • Supplementary flowcharts
    • Checklists
    • Topology diagrams
    • Contact lists
    • DRP summary

    Reference vendors’ technical information in your flowcharts and checklists where appropriate.

    Recovery Procedures (Playbook)

    		 ➔

    Additional Reference Documentation

    		 ➔

    Info-Tech Insight

    Write for your audience. The playbook is for IT; include only the information they need to execute the plan. DRP summaries are for executives and auditors; do not include information intended for IT. Similarly, your disaster recovery plan is not for business units; keep BCP content out of your DRP.

    Use checklists to streamline step-by-step procedures

    Supporting Tool icon 1.2.1 XMPL Medical’s System Recovery Checklists

    Checklists are ideal when staff just need a reminder of what to do, not how to do it.

    XMPL Medical used its high-level flowcharts as a roadmap for creating its Systems Recovery Playbook.

    • Since its Playbook is intended for experienced IT staff, the writing style in the checklists is concise. XMPL includes links to reference material to support recovery, especially for alternate staff who might need additional instruction.
    • XMPL includes key parameters (e.g. IP addresses) rather than assume those details would be memorized, especially in a stressful DR scenario.
    • Similarly, include links to other useful resources such as VM templates.
    Preview of the Info-Tech Template 'Systems Recovery Playbook'.

    Included in the XMPL Systems Recovery Playbook are checklists for recovering XMPL’s virtual desktop infrastructure, mission-critical applications, and core infrastructure components.

    Use flowcharts to document processes with concurrent tasks not easily captured in a checklist

    Supporting Tool icon 1.2.2 XMPL Medical’s Phone Services Recovery Flowchart

    Recovery procedures can consist of flowcharts, checklists, or both, as well as diagrams. The main goal is to be clear and concise.

    • XMPL Medical created a flowchart to capture its phone services recovery procedure to capture concurrent tasks.
    • Additional instructions, where required, could still be captured in a Playbook checklist or other supporting documentation.
    • The flowchart could have also included key settings or other details as appropriate, particularly if the DR team chose to maintain this recovery procedure just in a flowchart format.
    Preview of the Info-Tech Template 'Recovery Workflows'.

    Included in the XMPL DR documentation is an example flowchart for recovering phone systems. This flowchart is in Recovery Workflows.

    Reference this blueprint for more SOP flowchart examples: Create Visual SOP Documents that Drive Process Optimization, Not Just Peace of Mind

    Use topology diagrams to capture network layout, integrations, and system information

    Supporting Tool icon 1.2.4 XMPL Medical’s Data Center and Network Diagrams

    Topology diagrams, key checklists, and configuration settings are often enough for experienced networking staff to carry out their DR tasks.

    • XMPL Medical includes these diagrams with its DRP. Instead of recreating these diagrams, the XMPL Medical DR Manager asked their network team for these diagrams:
      • Primary data center diagram
      • DR site diagram
      • High-level network diagrams
    • Often, organizations already have network topology diagrams for reference purposes.

    “Our network engineers came to me and said our standard SOP template didn't work for them. They're now using a lot of diagrams and flowcharts, and that has worked out better for them.” (Assistant Director-IT Operations, Healthcare Industry)

    Preview of the Info-Tech Template 'Systems Recovery Playbook'.

    You can download a PDF and a VSD version of these Data Center and Network Diagrams from Info-Tech’s website.

    Create a list of organizational, IT, and vendor contacts that may be required to assist with recovery

    If there is something strange happening to your IT infrastructure, who you gonna call?

    Many DR managers have their team on speed dial. However, having the contact info of alternate staff, BCP leads, and vendors can be very helpful during a disaster. XMPL Medical lists the following information in its DRP Workbook:

    • The DR Teams, SMEs critical to disaster recovery, their backups, and key contacts (e.g. BC Management team leads, vendor contacts) that would be involved in:
      • Declaring a disaster.
      • Coordinating a response at an organizational level.
      • Executing recovery.
    • The people that have authority to declare a disaster.
    • Each person’s spending authority.
    • The rules for delegating authority.
    • Primary and alternate staff for each role.
    Example list of alternate staff, BCP leads, and vendors.

    Confirm with your DR team that you have all of the documentation that you need to recover during a disaster

    Associated Activity icon 1.2.7 Group Discussion

    DISCUSS: Is there enough information in your DRP for both primary and backup DR personnel?

    • Is it clear who is responsible for each DR task, including notification steps?
    • Have alternate staff for each role been identified?
    • Does the recovery workflow capture all of the high-level steps?
    • Is there enough documentation for alternate staff (e.g. network specs)?

    Step 1.3: Write the DRP Summary

    PHASE 1
    PHASE 2
    PHASE 3
    1.11.21.32.13.13.2
    Start with a Recovery WorkflowCreate Supporting DocumentationWrite the DRP SummarySelect DRP Publishing StrategyIntegrate into Core IT ProcessesConduct an Annual Focused Review

    This step will walk you through the following activities:

    • Write a DRP summary document.

    This step involves the following participants:

    • DRP Owner

    Outcomes of this step

    • High-level outline of your DRP capabilities for stakeholders such as executives, auditors, and clients.

    Summarize your DR capabilities using a DRP summary document

    Supporting Tool icon 1.3.1 DRP Summary Document

    The sample included on Info-Tech’s website is customized for the XMPL Medical Case Study – use the download as a starting point for your own summary document.

    DRP Summary Document

    XMPL’s DRP Summary is organized into the following categories:

    • DR requirements: This includes a summary of scope, business impact analysis (BIA), risk assessment, and high-level RTOs and achievable RTOs.
    • DR strategy: This includes a summary of XMPL’s recovery procedures, DR site, and backup strategy.
    • Testing and maintenance: This includes a summary of XMPL’s DRP testing and maintenance strategy.

    Be transparent about existing business risks in your DRP summary

    The DRP summary document is business facing. Include information of which business leaders (and other stakeholders) need to be aware.

    • Discrepancies between desired and achievable RTOs? Organizational leadership needs to know this information. Only then can they assign the resources and budget that IT needs to achieve the desired DR capabilities.
    • What is the DRP’s scope? XMPL Medical lists the IT components that will be recovered during a disaster, and components which will not. For instance, XMPL’s DRP does not recover medical equipment, and XMPL has separate plans for business continuity and emergency response coordination.
    Application tier Desired RTO (hh:mm) Desired RPO (hh:mm) Achievable RTO (hh:mm) Achievable RPO (hh:mm)
    Tier 1 4:00 1:00 *90:00 1:00
    Tier 2 8:00 1:00 *40:00 1:00
    Tier 3 48:00 24:00 *96:00 24:00

    The above table to is a snippet from the XMPL DR Summary Document (section 2.1.3.2).

    In the example, the DR team is unable to recover tier 1, 2, and 3 systems within the desired RTO. As such, they clearly communicate this information in the DRP summary, and include action items to address these gaps.

    Phase 2: Select the Optimal DRP Publishing Strategy

    Step 2.1: Select a DRP Publishing Strategy

    PHASE 1
    PHASE 2
    PHASE 3
    1.11.21.32.13.13.2
    Start with a Recovery WorkflowCreate Supporting DocumentationWrite the DRP SummarySelect DRP Publishing StrategyIntegrate into Core IT ProcessesConduct an Annual Focused Review

    This step will walk you through the following activities:

    • Select criteria for assessing DRP tools.
    • Evaluate categories for DRP tools.
    • Optional: Write an RFP for a BCM tool.

    This step involves the following participants:

    • DRP Owner

    Outcomes of this step

    • Identified strategies for publishing your DRP (i.e. making it available to your DR team).

    Info-Tech Insights

    Diversify your publishing strategy to ensure you can access your DRP in a disaster. For example, if you are using a BCM tool or SharePoint Online as your primary documentation repository, also push the DRP to your DR team’s smartphones as a backup in case the disaster affects internet access.

    2.1 — Select a DR publishing and document management strategy that fits your organization

    Publishing and document management considerations:

    Portability/External Access: Assume your primary site is down and inaccessible. Can you still access your documentation? As shown in this chart, traditional strategies of either keeping a copy at another location (e.g. at the failover site) or with staff (e.g. on a USB drive) still dominate, but these aren’t necessarily the best options. ➔
    		 A bar chart titled 'Portability Strategy Popularity'. 'External Website (wiki site, cloud-based DRP tool, etc.)' scored 16%. 'Failover Site (network drive or redundant SharePoint, etc.)' scored 53%. 'Distribute to Staff (use USB drive, personal email, etc.)' scored 50%. 'Not Accessible Offsite' scored 7%.
    Note: Percentages total more than 100% due to respondents using more than one portability strategy.
    (Source: Info-Tech Research Group, N=118)
    Maintainability/Usability: How easy is it to create, update, and use the documentation? Is it easy to link to other documents as shown in the flowchart and checklist examples? Is there version control? Lack of version control can create a maintenance nightmare as well as issues in a crisis if staff are questioning whether they have the right version.
    Cost/Effort: Is the cost and effort appropriate? For example, a large enterprise may need a formal solution (e.g. DRP tools or SharePoint), but the cost might be hard to justify for a smaller company.

    Pros and cons of potential strategies

    This section will review the following strategies, their pros and cons, and how they meet publishing and document management requirements:

    • DRP tools (e.g. eBRP, Recovery Planner, LDRPS)
    • In-house solutions combining SharePoint and MS Office (or equivalent)
    • Wiki site
    • “Manual” approaches such as storing documents on a USB drive

    Avoid 42 hours of downtime due to a non-diversified publishing strategy

    CASE STUDY

    Industry Municipality
    Source Interview

    Situation

    • A municipal government has recently completed an end-to-end disaster recovery plan.
    • The team is feeling good about the fact that they were able to identify:
      • Relative criticality of applications.
      • Dependencies for each application.
      • Incident response plans for the current state and desired state.
      • System recovery procedures.

    Challenge

    • While the DR plan itself was comprehensive, the team only published the DR onto the government’s network drives.
    • A power generation issue caused power to be shut down, which in turn cascaded into downtime for the network.
    • Once the network was down, their DRP was inaccessible.

    Insights

    • Each piece of documentation that was created could have contributed to recovery efforts. However, because they were inaccessible, there was a delayed response to the incident. The result was 42 hours of downtime for end users.
    • Having redundant publishing strategies is just like having redundant IT infrastructure. In the event of downtime, not only do you need to have DR documentation, but you also need to make sure that it is accessible.

    Decide on a DR publishing strategy by looking at portability, maintainability, cost, and required effort

    Supporting Tool icon 2.1.1 DRP Publishing and Management Evaluation Tool

    Use the information included in Step 2.1 to guide your analysis of DRP publishing solutions.

    The tool enables you to compare two possible solutions based on these key considerations discussed in this section:

    • Portability/external access
    • Maintainability/usability
    • Cost
    • Effort

    The right choice will depend on factors such as current in-house tools, maturity around document management, the size of your IT department, and so on.

    For example, a small shop may do very well with the USB drive strategy, whereas a multi-national company will need a more formal strategy to manage consistent DRP distribution.

    Preview of Info-Tech's 'DRP Publishing and Management Solution Evaluation Tool'.

    The DRP Publishing and Management Solution Evaluation Tool helps you to evaluate the tools included in this section.

    Don’t think of a business continuity management (BCM) tool as a silver bullet; know what you’re getting out of it

    Portability/External Access:
    • Pros: Typically a SaaS option provides built-in external access with appropriate security and user administration to vary access rights.
    • Cons: Degree of external access is often dependent on the vendor.
    Maintainability/Usability:
    • Pros: Built-in templates encourage consistency and guide initial content development by indicating what details need to be captured.
    • Pros: Built-in document management (e.g. version control, metadata support), centralized access/navigation to required documents, and some automation (e.g. update contacts throughout the system).
    • Cons: Not a silver bullet. You still have to do the work to define and capture your processes.
    • Cons: Requires end-user and administrator training.
    Cost/Effort:
    • Pros: For large enterprises, the convenience of built-in document management and templates can outweigh the cost.
    • Cons: Expect leading DRP tools to cost $20K or more per year.

    About this approach:
    BCM tools are solutions that provide templates, tools, and document management to create BC and DR documentation.

    Info-Tech Insight

    The business case for a BCM tool is built by answering the following questions:

    • Will the BCM tool solve an unmet need?
    • Will the tool be more effective and efficient than an in-house solution?
    • Will the solution provide enhanced capabilities that an in-house solution cannot provide?

    If you cannot get a satisfactory answer to each of these questions, then opt for an in-house solution.

    “We explored a DRP tool, and it was something we might have used, but it was tens of thousands of pounds per year, so it didn’t stack up financially for us at all.” (Rik Toms, Head of Strategy – IP and IT, Cable and Wireless Communications)

    For in-house solutions, leverage tools such as SharePoint to provide document management capabilities

    Portability/External Access:
    • Pros: SharePoint is commonly web-enabled and supports external access with appropriate security and user administration.
    • Cons: Must be installed at redundant sites or be cloud-based to be effective in a crisis that takes down your primary data center.
    Maintainability/Usability:
    • Pros: Built-in document management (e.g. version control, metadata support) as well as centralized access/navigation to required documents.
    • Pros: No tool learning curve – SharePoint and MS Office would be existing solutions already used on a daily basis.
    • Cons: No built-in automation (e.g. automated updates to contacts throughout the system).
    • Cons: Consistency depends on creating templates and implementing processes for document updates, review, and approval.
    Cost/Effort:
    • Pros: Using existing tools, so this is a sunk cost in terms of capex.
    • Cons: Additional effort required to create templates and manage the documentation library.

    About this approach:
    DRPs and SOPs most often start as MS Office documents, even if there is a DRP tool available. For organizations that elect to bypass a formal DRP tool, and most do, the biggest gap they have to overcome is document management.

    Many organizations are turning to SharePoint to meet this need. For those that already have SharePoint in place, it makes sense to further leverage SharePoint for DR documentation and day-to-day SOPs.

    For SharePoint to be a practical solution, the documentation must still be accessible if the primary data center is down, e.g. by having redundant SharePoint instances at multiple in-house locations, or using a cloud-based SharePoint solution.

    “Just about everything that a DR planning tool does, you can do yourself using homegrown solutions or tools that you're already familiar with such as Word, Excel, and SharePoint.” (Allen Zuk, President and CEO, Sierra Management Consulting)

    A healthcare company uses SharePoint as its DRP and SOP documentation management solution

    CASE STUDY Healthcare

    • This organization is responsible for 50 medical facilities across three states.
    • It explored DRP tools, but didn’t find the right fit, so it has developed an in-house solution based in SharePoint. While DRP tools have improved, the organization no longer needs that type of solution. Its in-house solution is meeting its needs.
    • It has SharePoint instances at multiple locations to ensure availability if one site is down.

    Documentation Strategy

    • Created an IT operations library in SharePoint for DR and SOPs, from basic support to bare-metal restore procedures.
    • SOPs are linked from SharePoint to the virtual help desk for greater accessibility.
    • Where practical, diagrams and flowcharts are used, e.g. DR process flowcharts and network services SOPs dominated by diagrams and flowcharts.

    Management Strategy

    • Directors and the CIO have made finishing off SOPs their performance improvement objective for the year. The result is staff have made time to get this work done.
    • Status updates are posted monthly, and documentation is a regular agenda item in leadership meetings.
    • Regular tabletop testing validates documentation and ensures familiarity with procedures, including where to find required information.

    Results

    • Dependency on a few key individuals has been reduced. All relevant staff know what they need to do and where to access required documentation.
    • SOPs are enabling DR training as well as day-to-day operations training for new staff.
    • The organization has a high confidence in its ability to recovery from a disaster within established timelines.

    Explore using a wiki site as an inexpensive alternative to SharePoint and other content management solutions

    Portability/External Access:
    • Pros: Wiki sites can support external access as with any web solution.
    • Cons: Must be installed at redundant sites, hosted, or cloud-based to be effective in a crisis that takes down your primary data center.
    Maintainability/Usability:
    • Pros: Built-in document management (version control, metadata support, etc.) as well as centralized access/navigation to required information.
    • Pros: Authorized users can make updates dynamically, depending on how much restriction you have on the site.
    • Cons: No built-in automation (e.g. automated updates to contacts throughout the system).
    • Cons: Consistency depends on creating templates and implementing processes for document updates, review, and approval.
    Cost/Effort:
    • Pros: An inexpensive option compared to traditional content management solutions such as SharePoint.
    • Cons: Learning curve if wikis are new to your organization.

    About this approach:
    Wiki sites are websites where users collaborate to create and edit the content. Wikipedia is an example.

    While wiki sites are typically used for collaboration and dynamic content development, the traditional collaborative authoring model can be restricted to provide structure and an approval process.

    Several tools are available to create and manage wiki sites (and other collaboration solutions), as outlined in the following research:

    Info-Tech Insight

    If your organization is not already using wiki sites, this technology can introduce a culture shock. Start slow by using a wiki site within a specific department or for a particular project. Then evaluate how well your staff adapt to this technology as well as its potential effectiveness in your organization. Refer to our collaboration strategy research for additional guidance.

    For small IT shops, distributing documentation to key staff (e.g. via a USB drive) can still be effective

    Portability/External Access:
    • Pros: Appropriate staff have the documentation with them; there is no need to log into a remote site or access a tool to get at the information.
    • Cons: Relies on staff to be diligent about ensuring they have the latest documentation and keep it with them (not leave it in their desk drawer).
    Maintainability/Usability:
    • Pros: With this strategy, MS Office (or equivalent) is used to create and maintain the documentation, so there is no learning curve.
    • Pros: Simple, straightforward methodology – keep the master on a network drive, and download a copy to your USB drive.
    • Cons: No built-in automation (e.g. automated updates to contact information) or document management (e.g. version control).
    • Cons: Consistency depends on creating templates and implementing rigid processes for document updates, review, and approval.
    Cost/Effort:
    • Pros: Little to no cost and no tool management required.
    • Cons: “Manual” document management requires strict attention to process for version control, updates, approvals, and distribution.

    About this approach:
    With this strategy, your ERT and key IT staff keep a copy of your DRP and relevant documentation with them (e.g. on a USB drive). If the primary site experiences a major event, they have ready access to the documentation.

    Fifty percent of respondents in our recent survey use this strategy. A common scenario is to use a shared network drive or a solution such as SharePoint as the master centralized repository, but distribute a copy to key staff.

    Info-Tech Insight

    This approach can have similar disadvantages as using hard copies. Ensuring the USB drives are up to date, and that all staff who might need access have a copy, can become a burdensome process. More often, USB drives are updated periodically, so there is the risk that the information will be out of date or incomplete.

    Avoid extensive use of paper copies of DR documentation

    DR documents need to be easy to update, accessible from anywhere, and searchable. Paper doesn’t meet these needs.

    Portability/External Access:
    • Pros: Does not rely on technology or power.
    • Cons: Requires all staff who might be involved in a DR to have a copy, and to have it with them at all times, to truly have access at any time from anywhere.
    Maintainability/Usability:
    • Pros: In terms of usability, again there is no dependence on technology.
    • Cons: Updates need to be printed and distributed to all relevant staff every time there is a change to ensure staff have access to the latest, most accurate documentation if a disaster occurred. You can’t schedule disasters, so information needs to be current all the time.
    • Cons: Navigation to other information is manual – flipping through pages, etc. No searching or hyperlinks.
    Cost/Effort:
    • Pros: No technology system to maintain, aside from what you use for printing.
    • Cons: Printing expenses are actually among the highest incurred by organizations, and this adds to it.
    • Cons: Labor intensive due to need to print and physically distribute documentation updates.

    About this approach:
    Traditionally DRPs are printed and distributed to managers and/or kept in a central location at both the primary site and a secondary site. In addition, wallet cards are distributed that contain key information such as contact numbers.

    A wallet card or even a few printed copies of your high-level DRP for general reference can be helpful, but paper is not a practical solution for your overall DR documentation library, particularly when you include SOPs for recovery procedures.

    One argument in favor of paper is there is no dependency on power during a crisis. However, in a power outage, staff can use smartphones and potentially laptops (with battery power) to access electronically stored documentation to get through first response steps. In addition, your DR site should have backup power to be an appropriate recovery site.

    Optional: Partial list of BCM tool vendors

    A partial list of BCM tool vendors, including: Business Protector, catalyst, clearview, ContinuityLogic. Fusion, Logic Manager, Quantivate, RecoveryPlanner.com, MetricStream, SimpleRisk, riskonnect, Strategic BCP - ResilienceONE, RSA, and Sungard Availability Services.

    The list is only a partial list of BCM tool vendors. The order in which vendors are presented, and inclusion in this list, does not represent an endorsement.

    Optional: Use our list of requirements as a foundation for selecting and reviewing BCM tools

    Supporting Tool icon 2.1.2 BCM Tool – RFP Selection Criteria

    If a BCM tool is the best option for your environment, expedite the evaluation process with our BCM Tool – RFP Selection Criteria.

    Through advisory services, workshops, and consulting engagements, we have created this BCM Tool Requirements List. The featured requirements includes the following categories:

    1. Integrations
    2. Planning and Monitoring
    3. Administration
    4. Architecture
    5. Security
    6. Support and Training
    Preview of the Info-Tech template 'BCM Tool – RFP Selection Criteria'.

    This BCM Tool – RFP Selection Criteria can be appended to an RFP. You can leverage Info-Tech’s RFP Template if your organization does not have one.

    Info-Tech can write full RFPs

    As part of a consulting engagement, Info-Tech can write RFPs for BCM tools and provide a customized scoring tool based on your environment’s unique requirements.

    Phase 3: Keep Your DRP Relevant Through Maintenance Best Practices

    Step 3.1: Integrate DRP maintenance into core IT processes

    PHASE 1
    PHASE 2
    PHASE 3
    1.11.21.32.13.13.2
    Start with a Recovery WorkflowCreate Supporting DocumentationWrite the DRP SummarySelect DRP Publishing StrategyIntegrate into Core IT ProcessesConduct an Annual Focused Review

    This step will walk you through the following activities:

    • Integrate DRP maintenance with Project Management.
    • Integrate DRP considerations into Change Management.
    • Integrate with Performance Management.

    This step involves the following participants:

    • DRP Owner
    • Head of Project Management Office
    • Head of Change Advisory Board
    • CIO

    Outcomes of this step

    • Updated project intake form.
    • Updated change management practice.
    • Updated performance appraisals.

    3.1 — Incorporate DRP maintenance into core IT processes

    Focusing on these three processes will help ensure that your plan stays current, accurate, and usable.

    The Info-Tech / COBIT5 'IT Management and Governance Framework' with three processes highlighted: 'MEA01 Performance Measurement', 'BAI06 Change Management', and 'BAI01 Project Management'.

    Info-Tech Best Practice

    Prioritize quick wins that will have large benefits. The advice presented in this section offers easy ways to help keep your DRP up to date. These simple solutions can save a lot of time and effort for your DRP team as opposed to more intricate changes to the processes above.

    Assess how new projects impact service criticality and DR requirements upfront during project intake

    		 Icon for process 'BAI01 Project Management'.
    Supporting Tool icon 3.1.1 Sample Project Intake Form Addendum

    Understand the RTO/RPO requirements and IT impacts for new or enhanced services to ensure appropriate provisioning and overall DRP updates.

    • Have submitters include service continuity requirements. This information can be inserted into your business impact analysis. Use similar language that you use in your own BIA.
      • The submitter should know how critical the resulting project will be. Any items that the submitter doesn’t know, the Project Steering Committee should investigate.
    • Have IT assess the impact on the DRP. The submitter will not know how the DRP will be impacted directly. Ask the project committee to consider how DRP documentation and the DR environment will need to be changed due to the project under consideration.

    Note: The goal is not to make DR a roadblock, but rather to ensure project requirements will be met – including availability and DR requirements.

    Preview of the Info-Tech template 'Project Intake Form'.

    This Project Intake Form asks the submitter to fill out the availability and criticality requirements for the project.

    Leverage your change management process to identify required DRP updates as they occur

    		 Icon for process 'BAI06 Change Management'.

    Avoid the year-end rush to update your DRP. Keeping it up to date as changes occur saves time in the long run and ensures your plan is accurate when you need it.

    • As part of your change management process, identify potential updates to:
      • System documentation (e.g. configuration settings).
      • Recovery procedures (e.g. if a system has been virtualized, that changes the recovery procedure).
      • Your DR environment (e.g. system configuration updates for standby systems).
    • Keep track of how often a system has changed. Relevant DRP documentation might be due for a deeper review:
      • After a system has been changed ten times (even from routine changes), notify your DRP Manager to flag the relevant DRP documentation for review.
      • As part of formal DRP reviews, pay closer attention to DRP documentation for the flagged systems.
    Preview of the Info-Tech template 'Disaster Recovery Change Management'.

    This template asks the submitter to fill out the availability and criticality requirements for the project.

    For change management best practices beyond DRP considerations, please see Optimize Change Management.

    Integrate documentation into performance measurement and performance management

    		 Icon for process 'MEA01 Performance Measurement'.

    Documentation is a necessary evil – few like to create it and more immediate tasks take priority. If it isn’t scheduled and prioritized, it won’t happen.

    Why documentation is such a challenge

    How management can address these challenges
    We all know that IT staff typically do not like to write documentation. That’s not why they were hired, and good documentation is not what gets them promoted. Include documentation deliverables in your IT staff’s performance appraisal to stress the importance of ensuring documentation is up to date, especially where it might impact DR success.
    Similarly, documentation is secondary to more urgent tasks. Time to write documentation is often not allocated by project managers. Schedule time for developing documentation, just like any other project, or it won’t happen.
    Writing manuals is typically a time-intensive task. Focus on what is necessary for another experienced IT professional to execute the recovery. As discussed earlier, often a diagram or checklist is good enough and actually far more usable in a crisis.

    “Our directors and our CIO have tied SOP work to performance evaluations, and SOP status is reviewed during management meetings. People have now found time to get this work done.” (Assistant Director – IT Operations, Healthcare Industry)

    Step 3.2: Conduct an Annual Focused Review

    PHASE 1
    PHASE 2
    PHASE 3
    1.11.21.32.13.13.2
    Start with a Recovery WorkflowCreate Supporting DocumentationWrite the DRP SummarySelect DRP Publishing StrategyIntegrate into Core IT ProcessesConduct an Annual Focused Review

    This step will walk you through the following activities:

    1. Identify components of your DRP to refresh.
    2. Identify organizational changes requiring further focus.
    3. Test your DRP and identify problems.
    4. Correct problems identified with DRP.

    This step involves the following participants:

    • DRP Owner
    • System SMEs
    • Backup DR Personnel

    Outcomes of this step

    • An actionable, up-to-date DRP.

    Info-Tech Insight

    Testing is a waste of time and resources if you do not fix what’s broken. Tabletop testing is effective at uncovering gaps in your DR processes, but if you don’t address those gaps, then your DRP will still be unusable in a disaster.

    Set up a safety net to capture changes that slipped through the cracks with a focused review process

    Evaluate documentation supporting high-priority systems, as well as documentation supporting IT systems that have been significantly changed.

    • Ideally you’re maintaining documentation as you go along. But you need to have an annual review to catch items that may have slipped through.
    • Don’t review everything. Instead, review:
      • IT systems that have had 10+ changes: small changes and updates can add up over time. Ensure:
        • The plans for these systems are updated for changes (e.g. configuration changes).
        • SMEs and backup personnel are familiar with the changes.
      • Tier 1 / Gold Systems: Ensure that you can still recover tier 1 systems with your existing DRP documentation.
    • Track documentation issues that you discovered with your ticketing system or service desk tool to ensure necessary documentation changes are made.
    1. Annual Focused Review
    2. Tier 1 Systems
    3. Significantly Changed Systems
    4. Organizational Changes

    Identify larger changes, both organizational and within IT, that necessitate DRP updates

    During your focused review, consider how organizational changes have impacted your DRP.

    The COBIT 5 Enablers provide a foundation for this analysis. Consider:

    • Changes in regulatory requirements: Are there new requirements for IT that are not reflected in your DRP? Is the organization required to comply with any additional regulations?
    • Changes to organizational structures, business processes, and how employees work: Can employees still be productive once tier 1 services are restored or have RTOs changed? Has organizational turnover impacted your DRP?
    • SMEs leaving or changing roles: Can IT still execute your DRP? Are there still people for all the key roles?
    • Changes to IT infrastructure and applications: Can the business still access the information they need during a disaster? Is your BIA still accurate? Do new services need to be considered tier 1?

    Info-Tech Best Practice

    COBIT 5 Enablers
    What changes need to be reflected in your DRP?

    A cycle visualization titled 'Disaster Recovery Plan'. Starting at 'Changes in Regulatory Requirements', it proceeds clockwise to 'Organizational Structure', 'Changes in Business Processes', and 'How Employees Work', before it returns to DRP. Then 'Changes to Applications', 'Changes to Infrastructure', 'SMEs Leaving or Changing Roles', and then back to the DRP.

    Create a plan during your annual focused review to test your DRP throughout the year

    Regardless of your documentation approach, training and familiarity with relevant procedures is critical.

    • Start with tabletop exercises and progress to technology-based testing (simulation, parallel, and full-scale testing).
    • Ask staff to reference documentation while testing, even if they do not need to. This practice helps to confirm documentation accuracy and accessibility.
    • Incorporate cross-training in DR testing. This gives important experience to backup personnel and will further validate that documents are complete and accurate.
    • Track any discovered documentation issues with your ticketing system or project tracking tools to ensure necessary documentation changes are made.

    Example Test Schedule:

    1. Q1: Tabletop testing shadowed by backup personnel
    2. Q2: Tabletop testing led by backup personnel
    3. Q3: Technology-based testing
    4. Annual Focused Review: Review Results

    Reference this blueprint for guidance on DRP testing plans: Reduce Costly Downtime Through DR Testing

    Appendix A: XMPL Case Study

    Follow XMPL Medical’s journey through DR documentation

    CASE STUDY

    Industry Healthcare
    Source Created by amalgamating data from Info-Tech’s client base

    Streamline your documentation and maintenance process by following the approach outlined in XMPL Medical’s journey to an end-to-end DRP.

    Outline of the Disaster Recovery Plan

    XMPL’s disaster recovery plan includes its business impact analysis and a subset of tier 1 and tier 2 patient care applications.

    Its DRP includes incident response flowcharts, system recovery checklists, and a communication plan. Its DRP also references IT operations documentation (e.g. asset management documents, system specs, and system configuration docs), but this material is not published with the example documentation.

    Resulting Disaster Recovery Plan

    XMPL’s DRP includes actionable documents in the form of high-level disaster response plan flowcharts and system recovery checklists. During an incident, the DR team is able to clearly see the items for which they are responsible.

    Disaster Recovery Plan
    • Recovery Workflow
    • Business Impact Analysis
    • DRP Summary
    • System Recovery Checklists
    • Communication, Assessment, and Disaster Declaration Plan

    Info-Tech Best Practice

    XMPL Medical’s disaster recovery plan illustrates an effective DRP. Model your end-to-end disaster recovery plan after XMPL’s completed templates. The specific data points will differ from organization to organization, but the structure of each document will be similar.

    Model your disaster recovery documentation off of our example

    CASE STUDY

    Industry Healthcare
    Source Created by amalgamating data from Info-Tech’s client base

    Recovery Workflow:

    • Recovery Workflows (PDF, VSDX)

    Recovery Procedures (Systems Recovery Playbook):

    • DR Notification, Assessment, and Disaster Declaration Plan
    • Systems Recovery Playbook
    • Network Topology Diagrams

    Additional Reference Documentation:

    • DRP Workbook
    • Business Impact Analysis
    • DRP Summary Document

    Use our structure to create your practical disaster recovery plan.

    Appendix B: Summary, Next Steps, and Bibliography

    Insight breakdown

    Use visual-based documentation instead of a traditional DRP manual.

    • Flowcharts, checklists, and diagrams are more concise, easier to maintain, and more effective in a crisis.
    • Write for an IT audience and focus on how to recover. You don’t need 30 pages of fluff describing the purpose of the document.

    Create your DRP in layers to keep the work manageable.

    • Start with a recovery workflow to ensure a coordinated response, and build out supporting documentation over time.

    Prioritize quick wins to make DRP maintenance easier and more likely to happen.

    • Incorporate DRP maintenance into change management and project intake procedures to systematically update and refine the DR documentation. Don’t save up changes for a year-end blitz, which turns document maintenance into an onerous project.

    Summary of accomplishment

    Knowledge Gained

    • How to create visual-based DRP documentation
    • How to integrate DRP maintenance into core IT processes

    Processes Optimized

    • DRP documentation creation
    • DRP publishing tool selection
    • DRP documentation maintenance

    Deliverables Completed

    • DRP documentation
    • Strategy for publishing your DRP
    • Modified project-intake form
    • Change management checklist for DR considerations

    Project step summary

    Client Project: Document and Maintain Your Disaster Recovery Plan

    • Create a recovery workflow.
    • Create supporting DRP documentation.
    • Write a summary for your DRP.
    • Decide on a publishing strategy.
    • Incorporate DRP maintenance into core IT processes.
    • Conduct an annual focused review.

    Info-Tech Insight

    This project has the ability to fit the following formats:

    • Onsite workshop by Info-Tech Research Group consulting analysts.
    • Do-it-yourself with your team.
    • Remote delivery (Info-Tech Guided Implementation).

    Related Info-Tech research

    Create a Right-Sized Disaster Recovery Plan
    Close the gap between your DR capabilities and service continuity requirements.

    Reduce Costly Downtime Through DR Testing
    Improve the accuracy of your DRP and your team’s ability to efficiently execute recovery procedures through regular DR testing.

    Create Visual SOP Documents that Drive Process Optimization, Not Just Peace of Mind
    Go beyond satisfying auditors to drive process improvement, consistent IT operations, and effective knowledge transfer.

    Prepare for a DRP Audit
    Assess your current DRP maturity, identify required improvements, and complete an audit-ready DRP summary document.

    Bibliography

    A Structured Approach to Enterprise Risk Management (ERM) and the Requirements of ISO 31000. The Association of Insurance and Risk Managers, Alarm: The Public Risk Management Association, and The Institute of Risk Management, 2010.

    “APO012: Manage Risk.” COBIT 5: Enabling Processes. ISACA, 2012.

    Bird, Lyndon, Ian Charters, Mel Gosling, Tim Janes, James McAlister, and Charlie Maclean-Bristol. Good Practice Guidelines: A Guide to Global Good Practice in Business Continuity. Global ed. Business Continuity Institute, 2013.

    COBIT 5: A Business Framework for the Governance and Management of Enterprise IT. ISACA, 2012.

    “EDM03: Ensure Risk Optimisation.” COBIT 5: Enabling Processes. ISACA, 2012.

    Risk Management. ISO 31000:2009.

    Rothstein, Philip Jan. Disaster Recovery Testing: Exercising Your Contingency Plan. Rothstein Associates: 1 Oct. 2007.

    Societal Security – Business continuity management systems – Guidance. ISO 22313:2012.

    Societal Security – Business continuity management systems – Requirements. ISO 22301:2012.

    Understanding and Articulating Risk Appetite. KPMG, 2008.

    Enterprise Network Design Considerations

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    • Parent Category Name: Network Management
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    Security, risk, and trust models play into how networks are designed and deployed. If these models are not considered during network design, band-aids and workarounds will be deployed to achieve the needed goals, potentially bypassing network controls.

    Our Advice

    Critical Insight

    The cloud “gold rush” has made it attractive for many enterprises to migrate services off the traditional network and into the cloud. These services are now outside of the traditional network and associated controls. This shifts the split of east-west vs. north-south traffic patterns, as well as extending the network to encompass services outside of enterprise IT’s locus of control.

    Impact and Result

    Where users access enterprise data or services and from which devices dictate the connectivity needed. With the increasing shift of work that the business is completing remotely, not all devices and data paths will be under the control of IT. This shift does not allow IT to abdicate from the responsibility to provide a secure network.

    Enterprise Network Design Considerations Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Enterprise Network Design Considerations Deck – A brief deck that outlines key trusts and archetypes when considering enterprise network designs.

    This blueprint will help you:

    • Enterprise Network Design Considerations Storyboard

    2. Enterprise Network Roadmap Technology Assessment Tool – Build an infrastructure assessment in an hour.

    Dispense with detailed analysis and customizations to present a quick snapshot of the road ahead.

    • Enterprise Network Roadmap Technology Assessment Tool
    [infographic]

    Further reading

    Enterprise Network Design Considerations

    It is not just about connectivity.

    Executive Summary

    Info-Tech Insight

    Connectivity and security are tightly coupled

    Security, risk, and trust models play into how networks are designed and deployed. If these models are not considered during network design, band-aids and workarounds will be deployed to achieve the needed goals, potentially bypassing network controls.

    Many services are no longer within the network

    The cloud “gold rush” has made it attractive for many enterprises to migrate services off the traditional network and into the cloud. These services are now outside of the traditional network and associated controls. This shifts the split of east-west vs. north-south traffic patterns, as well as extending the network to encompass services outside of enterprise IT’s locus of control.

    Users are demanding an anywhere, any device access model

    Where users access enterprise data or services and from which devices dictate the connectivity needed. With the increasing shift of work that the business is completing remotely, not all devices and data paths will be under the control of IT. This shift does not allow IT to abdicate from the responsibility to provide a secure network.

    Enterprise networks are changing

    The new network reality

    The enterprise network of 2020 and beyond is changing:

    • Services are becoming more distributed.
    • The number of services provided “off network” is growing.
    • Users are more often remote.
    • Security threats are rapidly escalating.

    The above statements are all accurate for enterprise networks, though each potentially to differing levels depending on the business being supported by the network. Depending on how affected the network in question currently is and will be in the near future, there are different common network archetypes that are best able to address these concerns while delivering business value at an appropriate price point.

    High-Level Design Considerations

    1. Understand Business Needs

      2. Understand what the business needs are and where users and resources are located.

    2. Define Your Trust Model

      3. Trust is a spectrum and tied tightly to security.

    3. Align With an Archetype

      4. How will the network be deployed?

    4. Understand Available Tooling

      5. What tools are in the market to help achieve design principles?

    Understand business needs

    Mission

    Never ignore the basics. Start with revisiting the mission and vision of the business to address relevant needs.

    Users

    Identify where users will be accessing services from. Remote vs. “on net” is a design consideration now more than ever.

    Resources

    Identify required resources and their locations, on net vs. cloud.

    Controls

    Identify required controls in order to define control points and solutions.

    Define a trust model

    Trust is a spectrum

    • There is a spectrum of trust, from fully trusted to not trusted at all. Each organization must decide for their network (or each area thereof) the appropriate level of trust to assign.
    • The ease of network design and deployment is directly proportional to the trust spectrum.
    • When resources and users are outside of direct IT control, the level of appropriate trust should be examined closely.

    Implicit

    Trust everything within the network. Security is perimeter based and designed to stop external actors from entering the large trusted zone.

    Controlled

    Multiple zones of trust within the network. Segmentation is a standard practice to separate areas of higher and lower trust.

    Zero

    Verify trust. The network is set up to recognize and support the principle of least privilege where only required access is supported.

    Align with an archetype

    Archetypes are a good guide

    • Using a defined archetype as a guiding principle in network design can help clarify appropriate tools or network structures.
    • Different aspects of a network can have different archetypes where appropriate (e.g. IT vs. OT [operational technology] networks).

    Traditional

    Services are provided from within the traditional network boundaries and security is provided at the network edge.

    Hybrid

    Services are provided both externally and from within the traditional network boundaries, and security is primarily at the network edge.

    Inverted

    Services are provided primarily externally, and security is cloud centric.

    Traditional networks

    Resources within network boundaries

    Moat and castle security perimeter

    Abstract

    A traditional network is one in which there are clear boundaries defined by a security perimeter. Trust can be applied within the network boundaries as appropriate, and traffic is generally routed through internally deployed control points that may be centralized. Traditional networks commonly include large firewalls and other “big iron” security and control devices.

    Network Design Tenets

    • The full network path from resource to user is designed, deployed, and controlled by IT.
    • Users external to the network must first connect to the network to gain access to resources.
    • Security, risk, and trust controls will be implemented by internal enterprise hardware/software devices.

    Control

    In the traditional network, it is assumed that all required control points can be adequately deployed across hardware/software that is “on prem” and under the control of central IT.

    Info-Tech Insight

    With increased cloud services provided to end users, this network is now more commonly used in data centers or OT networks.

    Traditional networks

    The image contains an example of what traditional networks look like, as described in the text below.

    Defining Characteristics

    • Traffic flows in a defined path under the control of IT to and from central IT resources.
    • Due to visibility into, and the control of, the traffic between the end user and resources, IT can relatively simply implement the required security controls on owned hardware.

    Common Components

    • Traditional offices
    • Remote users/road warriors
    • Private data center/colocation space

    Hybrid networks

    Resources internal and external to network

    Network security perimeter combined with cloud protection

    Abstract

    A hybrid network is one that combines elements of a traditional network with cloud resources. As some of these resources are not fully under the control of IT and may be completely “offnet” or loosely coupled to the on-premises network, the security boundaries and control points are less likely to be centralized. Hybrid networks allow the flexibility and speed of cloud deployment without leaving behind traditional network constructs. This generally makes them expensive to secure and maintain.

    Network Design Tenets

    • The network path from resource to user may not be in IT’s locus of control.
    • Users external to the network must first connect to the network to gain access to internal resources but may directly access publicly hosted ones.
    • Security, risk, and trust controls may potentially be implemented by a mixture of internal enterprise hardware/software devices and external control points.

    Control

    The hallmark of a hybrid network is the blending of public and private resources. This blending tends to necessitate both public and private points of control that may not be homogenous.

    Info-Tech Insight

    With multiple control points to address, take care in simplifying designs while addressing all concerns to ease operational load.

    Hybrid networks

    The image contains an example of what hybrid networks look like, as described in the text below.

    Defining Characteristics

    • Traffic flows to central resources across a defined path under the control of IT.
    • Traffic to cloud assets may be partially under the control of IT.
    • For central resources, the traffic to and from the end user can have the required security controls relatively simply implemented on owned hardware.
    • For public cloud assets, IT may or may not have some control over part of the path.

    Common Components

    • Traditional offices
    • Remote users/road warriors
    • Private data center/colocation space
    • Public cloud assets (IaaS/PaaS/SaaS)

    Inverted perimeter

    Resources primarily external to the network

    Security control points are cloud centric

    Abstract

    An inverted perimeter network is one in which security and control points cover the entire workflow, on or off net, from the consumer of services through to the services themselves with zero trust. Since the control plane is designed to encompass the workflow in a secure manner, much of the underlying connectivity can be abstracted. In an extreme version of this deployment, IT would abstract end-user access, and any cloud-based or on-premises resources would be securely published through the control plane with context-aware precision access.

    Network Design Tenets

    • The network path from resource to user is abstracted and controlled by IT through services like secure access service edge (SASE).
    • Users only need internet access and appropriate credentials to gain access to resources.
    • Security, risk, and trust controls will be implemented through external cloud based services.

    Control

    An inverted network abstracts the lower-layer connectivity away and focuses on implementing a cloud-based zero trust control plane.

    Info-Tech Insight

    This model is extremely attractive for organizations that consume primarily cloud services and have a large remote work force.

    Inverted networks

    The image contains an example of what inverted networks look like, as described in the text below.

    Defining Characteristics

    • The end user does not have to be in a defined location.
    • All central resources that are to be accessed are hosted on cloud resources.
    • IT has little to no control of the path between the end user and central resources.

    Common Components

    • Traditional offices
    • Regent offices/shared workspaces
    • Remote users/road warriors
    • Public cloud assets (IaaS/PaaS/SaaS)

    Understand available tooling

    Don’t buy a hammer and go looking for nails

    • A network archetype must be defined in order to understand what tools (hardware or software) are appropriate for consideration in a network build or refresh.
    • Tools are purpose built and generally designed to solve specific problems if implemented and operated correctly. Choose the tools to align with the challenges that you are solving as opposed to choosing tools and then trying to use those purchases to overcome challenges.
    • The purchase of a tool does not allow for abdication of proper design. Tools must be chosen appropriately and integrated properly to orchestrate the best solutions. Purchasing a tool and expecting the tool to solve all your issues rarely succeeds.

    “It is essential to have good tools, but it is also essential that the tools should be used in the right way.” — Wallace D. Wattles

    Software-defined WAN (SD-WAN)

    Simplified branch office connectivity

    Archetype Value: Traditional Networks

    What It Is Not

    SD-WAN is generally not a way to slash spending by lowering WAN circuit costs. Though it is traditionally deployed across lower cost access, to minimize risk and realize the most benefits from the platform many organizations install multiple circuits with greater bandwidths at each endpoint when replacing the more costly traditional circuits. Though this maximizes the value of the technology investment, it will result in the end cost being similar to the traditional cost plus or minus a small percentage.

    What It Is

    SD-WAN is a subset of software-defined networking (SDN) designed specifically to deploy a secure, centrally managed, connectivity agnostic, overlay network connecting multiple office locations. This technology can be used to replace, work in concert with, or augment more traditional costly connectivity such as MPLS or private point to point (PtP) circuits. In addition to the secure overlay, SD-WAN usually also enables policy-based, intelligent controls, based on traffic and circuit intelligence.

    Why Use It

    You have multiple endpoint locations connected by expensive lower bandwidth traditional circuits. Your target is to increase visibility and control while controlling costs if and where possible. Ease of centralized management and the ability to more rapidly turn up new locations are attractive.

    Cloud access security broker (CASB)

    Inline policy enforcement placed between users and cloud services

    Archetype Value: Hybrid Networks

    What It Is Not

    CASBs do not provide network protection; they are designed to provide compliance and enforcement of rules. Though CASBs are designed to give visibility and control into cloud traffic, they have limits to the data that they generally ingest and utilize. A CASB does not gather or report on cloud usage details, licencing information, financial costing, or whether the cloud resource usage is aligned with the deployment purpose.

    What It Is

    A CASB is designed to establish security controls beyond a company’s environment. It is commonly deployed to augment traditional solutions to extend visibility and control into the cloud. To protect assets in the cloud, CASBs are designed to provide central policy control and apply services primarily in the areas of visibility, data security, threat protection, and compliance.

    Why Use It

    You a mixture of on-premises and cloud assets. In moving assets out to the cloud, you have lost the traditional controls that were implemented in the data center. You now need to have visibility and apply controls to the usage of these cloud assets.

    Secure access service edge (SASE)

    Convergence of security and service access in the cloud

    Archetype Value: Inverted Networks

    What It Is Not

    Though the service will consist of many service offerings, SASE is not multiple services strung together. To present the value proposed by this platform, all functionality proposed must be provided by a single platform under a “single pane of glass.” SASE is not a mature and well-established service. The market is still solidifying, and the full-service definition remains somewhat fluid.

    What It Is

    SASE exists at the intersection of network-as-a-service and network-security-as-a-service. It is a superset of many network and security cloud offerings such as CASB, secure web gateway, SD-WAN, and WAN optimization. Any services offered by a SASE provider will be cloud hosted, presented in a single stack, and controlled through a single pane of glass.

    Why Use It

    Your network is inverting, and services are provided primarily as cloud assets. In a full realization of this deployment’s value, you would abstract how and where users gain initial network access yet remain in control of the communications and data flow.

    Activity

    Understand your enterprise network options

    Activity: Network assessment in an hour

    • Learn about the Enterprise Network Roadmap Technology Assessment Tool
    • Complete the Enterprise Network Roadmap Technology Assessment Tool

    This activity involves the following participants:

    • IT strategic direction decision makers.
    • IT managers responsible for network.
    • Organizations evaluating platforms for mission critical applications.

    Outcomes of this step:

    • Completed Enterprise Network Roadmap Technology Assessment Tool

    Info-Tech Insight

    Review your design options with security and compliance in mind. Infrastructure is no longer a standalone entity and now tightly integrates with software-defined networks and security solutions.

    Build an assessment in an hour

    Learn about the Enterprise Network Roadmap Technology Assessment Tool.

    This workbook provides a high-level analysis of a technology’s readiness for adoption based on your organization’s needs.

    • The workbook then places the technology on a graph that measures both the readiness and fit for your organization. In addition, it provides warnings for specific issues and lets you know if you have considerable uncertainty in your answers.
    • At a glance you can now communicate what you are doing to help the company:
      • Grow
      • Save money
      • Reduce risk
    • Regardless of your specific audience, these are important stories to be able to tell.
    The image contains three screenshots from the Enterprise Network Roadmap Technology Assessment Tool.

    Build an assessment in an hour

    Complete the Enterprise Network Roadmap Technology Assessment Tool.

    Dispense with detailed analysis and customizations to present a quick snapshot of the road ahead.

    1. Weightings: Adjust the Weighting tab to meet organizational needs. The provided weightings for the overall solution areas are based on a generic firm; individual firms will have different needs.
    2. Data Entry: For each category, answer the questions for the technology you are considering. When you have completed the questionnaire, go to the next tab for the results.
    3. Results: The Enterprise Network Roadmap Technology Assessment Tool provides a value versus readiness assessment of your chosen technology customized to your organization.

    The image contains three screenshots from the Enterprise Network Roadmap Technology Assessment Tool. It has a screenshot for each step as described in the text above.

    Related Info-Tech Research

    Effectively Acquire Infrastructure Services

    Acquiring a service is like buying an experience. Don’t confuse the simplicity of buying hardware with buying an experience.

    Outsource IT Infrastructure to Improve System Availability, Reliability, and Recovery

    There are very few IT infrastructure components you should be housing internally – outsource everything else.

    Build Your Infrastructure Roadmap

    Move beyond alignment: Put yourself in the driver’s seat for true business value.

    Drive Successful Sourcing Outcomes With a Robust RFP Process

    Leverage your vendor sourcing process to get better results.

    Research Authors

    The image contains a photo of Scott Young.

    Scott Young, Principal Research Advisor, Info-Tech Research Group

    Scott Young is a Director of Infrastructure Research at Info-Tech Research Group. Scott has worked in the technology field for over 17 years, with a strong focus on telecommunications and enterprise infrastructure architecture. He brings extensive practical experience in these areas of specialization, including IP networks, server hardware and OS, storage, and virtualization.

    The image contains a photo of Troy Cheeseman.

    Troy Cheeseman, Practice Lead, Info-Tech Research Group

    Troy has over 24 years of experience and has championed large enterprise-wide technology transformation programs, remote/home office collaboration and remote work strategies, BCP, IT DRP, IT operations and expense management programs, international right placement initiatives, and large technology transformation initiatives (M&A). Additionally, he has deep experience working with IT solution providers and technology (cloud) startups.

    Bibliography

    Ahlgren, Bengt. “Design considerations for a network of information.” ACM Digital Library, 21 Dec. 2008.

    Cox Business. “Digital transformation is here. Is your business ready to upgrade your mobile work equation?” BizJournals, 1 April 2022. Accessed April 2022.

    Elmore, Ed. “Benefits of integrating security and networking with SASE.” Tech Radar, 1 April 2022. Web.

    Greenfield, Dave. “From SD-WAN to SASE: How the WAN Evolution is Progressing.” Cato Networks, 19 May 2020. Web

    Korolov, Maria. “What is SASE? A cloud service that marries SD-WAN with security.” Network World, 7 Sept. 2020. Web.

    Korzeniowski, Paul, “CASB tools evolve to meet broader set of cloud security needs.” TechTarget, 26 July 2019. Accessed March 2022.

    Recruit and Retain People of Color in IT

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    • Parent Category Name: Engage
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    • Organizations have been trying to promote equality for many years. Diversity and inclusion strategies and a myriad of programs have been implemented in companies across the world. Despite the attempts, many organizations still struggle to ensure that their workforce is representative of the populations they support or want to support.
    • IT brings another twist. Many IT companies and departments are based on the culture of white males, and underrepresented ethnic communities find it more of a challenge to fit in.
    • This sometimes means that talented minorities are less incentivized to join or stay in technology.

    Our Advice

    Critical Insight

    • Diversity and inclusion cannot be a one-time campaign or a one-off initiative.
    • For real change to happen, every leader needs to internalize the value of creating and retaining diverse teams.

    Impact and Result

    • To stay competitive, IT leaders need to be more involved and commit to a plan to recruit and retain people of color in their departments and organizations. A diverse team is an answer to innovation that can differentiate your company.
    • Treat recruiting and retaining a diverse team as a business challenge that requires full engagement. Info-Tech offers a targeted solution that will help IT leaders build a plan to attract, recruit, engage, and retain people of color.

    Recruit and Retain People of Color in IT Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should recruit and retain people of color in your IT department or organization, review Info-Tech’s methodology, and understand the ways we can support you in this endeavor.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Recruit people of color in IT

    Diverse teams are necessary to foster creativity and guide business strategies. Overcome limitations by recruiting people of color and creating a diverse workforce.

    • Recruit and Retain People of Color in IT – Phase 1: Recruit People of Color in IT
    • Support Plan
    • IT Behavioral Interview Question Library

    2. Retain people of color in IT

    Underrepresented employees benefit from an expansive culture. Create an inclusive environment and retain people of color and promote value within your organization.

    • Recruit and Retain People of Color in IT – Phase 2: Retain People of Color in IT

    Infographic

    Workshop: Recruit and Retain People of Color in IT

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Setting the Stage

    The Purpose

    Introduce challenges and concerns around recruiting and retaining people of color.

    Key Benefits Achieved

    Gain a sense of direction.

    Activities

    1.1 Introduction to diversity conversations.

    1.2 Assess areas to focus on and determine what is right, wrong, missing, and confusing.

    1.3 Obtain feedback from your team about the benefits of working at your organization.

    1.4 Establish your employee value proposition (EVP).

    1.5 Discuss and establish your recruitment goals.

    Outputs

    Current State Analysis

    Right, Wrong, Missing, Confusing Quadrant

    Draft EVP

    Recruitment Goals

    2 Refine Your Recruitment Process

    The Purpose

    Identify areas in your current recruitment process that are preventing you from hiring people of color.

    Establish a plan to make improvements.

    Key Benefits Achieved

    Optimized recruitment process

    Activities

    2.1 Brainstorm and research community partners.

    2.2 Review current job descriptions and equity statement.

    2.3 Update job description template and equity statement.

    2.4 Set team structure for interview and assessment.

    2.5 Identify decision-making structure.

    Outputs

    List of community partners

    Updated job description template

    Updated equity statement

    Interview and assessment structure

    Behavioral Question Library

    3 Culture and Management

    The Purpose

    Create a plan for an inclusive culture where your managers are supported.

    Key Benefits Achieved

    Awareness of how to better support employees of color.

    Activities

    3.1 Discuss engagement and belonging.

    3.2 Augment your onboarding materials.

    3.3 Create an inclusive culture plan.

    3.4 Determine how to support your management team.

    Outputs

    List of onboarding content

    Inclusive culture plan

    Management support plan

    4 Close the Loop

    The Purpose

    Establish mechanisms to gain feedback from your employees and act on them.

    Key Benefits Achieved

    Finalize the plan to create your diverse and inclusive workforce.

    Activities

    4.1 Ask and listen: determine what to ask your employees.

    4.2 Create your roadmap.

    4.3 Wrap-up and next steps.

    Outputs

    List of survey questions

    Roadmap

    Completed support plan

    Define Your Virtual and Hybrid Event Requirements

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    Your organization is considering holding an event online, or has been, but:

    • The organization (both on the business and IT sides) may not have extensive experience hosting events online.
    • It is not immediately clear how your formerly in-person event’s activities translate to a virtual environment.
    • Like the work-from-home transformation, bringing events online instantly expands IT’s role and responsibilities.

    Our Advice

    Critical Insight

    If you don't begin with strategy, you will fit your event to technology, instead of the other way around.

    Impact and Result

    To determine your requirements:

    • Determine the scope of the event.
    • Narrow down your list of technical requirements.
    • Use Info-Tech’s Rapid Application Selection Framework to select the right software solution.

    Define Your Virtual and Hybrid Event Requirements Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define Your Virtual and Hybrid Event Requirements Storyboard – Use this storyboard to work through key decision points involved in creating digital events.

    This deck walks you through key decision points in creating virtual or hybrid events. Then, begin the process of selecting the right software by putting together the first draft of your requirements for a virtual event software solution.

    • Define Your Virtual and Hybrid Event Requirements Storyboard

    2. Virtual Events Requirements Tool – Use this tool to begin selecting your requirements for a digital event solution.

    The business should review the list of features and select which ones are mandatory and which are nice to have or optional. Add any features not included.

    • Virtual/Hybrid Event Software Feature Analysis Tool
    [infographic]

    Further reading

    Define Your Virtual and Hybrid Event Requirements

    Accelerate your event scoping and software selection process.

    Analyst Perspective

    When events go virtual, IT needs to cover its bases.

    The COVID-19 pandemic imposed a dramatic digital transformation on the events industry. Though event ticket and registration software, mobile event apps, and onsite audio/visual technology were already important pieces of live events, the total transformation of events into online experiences presented major challenges to organizations whose regular business operations involve at least one annual mid-sized to large event (association meetings, conferences, trade shows, and more).

    Many organizations worked to shift to online, or virtual events, in order to maintain business continuity. As time went on, and public gatherings began to restart, a shift to “hybrid” events began to emerge—events that accommodate both in-person and virtual attendance. Regardless of event type, this pivot to using virtual event software, or digital event technology, brings events more closely into IT’s areas of responsibility. If you don't begin with strategy, you risk fitting your event to technology, instead of the other way around.

    If virtual and hybrid events are becoming standard forms of delivering content in your organization, use Info-Tech’s material to help define the scope of the event and your requirements, and to support your software selection process.

    Photo of Emily Sugerman
    Emily Sugerman
    Research Analyst, Infrastructure & Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    The organization (both on the business and IT sides) may not have extensive experience hosting events online.

    It is not immediately clear how a formerly in-person event’s activities translate to a virtual environment.

    Like the work-from-home transformation, bringing events online expands IT’s role and responsibilities.

    Common Obstacles

    It is not clear what technological capabilities are needed for the event, which capabilities you already own, and what you may need to purchase.

    Though virtual events remove some barriers to attendance (distance, travel), it introduces new complications and considerations for planners.

    Hybrid events introduce another level of complexity.

    Info-Tech’s Approach

    In order to determine your requirements:

    Determine the scope of the event.

    Narrow down your list of technical requirements.

    Use Info-Tech’s Rapid Application Selection Framework to select the right software solution.

    Info-Tech Insight

    If you don't begin with strategy, you will fit your event to technology, instead of the other way around.

    Your challenge

    The solution you have been using for online events does not meet your needs.

    Though you do have some tools that support large meetings, it is not clear if you require a larger and more comprehensive virtual event solution. There is a need to determine what type of technology you might need to purchase versus leveraging what you already have.

    It is difficult to quickly and practically identify core event requirements and how they translate into technical capabilities.

    Maintaining or improving audience engagement is a perpetual challenge for virtual events.

    38%
    of event professionals consider virtual event technology “a tool for reaching a wider audience as part of a hybrid strategy.”

    21%
    consider it “a necessary platform for virtual events, which remain my go-to event strategy.”

    40%
    prioritize “mid-budget all-in-one event tech solution that will prevent remote attendees from feeling like second-class participants.”

    Source: Virtual Event Tech Guide, 2022

    Common obstacles

    These barriers make this challenge difficult to address for many organizations.

    Events with networking objectives are not always well served by webinars, which are traditionally more limited in their interactive elements.

    Events that include the conducting of organizational/association business (like voting) may have bylaws that make selecting a virtual solution more challenging.

    Maintaining attendee engagement is more challenging in a virtual environment.

    Prior to the pandemic, your organization may not have been as experienced in putting on fully virtual events, putting more responsibility in your corner as IT. Navigating virtual events can also require technological competencies that your attendee userbase may not universally possess.

    Technological limitations and barriers to access can exclude potential attendees just as much as bringing events online can open up attendance to new audiences.

    Opportunity: Virtual events can significantly increase an event’s reach

    Events held virtually during the pandemic noted significant increases in attendees.

    “We had 19,000 registrations from all over the world, almost 50 times the number of people we had expected to host in Amsterdam. . . . Most of this year’s [2020] attendees would not have been able to participate in a physical GrafanaCon in Amsterdam. That was a huge win.” – Raj Dutt, Grafana Labs CEO[5]

    Event In-person Online 2022
    Microsoft Build 2019: 6,000 attendees 2020: 230,000+ registrants[1] The 2022 conference was also held virtually[3]
    Stanford Institute for Human-Centered Artificial Intelligence A few hundred attendees expected for the original (cancelled) 2020 in-person conference 2020: 30,000 attendees attended the “COVID-19 and AI” virtual conference[2] The 2022 Spring Conference was a hybrid event[4]

    [1] Kelly, 2020; [2] Price, 2020; [3] Stanford Digital Economy Lab, 2022; [4] Warren, 2022; [5] Fast Company, 2020

    Info-Tech’s methodology for defining virtual/hybrid event requirements

    A diagram that shows defining event scope, creating list of requirements, and selecting software.

    Event planning phases

    Apply project management principles to your virtual/hybrid event planning process.

    Online event planning should follow the same established principles as in-person event planning.
    Align the event’s concept and objectives with organizational goals.

    A diagram of event planning phases
    Source: Adapted from Event Management Body of Knowledge, CC BY 4.0

    Gather inputs to the planning processes

    Acquire as much of this information as possible before you being the planning process.

    Budget: Determine your organization’s budget for this event to help decide the scope of the event and the purchasing decisions you make as you plan.

    Internal human resources: Identify who in your organization is usually involved in the organization of this event and if they are available to organize this one.

    List of communication and collaboration tools: Acquire the list of the existing communication and collaboration tools you are currently licensed for. Ensure you know the following information about each tool:

    • Type of license
    • License limitations (maximum number of users)
    • Internal or external-facing tool (or capable of both)
    • Level of internal training and competency on the tool

    Decision point: Relate event goals to organizational goals

    What is driving the event?

    Your organization may hold a variety of in-person events that you now wish, for various reasons, to hold fully or partially online. Each event likely has a slightly different set of goals.

    Before getting into the details of how to transition your event online, return to the business/organizational goals the event is serving.

    Ensure each event (and each component of each event) maps back to an organizational goal.

    If a component of the event does not align to an organizational goal, assess whether it should remain as part of the event.

    Common organizational goals

    • Increase revenue
    • Increase productivity
    • Attract and retain talent
    • Improve change management
    • Carry out organizational mission
    • Identify new markets
    • Increase market share
    • Improve customer service
    • Launch new product/service

    Common event goals

    • Education/training
    • Knowledge transfer
    • Decision making
    • Professional development
    • Sales/lead generation
    • Fundraising
    • Entertainment
    • Morale boosting
    • Recognition of achievement

    Decision point: Identify your organization’s digital event vision

    What do you want the outcome of this event to be?

    Attendee goals: Who are your attendees? Why do they attend this event? What attendee needs does your event serve? What is your event’s value proposition? Are they intrinsically or extrinsically motivated to attend?

    Event goals: From the organizer perspective, why do you usually hold this event? Who are your stakeholders?

    Organizational goals: How do the event goals map to your organizational goals? Is there a clear understanding of what the event’s larger strategic purpose is.

    Common attendee goals

    Education: our attendees need to learn something new that they cannot learn on their own.
    Networking: our attendees need to meet people and make new professional connections.
    Professional development: our attendees have certain obligations to keep credentials updated or to present their work publicly to advance their careers.
    Entertainment: our attendees need to have fun.
    Commerce: our attendees need to buy and sell things.

    Decision point: Level of external event production

    Will you be completely self-managed, reliant on external event production services, or somewhere in the middle?

    You can review this after working through the other decision points and the scope becomes clearer.

    A diagram that shows Level of external event production, comparing Completely self-managed vs Fully externally-managed.

    Decision point: Assign event planning roles

    Who will be involved in planning the event? Fill/combine these roles as needed.

    Planning roles Description
    Project manager Shepherd event planning until completion while ensuring project remains on schedule and on budget.
    Event manager Correspond with presenters during leadup to event, communicate how to use online event tools/platform, perform tests with presenters/exhibitors, coordinate digital event staff/volunteers.
    Program planner Select the topics, speakers, activity types, content, streams.
    Designer and copywriter Design the event graphics; compose copy for event website.
    Digital event technologist Determine event technology requirements; determine how event technology fits together; prepare RFP, if necessary, for new hardware/software.
    Platform administrator Set up registration system/integrate registrations into platform(s) of choice; upload video files and collateral; add livestream links; add/delete staff roles and set controls and permissions; collect statistics and recordings after event.
    Commercial partner liaison Recruit sponsors and exhibitors (offer sponsorship packages); facilitate agreement/contract between commercial partners and organization; train commercial partners on how to use event technology; retrieve lead data.
    Marketing/social media Plan and execute promotional campaigns (email, social media) in the lead up to, and during, the event. Post-event, send follow-up communications, recording files, and surveys.

    Decision point: Assign event production roles

    Who will be involved in running the event?

    Event production roles Description
    Hosts/MCs Address attendees at beginning and end of event, and in-between sessions
    Provide continuity throughout event
    Introduce sessions
    Producers Prepare presenters for performance
    Begin and end sessions
    Use controls to share screens, switch between feeds
    Send backchannel messages to presenters (e.g., "Up next," "Look into webcam")
    Moderators Admit attendees from waiting room
    Moderate incoming questions from attendees
    Manage slides
    Pass questions to host/panelists to answer
    Moderate chat
    IT support Manage event technology stack
    Respond to attendee technical issues
    Troubleshoot network connectivity problems
    Ensure audio and video operational
    Start and stop session recording
    Save session recordings and files (chat, Q&As)

    Decision point: Map attendee goals to event goals to organizational goals

    Input: List of attendee benefits, List of event goals, List of organizational goals
    Output: Ranked list of event goals as they relate to attendee needs and organizational goals
    Materials: Whiteboard/flip charts
    Participants: Planning team

    1. Define attendee benefits:
      1. List the attendee benefits derived from your event (as many as possible).
      2. Rank attendee benefits from most to least important.
    2. Define event goals:
      1. List your event goals (as many as possible).
      2. Draw a connecting line to your ranked list of attendee benefits.
      3. Identify if any event goals exist with no clear relationship to attendee benefits. Discuss whether this event goal needs to be re-envisioned. If it connects to no discernible attendee benefits, consider removing it. Otherwise, figure out what attendee benefits the event goal provides.
    3. Define organizational goals:
      1. Acquire a list of your organization’s main strategic goals.
      2. Draw a connecting line from each event goal to the organizational goal it supports.
      3. If most of your event goals do not immediately seem to support an organizational goal, discuss why this is. Try to find the connection. If you cannot, discuss whether the event should proceed or be rethought.

    Decision point: Break down your event into its constituent components

    Identify your event archetype

    Decompose the event into its component parts

    Identify technical requirements that help meet event goals

    Benefits:

    • Clarify how formerly in-person events map to virtual archetypes.
    • Ensure your virtual event planning is anchored to organizational goals from the outset.
    • Streamline your virtual event tech stack planning later.

    Decision point: Determine your event archetype

    Analyze your event’s:

    • Main goals.
    • The components and activities that support those goals.
    • How these components and activities fall into people- vs. content-centric activities, and real-time vs. asynchronous activities.
    1. Conference
    2. Trade show
    3. Annual general meeting
    4. Department meeting
    5. Town hall
    6. Workshop

    A diagram that shows people- vs. content-centric activities, and real-time vs. asynchronous activities

    Info-Tech Insight

    Begin the digital event planning process by understanding how your event’s content is typically consumed. This will help you make decisions later about how best to deliver the content virtually.

    Conference

    Goals: Education/knowledge transfer; professional advancement; networking.

    Major content

    • Call for proposals/circulation of abstracts
    • Keynotes or plenary address: key talk addressed to large audience
    • Panel sessions: multiple panelists deliver address on common theme
    • Poster sessions: staffed/unstaffed booths demonstrate visualization of major research on a poster
    • Association meetings (see also AGM archetype): professional associations hold AGM as one part of a larger conference agenda

    Community

    • Formal networking (happy hours, social outings)
    • Informal networking (hallway track, peer introductions)
    • Business card exchange
    • Pre- and post-event correspondence

    Commercial Partners

    • Booth reps: Publishing or industry representatives exhibit products/discuss collaboration

    A quadrants matrix of conference

    Trade show

    Objectives: Information transfer; sales; lead generation.

    Major content

    • Live booth reps answer questions
    • Product information displayed
    • Promotional/information material distributed
    • Product demonstrations at booths or onstage
    • Product samples distributed to attendees

    Community interactions

    • Statements of intent to buy
    • Lead generation (badge scanning) of booth visitors
    • Business card exchange
    • Pre- and post-event correspondence

    A quadrants matrix of Trade show

    Annual general meeting

    Objectives: Transparently update members; establish governance and alignment.

    Meeting events

    • Updates provided to members on organization’s activities/finances
    • Decisions made regarding organization’s direction
    • Governance over organization established (elections)
    • Speakers addressing large audience from stage
    • In-camera sessions
    • Translation of proceedings
    • Real-time weighted voting
    • Minutes taken during meeting

    Administration

    • Notice given of meeting within mandated time period
    • Agenda circulated prior to meeting
    • Distribution of proxy material
    • Minutes distributed

    A quadrants matrix of Annual general meeting

    Department meeting

    Objectives: Information transfer of company agenda/initiatives; group decision making.

    Major content

    • Agenda circulated prior to meeting
    • Updates provided from senior management/leadership to employees on organization’s initiatives and direction
    • Employee questions and feedback addressed
    • Group decision making
    • Minutes taken during meeting
    • Minutes or follow-up circulated

    A quadrants matrix of department meeting

    Town hall meeting

    Objectives: Update public; answer questions; solicit feedback.

    Major content

    • Public notice of meeting announced
    • Agenda circulated prior to meeting
    • Speakers addressing large audience from stage
    • Presentation of information pertinent to public interest
    • Audience members line up to ask questions/provide feedback
    • Translation of proceedings
    • Recording of meeting archived

    A quadrants matrix of Town hall meeting

    Workshop

    Objectives: Make progress on objective; achieve consensus; knowledge transfer.

    Major content

    • Scheduling of workshop
    • Agenda circulated prior to meeting
    • Facilitator leads group activities
    • Participants develop alignment on project
    • Progress achieved on workshop project
    • Feedback on workshop shared with facilitator

    A quadrants matrix of Workshop

    Decision point: Analyze your event’s purpose and value

    Use the event archetypes to help you identify your event’s core components and value proposition.

    1. Attendee types: Who typically attends your event? Exclusively internal participants? External participants? A mix of the two?
    2. Communication: How do participants usually communicate with each other during this event? How do they communicate with the event organizers? Include both formal types of communication (listening to panel sessions) and informal (serendipitous conversations in the hallway).
    3. Connection: What types of connections do your attendees need to experience? (networking with peers; interactions with booth reps; consensus building with colleagues).
    4. Exchange of material: What kind of material is usually exchanged at this event and between whom? (Pamphlets, brochures, business cards, booth swag).
    5. Engagement: How do you usually retain attendees' attention and make sure they remain engaged throughout the event?
    6. Length: How long does the event typically last?
    7. Location and setup: Where does the event usually take place and who is involved in its setup?
    8. Success metrics: How do you usually measure your event's success?

    Info-Tech Insight

    Avoid trying to exactly reproduce the formerly in-person event online. Instead, identify the value proposition of each event component, then determine what its virtual expression could be.

    Example: Trade show

    Goals: Information transfer; sales; lead generation.

    1. Identify event component(s)
    2. Document its face-to-face expression(s)
    3. Identify the expression’s value proposition
    4. Translate the value proposition to a virtual component that facilitates overall event goal

    Event component

    Face-to-face expression

    Value proposition of component

    Virtual expression
    Attendee types Paying attendees Revenue for event organizer; sales and lead generation for booth rep Access to virtual event space
    Attendee types Booth rep Revenue for event organizer; information source for paying attendees Access to virtual event space
    Communication/connection Conversation between booth rep and attendee Lead generation for booth rep; information to inform decision making for attendee Ability to enter open video breakout session staffed by booth reps OR

    Ability to schedule meeting times with booth rep

    Multiple booth reps on hand to monitor different elements of the booth (one person to facilitate the discussion over video, another to monitor chat and Q&A)
    Communication/connection Serendipitous conversation between attendees Increased attendee contacts; fun Multiple attendees can attend the booth’s breakout session simultaneously and participate in web conferencing, meeting chat, or submit questions to Q&A
    Communication/connection Badges scanned at booth/email sign-up sheets filled out at table Lead generation for exhibitors List of visitors to booth shared with exhibitor (if consent given by attendees)

    Ability for attendees to request to be contacted for more information
    Exchange of material Catering (complimentary coffee, pastries) Obviate the need for attendees to leave the event for refreshments N/A: not included in virtual event
    Exchange of material Pamphlets, product literature, swag Portable information for attendee decision making Downloadable files (pdf)
    Location Responsibility of both the organizers (tables, chairs, venue) and booth reps (posters, handouts) Booth reps need a dedicated space where they can be easily found by attendees and advertise themselves Booth reps need access to virtual platform to upload files, images, provide booth description
    Engagement Attendees able to visit all booths by strolling through space Event organizers have a captive audience who is present in the immediacy of the event site Attendees motivated to stay in the event space and attend booths through gamification strategies (points awarded for number of booths visited or appointments booked)
    Length of event 2 full days Attendees travel to event site and spend the entire 2 days at the event, allowing them to be immersed in the event and absorb as much information in as little time as possible Exhibitors’ visiting hours will be scheduled so they work for both attendees attending in Eastern Standard Time and Pacific Time
    Metrics for success -Positive word of mouth
    -Number of registrations     		These metrics can be used to advertise to future exhibitors and attendees Number of virtual booths visited

    Number of file downloads

    Survey sent to attendees after event (favorite booths, preferred way to interact with exhibitors, suggestions for improvement, most valuable part of experience)

    Plan your metrics

    Use the analytics and reporting features available in your event technology toolset to capture the data you want to measure. Decide how each metric will impact your planning process for the next event.

    Examples of metrics:

    • Number of overall participants/registrants: Did you have more or fewer registrants/attendees than previous iterations of the event? What is the difference between number of registrants and number of real attendees?
    • Locations of participants: Where are people participating from? How many are attending for the first time? Are there new audiences you can pursue next time?
    • Most/least popular sessions: How long did people stay in the sessions and the event overall?
    • Most/least popular breakout rooms and discussion boards: Which topics should be repeated/skipped next time?
    • Social media mentions: Which topics received the most engagement on social media?
    • Surveys: What do participants report enjoying most? Least?
    • Technical failures: Can your software report on failures? Identify what technical problems arose and prepare a plan to mitigate them next time.

    Ensure the data you capture feeds into better planning for the next event

    Determine compliance requirements

    A greater event reach also means new data privacy considerations, depending on the location of your guests.

    General Data Protection Regulation (GDPR)

    Concerns over the collection of personal electronic data may not have previously been a part of your event planning considerations. However, now that your event is online, it’s wise to explore which data protection regulations apply to you. Remember, even if your organization is not located in the EU, if any of your attendees are European data subjects you may still be required to comply with GDPR, which involves the notification of data collected, allowing for opt-out options and the right to have data purged. The data must be collected for a specific purpose; if that purpose is expired, it can no longer be retained. You also have an obligation to report any breaches.

    Accessibility requirements

    What kind of accessibility laws are you subject to (AODA, WCAG2)? Regardless of compliance requirements, it is a good idea to ensure the online event follows accessibility best practices.

    Decision point: Set event policies

    What event policies need to be documented?
    How will you communicate them to attendees?

    Code of conduct

    One trend in the large event and conference space in recent years has been the development of codes of conduct that attendees are required to abide by to continue participating in the event.
    Now that your event is online, consider whether your code of conduct requires updating. Are there new types of appropriate/inappropriate online behavior that you need to define for your attendees?

    Harassment reporting

    If your organization has an event harassment reporting process, determine how this process will transfer over to the digital event.
    Ensure the reporting process has an owner and a clear methodology to follow to deal with complaints, as well as a digital reporting channel (a dedicated email or form) that is only accessed by approved staff to protect sensitive information.

    Develop a risk management plan

    Plan for how you will mitigate technical risks during your virtual event
    Provide presenters with a process to follow if technical problems arise.

    • Presenter’s internet connection cuts out
    • Attendees cannot log in to event platform
    • Attendees cannot hear/see video feed
    • What process will be followed when technical problems occur: ticketing system; chatbot; generic email accessible by all IT support assigned

    Testing/Rehearsal

    Test audio hardware: Ensure speakers use headphones/earbuds and mics (they do not have to be fancy/expensive). Relying on the computer/laptop mic can lead to more ambient noise and potential feedback problems.

    Check lighting: Avoid backlighting. Reposition speakers so they are not behind windows. Ask them to open/close shades. Add lamps as needed.

    Prevent interruptions: Before the event, ask panelists to turn phone and computer notifications to silent. Put a sign on the door saying Do not Disturb.

    Control audience view of screenshare: If your presenters will be sharing their screens, teach them how this works on the platform they are using. Advise them to exit out of any other application that is not part of their presentation, so they do not share the wrong screen unintentionally. Advise them to remove anything from the desktop that they do not want the audience to see, in case their desktop becomes visible at any point.

    Control audience view of physical environment: Before the event, advise participants to turn their cameras on and examine their backgrounds. Remove anything the audience should not be able to see.

    Test network connectivity: Send the presenters a link to a speed test and check their internet speed.

    Emergency contact: Exchange cell phone numbers for emergency backchannel conversations if problems arise on the day of the event.

    Set expectations: Presenting to an online audience feels very different to a live crowd. Prepare presenters for a lack of applause and lack of ability to see their audience, and that this does not mean the presentation was unsuccessful.

    Identify requirements

    To determine what kind of technical requirements you need to build the virtual expression of your event, consult the Virtual Event Platform Requirements Tool.

    1. If you have determined that the requirements you wish to use for the event exceed the capabilities of your existing communication and collaboration toolset, identify whether these gaps tip the scale toward purchasing a new tool. Use the requirement gaps to make the business case for purchasing a new tool.
    2. Use the Virtual Event Platform Requirements Tool to create a list of requirements.
    3. Consult the Software Reviews category for Virtual Event Platform Data Quadrant and Emotional Footprint reports.
    4. Assemble your documentation for approvals and the Rapid Application Selection Process.

    A photo of Detailed Feature Analysis Worksheet.

    Download the Virtual/Hybrid Event Software Feature Analysis Tool

    Rapid Application Selection Framework and Contract Review

    A photo of Rapid Application Selection Framework
    Launch Info-Tech’s Rapid Application Selection Framework.

    Using the requirements you’ve just gathered as a base, use Info-Tech’s complete framework to improve the efficiency and effectiveness of software selection.

    Once you’ve selected a vendor(s), review the contract. Does it define an exit strategy? Does it define when your data will be deleted? Does it set service-level agreements that you find acceptable? Leverage Info-Tech’s contract review service once you have selected the virtual event solution and have received a contract from the vendor.

    Further research

    Photo of Run Better Meetings
    Run Better Meetings

    Bibliography

    Dutt, Raj. “7 Lessons from This Company’s First-Ever Virtual Conference.” Fast Company, 29 Jul 2020. Web.

    Kelly, Samantha Murphy. “Microsoft Build Proves Splashy Tech Events Can Thrive Online.” CNN, 21 May 2020. Web.

    “Phases.” Event Management Body of Knowledge (EMBOK), n.d. Web.

    Price, Michael. “As COVID-19 Forces Conferences Online, Scientists Discover Upsides of Virtual Format.” Science, 28 Apr 2020. Web.

    “Stanford HAI Spring Conference - Key Advances in Artificial Intelligence.” Stanford Digital Economy Lab, 2022. Web.

    “Virtual Event Tech Guide 2022.” Skift Meetings, April 2022. Web.

    Warren, Tom. “Microsoft Build 2022 Will Take Place May 24th–26th.” The Verge, 30 March 2022. Web.

    Contributors

    6 anonymous contributors

    Build a Strong Technology Foundation for Customer Experience Management

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    • Parent Category Name: Customer Relationship Management
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    • Technology is a fundamental enabler of an organization’s customer experience management (CXM) strategy. However, many IT departments fail to take a systematic approach when building a portfolio of applications for supporting marketing, sales, and customer service functions.
    • The result is a costly, ineffective, and piecemeal approach to CXM application deployment (including high-profile applications like CRM).

    Our Advice

    Critical Insight

    • IT must work in lockstep with their counterparts in marketing, sales, and customer service to define a unified vision and strategic requirements for enabling a strong CXM program.
    • To deploy applications that specifically align with the needs of the organization’s customers, IT leaders must work with the business to define and understand customer personas and common interaction scenarios. CXM applications are mission critical and failing to link them to customer needs can have a detrimental effect on customer satisfaction and ultimately, revenue.
    • IT must act as a valued partner to the business in creating a portfolio of CXM applications that are cost effective.
    • Organizations should create a repeatable framework for CXM application deployment that addresses critical issues, including the integration ecosystem, customer data quality, dashboards and analytics, and end-user adoption.

    Impact and Result

    • Establish strong application alignment to strategic requirements for CXM that is based on concrete customer personas.
    • Improve underlying business metrics across marketing, sales, and service, including customer acquisition, retention, and satisfaction metrics.
    • Better align IT with customer experience needs.

    Build a Strong Technology Foundation for Customer Experience Management Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a strong technology foundation for CXM, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Drive value with CXM

    Understand the benefits of a robust CXM strategy.

    • Build a Strong Technology Foundation for Customer Experience Management – Phase 1: Drive Value with CXM
    • CXM Strategy Stakeholder Presentation Template
    • CXM Strategy Project Charter Template

    2. Create the framework

    Identify drivers and objectives for CXM using a persona-driven approach and deploy the right applications to meet those objectives.

    • Build a Strong Technology Foundation for Customer Experience Management – Phase 2: Create the Framework
    • CXM Business Process Shortlisting Tool
    • CXM Portfolio Designer

    3. Finalize the framework

    Complete the initiatives roadmap for CXM.

    • Build a Strong Technology Foundation for Customer Experience Management – Phase 3: Finalize the Framework
    [infographic]

    Workshop: Build a Strong Technology Foundation for Customer Experience Management

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Create the Vision for CXM Technology Enablement

    The Purpose

    Establish a consistent vision across IT, marketing, sales, and customer service for CXM technology enablement.

    Key Benefits Achieved

    A clear understanding of key business and technology drivers for CXM.

    Activities

    1.1 CXM fireside chat

    1.2 CXM business drivers

    1.3 CXM vision statement

    1.4 Project structure

    Outputs

    CXM vision statement

    CXM project charter

    2 Conduct the Environmental Scan and Internal Review

    The Purpose

    Create a set of strategic requirements for CXM based on a thorough external market scan and internal capabilities assessment.

    Key Benefits Achieved

    Well-defined technology requirements based on rigorous, multi-faceted analysis.

    Activities

    2.1 PEST analysis

    2.2 Competitive analysis

    2.3 Market and trend analysis

    2.4 SWOT analysis

    2.5 VRIO analysis

    2.6 Channel map

    Outputs

    Completed external analysis

    Strategic requirements (from external analysis)

    Completed internal review

    Channel interaction map

    3 Build Customer Personas and Scenarios

    The Purpose

    Augment strategic requirements through customer persona and scenario development.

    Key Benefits Achieved

    Functional requirements aligned to supporting steps in customer interaction scenarios.

    Activities

    3.1 Persona development

    3.2 Scenario development

    3.3 Requirements definition for CXM

    Outputs

    Personas and scenarios

    Strategic requirements (based on personas)

    4 Create the CXM Application Portfolio

    The Purpose

    Using the requirements identified in the preceding modules, build a future-state application inventory for CXM.

    Key Benefits Achieved

    A cohesive, rationalized portfolio of customer interaction applications that aligns with identified requirements and allows investment (or rationalization) decisions to be made.

    Activities

    4.1 Build business process maps

    4.2 Review application satisfaction

    4.3 Create the CXM application portfolio

    4.4 Prioritize applications

    Outputs

    Business process maps

    Application satisfaction diagnostic

    Prioritized CXM application portfolio

    5 Review Best Practices and Confirm Initiatives

    The Purpose

    Establish repeatable best practices for CXM applications in areas such as data management and end-user adoption.

    Key Benefits Achieved

    Best practices for rollout of new CXM applications.

    A prioritized initiatives roadmap.

    Activities

    5.1 Create data integration map

    5.2 Define adoption best practices

    5.3 Build initiatives roadmap

    5.4 Confirm initiatives roadmap

    Outputs

    Integration map for CXM

    End-user adoption plan

    Initiatives roadmap

    Further reading

    Build a Strong Technology Foundation for Customer Experience Management

    Design an end-to-end technology strategy to enhance marketing effectiveness, drive sales, and create compelling customer service experiences.

    ANALYST PERSPECTIVE

    Technology is the catalyst to create – and keep! – your customers.

    "Customers want to interact with your organization on their own terms, and in the channels of their choice (including social media, mobile applications, and connected devices). Regardless of your industry, your customers expect a frictionless experience across the customer lifecycle. They desire personalized and well-targeted marketing messages, straightforward transactions, and effortless service. Research shows that customers value – and will pay more for! – well-designed experiences.

    Strong technology enablement is critical for creating customer experiences that drive revenue. However, most organizations struggle with creating a cohesive technology strategy for customer experience management (CXM). IT leaders need to take a proactive approach to developing a strong portfolio of customer interaction applications that are in lockstep with the needs of their marketing, sales, and customer service teams. It is critical to incorporate the voice of the customer into this strategy.

    When developing a technology strategy for CXM, don’t just “pave the cow path,” but instead move the needle forward by providing capabilities for customer intelligence, omnichannel interactions, and predictive analytics. This blueprint will help you build an integrated CXM technology roadmap that drives top-line revenue while rationalizing application spend."

    Ben Dickie

    Research Director, Customer Experience Strategy

    Info-Tech Research Group

    Framing the CXM project

    This Research Is Designed For:

    • IT leaders who are responsible for crafting a technology strategy for customer experience management (CXM).
    • Applications managers who are involved with the selection and implementation of critical customer-centric applications, such as CRM platforms, marketing automation tools, customer intelligence suites, and customer service solutions.

    This Research Will Help You:

    • Clearly link your technology-enablement strategy for CXM to strategic business requirements and customer personas.
    • Build a rationalized portfolio of enterprise applications that will support customer interaction objectives.
    • Adopt standard operating procedures for CXM application deployment that address issues such as end-user adoption and data quality.

    This Research Will Also Assist:

    • Business leaders in marketing, sales, and customer service who want to deepen their understanding of CXM technologies, and apply best practices for using these technologies to drive competitive advantage.
    • Marketing, sales, and customer service managers involved with defining requirements and rolling out CXM applications.

    This Research Will Help Them:

    • Work hand-in-hand with counterparts in IT to deploy high-value business applications that will improve core customer-facing metrics.
    • Understand the changing CXM landscape and use the art of the possible to transform the internal technology ecosystem and drive meaningful customer experiences.

    Executive summary

    Situation

    • Customer expectations for personalization, channel preferences, and speed-to-resolution are at an all-time high.
    • Your customers are willing to pay more for high-value experiences, and having a strong customer CXM strategy is a proven path to creating sustainable value for the organization.

    Complication

    • Technology is a fundamental enabler of an organization’s CXM strategy. However, many IT departments fail to take a systematic approach to building a portfolio of applications to support Marketing, Sales, and Customer Service.
    • The result is a costly, ineffective, and piecemeal approach to CXM application deployment (including high profile applications like CRM).

    Resolution

    • IT must work in lockstep with their counterparts in marketing, sales, and customer service to define a unified vision, strategic requirements and roadmap for enabling strong customer experience capabilities.
    • In order to deploy applications that don’t simply follow previously established patterns but are aligned with the specific needs of the organization’s customers, IT leaders must work with the business to define and understand customer personas and common interaction scenarios. CXM applications are mission critical and failing to link them to customer needs can have a detrimental effect on customer satisfaction – and ultimately revenue.
    • IT must act as a valued partner to the business in creating a portfolio of CXM applications that are cost effective.
    • Organizations should create a repeatable framework for CXM application deployment that addresses critical issues, including the integration ecosystem, customer data quality, dashboards and analytics, and end-user adoption.

    Info-Tech Insight

    1. IT can’t hide behind the firewall. IT must understand the organization’s customers to properly support marketing, sales, and service efforts.
    2. IT – or Marketing – must not build the CXM strategy in a vacuum if they want to achieve a holistic, consistent, and seamless customer experience.
    3. IT must get ahead of shadow IT. To be seen as an innovator within the business, IT must be a leading enabler in building a rationalized and integrated CXM application portfolio.

    Guide to frequently used acronyms

    CXM - Customer Experience Management

    CX - Customer Experience

    CRM - Customer Relationship Management

    CSM - Customer Service Management

    MMS - Marketing Management System

    SMMP - Social Media Management Platform

    RFP - Request for Proposal

    SaaS - Software as a Service

    Customers’ expectations are on the rise: meet them!

    Today’s consumers expect speed, convenience, and tailored experiences at every stage of the customer lifecycle. Successful organizations strive to support these expectations.

    67% of end consumers will pay more for a world-class customer experience. 74% of business buyers will pay more for strong B2B experiences. (Salesforce, 2018)

    5 CORE CUSTOMER EXPECTATIONS

    1. More personalization
    2. More product options
    3. Constant contact
    4. Listen closely, respond quickly
    5. Give front-liners more control

    (Customer Experience Insight, 2016)

    Customers expect to interact with organizations through the channels of their choice. Now more than ever, you must enable your organization to provide tailored customer experiences.

    Realize measurable value by enabling CXM

    Providing a seamless customer experience increases the likelihood of cross-sell and up-sell opportunities and boosts customer loyalty and retention. IT can contribute to driving revenue and decreasing costs by providing the business with the right set of tools, applications, and technical support.

    Contribute to the bottom line

    Cross-sell, up-sell, and drive customer acquisition.

    67% of consumers are willing to pay more for an upgraded experience. (Salesforce, 2018)

    80%: The margin by which CX leaders outperformer laggards in the S&P 500.(Qualtrics, 2017)

    59% of customers say tailored engagement based on past interactions is very important to winning their business. (Salesforce, 2018)

    Enable cost savings

    Focus on customer retention as well as acquisition.

    It is 6-7x more costly to attract a new customer than it is to retain an existing customer. (Salesforce Blog, 2019)

    A 5% increase in customer retention has been found to increase profits by 25% to 95%. (Bain & Company, n.d.)

    Strategic CXM is gaining traction with your competition

    Organizations are prioritizing CXM capabilities (and associated technologies) as a strategic investment. Keep pace with the competition and gain a competitive advantage by creating a cohesive strategy that uses best practices to integrate marketing, sales, and customer support functions.

    87% of customers share great experiences they’ve had with a company. (Zendesk, n.d.)

    61% of organizations are investing in CXM. (CX Network, 2015)

    53% of organizations believe CXM provides a competitive advantage. (Harvard Business Review, 2014)

    Top Investment Priorities for Customer Experience

    1. Voice of the Customer
    2. Customer Insight Generation
    3. Customer Experience Governance
    4. Customer Journey Mapping
    5. Online Customer Experience
    6. Experience Personalization
    7. Emotional Engagement
    8. Multi-Channel Integration/Omnichannel
    9. Quality & Customer Satisfaction Management
    10. Customer/Channel Loyalty & Rewards Programs

    (CX Network 2015)

    Omnichannel is the way of the future: don’t be left behind

    Get ahead of the competition by doing omnichannel right. Devise a CXM strategy that allows you to create and maintain a consistent, seamless customer experience by optimizing operations within an omnichannel framework. Customers want to interact with you on their own terms, and it falls to IT to ensure that applications are in place to support and manage a wide range of interaction channels.

    Omnichannel is a “multi-channel approach to sales that seeks to provide the customer with a seamless transactional experience whether the customer is shopping online from a desktop or mobile device, by telephone, or in a bricks and mortar store.” (TechTarget, 2014)

    97% of companies say that they are investing in omnichannel. (Huffington Post, 2015)

    23% of companies are doing omnichannel well.

    CXM applications drive effective multi-channel customer interactions across marketing, sales, and customer service

    The success of your CXM strategy depends on the effective interaction of various marketing, sales, and customer support functions. To deliver on customer experience, organizations need to take a customer-centric approach to operations.

    From an application perspective, a CRM platform generally serves as the unifying repository of customer information, supported by adjacent solutions as warranted by your CXM objectives.

    CXM ECOSYSTEM

    Customer Relationship Management Platform

    • Web Experience Management Platform
    • E-Commerce & Point of Sale Solutions
    • Social Media Management Platform
    • Customer Intelligence Platform
    • Customer Service Management Tools
    • Marketing Management Suite

    Application spotlight: Customer experience platforms

    Description

    CXM solutions are a broad range of tools that provide comprehensive feature sets for supporting customer interaction processes. These suites supplant more basic applications for customer interaction management. Popular solutions that fall under the umbrella of CXM include CRM suites, marketing automation tools, and customer service applications.

    Features and Capabilities

    • Manage sales pipelines, provide quotes, and track client deliverables.
    • View all opportunities organized by their current stage in the sales process.
    • View all interactions that have occurred between employees and the customer, including purchase order history.
    • Manage outbound marketing campaigns via multiple channels (email, phone, social, mobile).
    • Build visual workflows with automated trigger points and business rules engine.
    • Generate in-depth customer insights, audience segmentation, predictive analytics, and contextual analytics.
    • Provide case management, ticketing, and escalation capabilities for customer service.

    Highlighted Vendors

    Microsoft Dynamics

    Adobe

    Marketo

    sprinklr

    Salesforce

    SugarCRM

    Application spotlight: Customer experience platforms

    Key Trends

    • CXM applications have decreased their focus on departmental silos to make it easier to share information across the organization as departments demand more data.
    • Vendors are developing deeper support of newer channels for customer interaction. This includes providing support for social media channels, native mobile applications, and SMS or text-based services like WhatsApp and Facebook Messenger.
    • Predictive campaigns and channel blending are becoming more feasible as vendors integrate machine learning and artificial intelligence into their applications.
    • Content blocks are being placed on top of scripting languages to allow for user-friendly interfaces. There is a focus on alleviating bottlenecks where content would have previously needed to go through a specialist.
    • Many vendors of CXM applications are placing increased emphasis on strong application integration both within and beyond their portfolios, with systems like ERP and order fulfillment.

    Link to Digital Strategy

    • For many organizations that are building out a digital strategy, improving customer experience is often a driving factor: CXM apps enable this goal.
    • As part of a digital strategy, create a comprehensive CXM application portfolio by leveraging both core CRM suites and point solutions.
    • Ensure that a point solution aligns with the digital strategy’s technology drivers and user personas.

    CXM KPIs

    Strong CXM applications can improve:

    • Lead Intake Volume
    • Lead Conversion Rate
    • Average Time to Resolution
    • First-Contact Resolution Rate
    • Customer Satisfaction Rate
    • Share-of-Mind
    • Share-of-Wallet
    • Customer Lifetime Value
    • Aggregate Reach/Impressions

    IT is critical to the success of your CXM strategy

    Technology is the key enabler of building strong customer experiences: IT must stand shoulder-to-shoulder with the business to develop a technology framework for CXM.

    Top 5 Challenges with CXM for Marketing

    1. Maximizing customer experience ROI
    2. Achieving a single view of the customer
    3. Building new customer experiences
    4. Cultivating a customer-focused culture
    5. Measuring CX investments to business outcomes

    Top 5 Obstacles to Enabling CXM for IT

    1. Systems integration
    2. Multichannel complexity
    3. Organizational structure
    4. Data-related issues
    5. Lack of strategy

    (Harvard Business Review, 2014)

    Only 19% of organizations have a customer experience team tasked with bridging gaps between departments. (Genesys, 2018)

    IT and Marketing can only tackle CXM with the full support of each other. The cooperation of the departments is crucial when trying to improve CXM technology capabilities and customer interaction and drive a strong revenue mandate.

    CXM failure: Blockbuster

    CASE STUDY

    Industry Entertainment

    Source Forbes, 2014

    Blockbuster

    As the leader of the video retail industry, Blockbuster had thousands of retail locations internationally and millions of customers. Blockbuster’s massive marketing budget and efficient operations allowed it to dominate the competition for years.

    Situation

    Trends in Blockbuster’s consumer market changed in terms of distribution channels and customer experience. As the digital age emerged and developed, consumers were looking for immediacy and convenience. This threatened Blockbuster’s traditional, brick-and-mortar B2C operating model.

    The Competition

    Netflix entered the video retail market, making itself accessible through non-traditional channels (direct mail, and eventually, the internet).

    Results

    Despite long-term relationships with customers and competitive standing in the market, Blockbuster’s inability to understand and respond to changing technology trends and customer demands led to its demise. The organization did not effectively leverage internal or external networks or technology to adapt to customer demands. Blockbuster went bankrupt in 2010.

    Customer Relationship Management

    • Web Experience Management Platform
    • E-Commerce & Point of Sale Solutions
    • Social Media Management
    • Customer Intelligence
    • Customer Service
    • Marketing Management

    Blockbuster did not leverage emerging technologies to effectively respond to trends in its consumer network. It did not optimize organizational effectiveness around customer experience.

    CXM success: Netflix

    CASE STUDY

    Industry Entertainment

    Source Forbes, 2014

    Netflix

    Beginning as a mail-out service, Netflix offered subscribers a catalog of videos to select from and have mailed to them directly. Customers no longer had to go to a retail store to rent a video. However, the lack of immediacy of direct mail as the distribution channel resulted in slow adoption.

    The Situation

    In response to the increasing presence of tech-savvy consumers on the internet, Netflix invested in developing its online platform as its primary distribution channel. The benefit of doing so was two-fold: passive brand advertising (by being present on the internet) and meeting customer demands for immediacy and convenience. Netflix also recognized the rising demand for personalized service and created an unprecedented, tailored customer experience.

    The Competition

    Blockbuster was the industry leader in video retail but was lagging in its response to industry, consumer, and technology trends around customer experience.

    Results

    Netflix’s disruptive innovation is built on the foundation of great CXM. Netflix is now a $28 billion company, which is tenfold what Blockbuster was worth.

    Customer Relationship Management Platform

    • Web Experience Management Platform
    • E-Commerce & Point of Sale Solutions
    • Social Media Management Platform
    • Customer Intelligence Platform
    • Customer Service Management Tools
    • Marketing Management Suite

    Netflix used disruptive technologies to innovatively build a customer experience that put it ahead of the long-time, video rental industry leader, Blockbuster.

    Leverage Info-Tech’s approach to succeed with CXM

    Creating an end-to-end technology-enablement strategy for CXM requires a concerted, dedicated effort: Info-Tech can help with our proven approach.

    Build the CXM Project Charter

    Conduct a Thorough Environmental Scan

    Build Customer Personas and Scenarios

    Draft Strategic CXM Requirements

    Build the CXM Application Portfolio

    Implement Operational Best Practices

    Why Info-Tech’s Approach?

    Info-Tech draws on best-practice research and the experiences of our global member base to develop a methodology for CXM that is driven by rigorous customer-centric analysis.

    Our approach uses a unique combination of techniques to ensure that your team has done its due diligence in crafting a forward-thinking technology-enablement strategy for CXM that creates measurable value.

    A global professional services firm drives measurable value for CXM by using persona design and scenario development

    CASE STUDY

    Industry Professionals Services

    Source Info-Tech Workshop

    The Situation

    A global professional services firm in the B2B space was experiencing a fragmented approach to customer engagement, particularly in the pre-sales funnel. Legacy applications weren’t keeping pace with an increased demand for lead evaluation and routing technology. Web experience management was also an area of significant concern, with a lack of ongoing customer engagement through the existing web portal.

    The Approach

    Working with a team of Info-Tech facilitators, the company was able to develop several internal and external customer personas. These personas formed the basis of strategic requirements for a new CXM application stack, which involved dedicated platforms for core CRM, lead automation, web content management, and site analytics.

    Results

    Customer “stickiness” metrics increased, and Sales reported significantly higher turnaround times in lead evaluations, resulting in improved rep productivity and faster cycle times.

    Components of a persona
    Name Name personas to reflect a key attribute such as the persona’s primary role or motivation.
    Demographic Include basic descriptors of the persona (e.g. age, geographic location, preferred language, education, job, employer, household income, etc.)
    Wants, needs, pain points Identify surface-level motivations for buying habits.
    Psychographic/behavioral traits Observe persona traits that are representative of the customers’ behaviors (e.g. attitudes, buying patterns, etc.).

    Follow Info-Tech’s approach to build your CXM foundation

    Create the Project Vision

    • Identify business and IT drivers
    • Outputs:
      • CXM Strategy Guiding Principles

    Structure the Project

    • Identify goals and objectives for CXM project
    • Form Project Team
    • Establish timeline
    • Obtain project sponsorship
    • Outputs:
      • CXM Strategy Project Charter

    Scan the External Environment

    • Create CXM operating model
    • Conduct external analysis
    • Create customer personas
    • Outputs:
      • CXM Operating Model
    • Conduct PEST analysis
    • Create persona scenarios
    • Outputs:
      • CXM Strategic Requirements

    Assess the Current State of CXM

    • Conduct SWOT analysis
    • Assess application usage and satisfaction
    • Conduct VRIO analysis
    • Outputs:
      • CXM Strategic Requirements

    Create an Application Portfolio

    • Map current processes
    • Assign business process owners
    • Create channel map
    • Build CXM application portfolio
    • Outputs:
      • CXM Application Portfolio Map

    Develop Deployment Best Practices

    • Develop CXM integration map
    • Create mitigation plan for poor data quality
    • Outputs:
      • Data Quality Preservation Map

    Create an Initiative Rollout Plan

    • Create risk management plan
    • Identify work initiative dependencies
    • Create roadmap
    • Outputs:
      • CXM Initiative Roadmap

    Confirm and Finalize the CXM Blueprint

    • Identify success metrics
    • Create stakeholder communication plan
    • Present CXM strategy to stakeholders
    • Outputs:
      • Stakeholder Presentation

    Info-Tech offers various levels of support to suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Build a Strong Technology Foundation for CXM – project overview

    1. Drive Value With CXM 2. Create the Framework 3. Finalize the Framework
    Best-Practice Toolkit

    1.1 Create the Project Vision

    1.2 Structure the CXM Project

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Guided Implementations
    • Determine project vision for CXM.
    • Review CXM project charter.
    • Review environmental scan.
    • Review application portfolio for CXM.
    • Confirm deployment best practices.
    • Review initiatives rollout plan.
    • Confirm CXM roadmap.
    Onsite Workshop Module 1: Drive Measurable Value with a World-Class CXM Program Module 2: Create the Strategic Framework for CXM Module 3: Finalize the CXM Framework

    Phase 1 Outcome:

    • Completed drivers
    • Completed project charter

    Phase 2 Outcome:

    • Completed personas and scenarios
    • CXM application portfolio

    Phase 3 Outcome:

    • Strategic summary blueprint

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Workshop Day 5
    Activities

    Create the Vision for CXM Enablement

    1.1 CXM Fireside Chat

    1.2 CXM Business Drivers

    1.3 CXM Vision Statement

    1.4 Project Structure

    Conduct the Environmental Scan and Internal Review

    2.1 PEST Analysis

    2.2 Competitive Analysis

    2.3 Market and Trend Analysis

    2.4 SWOT Analysis

    2.5 VRIO Analysis

    2.6 Channel Mapping

    Build Personas and Scenarios

    3.1 Persona Development

    3.2 Scenario Development

    3.3 Requirements Definition for CXM

    Create the CXM Application Portfolio

    4.1 Build Business Process Maps

    4.2 Review Application Satisfaction

    4.3 Create the CXM Application Portfolio

    4.4 Prioritize Applications

    Review Best Practices and Confirm Initiatives

    5.1 Create Data Integration Map

    5.2 Define Adoption Best Practices

    5.3 Build Initiatives Roadmap

    5.4 Confirm Initiatives Roadmap

    Deliverables
    1. CXM Vision Statement
    2. CXM Project Charter
    1. Completed External Analysis
    2. Completed Internal Review
    3. Channel Interaction Map
    4. Strategic Requirements (from External Analysis)
    1. Personas and Scenarios
    2. Strategic Requirements (based on personas)
    1. Business Process Maps
    2. Application Satisfaction Diagnostic
    3. Prioritized CXM Application Portfolio
    1. Integration Map for CXM
    2. End-User Adoption Plan
    3. Initiatives Roadmap

    Phase 1

    Drive Measurable Value With a World-Class CXM Program

    Build a Strong Technology Foundation for Customer Experience Management

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Drive Measurable Value With a World-Class CXM Program

    Proposed Time to Completion: 2 weeks

    Step 1.1: Create the Project Vision

    Start with an analyst kick-off call:

    • Review key drivers from a technology and business perspective for CXM
    • Discuss benefits of strong technology enablement for CXM

    Then complete these activities…

    • CXM Fireside Chat
    • CXM Business and Technology Driver Assessment
    • CXM Vision Statement

    With these tools & templates:

    • CXM Strategy Stakeholder Presentation Template

    Step 1.2: Structure the Project

    Review findings with analyst:

    • Assess the CXM vision statement for competitive differentiators
    • Determine current alignment disposition of IT with different business units

    Then complete these activities…

    • Team Composition and Responsibilities
    • Metrics Definition

    With these tools & templates:

    • CXM Strategy Project Charter Template

    Phase 1 Results & Insights:

    • Defined value of strong technology enablement for CXM
    • Completed CXM project charter

    Step 1.1: Create the Project Vision

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Fireside Chat: Discuss past challenges and successes with CXM
    • Identify business and IT drivers to establish guiding principles for CXM

    Outcomes:

    • Business benefits of a rationalized technology strategy to support CXM
    • Shared lessons learned
    • Guiding principles for providing technology enablement for CXM

    Building a technology strategy to support customer experience isn’t an option – it’s a mission-critical activity

    • Customer-facing departments supply the lifeblood of a company: revenue. In today’s fast-paced and interconnected world, it’s becoming increasingly imperative to enable customer experience processes with a wide range of technologies, from lead automation to social relationship management. CXM is the holistic management of customer interaction processes across marketing, sales, and customer service to create valuable, mutually beneficial customer experiences. Technology is a critical building block for enabling CXM.
    • The parallel progress of technology and process improvement is essential to an efficient and effective CXM program. While many executives prefer to remain at the status quo, new technologies have caused major shifts in the CXM environment. If you stay with the status quo, you will fall behind the competition.
    • However, many IT departments are struggling to keep up with the pace of change and find themselves more of a firefighter than a strategic partner to marketing, sales, and service teams. This not only hurts the business, but it also tarnishes IT’s reputation.

    An aligned, optimized CX strategy is:

    Rapid: to intentionally and strategically respond to quickly-changing opportunities and issues.

    Outcome-based: to make key decisions based on strong business cases, data, and analytics in addition to intuition and judgment.

    Rigorous: to bring discipline and science to bear; to improve operations and results.

    Collaborative: to conduct activities in a broader ecosystem of partners, suppliers, vendors, co-developers, and even competitors.

    (The Wall Street Journal, 2013)

    Info-Tech Insight

    If IT fails to adequately support marketing, sales, and customer service teams, the organization’s revenue will be in direct jeopardy. As a result, CIOs and Applications Directors must work with their counterparts in these departments to craft a cohesive and comprehensive strategy for using technology to create meaningful (and profitable) customer experiences.

    Fireside Chat, Part 1: When was technology an impediment to customer experience at your organization?

    1.1.1 30 minutes

    Input

    • Past experiences of the team

    Output

    • Lessons learned

    Materials

    • Whiteboard
    • Markers

    Participants

    • Core Team

    Instructions

    1. Think about a time when technology was an impediment to a positive customer experience at your organization. Reflect on the following:
      • What frustrations did the application or the technology cause to your customers? What was their reaction?
      • How did IT (and the business) identify the challenge in the first place?
      • What steps were taken to mitigate the impact of the problem? Were these steps successful?
      • What were the key lessons learned as part of the challenge?

    Fireside Chat, Part 2: What customer success stories has your organization created by using new technologies?

    1.1.2 30 minutes

    Input

    • Past experiences of the team

    Output

    • Lessons learned

    Materials

    • Whiteboard
    • Markers

    Participants

    • Core Team

    Instructions

    1. Think about a time when your organization successfully leveraged a new application or new technology to enhance the experience it provided to customers. Reflect on this experience and consider:
      • What were the organizational drivers for rolling out the new application or solution?
      • What obstacles had to be overcome in order to successfully deploy the solution?
      • How did the application positively impact the customer experience? What metrics improved?
      • What were the key lessons learned as part of the deployment? If you had to do it all over again, what would you do differently?

    Develop a cohesive, consistent, and forward-looking roadmap that supports each stage of the customer lifecycle

    When creating your roadmap, consider the pitfalls you’ll likely encounter in building the IT strategy to provide technology enablement for customer experience.

    There’s no silver bullet for developing a strategy. You can encounter pitfalls at a myriad of different points including not involving the right stakeholders from the business, not staying abreast of recent trends in the external environment, and not aligning sales, marketing, and support initiatives with a focus on the delivery of value to prospects and customers.

    Common Pitfalls When Creating a Technology-Enablement Strategy for CXM

    Senior management is not involved in strategy development.

    Not paying attention to the “art of the possible.”

    “Paving the cow path” rather than focusing on revising core processes.

    Misalignment between objectives and financial/personnel resources.

    Inexperienced team on either the business or IT side.

    Not paying attention to the actions of competitors.

    Entrenched management preferences for legacy systems.

    Sales culture that downplays the potential value of technology or new applications.

    IT is only one or two degrees of separation from the end customer: so take a customer-centric approach

    IT →Marketing, Sales, and Service →External Customers

    Internal-Facing Applications

    • IT enables, supports, and maintains the applications used by the organization to market to, sell to, and service customers. IT provides the infrastructural and technical foundation to operate the function.

    Customer-Facing Applications

    • IT supports customer-facing interfaces and channels for customer interaction.
    • Channel examples include web pages, mobile device applications and optimization, and interactive voice response for callers.

    Info-Tech Insight

    IT often overlooks direct customer considerations when devising a technology strategy for CXM. Instead, IT leaders rely on other business stakeholders to simply pass on requirements. By sitting down with their counterparts in marketing and sales, and fully understanding business drivers and customer personas, IT will be much better positioned to roll out supporting applications that drive customer engagement.

    A well-aligned CXM strategy recognizes a clear delineation of responsibilities between IT, sales, marketing, and service

    • When thinking about CXM, IT must recognize that it is responsible for being a trusted partner for technology enablement. This means that IT has a duty to:
      • Develop an in-depth understanding of strategic business requirements for CXM. Base your understanding of these business requirements on a clear conception of the internal and external environment, customer personas, and business processes in marketing, sales, and customer service.
      • Assist with shortlisting and supporting different channels for customer interaction (including email, telephony, web presence, and social media).
      • Create a rationalized, cohesive application portfolio for CXM that blends different enabling technologies together to support strategic business requirements.
      • Provide support for vendor shortlisting, selection, and implementation of CXM applications.
      • Assist with end-user adoption of CXM applications (i.e. training and ongoing support).
      • Provide initiatives that assist with technical excellence for CXM (such as data quality, integration, analytics, and application maintenance).
    • The business (marketing, sales, customer service) owns the business requirements and must be responsible for setting top-level objectives for customer interaction (e.g. product and pricing decisions, marketing collateral, territory management, etc.). IT should not take over decisions on customer experience strategy. However, IT should be working in lockstep with its counterparts in the business to assist with understanding business requirements through a customer-facing lens. For example, persona development is best done in cross-functional teams between IT and Marketing.

    Activity: Identify the business drivers for CXM to establish the strategy’s guiding principles

    1.1.3 30 minutes

    Input

    • Business drivers for CXM

    Output

    • Guiding principles for CXM strategy

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Define the assumptions and business drivers that have an impact on technology enablement for CXM. What is driving the current marketing, sales, and service strategy on the business side?
    Business Driver Name Driver Assumptions, Capabilities, and Constraints Impact on CXM Strategy
    High degree of customer-centric solution selling A technically complex product means that solution selling approaches are employed – sales cycles are long. There is a strong need for applications and data quality processes that support longer-term customer relationships rather than transactional selling.
    High desire to increase scalability of sales processes Although sales cycles are long, the organization wishes to increase the effectiveness of rep time via marketing automation where possible. Sales is always looking for new ways to leverage their reps for face-to-face solution selling while leaving low-level tasks to automation. Marketing wants to support these tasks.
    Highly remote sales team and unusual hours are the norm Not based around core hours – significant overtime or remote working occurs frequently. Misalignment between IT working only core hours and after-hours teams leads to lag times that can delay work. Scheduling of preventative sales maintenance must typically be done on weekends rather than weekday evenings.

    Activity: Identify the IT drivers for CXM to establish the strategy’s guiding principles

    1.1.4 30 minutes

    Input

    • IT drivers for CXM

    Output

    • Guiding principles for CXM strategy

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Define the assumptions and IT drivers that have an impact on technology enablement for CXM. What is driving the current IT strategy for supporting marketing, sales, and service initiatives?
    IT Driver Name Driver Assumptions, Capabilities, and Constraints Impact on CXM Strategy
    Sales Application Procurement Methodology Strong preference for on-premise COTS deployments over homebrewed applications. IT may not be able to support cloud-based sales applications due to security requirements for on premise.
    Vendor Relations Minimal vendor relationships; SLAs not drafted internally but used as part of standard agreement. IT may want to investigate tightening up SLAs with vendors to ensure more timely support is available for their sales teams.
    Development Methodology Agile methodology employed, some pockets of Waterfall employed for large-scale deployments. Agile development means more perfective maintenance requests come in, but it leads to greater responsiveness for making urgent corrective changes to non-COTS products.
    Data Quality Approach IT sees as Sales’ responsibility IT is not standing as a strategic partner for helping to keep data clean, causing dissatisfaction from customer-facing departments.
    Staffing Availability Limited to 9–5 Execution of sales support takes place during core hours only, limiting response times and access for on-the-road sales personnel.

    Activity: Use IT and business drivers to create guiding principles for your CXM technology-enablement project

    1.1.5 30 minutes

    Input

    • Business drivers and IT drivers from 1.1.3 and 1.1.4

    Output

    • CXM mission statement

    Materials

    • Whiteboard
    • Markers

    Participants

    • Core Team

    Instructions

    1. Based on the IT and business drivers identified, craft guiding principles for CXM technology enablement. Keep guiding principles in mind throughout the project and ensure they support (or reconcile) the business and IT drivers.

    Guiding Principle Description
    Sales processes must be scalable. Our sales processes must be able to reach a high number of target customers in a short time without straining systems or personnel.
    Marketing processes must be high touch. Processes must be oriented to support technically sophisticated, solution-selling methodologies.

    2. Summarize the guiding principles above by creating a CXM mission statement. See below for an example.

    Example: CXM Mission Statement

    To ensure our marketing, sales and service team is equipped with tools that will allow them to reach out to a large volume of contacts while still providing a solution-selling approach. This will be done with secure, on-premise systems to safeguard customer data.

    Ensure that now is the right time to take a step back and develop the CXM strategy

    Determine if now is the right time to move forward with building (or overhauling) your technology-enablement strategy for CXM.

    Not all organizations will be able to proceed immediately to optimize their CXM technology enablement. Determine if the organizational willingness, backbone, and resources are present to commit to overhauling the existing strategy. If you’re not ready to proceed, consider waiting to begin this project until you can procure the right resources.

    Do not proceed if:

    • Your current strategy for supporting marketing, sales, and service is working well and IT is already viewed as a strategic partner by these groups. Your current strategy is well aligned with customer preferences.
    • The current strategy is not working well, but there is no consensus or support from senior management for improving it.
    • You cannot secure the resources or time to devote to thoroughly examining the current state and selecting improvement initiatives.
    • The strategy has been approved, but there is no budget in place to support it at this time.

    Proceed if:

    • Senior management has agreed that technology support for CXM should be improved.
    • Sub-divisions within IT, sales, marketing, and service are on the same page about the need to improve alignment.
    • You have an approximate budget to work with for the project and believe you can secure additional funding to execute at least some improvement initiatives.
    • You understand how improving CXM alignment will fit into the broader customer interaction ecosystem in your organization.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.3; 1.1.4; 1.1.5 - Identify business and IT drivers to create CXM guiding principles

    The facilitator will work with stakeholders from both the business and IT to identify implicit or explicit strategic drivers that will support (or pose constraints on) the technology-enablement framework for the CXM strategy. In doing so, guiding principles will be established for the project.

    Step 1.2: Structure the Project

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Define the project purpose, objectives, and business metrics
    • Define the scope of the CXM strategy
    • Create the project team
    • Build a RACI chart
    • Develop a timeline with project milestones
    • Identify risks and create mitigation strategies
    • Complete the strategy project charter and obtain approval

    Outcomes:

    CXM Strategy Project Charter Template

    • Purpose, objectives, metrics
    • Scope
    • Project team & RACI
    • Timeline
    • Risks & mitigation strategies
    • Project sponsorship

    Use Info-Tech’s CXM Strategy Project Charter Template to outline critical components of the CXM project

    1.2.1 CXM Strategy Project Charter Template

    Having a project charter is the first step for any project: it specifies how the project will be resourced from a people, process, and technology perspective, and it clearly outlines major project milestones and timelines for strategy development. CXM technology enablement crosses many organizational boundaries, so a project charter is a very useful tool for ensuring everyone is on the same page.

    Sections of the document:

    1. Project Drivers, Rationale, and Context
    2. Project Objectives, Metrics, and Purpose
    3. Project Scope Definition
    4. Project Team Roles and Responsibilities (RACI)
    5. Project Timeline
    6. Risk Mitigation Strategy
    7. Project Metrics
    8. Project Review & Approvals

    INFO-TECH DELIVERABLE

    CXM Strategy Project Charter Template

    Populate the relevant sections of your project charter as you complete activities 1.2.2-1.2.8.

    Understand the roles necessary to complete your CXM technology-enablement strategy

    Understand the role of each player within your project structure. Look for listed participants on the activities slides to determine when each player should be involved.

    Title Role Within Project Structure
    Project Sponsor
    • Owns the project at the management/C-suite level
    • Responsible for breaking down barriers and ensuring alignment with organizational strategy
    • CIO, CMO, VP of Sales, VP of Customer Care, or similar
    Project Manager
    • The IT individual(s) that will oversee day-to-day project operations
    • Responsible for preparing and managing the project plan and monitoring the project team’s progress
    • Applications or other IT Manager, Business Analyst, Business Process Owner, or similar
    Business Lead
    • Works alongside the IT PM to ensure that the strategy is aligned with business needs
    • In this case, likely to be a marketing, sales, or customer service lead
    • Sales Director, Marketing Director, Customer Care Director, or similar
    Project Team
    • Comprised of individuals whose knowledge and skills are crucial to project success
    • Responsible for driving day-to-day activities, coordinating communication, and making process and design decisions. Can assist with persona and scenario development for CXM.
    • Project Manager, Business Lead, CRM Manager, Integration Manager, Application SMEs, Developers, Business Process Architects, and/or similar SMEs
    Steering Committee
    • Comprised of C-suite/management level individuals that act as the project’s decision makers
    • Responsible for validating goals and priorities, defining the project scope, enabling adequate resourcing, and managing change
    • Project Sponsor, Project Manager, Business Lead, CFO, Business Unit SMEs and similar

    Info-Tech Insight

    Do not limit project input or participation to the aforementioned roles. Include subject matter experts and internal stakeholders at particular stages within the project. Such inputs can be solicited on a one-off basis as needed. This ensures you take a holistic approach to creating your CXM technology-enablement strategy.

    Activity: Kick-off the CXM project by defining the project purpose, project objectives, and business metrics

    1.2.2 30 minutes

    Input

    • Activities 1.1.1 to 1.1.5

    Output

    • Drivers & rationale
    • Purpose statement
    • Business goals
    • Business metrics
    • CXM Strategy Project Charter Template, sections 1.0, 2.0, and 2.1

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Sponsor
    • Project Manager
    • Business Lead
    • Steering Committee

    Instructions

    Hold a meeting with IT, Marketing, Sales, Service, Operations, and any other impacted business stakeholders that have input into CXM to accomplish the following:

    1. Discuss the drivers and rationale behind embarking on a CXM strategy.
    2. Develop and concede on objectives for the CXM project, metrics that will gauge its success, and goals for each metric.
    3. Create a project purpose statement that is informed by decided-upon objectives and metrics from the steps above. When establishing a project purpose, ask the question, “what are we trying to accomplish?”
    • Example: Project Purpose Statement
      • The organization is creating a CXM strategy to gather high-level requirements from the business, IT, and Marketing, Sales, and Service, to ensure that the selection and deployment of the CXM meets the needs of the broader organization and provides the greatest return on investment.
  • Document your project drivers and rationale, purpose statement, project objectives, and business metrics in Info-Tech’s CXM Strategy Project Charter Template in sections 1.0 and 2.0.

    • Info-Tech Insight

    Going forward, set up a quarterly review process to understand changing needs. It is rare that organizations never change their marketing and sales strategy. This will change the way the CXM will be utilized.

    Establish baseline metrics for customer engagement

    In order to gauge the effectiveness of CXM technology enablement, establish core metrics:

    1. Marketing Metrics: pertaining to share of voice, share of wallet, market share, lead generation, etc.
    2. Sales Metrics: pertaining to overall revenue, average deal size, number of accounts, MCV, lead warmth, etc.
    3. Customer Service Metrics: pertaining to call volumes, average time to resolution, first contact resolution, customer satisfaction, etc.
    4. IT Metrics: pertaining to end-user satisfaction with CXM applications, number of tickets, contract value, etc.
    Metric Description Current Metric Future Goal
    Market Share 25% 35%
    Share of Voice (All Channels) 40% 50%
    Average Deal Size $10,500 $12,000
    Account Volume 1,400 1,800
    Average Time to Resolution 32 min 25 min
    First Contact Resolution 15% 35%
    Web Traffic per Month (Unique Visitors) 10,000 15,000
    End-User Satisfaction 62% 85%+
    Other metric
    Other metric
    Other metric

    Understand the importance of setting project expectations with a scope statement

    Be sure to understand what is in scope for a CXM strategy project. Prevent too wide of a scope to avoid scope creep – for example, we aren’t tackling ERP or BI under CXM.

    In Scope

    Establishing the parameters of the project in a scope statement helps define expectations and provides a baseline for resource allocation and planning. Future decisions about the strategic direction of CXM will be based on the scope statement.

    Scope Creep

    Well-executed requirements gathering will help you avoid expanding project parameters, drawing on your resources, and contributing to cost overruns and project delays. Avoid scope creep by gathering high-level requirements that lead to the selection of category-level application solutions (e.g. CRM, MMS, SMMP, etc.), rather than granular requirements that would lead to vendor application selection (e.g. Salesforce, Marketo, Hootsuite, etc.).

    Out of Scope

    Out-of-scope items should also be defined to alleviate ambiguity, reduce assumptions, and further clarify expectations for stakeholders. Out-of-scope items can be placed in a backlog for later consideration. For example, fulfilment and logistics management is out of scope as it pertains to CXM.

    In Scope
    Strategy
    High-Level CXM Application Requirements CXM Strategic Direction Category Level Application Solutions (e.g. CRM, MMS, etc.)
    Out of Scope
    Software Selection
    Vendor Application Review Vendor Application Selection Granular Application System Requirements

    Activity: Define the scope of the CXM strategy

    1.2.3 30 minutes

    Input

    • N/A

    Output

    • Project scope and parameters
    • CXM Strategy Project Charter Template, section 3.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Sponsor
    • Project Manager
    • Business Lead

    Instructions

    1. Formulate a scope statement. Decide which people, processes, and functions the CXM strategy will address. Generally, the aim of this project is to develop strategic requirements for the CXM application portfolio – not to select individual vendors.
    2. Document your scope statement in Info-Tech’s CXM Strategy Project Charter Template in section 3.0.

    To form your scope statement, ask the following questions:

    • What are the major coverage points?
    • Who will be using the systems?
    • How will different users interact with the systems?
    • What are the objectives that need to be addressed?
    • Where do we start?
    • Where do we draw the line?

    Identify the right stakeholders to include on your project team

    Consider the core team functions when composing the project team. Form a cross-functional team (i.e. across IT, Marketing, Sales, Service, Operations) to create a well-aligned CXM strategy.

    Required Skills/Knowledge Suggested Project Team Members
    IT
    • Application development
    • Enterprise integration
    • Business processes
    • Data management
    • CRM Application Manager
    • Business Process Manager
    • Integration Manager
    • Application Developer
    • Data Stewards
    Business
    • Understanding of the customer
    • Departmental processes
    • Sales Manager
    • Marketing Manager
    • Customer Service Manager
    Other
    • Operations
    • Administrative
    • Change management
    • Operations Manager
    • CFO
    • Change Management Manager

    Info-Tech Insight

    Don’t let your project team become too large when trying to include all relevant stakeholders. Carefully limiting the size of the project team will enable effective decision making while still including functional business units such as marketing, sales, service, and finance, as well as IT.

    Activity: Create the project team

    1.2.4 45 minutes

    Input

    • Scope Statement (output of Activity 1.2.3).

    Output

    • Project Team
    • CXM Strategy Project Charter Template, section 4.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead

    Instructions

    1. Review your scope statement. Have a discussion to generate a complete list of key stakeholders that are needed to achieve the scope of work.
    2. Using the previously generated list, identify a candidate for each role and determine their responsibilities and expected time commitment for the CXM strategy project.
    3. Document the project team in Info-Tech’s CXM Strategy Project Charter Template in section 4.0.

    Define project roles and responsibilities to improve progress tracking

    Build a list of the core CXM strategy team members, and then structure a RACI chart with the relevant categories and roles for the overall project.

    Responsible - Conducts work to achieve the task

    Accountable - Answerable for completeness of task

    Consulted - Provides input for the task

    Informed - Receives updates on the task

    Info-Tech Insight

    Avoid missed tasks between inter-functional communications by defining roles and responsibilities for the project as early as possible.

    Benefits of Assigning RACI Early:

    • Improve project quality by assigning the right people to the right tasks.
    • Improve chances of project task completion by assigning clear accountabilities.
    • Improve project buy-in by ensuring that stakeholders are kept informed of project progress, risks, and successes.

    Activity: Build a RACI chart

    1.2.5 30 minutes

    Input

    • Project Team (output of Activity 1.2.4)

    Output

    • RACI chart
    • CXM Strategy Project Charter Template, section 4.2

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead

    Instructions

    1. Identify the key stakeholder teams that should be involved in the CXM strategy project. You should have a cross-functional team that encompasses both IT (various units) and the business.
    2. Determine whether each stakeholder should be responsible, accountable, consulted, and/or informed with respect to each overarching project step.
    3. Confirm and communicate the results to relevant stakeholders and obtain their approval.
    4. Document the RACI chart in Info-Tech’s CXM Strategy Project Charter Template in section 4.2.
    Example: RACI Chart Project Sponsor (e.g. CMO) Project Manager (e.g. Applications Manager) Business Lead (e.g. Marketing Director) Steering Committee (e.g. PM, CMO, CFO…) Project Team (e.g. PM, BL, SMEs…)
    Assess Project Value I C A R C
    Conduct a Current State Assessment I I A C R
    Design Application Portfolio I C A R I
    Create CXM Roadmap R R A I I
    ... ... ... ... ... ...

    Activity: Develop a timeline in order to specify concrete project milestones

    1.2.6 30 minutes

    Input

    • N/A

    Output

    • Project timeline
    • CXM Strategy Project Charter Template, section 5.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead

    Instructions

    1. Assign responsibilities, accountabilities, and other project involvement to each project team role using a RACI chart. Remember to consider dependencies when creating the schedule and identifying appropriate subtasks.
    2. Document the timeline in Info-Tech’s CXM Strategy Project Charter Template in section 5.0.
    Key Activities Start Date End Date Target Status Resource(s)
    Structure the Project and Build the Project Team
    Articulate Business Objectives and Define Vision for Future State
    Document Current State and Assess Gaps
    Identify CXM Technology Solutions
    Build the Strategy for CXM
    Implement the Strategy

    Assess project-associated risk by understanding common barriers and enablers

    Common Internal Risk Factors

    Management Support Change Management IT Readiness
    Definition The degree of understanding and acceptance of CXM as a concept and necessary portfolio of technologies. The degree to which employees are ready to accept change and the organization is ready to manage it. The degree to which the organization is equipped with IT resources to handle new systems and processes.
    Assessment Outcomes
    • Is CXM enablement recognized as a top priority?
    • Will management commit time to the project?
    • Are employees resistant to change?
    • Is there an organizational awareness of the importance of customer experience?
    • Who are the owners of process and content?
    • Is there strong technical expertise?
    • Is there strong infrastructure?
    • What are the important integration points throughout the business?
    Risk
    • Low management buy-in
    • Lack of funding
    • Lack of resources
    • Low employee motivation
    • Lack of ownership
    • Low user adoption
    • Poor implementation
    • Reliance on consultants

    Activity: Identify the risks and create mitigation strategies

    1.2.7 45 minutes

    Input

    • N/A

    Output

    • Risk mitigation strategy
    • CXM Strategy Project Charter Template, section 6.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead
    • Project Team

    Instructions

    1. Brainstorm a list of possible risks that may impede the progress of your CXM project.
    2. Classify risks as strategy based (related to planning) or systems based (related to technology).
    3. Brainstorm mitigation strategies to overcome each risk.
    4. On a scale of 1 to 3, determine the impact of each risk on project success and the likelihood of each risk occurring.
    5. Document your findings in Info-Tech’s CXM Strategy Project Charter Template in section 6.0.

    Likelihood:

    1 - High/Needs Focus

    2 - Can Be Mitigated

    3 - Unlikely

    Impact

    1 - High Impact

    2 - Moderate Impact

    3 - Minimal Impact

    Example: Risk Register and Mitigation Tactics

    Risk Impact Likelihood Mitigation Effort
    Cost of time and implementation: designing a robust portfolio of CXM applications can be a time consuming task, representing a heavy investment for the organization 1 1
    • Have a clear strategic plan and a defined time frame
    • Know your end-user requirements
    • Put together an effective and diverse strategy project team
    Availability of resources: lack of in-house resources (e.g. infrastructure, CXM application developers) may result in the need to insource or outsource resources 1 2
    • Prepare a plan to insource talent by hiring or transferring talent from other departments – e.g. marketing and customer service

    Activity: Complete the project charter and obtain approval

    1.2.8 45 minutes

    Input

    • N/A

    Output

    • Project approval
    • CXM Strategy Project Charter Template, section 8.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead
    • Project Team

    Instructions

    Before beginning to develop the CXM strategy, validate the project charter and metrics with senior sponsors or stakeholders and receive their approval to proceed.

    1. Schedule a 30-60 minute meeting with senior stakeholders and conduct a live review of your CXM strategy project charter.
    2. Obtain stakeholder approval to ensure there are no miscommunications or misunderstandings around the scope of the work that needs to be done to reach a successful project outcome. Final sign-off should only take place when mutual consensus has been reached.
      • Obtaining approval should be an iterative process; if senior management has concerns over certain aspects of the plan, revise and review again.

    Info-Tech Insight

    In most circumstances, you should have your CXM strategy project charter validated with the following stakeholders:

    • Chief Information Officer
    • IT Applications Director
    • CFO or Comptroller (for budget approval)
    • Chief Marketing Office or Head of Marketing
    • Chief Revenue Officer or VP of Sales
    • VP Customer Service

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    1.2.2 Define project purpose, objectives, and business metrics

    Through an in-depth discussion, an analyst will help you prioritize corporate objectives and organizational drivers to establish a distinct project purpose.

    1.2.3 Define the scope of the CXM strategy

    An analyst will facilitate a discussion to address critical questions to understand your distinct business needs. These questions include: What are the major coverage points? Who will be using the system?

    1.2.4; 1.2.5; 1.2.6 Create the CXM project team, build a RACI chart, and establish a timeline

    Our analysts will guide you through how to create a designated project team to ensure the success of your CXM strategy and suite selection initiative, including project milestones and team composition, as well as designated duties and responsibilities.

    Phase 2

    Create a Strategic Framework for CXM Technology Enablement

    Build a Strong Technology Foundation for Customer Experience Management

    Phase 2 outline: Steps 2.1 and 2.2

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Create a Strategic Framework for CXM Technology Enablement

    Proposed Time to Completion: 4 weeks

    Step 2.1: Scan the External Environment

    Start with an analyst kick-off call:

    • Discuss external drivers
    • Assess competitive environment
    • Review persona development
    • Review scenarios

    Then complete these activities…

    • Build the CXM operating model
    • Conduct a competitive analysis
    • Conduct a PEST analysis
    • Build personas and scenarios

    With these tools & templates:

    CXM Strategy Stakeholder Presentation Template

    Step 2.2: Assess the Current State for CRM

    Review findings with analyst:

    • Review SWOT analysis
    • Review VRIO analysis
    • Discuss strategic requirements for CXM

    Then complete these activities…

    • Conduct a SWOT analysis
    • Conduct a VRIO analysis
    • Inventory existing applications

    With these tools & templates:

    CXM Strategy Stakeholder Presentation Template

    Phase 2 outline: Steps 2.3 and 2.4

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Create a Strategic Framework for CXM Technology Enablement

    Proposed Time to Completion: 4 weeks

    Step 2.3: Create an Application Portfolio

    Start with an analyst kick-off call:

    • Discuss possible business process maps
    • Discuss strategic requirements
    • Review application portfolio results

    Then complete these activities…

    • Build business maps
    • Execute application mapping

    With these tools & templates:

    CXM Portfolio Designer

    CXM Strategy Stakeholder Presentation Template

    CXM Business Process Shortlisting Tool

    Step 2.4: Develop Deployment Best Practices

    Review findings with analyst:

    • Review possible integration maps
    • Discuss best practices for end-user adoption
    • Discuss best practices for customer data quality

    Then complete these activities…

    • Create CXM integration ecosystem
    • Develop adoption game plan
    • Create data quality standards

    With these tools & templates:

    CXM Strategy Stakeholder Presentation Template

    Phase 2 Results & Insights:

    • Application portfolio for CXM
    • Deployment best practices for areas such as integration, data quality, and end-user adoption

    Step 2.1: Scan the External Environment

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Inventory CXM drivers and organizational objectives
    • Identify CXM challenges and pain points
    • Discuss opportunities and benefits
    • Align corporate and CXM strategies
    • Conduct a competitive analysis
    • Conduct a PEST analysis and extract strategic requirements
    • Build customer personas and extract strategic requirements

    Outcomes:

    • CXM operating model
      • Organizational drivers
      • Environmental factors
      • Barriers
      • Enablers
    • PEST analysis
    • External customer personas
    • Customer journey scenarios
    • Strategic requirements for CXM

    Develop a CXM technology operating model that takes stock of needs, drivers, barriers, and enablers

    Establish the drivers, enablers, and barriers to developing a CXM technology enablement strategy. In doing so, consider needs, environmental factors, organizational drivers, and technology drivers as inputs.

    CXM Strategy

    • Barriers
      • Lack of Resources
      • Cultural Mindset
      • Resistance to Change
      • Poor End-User Adoption
    • Enablers
      • Senior Management Support
      • Customer Data Quality
      • Current Technology Portfolio
    • Business Needs (What are your business drivers? What are current marketing, sales, and customer service pains?)
      • Acquisition Pipeline Management
      • Live Chat for Support
      • Social Media Analytics
      • Etc.
    • Organizational Goals
      • Increase Profitability
      • Enhance Customer Experience Consistency
      • Reduce Time-to-Resolution
      • Increase First Contact Resolution
      • Boost Share of Voice
    • Environmental Factors (What factors that affect your strategy are out of your control?)
      • Customer Buying Habits
      • Changing Technology Trends
      • Competitive Landscape
      • Regulatory Requirements
    • Technology Drivers (Why do you need a new system? What is the purpose for becoming an integrated organization?)
      • System Integration
      • Reporting Capabilities
      • Deployment Model

    Understand your needs, drivers, and organizational objectives for creating a CXM strategy

    Business Needs Organizational Drivers Technology Drivers Environmental Factors
    Definition A business need is a requirement associated with a particular business process (for example, Marketing needs customer insights from the website – the business need would therefore be web analytics capabilities). Organizational drivers can be thought of as business-level goals. These are tangible benefits the business can measure such as customer retention, operation excellence, and financial performance. Technology drivers are technological changes that have created the need for a new CXM enablement strategy. Many organizations turn to technology systems to help them obtain a competitive edge. External considerations are factors taking place outside of the organization that are impacting the way business is conducted inside the organization. These are often outside the control of the business.
    Examples
    • Web analytics
    • Live chat capabilities
    • Mobile self-service
    • Social media listening
    • Data quality
    • Customer satisfaction
    • Branding
    • Time-to-resolution
    • Deployment model (i.e. SaaS)
    • Integration
    • Reporting capabilities
    • Fragmented technologies
    • Economic factors
    • Customer preferences
    • Competitive influencers
    • Compliance regulations

    Info-Tech Insight

    A common organizational driver is to provide adequate technology enablement across multiple channels, resulting in a consistent customer experience. This driver is a result of external considerations. Many industries today are highly competitive and rapidly changing. To succeed under these pressures, you must have a rationalized portfolio of enterprise applications for customer interaction.

    Activity: Inventory and discuss CXM drivers and organizational objectives

    2.1.1 30 minutes

    Input

    • Business needs
    • Exercise 1.1.3
    • Exercise 1.1.4
    • Environmental factors

    Output

    • CXM operating model inputs
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm the business needs, organizational drivers, technology drivers, and environmental factors that will inform the CXM strategy. Draw from exercises 1.1.3-1.1.5.
    2. Document your findings in the CXM operating model template. This can be found in the CXM Strategy Stakeholder Presentation Template.

    The image is a graphic, with a rectangle split into three sections in the centre. The three sections are: Barriers; CXM Strategy; Enablers. Around the centre are 4 more rectangles, labelled: Business Needs; Organizational Drivers; Technology Drivers; Environmental Factors. The outer rectangles are a slightly darker shade of grey than the others, highlighting them.

    Understand challenges and barriers to creating and executing the CXM technology-enablement strategy

    Take stock of internal challenges and barriers to effective CXM strategy execution.

    Example: Internal Challenges & Potential Barriers

    Understanding the Customer Change Management IT Readiness
    Definition The degree to which a holistic understanding of the customer can be created, including customer demographic and psychographics. The degree to which employees are ready to accept operational and cultural changes and the degree to which the organization is ready to manage it. The degree to which IT is ready to support new technologies and processes associated with a portfolio of CXM applications.
    Questions to Ask
    • As an organization, do we have a true understanding of our customers?
    • How might we achieve a complete understanding of the customer throughout different phases of the customer lifecycle?
    • Are employees resistant to change?
    • Are there enough resources to drive an CXM strategy?
    • To what degree is the existing organizational culture customer-centric?
    • Is there strong technical expertise?
    • Is there strong infrastructure?
    Implications
    • Uninformed creation of CXM strategic requirements
    • Inadequate understanding of customer needs and wants
    • User acceptance
    • Lack of ownership
    • Lack of accountability
    • Lack of sustainability
    • Poor implementation
    • Reliance on expensive external consultants
    • Lack of sustainability

    Activity: Identify CXM challenges and pain points

    2.1.2 30 minutes

    Input

    • Challenges
    • Pain points

    Output

    • CXM operating model barriers
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm the challenges and pain points that may act as barriers to the successful planning and execution of a CXM strategy.
    2. Document your findings in the CXM operating model template. This can be found in the CXM Strategy Stakeholder Presentation Template.

    The image is the same graphic from a previous section. In this instance, the Barriers sections is highlighted.

    Identify opportunities that can enable CXM strategy execution

    Existing internal conditions, capabilities, and resources can create opportunities to enable the CXM strategy. These opportunities are critical to overcoming challenges and barriers.

    Example: Opportunities to Leverage for Strategy Enablement

    Management Buy-In Customer Data Quality Current Technology Portfolio
    Definition The degree to which upper management understands and is willing to enable a CXM project, complete with sponsorship, funding, and resource allocation. The degree to which customer data is accurate, consistent, complete, and reliable. Strong customer data quality is an opportunity – poor data quality is a barrier. The degree to which the existing portfolio of CXM-supporting enterprise applications can be leveraged to enable the CXM strategy.
    Questions to Ask
    • Is management informed of changing technology trends and the subsequent need for CXM?
    • Are adequate funding and resourcing available to support a CXM project, from strategy creation to implementation?
    • Are there any data quality issues?
    • Is there one source of truth for customer data?
    • Are there duplicate or incomplete sets of data?
    • Does a strong CRM backbone exist?
    • What marketing, sales, and customer service applications exist?
    • Are CXM-enabling applications rated highly on usage and performance?
    Implications
    • Need for CXM clearly demonstrated
    • Financial and logistical feasibility
    • Consolidated data quality governance initiatives
    • Informed decision making
    • Foundation for CXM technology enablement largely in place
    • Reduced investment of time and money needed

    Activity: Discuss opportunities and benefits

    2.1.3 30 minutes

    Input

    • Opportunities
    • Benefits

    Output

    • Completed CXM operating model
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm opportunities that should be leveraged or benefits that should be realized to enable the successful planning and execution of a CXM strategy.
    2. Document your findings in the CXM operating model template. This can be found in the CXM Strategy Stakeholder Presentation Template.

    The image is the same graphic from earlier sections, this time with the Enablers section highlighted.

    Ensure that you align your CXM technology strategy to the broader corporate strategy

    A successful CXM strategy requires a comprehensive understanding of an organization’s overall corporate strategy and its effects on the interrelated departments of marketing, sales, and service, including subsequent technology implications. For example, a CXM strategy that emphasizes tools for omnichannel management and is at odds with a corporate strategy that focuses on only one or two channels will fail.

    Corporate Strategy

    • Conveys the current state of the organization and the path it wants to take.
    • Identifies future goals and business aspirations.
    • Communicates the initiatives that are critical for getting the organization from its current state to the future state.

    CXM Strategy

    • Communicates the company’s budget and spending on CXM applications and initiatives.
    • Identifies IT initiatives that will support the business and key CXM objectives, specific to marketing, sales, and service.
    • Outlines staffing and resourcing for CXM initiatives.

    Unified Strategy

    • The CXM implementation can be linked, with metrics, to the corporate strategy and ultimate business objectives.

    Info-Tech Insight

    Your organization’s corporate strategy is especially important in dictating the direction of the CXM strategy. Corporate strategies are often focused on customer-facing activity and will heavily influence the direction of marketing, sales, customer service, and consequentially, CXM. Corporate strategies will often dictate market targeting, sales tactics, service models, and more.

    Review sample organizational objectives to decipher how CXM technologies can support such objectives

    Identifying organizational objectives of high priority will assist in breaking down CXM objectives to better align with the overall corporate strategy and achieve buy-in from key stakeholders.

    Corporate Objectives Aligned CXM Technology Objectives
    Increase Revenue Enable lead scoring Deploy sales collateral management tools Improve average cost per lead via a marketing automation tool
    Enhance Market Share Enhance targeting effectiveness with a CRM Increase social media presence via an SMMP Architect customer intelligence analysis
    Improve Customer Satisfaction Reduce time-to-resolution via better routing Increase accessibility to customer service with live chat Improve first contact resolution with customer KB
    Increase Customer Retention Use a loyalty management application Improve channel options for existing customers Use customer analytics to drive targeted offers
    Create Customer-Centric Culture Ensure strong training and user adoption programs Use CRM to provide 360-degree view of all customer interaction Incorporate the voice of the customer into product development

    Activity: Review your corporate strategy and validate its alignment with the CXM operating model

    2.1.4 30 minutes

    Input

    • Corporate strategy
    • CXM operating model (completed in Activity 2.1.3)

    Output

    • Strategic alignment between the business and CXM strategies

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm and create a list of organizational objectives at the corporate strategy level.
    2. Break down each organizational objective to identify how CXM may support it.
    3. Validate CXM goals and organizational objectives with your CXM operating model. Be sure to address the validity of each with the business needs, organizational drivers, technology drivers, and environmental factors identified as inputs to the operating model.

    Amazon leverages customer data to drive decision making around targeted offers and customer experience

    CASE STUDY

    Industry E-Commerce

    Source Pardot, 2012

    Situation

    Amazon.com, Inc. is an American electronic commerce and cloud computing company. It is the largest e-commerce retailer in the US.

    Amazon originated as an online book store, later diversifying to sell various forms of media, software, games, electronics, apparel, furniture, food, toys, and more.

    By taking a data-driven approach to marketing and sales, Amazon was able to understand its customers’ needs and wants, penetrate different product markets, and create a consistently personalized online-shopping customer experience that keeps customers coming back.

    Technology Strategy

    Use Browsing Data Effectively

    Amazon leverages marketing automation suites to view recent activities of prospects on its website. In doing so, a more complete view of the customer is achieved, including insights into purchasing interests and site navigation behaviors.

    Optimize Based on Interactions

    Using customer intelligence, Amazon surveys and studies standard engagement metrics like open rate, click-through rate, and unsubscribes to ensure the optimal degree of marketing is being targeted to existing and prospective customers, depending on level of engagement.

    Results

    Insights gained from having a complete understanding of the customer (from basic demographic characteristics provided in customer account profiles to observed psychographic behaviors captured by customer intelligence applications) are used to personalize Amazon’s sales and marketing approaches. This is represented through targeted suggestions in the “recommended for you” section of the browsing experience and tailored email marketing.

    It is this capability, partnered with the technological ability to observe and measure customer engagement, that allows Amazon to create individual customer experiences.

    Scan the external environment to understand your customers, competitors, and macroenvironmental trends

    Do not develop your CXM technology strategy in isolation. Work with Marketing to understand your STP strategy (segmentation, targeting, positioning): this will inform persona development and technology requirements downstream.

    Market Segmentation

    • Segment target market by demographic, geographic, psychographic, and behavioral characteristics
    • What does the competitive market look like?
    • Who are the key customer segments?
    • What segments are you going to target?

    Market Targeting

    • Evaluate potential and commercial attractiveness of each segment, considering the dynamics of the competition
    • How do you target your customers?
    • How should you target them in the future?
    • How do your products/services differ from the competition?

    Product Positioning

    • Develop detailed product positioning and marketing mixes for selected segments
    • What is the value of the product/service to each segment of the market?
    • How are you positioning your product/service in the market?

    Info-Tech Insight

    It is at this point that you should consider the need for and viability of an omnichannel approach to CXM. Through which channels do you target your customers? Are your customers present and active on a wide variety of channels? Consider how you can position your products, services, and brand through the use of omnichannel methodologies.

    Activity: Conduct a competitive analysis to understand where your market is going

    2.1.5 1 hour

    Input

    • Scan of competitive market
    • Existing customer STP strategy

    Output

    • Strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team
    • Marketing SME

    Instructions

    1. Scan the market for direct and indirect competitors.
    2. Evaluate current and/or future segmentation, targeting, and positioning strategies by answering the following questions:
    • What does the competitive market look like?
    • Who are the key customer segments?
    • What segments are you going to target?
    • How do you target your customers?
    • How should you target them in the future?
    • How do your products/services differ from the competition?
    • What is the value of the product/service to each segment of the market?
    • How are you positioning your product/service in the market?
    • Other helpful questions include:
      • How formally do you target customers? (e.g. through direct contact vs. through passive brand marketing)
      • Does your organization use the shotgun or rifle approach to marketing?
        • Shotgun marketing: targets a broad segment of people, indirectly
        • Rifle marketing: targets smaller and more niche market segments using customer intelligence
  • For each point, identify CXM requirements.
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • Activity: Conduct a competitive analysis (cont’d)

    2.1.5 30 minutes

    Input

    • Scan of competitive market

    Output

    • Competitive analysis
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team
    • Marketing SME (e.g. Market Research Stakeholders)

    Instructions

    1. List recent marketing technology and customer experience-related initiatives that your closest competitors have implemented.
    2. For each identified initiative, elaborate on what the competitive implications are for your organization.
    3. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Competitive Implications

    Competitor Organization Recent Initiative Associated Technology Direction of Impact Competitive Implication
    Organization X Multichannel E-Commerce Integration WEM – hybrid integration Positive
    • Up-to-date e-commerce capabilities
    • Automatic product updates via PCM
    Organization Y Web Social Analytics WEM Positive
    • Real-time analytics and customer insights
    • Allows for more targeted content toward the visitor or customer

    Conduct a PEST analysis to determine salient political, economic, social, and technological impacts for CXM

    A PEST analysis is a structured planning method that identifies external environmental factors that could influence the corporate and IT strategy.

    Political - Examine political factors, such as relevant data protection laws and government regulations.

    Economic - Examine economic factors, such as funding, cost of web access, and labor shortages for maintaining the site(s).

    Technological - Examine technological factors, such as new channels, networks, software and software frameworks, database technologies, wireless capabilities, and availability of software as a service.

    Social - Examine social factors, such as gender, race, age, income, and religion.

    Info-Tech Insight

    When looking at opportunities and threats, PEST analysis can help to ensure that you do not overlook external factors, such as technological changes in your industry. When conducting your PEST analysis specifically for CXM, pay particular attention to the rapid rate of change in the technology bucket. New channels and applications are constantly emerging and evolving, and seeing differential adoption by potential customers.

    Activity: Conduct and review the PEST analysis

    2.1.6 30 minutes

    Input

    • Political, economic, social, and technological factors related to CXM

    Output

    • Completed PEST analysis

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Identify your current strengths and weaknesses in managing the customer experience.
    2. Identify any opportunities to take advantage of and threats to mitigate.

    Example: PEST Analysis

    Political

    • Data privacy for PII
    • ADA legislation for accessible design

    Economic

    • Spending via online increasing
    • Focus on share of wallet

    Technological

    • Rise in mobile
    • Geo-location based services
    • Internet of Things
    • Omnichannel

    Social

    • Increased spending power by millennials
    • Changing channel preferences
    • Self-service models

    Activity: Translate your PEST analysis into a list of strategic CXM technology requirements to be addressed

    2.1.7 30 minutes

    Input

    • PEST Analysis conducted in Activity 2.1.6.

    Output

    • Strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    For each PEST quadrant:

    1. Document the point and relate it to a goal.
    2. For each point, identify CXM requirements.
    3. Sort goals and requirements to eliminate duplicates.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Parsing Requirements from PEST Analysis

    Technological Trend: There has been a sharp increase in popularity of mobile self-service models for buying habits and customer service access.

    Goal: Streamline mobile application to be compatible with all mobile devices. Create consistent branding across all service delivery applications (e.g. website, etc.).

    Strategic Requirement: Develop a native mobile application while also ensuring that resources through our web presence are built with responsive design interface.

    IT must fully understand the voice of the customer: work with Marketing to develop customer personas

    Creating a customer-centric CXM technology strategy requires archetypal customer personas. Creating customer personas will enable you to talk concretely about them as consumers of your customer experience and allow you to build buyer scenarios around them.

    A persona (or archetypal user) is an invented person that represents a type of user in a particular use-case scenario. In this case, personas can be based on real customers.

    Components of a persona Example – Organization: Grocery Store
    Name Name personas to reflect a key attribute such as the persona’s primary role or motivation Brand Loyal Linda: A stay-at-home mother dedicated to maintaining and caring for a household of 5 people
    Demographic Include basic descriptors of the persona (e.g. age, geographic location, preferred language, education, job, employer, household income, etc.) Age: 42 years old Geographic location: London Suburbia Language: English Education: Post-secondary Job: Stay-at-home mother Annual Household Income: $100,000+
    Wants, needs, pain points Identify surface-level motivations for buying habits

    Wants: Local products Needs: Health products; child-safe products

    Pain points: Fragmented shopping experience

    Psychographic/behavioral traits Observe persona traits that are representative of the customers’ behaviors (e.g. attitudes, buying patterns, etc.)

    Psychographic: Detail-oriented, creature of habit

    Behavioral: Shops at large grocery store twice a week, visits farmers market on Saturdays, buys organic products online

    Activity: Build personas for your customers

    2.1.8 2 hours

    Input

    • Customer demographics and psychographics

    Output

    • List of prioritized customer personas
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    Project Team

    Instructions

    1. In 2-4 groups, list all the customer personas that need to be built. In doing so, consider the people who interact with your organization most often.
    2. Build a demographic profile for each customer persona. Include information such as age, geographic location, occupation, annual income, etc.
    3. Augment the persona with a psychographic profile of each customer. Consider the goals and objectives of each customer persona and how these might inform buyer behaviors.
    4. Introduce your group’s personas to the entire group, in a round-robin fashion, as if you are introducing your persona at a party.
    5. Summarize the personas in a persona map. Rank your personas according to importance and remove any duplicates.

    Info-Tech Insight

    For CXM, persona building is typically used for understanding the external customer; however, if you need to gain a better understanding of the organization’s internal customers (those who will be interacting with CXM applications), personas can also be built for this purpose. Examples of useful internal personas are sales managers, brand managers, customer service directors, etc.

    Sample Persona Templates

    Fred, 40

    The Family Man

    Post-secondary educated, white-collar professional, three children

    Goals & Objectives

    • Maintain a stable secure lifestyle
    • Progress his career
    • Obtain a good future for his children

    Behaviors

    • Manages household and finances
    • Stays actively involved in children’s activities and education
    • Seeks potential career development
    • Uses a cellphone and email frequently
    • Sometimes follows friends Facebook pages

    Services of Interest

    • SFA, career counselling, job boards, day care, SHHS
    • Access to information via in-person, phone, online

    Traits

    General Literacy - High

    Digital Literacy - Mid-High

    Detail-Oriented - High

    Willing to Try New Things - Mid-High

    Motivated and Persistent - Mid-High

    Time Flexible - Mid-High

    Familiar With [Red.] - Mid

    Access to [Red.] Offices - High

    Access to Internet - High

    Ashley, 35

    The Tourist

    Single, college educated, planning vacation in [redacted], interested in [redacted] job opportunities

    Goals & Objectives

    • Relax after finishing a stressful job
    • Have adventures and try new things
    • Find a new job somewhere in Canada

    Behaviors

    • Collects information about things to do in [redacted]
    • Collects information about life in [redacted]
    • Investigates and follows up on potential job opportunities
    • Uses multiple social media to keep in touch with friends
    • Shops online frequently

    Services of Interest

    • SFA, job search, road conditions, ferry schedules, hospital, police station, DL requirements, vehicle rental
    • Access to information via in-person, phone, website, SMS, email, social media

    Traits

    General Literacy - Mid

    Digital Literacy - High

    Detail-Oriented - Mid

    Willing to Try New Things - High

    Motivated and Persistent - Mid

    Time Flexible - Mid-High

    Familiar With [Red.] - Low

    Access to [Red.] Offices - Low

    Access to Internet - High

    Bill, 25

    The Single Parent

    15-year resident of [redacted], high school education, waiter, recently divorced, two children

    Goals & Objectives

    • Improve his career options so he can support his family
    • Find an affordable place to live
    • Be a good parent
    • Work through remaining divorce issues

    Behaviors

    • Tries to get training or experience to improve his career
    • Stays actively involved in his children’s activities
    • Looks for resources and supports to resolve divorce issues
    • Has a cellphone and uses the internet occasionally

    Services of Interest

    • Child care, housing authority, legal aid, parenting resources
    • Access to information via in person, word-of mouth, online, phone, email

    Traits

    General Literacy - Mid

    Digital Literacy - Mid-Low

    Detail-Oriented - Mid-Low

    Willing to Try New Things - Mid

    Motivated and Persistent - High

    Time Flexible - Mid

    Familiar With [Red.] - Mid-High

    Access to [Red.] Offices - High

    Access to Internet - High

    Marie, 19

    The Regional Youth

    Single, [redacted] resident, high school graduate

    Goals & Objectives

    • Get a good job
    • Maintain ties to family and community

    Behaviors

    • Looking for work
    • Gathering information about long-term career choices
    • Trying to get the training or experience that can help her develop a career
    • Staying with her parents until she can get established
    • Has a new cellphone and is learning how to use it
    • Plays videogames and uses the internet at least weekly

    Services of Interest

    • Job search, career counselling
    • Access to information via in-person, online, phone, email, web applications

    Traits

    General Literacy - Mid

    Digital Literacy - Mid

    Detail-Oriented - Mid-Low

    Willing to Try New Things - Mid-High

    Motivated and Persistent - Mid-Low

    Time Flexible - High

    Familiar With [Red.] - Mid-Low

    Access to [Red.] Offices - Mid-Low

    Access to Internet - Mid

    Build key scenarios for each persona to extract strategic requirements for your CXM application portfolio

    A scenario is a story or narrative that helps explore the set of interactions that a customer has with an organization. Scenario mapping will help parse requirements used to design the CXM application portfolio.

    A Good Scenario…

    • Describes specific task(s) that need to be accomplished
    • Describes user goals and motivations
    • Describes interactions with a compelling but not overwhelming amount of detail
    • Can be rough, as long as it provokes ideas and discussion

    Scenarios Are Used To…

    • Provide a shared understanding about what a user might want to do, and how they might want to do it
    • Help construct the sequence of events that are necessary to address in your user interface(s)

    To Create Good Scenarios…

    • Keep scenarios high level, not granular in nature
    • Identify as many scenarios as possible. If you’re time constrained, try to develop 2-3 key scenarios per persona
    • Sketch each scenario out so that stakeholders understand the goal of the scenario

    Activity: Build scenarios for each persona and extract strategic requirements for the CXM strategy

    2.1.9 1.5 hours

    Input

    • Customer personas (output of Activity 2.1.5)

    Output

    • CX scenario maps
    • Strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. For each customer persona created in Activity 2.1.5, build a scenario. Choose and differentiate scenarios based on the customer goal of each scenario (e.g. make online purchase, seek customer support, etc.).
    2. Think through the narrative of how a customer interacts with your organization, at all points throughout the scenario. List each step in the interaction in a sequential order to form a scenario journey.
    3. Examine each step in the scenario and brainstorm strategic requirements that will be needed to support the customer’s use of technology throughout the scenario.
    4. Repeat steps 1-3 for each persona. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Scenario Map

    Persona Name: Brand Loyal Linda

    Scenario Goal: File a complaint about in-store customer service

    Look up “[Store Name] customer service” on public web. →Reach customer support landing page. →Receive proactive notification prompt for online chat with CSR. →Initiate conversation: provide order #. →CSR receives order context and information. →Customer articulates problem, CSR consults knowledgebase. →Discount on next purchase offered. →Send email with discount code to Brand Loyal Linda.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.1; 2.1.2; 2.1.3; 2.1.4 - Create a CXM operating model

    An analyst will facilitate a discussion to identify what impacts your CXM strategy and how to align it to your corporate strategy. The discussion will take different perspectives into consideration and look at organizational drivers, external environmental factors, as well as internal barriers and enablers.

    2.1.5 Conduct a competitive analysis

    Calling on their depth of expertise in working with a broad spectrum of organizations, our facilitator will help you work through a structured, systematic evaluation of competitors’ actions when it comes to CXM.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.1.6; 2.1.7 - Conduct a PEST analysis

    The facilitator will use guided conversation to target each quadrant of the PEST analysis and help your organization fully enumerate political, economic, social, and technological trends that will influence your CXM strategy. Our analysts are deeply familiar with macroenvironmental trends and can provide expert advice in identifying areas of concern in the PEST and drawing strategic requirements as implications.

    2.1.8; 2.1.9 - Build customer personas and subsequent persona scenarios

    Drawing on the preceding exercises as inputs, the facilitator will help the team create and refine personas, create respective customer interaction scenarios, and parse strategic requirements to support your technology portfolio for CXM.

    Step 2.2: Assess the Current State of CXM

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Conduct a SWOT analysis and extract strategic requirements
    • Inventory existing CXM applications and assess end-user usage and satisfaction
    • Conduct a VRIO analysis and extract strategic requirements

    Outcomes:

    • SWOT analysis
    • VRIO analysis
    • Current state application portfolio
    • Strategic requirements

    Conduct a SWOT analysis to prepare for creating your CXM strategy

    A SWOT analysis is a structured planning method that evaluates the strengths, weaknesses, opportunities, and threats involved in a project.

    Strengths - Strengths describe the positive attributes that are within your control and internal to your organization (i.e. what do you do better than anyone else?)

    Weaknesses - Weaknesses are internal aspects of your business that place you at a competitive disadvantage; think of what you need to enhance to compete with your top competitor.

    Opportunities - Opportunities are external factors the project can capitalize on. Think of them as factors that represent reasons your business is likely to prosper.

    Threats - Threats are external factors that could jeopardize the project. While you may not have control over these, you will benefit from having contingency plans to address them if they occur.

    Info-Tech Insight

    When evaluating weaknesses of your current CXM strategy, ensure that you’re taking into account not just existing applications and business processes, but also potential deficits in your organization’s channel strategy and go-to-market messaging.

    Activity: Conduct a SWOT analysis

    2.2.1 30 minutes

    Input

    • CXM strengths, weaknesses, opportunities, and threats

    Output

    • Completed SWOT analysis

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Identify your current strengths and weaknesses in managing the customer experience. Consider marketing, sales, and customer service aspects of the CX.
    2. Identify any opportunities to take advantage of and threats to mitigate.

    Example: SWOT Analysis

    Strengths

    • Strong customer service model via telephony

    Weaknesses

    • Customer service inaccessible in real-time through website or mobile application

    Opportunities

    • Leverage customer intelligence to measure ongoing customer satisfaction

    Threats

    • Lack of understanding of customer interaction platforms by staff could hinder adoption

    Activity: Translate your SWOT analysis into a list of requirements to be addressed

    2.2.2 30 minutes

    Input

    • SWOT Analysis conducted in Activity 2.2.1.

    Output

    • Strategic CXM requirements
    • CXM Stakeholder Presentation Template

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    For each SWOT quadrant:

    1. Document the point and relate it to a goal.
    2. For each point, identify CXM requirements.
    3. Sort goals and requirements to eliminate duplicates.
    4. Document your outputs in the CXM Stakeholder Presentation Template.

    Example: Parsing Requirements from SWOT Analysis

    Weakness: Customer service inaccessible in real-time through website or mobile application.

    Goal: Increase the ubiquity of access to customer service knowledgebase and agents through a web portal or mobile application.

    Strategic Requirement: Provide a live chat portal that matches the customer with the next available and qualified agent.

    Inventory your current CXM application portfolio

    Applications are the bedrock of technology enablement for CXM. Review your current application portfolio to identify what is working well and what isn’t.

    Understand Your CXM Application Portfolio With a Four-Step Approach

    Build the CXM Application Inventory →Assess Usage and Satisfaction →Map to Business Processes and Determine Dependencies →Determine Grow/Maintain/ Retire for Each Application

    When assessing the CXM applications portfolio, do not cast your net too narrowly; while CRM and MMS applications are often top of mind, applications for digital asset management and social media management are also instrumental for ensuring a well-integrated CX.

    Identify dependencies (either technical or licensing) between applications. This dependency tracing will come into play when deciding which applications should be grown (invested in), which applications should be maintained (held static), and which applications should be retired (divested).

    Info-Tech Insight

    Shadow IT is prominent here! When building your application inventory, ensure you involve Marketing, Sales, and Service to identify any “unofficial” SaaS applications that are being used for CXM. Many organizations fail to take a systematic view of their CXM application portfolio beyond maintaining a rough inventory. To assess the current state of alignment, you must build the application inventory and assess satisfaction metrics.

    Understand which of your organization’s existing enterprise applications enable CXM

    Review the major enterprise applications in your organization that enable CXM and align your requirements to these applications (net-new or existing). Identify points of integration to capture the big picture.

    The image shows a graphic titled Example: Integration of CRM, SMMP, and ERP. It is a flow chart, with icons defined by a legend on the right side of the image

    Info-Tech Insight

    When assessing the current application portfolio that supports CXM, the tendency will be to focus on the applications under the CXM umbrella, relating mostly to marketing, sales, and customer service. Be sure to include systems that act as input to, or benefit due to outputs from, CRM or similar applications. Examples of these systems are ERP systems, ECM (e.g. SharePoint) applications, and more.

    Assess CXM application usage and satisfaction

    Having a portfolio but no contextual data will not give you a full understanding of the current state. The next step is to thoroughly assess usage patterns as well as IT, management, and end-user satisfaction with each application.

    Example: Application Usage & Satisfaction Assessment

    Application Name Level of Usage IT Satisfaction Management Satisfaction End-User Satisfaction Potential Business Impact
    CRM (e.g. Salesforce) Medium High Medium Medium High
    CRM (e.g. Salesforce) Low Medium Medium High Medium
    ... ... ... ... ... ...

    Info-Tech Insight

    When evaluating satisfaction with any application, be sure to consult all stakeholders who come into contact with the application or depend on its output. Consider criteria such as ease of use, completeness of information, operational efficiency, data accuracy, etc.

    Use Info-Tech’s Application Portfolio Assessment to gather end-user feedback on existing CXM applications

    2.2.3 Application Portfolio Assessment: End-User Feedback

    Info-Tech’s Application Portfolio Assessment: End-User Feedback diagnostic is a low-effort, high-impact program that will give you detailed report cards on end-user satisfaction with an application. Use these insights to identify problems, develop action plans for improvement, and determine key participants.

    Application Portfolio Assessment: End-User Feedback is an 18-question survey that provides valuable insights on user satisfaction with an application by:

    • Performing a general assessment of the application portfolio that provides a full view of the effectiveness, criticality, and prevalence of all relevant applications.
    • Measuring individual application performance with open-ended user feedback surveys about the application, organized by department to simplify problem resolution.
    • Providing targeted department feedback to identify end-user satisfaction and focus improvements on the right group or line of business.

    INFO-TECH DIAGNOSTIC

    Activity: Inventory your CXM applications, and assess application usage and satisfaction

    2.2.4 1 hour

    Input

    • List of CXM applications

    Output

    • Complete inventory of CXM applications
    • CXM Stakeholder Presentation Template

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. List all existing applications that support the creation, management, and delivery of your customer experience.
    2. Identify which processes each application supports (e.g. content deployment, analytics, service delivery, etc.).
    3. Identify technical or licensing dependencies (e.g. data models).
    4. Assess the level of application usage by IT, management, and internal users (high/medium/low).
    5. Assess the satisfaction with and performance of each application according to IT, management, and internal users (high/medium/low). Use the Info-Tech Diagnostic to assist.

    Example: CXM Application Inventory

    Application Name Deployed Date Processes Supported Technical and Licensing Dependencies
    Salesforce June 2018 Customer relationship management XXX
    Hootsuite April 2019 Social media listening XXX
    ... ... ... ...

    Conduct a VRIO analysis to identify core competencies for CXM applications

    A VRIO analysis evaluates the ability of internal resources and capabilities to sustain a competitive advantage by evaluating dimensions of value, rarity, imitability, and organization. For critical applications like your CRM platform, use a VRIO analysis to determine their value.

    Is the resource or capability valuable in exploiting an opportunity or neutralizing a threat? Is the resource or capability rare in the sense that few of your competitors have a similar capability? Is the resource or capability costly to imitate or replicate? Is the organization organized enough to leverage and capture value from the resource or capability?
    NO → → → COMPETITIVE DISADVANTAGE
    YES NO→ → → COMPETITIVE EQUALITY/PARITY
    YES YES NO→ → TEMPORARY COMPETITIVE ADVANTAGE
    YES YES YES NO→ UNUSED COMPETITIVE ADVANTAGE
    YES YES YES YES LONG-TERM COMPETITIVE ADVANTAGE

    (Strategic Management Insight, 2013)

    Activity: Conduct a VRIO analysis on your existing application portfolio

    2.2.5 30 minutes

    Input

    • Inventory of existing CXM applications (output of Activity 2.2.4)

    Output

    • Completed VRIO analysis
    • Strategic CXM requirements
    • CXM Stakeholder Presentation Template

    Materials

    • VRIO Analysis model
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Evaluate each CXM application inventoried in Activity 2.2.4 by answering the four VRIO questions in sequential order. Do not proceed to the following question if “no” is answered at any point.
    2. Record the results. The state of your organization’s competitive advantage, based on each resource/capability, will be determined based on the number of questions with a “yes” answer. For example, if all four questions are answered positively, then your organization is considered to have a long-term competitive advantage.
    3. Document your outputs in the CXM Stakeholder Presentation Template.

    If you want additional support, have our analysts guide your through this phase as part of an Info-Tech workshop

    2.2.1; 2.2.2 Conduct a SWOT Analysis

    Our facilitator will use a small-team approach to delve deeply into each area, identifying enablers (strengths and opportunities) and challenges (weaknesses and threats) relating to the CXM strategy.

    2.2.3; 2.2.4 Inventory your CXM applications, and assess usage and satisfaction

    Working with your core team, the facilitator will assist with building a comprehensive inventory of CXM applications that are currently in use and with identifying adjacent systems that need to be identified for integration purposes. The facilitator will work to identify high and low performing applications and analyze this data with the team during the workshop exercise.

    2.2.5 Conduct a VRIO analysis

    The facilitator will take you through a VRIO analysis to identify which of your internal technological competencies ensure, or can be leveraged to ensure, your competitiveness in the CXM market.

    Step 2.3: Create an Application Portfolio

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities

    • Shortlist and prioritize business processes for improvement and reengineering
    • Map current CXM processes
    • Identify business process owners and assign job responsibilities
    • Identify user interaction channels to extract strategic requirements
    • Aggregate and develop strategic requirements
    • Determine gaps in current and future state processes
    • Build the CXM application portfolio

    Outcomes

    CXM application portfolio map

    • Shortlist of relevant business processes
    • Current state map
    • Business process ownership assignment
    • Channel map
    • Complete list of strategic requirements

    Understand business process mapping to draft strategy requirements for marketing, sales, and customer service

    The interaction between sales, marketing, and customer service is very process-centric. Rethink sales and customer-centric workflows and map the desired workflow, imbedding the improved/reengineered process into the requirements.

    Using BPM to Capture Strategic Requirements

    Business process modeling facilitates the collaboration between the business and IT, recording the sequence of events, tasks performed, who performed them, and the levels of interaction with the various supporting applications.

    By identifying the events and decision points in the process and overlaying the people that perform the functions, the data being interacted with, and the technologies that support them, organizations are better positioned to identify gaps that need to be bridged.

    Encourage the analysis by compiling an inventory of business processes that support customer-facing operations that are relevant to achieving the overall organizational strategies.

    Outcomes

    • Operational effectiveness
    • Identification, implementation, and maintenance of reusable enterprise applications
    • Identification of gaps that can be addressed by acquisition of additional applications or process improvement/ reengineering

    INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Create a Comprehensive BPM Strategy for Successful Process Automation blueprint for further assistance in taking a BPM approach to your sales-IT alignment.

    Leverage the APQC framework to help define your inventory of sales, marketing, and service processes

    APQC’s Process Classification Framework is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.

    OPERATING PROCESSES
    1.0 Develop Vision and Strategy 2.0 Develop and Manage Products and Services 3.0 Market and Sell Products and Services 4.0 Deliver Products and Services 5.0 Manage Customer Service
    MANAGEMENT AND SUPPORT SERVICES
    6.0 Develop and Manage Human Capital
    7.0 Manage Information Technology
    8.0 Manage Financial Resources
    9.0 Acquire, Construct, and Manage Assets
    10.0 Manage Enterprise Risk, Compliance, and Resiliency
    11.0 Manage External Relationships
    12.0 Develop and Manage Business Capabilities

    (APQC, 2011)

    MORE ABOUT APQC

    • APQC serves as a high-level, industry-neutral enterprise model that allows organizations to see activities from a cross-industry process perspective.
    • Sales processes have been provided up to Level 3 of the APQC framework.
    • The APQC Framework can be accessed through APQC’s Process Classification Framework.
    • Note: The framework does not list all processes within a specific organization, nor are the processes that are listed in the framework present in every organization.

    Understand APQC’s “Market and Sell Products and Services” framework

    3.0 Market and Sell Products

    3.1 Understand markets, customers, and capabilities

    • 3.1.1 Perform customer and market intelligence analysis
    • 3.1.2 Evaluate and prioritize market opportunities

    3.2 Develop marketing strategy

    • 3.2.1 Define offering and customer value proposition
    • 3.2.2 Define pricing strategy to align to value proposition
    • 3.2.3 Define and manage channel strategy

    3.3 Develop sales strategy

    • 3.3.1 Develop sales forecast
    • 3.3.2 Develop sales partner/alliance relationships
    • 3.3.3 Establish overall sales budgets
    • 3.3.4 Establish sales goals and measures
    • 3.3.5 Establish customer management measures

    3.4 Develop and manage marketing plans

    • 3.4.1 Establish goals, objectives, and metrics by products by channels/segments
    • 3.4.2 Establish marketing budgets
    • 3.4.3 Develop and manage media
    • 3.4.4 Develop and manage pricing
    • 3.4.5 Develop and manage promotional activities
    • 3.4.6 Track customer management measures
    • 3.4.7 Develop and manage packaging strategy

    3.5 Develop and manage sales plans

    • 3.5.1 Generate leads
    • 3.5.2 Manage customers and accounts
    • 3.5.3 Manage customer sales
    • 3.5.4 Manage sales orders
    • 3.5.5 Manage sales force
    • 3.5.6 Manage sales partners and alliances

    Understand APQC’s “Manage Customer Service” framework

    5.0 Manage Customer Service

    5.1 Develop customer care/customer service strategy

    • 5.1.1 Develop customer service segmentation
      • 5.1.1.1 Analyze existing customers
      • 5.1.1.2 Analyze feedback of customer needs
    • 5.1.2 Define customer service policies and procedures
    • 5.1.3 Establish service levels for customers

    5.2 Plan and manage customer service operations

    • 5.2.1 Plan and manage customer service work force
      • 5.2.1.1 Forecast volume of customer service contacts
      • 5.2.1.2 Schedule customer service work force
      • 5.2.1.3 Track work force utilization
      • 5.2.1.4 Monitor and evaluate quality of customer interactions with customer service representatives

    5.2 Plan and 5.2.3.1 Receive customer complaints 5.2.3.2 Route customer complaints 5.2.3.3 Resolve customer complaints 5.2.3.4 Respond to customer complaints manage customer service operations

    • 5.2.2 Manage customer service requests/inquiries
      • 5.2.2.1 Receive customer requests/inquiries
      • 5.2.2.2 Route customer requests/inquiries
      • 5.2.2.3 Respond to customer requests/inquiries
    • 5.2.3 Manage customer complaints
      • 5.2.3.1 Receive customer complaints
      • 5.2.3.2 Route customer complaints
      • 5.2.3.3 Resolve customer complaints
      • 5.2.3.4 Respond to customer complaints

    Leverage the APQC framework to inventory processes

    The APQC framework provides levels 1 through 3 for the “Market and Sell Products and Services” framework. Level 4 processes and beyond will need to be defined by your organization as they are more granular (represent the task level) and are often industry-specific.

    Level 1 – Category - 1.0 Develop vision and strategy (10002)

    Represents the highest level of process in the enterprise, such as manage customer service, supply chain, financial organization, and human resources.

    Level 2 – Process Group - 1.1 Define the business concept and long-term vision (10014)

    Indicates the next level of processes and represents a group of processes. Examples include perform after sales repairs, procurement, accounts payable, recruit/source, and develop sales strategy.

    Level 3 – Process - 1.1.1 Assess the external environment (10017)

    A series of interrelated activities that convert input into results (outputs); processes consume resources and require standards for repeatable performance; and processes respond to control systems that direct quality, rate, and cost of performance.

    Level 4 – Activity - 1.1.1.1 Analyze and evaluate competition (10021)

    Indicates key events performed when executing a process. Examples of activities include receive customer requests, resolve customer complaints, and negotiate purchasing contracts.

    Level 5 – Task - 12.2.3.1.1 Identify project requirements and objectives (11117)

    Tasks represent the next level of hierarchical decomposition after activities. Tasks are generally much more fine grained and may vary widely across industries. Examples include create business case and obtain funding, and design recognition and reward approaches.

    Info-Tech Insight

    Define the Level 3 processes in the context of your organization. When creating a CXM strategy, concern yourself with the interrelatedness of processes across existing departmental silos (e.g. marketing, sales, customer service). Reserve the analysis of activities (Level 4) and tasks (Level 3) for granular work initiatives involved in the implementation of applications.

    Use Info-Tech’s CXM Business Process Shortlisting Tool to prioritize processes for improvement

    2.3.1 CXM Business Process Shortlisting Tool

    The CXM Business Process Shortlisting Tool can help you define which marketing, sales, and service processes you should focus on.

    Working in concert with stakeholders from the appropriate departments, complete the short questionnaire.

    Based on validated responses, the tool will highlight processes of strategic importance to your organization.

    These processes can then be mapped, with requirements extracted and used to build the CXM application portfolio.

    INFO-TECH DELIVERABLE

    The image shows a screenshot of the Prioritize Your Business Processes for Customer Experience Management document, with sample information filled in.

    Activity: Define your organization’s top-level processes for reengineering and improvement

    2.3.2 1 hour

    Input

    • Shortlist business processes relating to customer experience (output of Tool 2.3.1)

    Output

    • Prioritized list of top-level business processes by department

    Materials

    • APQC Framework
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Inventory all business processes relating to customer experience.
    2. Customize the impacted business units and factor weightings on the scorecard below to reflect the structure and priorities of your organization.
    3. Using the scorecard, identify all processes essential to your customer experience. The scorecard is designed to determine which processes to focus on and to help you understand the impact of the scrutinized process on the different customer-centric groups across the organization.

    The image shows a chart with the headings Factor, Check If Yes, repeated. The chart lists various factors, and the Check if Yes columns are left blank.

    This image shows a chart with the headings Factor, Weights, and Scores. It lists factors, and the rest of the chart is blank.

    Current legend for Weights and Scores

    F – Finance

    H – Human Resources

    I – IT

    L – Legal

    M – Marketing

    BU1 – Business Unit 1

    BU2 – Business Unit 2

    Activity: Map top-level business processes to extract strategic requirements for the CXM application portfolio

    2.3.3 45 minutes

    Input

    • Prioritized list of top-level business processes (output of Activity 2.3.2)

    Output

    • Current state process maps
    • CXM Strategy Stakeholder Presentation

    Materials

    • APQC Framework
    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Project Team

    Instructions

    1. List all prioritized business processes, as identified in Activity 2.3.2. Map your processes in enough detail to capture all relevant activities and system touchpoints, using the legend included in the example. Focus on Level 3 processes, as explained in the APQC framework.
    2. Record all of the major process steps on sticky notes. Arrange the sticky notes in sequential order.
    3. On a set of different colored sticky notes, record all of the systems that enable the process. Map these system touchpoints to the process steps.
    4. Draw arrows in between the steps to represent manual entry or automation.
    5. Identify effectiveness and gaps in existing processes to determine process technology requirements.
    6. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Create a Comprehensive BPM Strategy for Successful Process Automation blueprint for further assistance in taking a BPM approach to your sales-IT alignment.

    Info-Tech Insight

    Analysis of the current state is important in the context of gap analysis. It aids in understanding the discrepancies between your baseline and the future state vision, and ensures that these gaps are documented as part of the overall requirements.

    Example: map your current CXM processes to parse strategic requirements (customer acquisition)

    The image shows an example of a CXM process map, which is formatted as a flow chart, with a legend at the bottom.

    Activity: Extract requirements from your top-level business processes

    2.3.4 30 minutes

    Input

    • Current state process maps (output of Activity 2.3.3)

    Output

    • Requirements for future state mapping

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Discuss the current state of priority business processes, as mapped in Activity 2.3.3.
    2. Extract process requirements for business process improvement by asking the following questions:
    • What is the input?
    • What is the output?
    • What are the underlying risks and how can they be mitigated?
    • What conditions should be met to mitigate or eliminate each risk?
    • What are the improvement opportunities?
    • What conditions should be met to enable these opportunities?
    1. Break business requirements into functional and non-functional requirements, as outlined on this slide.

    Info-Tech Insight

    The business and IT should work together to evaluate the current state of business processes and the business requirements necessary to support these processes. Develop a full view of organizational needs while still obtaining the level of detail required to make informed decisions about technology.

    Establish process owners for each top-level process

    Identify the owners of the business processes being evaluated to extract requirements. Process owners will be able to inform business process improvement and assume accountability for reengineered or net-new processes going forward.

    Process Owner Responsibilities

    Process ownership ensures support, accountability, and governance for CXM and its supporting processes. Process owners must be able to negotiate with business users and other key stakeholders to drive efficiencies within their own process. The process owner must execute tactical process changes and continually optimize the process.

    Responsibilities include the following:

    • Inform business process improvement
    • Introduce KPIs and metrics
    • Monitor the success of the process
    • Present process findings to key stakeholders within the organization
    • Develop policies and procedures for the process
    • Implement new methods to manage the process

    Info-Tech Insight

    Identify the owners of existing processes early so you understand who needs to be involved in process improvement and reengineering. Once implemented, CXM applications are likely to undergo a series of changes. Unstructured data will multiply, the number of users may increase, administrators may change, and functionality could become obsolete. Should business processes be merged or drastically changed, process ownership can be reallocated during CXM implementation. Make sure you have the right roles in place to avoid inefficient processes and poor data quality.

    Use Info-Tech’s Process Owner Assignment Guide to aid you in choosing the right candidates

    2.3.5 Process Owner Assignment Guide

    The Process Owner Assignment Guide will ensure you are taking the appropriate steps to identify process owners for existing and net-new processes created within the scope of the CXM strategy.

    The steps in the document will help with important considerations such as key requirements and responsibilities.

    Sections of the document:

    1. Define responsibilities and level of commitment
    2. Define job requirements
    3. Receive referrals
    4. Hold formal interviews
    5. Determine performance metrics

    INFO-TECH DELIVERABLE

    Activity: Assign business process owners and identify job responsibilities

    2.3.6 30 minutes

    Input

    • Current state map (output of Activity 2.3.3)

    Output

    • Process owners assigned
    • CXM Strategy Stakeholder Presentation

    Materials

    Participants

    • Project Team

    Instructions

    1. Using Info-Tech’s Process Owner Assignment Guide, assign process owners for each process mapped out in Activity 2.3.3. To assist in doing so, answer the following questions
    • What is the level of commitment expected from each process owner?
    • How will the process owner role be tied to a formal performance appraisal?
    • What metrics can be assigned?
    • How much work will be required to train process owners?
    • Is there support staff available to assist process owners?
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • Choose the channels that will make your target customers happy – and ensure they’re supported by CXM applications

    Traditional Channels

    Face-to-Face is efficient and has a positive personalized aspect that many customers desire, be it for sales or customer service.

    Telephony (or IVR) has been a mainstay of customer interaction for decades. While not fading, it must be used alongside newer channels.

    Postal used to be employed extensively for all domains, but is now used predominantly for e-commerce order fulfillment.

    Web 1.0 Channels

    Email is an asynchronous interaction channel still preferred by many customers. Email gives organizations flexibility with queuing.

    Live Chat is a way for clients to avoid long call center wait times and receive a solution from a quick chat with a service rep.

    Web Portals permit transactions for sales and customer service from a central interface. They are a must-have for any large company.

    Web 2.0 Channels

    Social Media consists of many individual services (like Facebook or Twitter). Social channels are exploding in consumer popularity.

    HTML5 Mobile Access allows customers to access resources from their personal device through its integrated web browser.

    Dedicated Mobile Apps allow customers to access resources through a dedicated mobile application (e.g. iOS, Android).

    Info-Tech Insight

    Your channel selections should be driven by customer personas and scenarios. For example, social media may be extensively employed by some persona types (i.e. Millennials) but see limited adoption in other demographics or use cases (i.e. B2B).

    Activity: Extract requirements from your channel map

    2.3.7 30 minutes

    Input

    • Current state process maps (output of Activity 2.3.3)

    Output

    • Channel map
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Inventory which customer channels are currently used by each department.
    2. Speak with the department heads for Marketing, Sales, and Customer Service and discuss future channel usage. Identify any channels that will be eliminated or added.
    3. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Business Unit Channel Use Survey

    Marketing Sales Customer Service
    Current Used? Future Use? Current Used? Future Use? Current Used? Future Use?
    Email Yes Yes No No No No
    Direct Mail Yes No No No No No
    Phone No No Yes Yes Yes Yes
    In-Person No No Yes Yes Yes No
    Website Yes Yes Yes Yes Yes Yes
    Social Channels No Yes Yes Yes No Yes

    Bring it together: amalgamate your strategic requirements for CXM technology enablement

    Discovering your organizational requirements is vital for choosing the right business-enabling initiative, technology, and success metrics. Sorting the requirements by marketing, sales, and service is a prudent mechanism for clarification.

    Strategic Requirements: Marketing

    Definition: High-level requirements that will support marketing functions within CXM.

    Examples

    • Develop a native mobile application while also ensuring that resources for your web presence are built with responsive design interface.
    • Consolidate workflows related to content creation to publish all brand marketing from one source of truth.
    • Augment traditional web content delivery by providing additional functionality such as omnichannel engagement, e-commerce, dynamic personalization, and social media functionality.

    Strategic Requirements: Sales

    Definition: High-level requirements that will support sales functions within CXM.

    Examples

    • Implement a system that reduces data errors and increases sales force efficiency by automating lead management workflows.
    • Achieve end-to-end visibility of the sales process by integrating the CRM, inventory, and order processing and shipping system.
    • Track sales force success by incorporating sales KPIs with real-time business intelligence feeds.

    Strategic Requirements: Customer Service

    Definition: High-level requirements that will support customer service functions within CXM.

    Examples

    • Provide a live chat portal that connects the customer, in real time, with the next available and qualified agent.
    • Bridge the gap between the source of truth for sales with customer service suites to ensure a consistent, end-to-end customer experience from acquisition to customer engagement and retention.
    • Use customer intelligence to track customer journeys in order to best understand and resolve customer complaints.

    Activity: Consolidate your strategic requirements for the CXM application portfolio

    2.3.8 30 minutes

    Input

    • Strategic CXM requirements (outputs of Activities 2.1.5, 2.1.6, and 2.2.2)

    Output

    • Aggregated strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Aggregate strategic CXM requirements that have been gathered thus far in Activities 2.1.5, 2.1.6, and 2.2.2, 2.3.5, and 2.3.7.
    2. Identify and rectify any obvious gaps in the existing set of strategic CXM requirements. To do so, consider the overall corporate and CXM strategy: are there any objectives that have not been addressed in the requirements gathering process?
    3. De-duplicate the list. Prioritize the aggregated/augmented list of CXM requirements as “high/critical,” “medium/important,” or “low/desirable.” This will help manage the relative importance and urgency of different requirements to itemize respective initiatives, resources, and the time in which they need to be addressed. In completing the prioritization of requirements, consider the following:
    • Requirements prioritization must be completed in collaboration with all key stakeholders (across the business and IT). Stakeholders must ask themselves:
      • What are the consequences to the business objectives if this requirement is omitted?
      • Is there an existing system or manual process/workaround that could compensate for it?
      • What business risk is being introduced if a particular requirement cannot be implemented right away?
  • Document your outputs in the CXM Strategic Stakeholder Presentation Template.

    • Info-Tech Insight

    Strategic CXM requirements will be used to prioritize specific initiatives for CXM technology enablement and application rollout. Ensure that IT, the business, and executive management are all aligned on a consistent and agreed upon set of initiatives.

    Burberry digitizes the retail CX with real-time computing to bring consumers back to the physical storefront

    CASE STUDY

    Industry Consumer Goods, Clothing

    Source Retail Congress, 2017

    Burberry London

    Situation

    Internally, Burberry invested in organizational alignment and sales force brand engagement. The more the sales associate knew about the brand engagement and technology-enabled strategy, the better the store’s performance. Before the efforts went to building relationships with customers, Burberry built engagement with employees.

    Burberry embraced “omnichannel,” the hottest buzzword in retailing to provide consumers the most immersive and intuitive brand experience within the store.

    Technology Strategy

    RFID tags were attached to products to trigger interactive videos on the store’s screens in the common areas or in a fitting room. Consumers are to have instant access to relevant product combinations, ranging from craftsmanship information to catwalk looks. This is equivalent to the rich, immediate information consumers have grown to expect from the online shopping experience.

    Another layer of Burberry’s added capabilities includes in-memory-based analytics to gather and analyze data in real-time to better understand customers’ desires. Burberry builds customer profiles based on what items the shoppers try on from the RFID-tagged garments. Although this requires customer privacy consent, customers are willing to provide personal information to trusted brands.

    This program, called “Customer 360,” assisted sales associates in providing data-driven shopping experiences that invite customers to digitally share their buying history and preferences via their tablet devices. As the data is stored in Burberry’s customer data warehouse and accessed through an application such as CRM, it is able to arm sales associates with personal fashion advice on the spot.

    Lastly, the customer data warehouse/CRM application is linked to Burberry’s ERP system and other custom applications in a cloud environment to achieve real-time inventory visibility and fulfillment.

    Burberry digitizes the retail CX with real-time computing to bring consumers back to the physical storefront (cont'd)

    CASE STUDY

    Industry Consumer Goods, Clothing

    Source Retail Congress, 2017

    Burberry London

    Situation

    Internally, Burberry invested in organizational alignment and sales force brand engagement. The more the sales associate knew about the brand engagement and technology-enabled strategy, the better the store’s performance. Before the efforts went to building relationships with customers, Burberry built engagement with employees.

    Burberry embraced “omnichannel,” the hottest buzzword in retailing to provide consumers the most immersive and intuitive brand experience within the store.

    The Results

    Burberry achieved one of the most personalized retail shopping experiences. Immediate personal fashion advice using customer data is only one component of the experience. Not only are historic purchases and preference data analyzed, a customer’s social media posts and fashion industry trend data is proactively incorporated into the interactions between the sales associate and the customer.

    Burberry achieved CEO Angela Ahrendts’ vision of “Burberry World,” in which the brand experience is seamlessly integrated across channels, devices, retail locations, products, and services.

    The organizational alignment between Sales, Marketing, and IT empowered employees to bring the Burberry brand to life in unique ways that customers appreciated and were willing to advocate.

    Burberry is now one of the most beloved and valuable luxury brands in the world. The brand tripled sales in five years, became one of the leading voices on trends, fashion, music, and beauty while redefining what top-tier customer experience should be both digitally and physically.

    Leverage both core CRM suites and point solutions to create a comprehensive CXM application portfolio

    The debate between best-of-breed point solutions versus comprehensive CRM suites is ongoing. There is no single best answer. In most cases, an effective portfolio will include both types of solutions.

    • When the CRM market first evolved, vendors took a heavy “module-centric” approach – offering basic suites with the option to add a number of individual modules. Over time, vendors began to offer suites with a high degree of out-of-the-box functionality. The market has now witnessed the rise of powerful point solutions for the individual business domains.
    • Point solutions augment, rather than supplant, the functionality of a CRM suite in the mid-market to large enterprise context. Point solutions do not offer the necessary spectrum of functionality to take the place of a unified CRM suite.
    • Point solutions enhance aspects of CRM. For example, most CRM vendors have yet to provide truly impressive social media capabilities. An organization seeking to dominate the social space should consider purchasing a social media management platform to address this deficit in their CRM ecosystem.

    Customer Relationship Management (CRM)

    Social Media Management Platform (SMMP)

    Field Sales/Service Automation (FSA)

    Marketing Management Suites

    Sales Force Automation

    Email Marketing Tools

    Lead Management Automation (LMA)

    Customer Service Management Suites

    Customer Intelligence Systems

    Don’t adopt multiple point solutions without a genuine need: choose domains most in need of more functionality

    Some may find that the capabilities of a CRM suite are not enough to meet their specific requirements: supplementing a CRM suite with a targeted point solution can get the job done. A variety of CXM point solutions are designed to enhance your business processes and improve productivity.

    Sales

    Sales Force Automation: Automatically generates, qualifies, tracks, and contacts leads for sales representatives, minimizing time wasted on administrative duties.

    Field Sales: Allows field reps to go through the entire sales cycle (from quote to invoice) while offsite.

    Sales Compensation Management: Models, analyzes, and dispenses payouts to sales representatives.

    Marketing

    Social Media Management Platforms (SMMP): Manage and track multiple social media services, with extensive social data analysis and insight capabilities.

    Email Marketing Bureaus: Conduct email marketing campaigns and mine results to effectively target customers.

    Marketing Intelligence Systems: Perform in-depth searches on various data sources to create predictive models.

    Service

    Customer Service Management (CSM): Manages the customer support lifecycle with a comprehensive array of tools, usually above and beyond what’s in a CRM suite.

    Customer Service Knowledge Management (CSKM): Advanced knowledgebase and resolution tools.

    Field Service Automation (FSA): Manages customer support tickets, schedules work orders, tracks inventory and fleets, all on the go.

    Info-Tech Insight

    CRM and point solution integration is critical. A best-of-breed product that poorly integrates with your CRM suite compromises the value generated by the combined solution, such as a 360-degree customer view. Challenge point solution vendors to demonstrate integration capabilities with CRM packages.

    Refer to your use cases to decide whether to add a dedicated point solution alongside your CRM suite

    Know your end state and what kind of tool will get you there. Refer to your strategic requirements to evaluate CRM and point solution feature sets.

    Standalone CRM Suite

    Sales Conditions: Need selling and lead management capabilities for agents to perform the sales process, along with sales dashboards and statistics.

    Marketing or Communication Conditions: Need basic campaign management and ability to refresh contact records with information from social networks.

    Member Service Conditions: Need to keep basic customer records with multiple fields per record and basic channels such as email and telephony.

    Add a Best-of-Breed or Point Solution

    Environmental Conditions: An extensive customer base with many different interactions per customer along with industry specific or “niche” needs. Point solutions will benefit firms with deep needs in specific feature areas (e.g. social media or field service).

    Sales Conditions: Lengthy sales process and account management requirements for assessing and managing opportunities – in a technically complex sales process.

    Marketing Conditions: Need social media functionality for monitoring and social property management.

    Customer Service Conditions: Need complex multi-channel service processes and/or need for best-of-breed knowledgebase and service content management.

    Info-Tech Insight

    The volume and complexity of both customers and interactions have a direct effect on when to employ just a CRM suite and when to supplement with a point solution. Check to see if your CRM suite can perform a specific business requirement before deciding to evaluate potential point solutions.

    Use Info-Tech’s CXM Portfolio Designer to create an inventory of high-value customer interaction applications

    2.3.9 CXM Portfolio Designer

    The CXM Portfolio Designer features a set of questions geared toward understanding your needs for marketing, sales, and customer service enablement.

    These results are scored and used to suggest a comprehensive solution-level set of enterprise applications for CXM that can drive your application portfolio and help you make investment decisions in different areas such as CRM, marketing management, and customer intelligence.

    Sections of the tool:

    1. Introduction
    2. Customer Experience Management Questionnaire
    3. Business Unit Recommendations
    4. Enterprise-Level Recommendations

    INFO-TECH DELIVERABLE

    Understand the art of the possible and how emerging trends will affect your application portfolio (1)

    Cloud

    • The emergence and maturation of cloud technologies has broken down the barriers of software adoption.
    • Cloud has enabled easy-to-implement distributed sales centers for enterprises with global or highly fragmented workforces.
    • Cloud offers the agility, scalability, and flexibility needed to accommodate dynamic, evolving customer requirements while minimizing resourcing strain on IT and sales organizations.
    • It is now easier for small to medium enterprises to acquire and implement advanced sales capabilities to compete against larger competitors in a business environment where the need for business agility is key.
    • Although cost and resource reduction is a prominent view of the impact of cloud computing, it is also seen as an agile way to innovate and deliver a product/service experience that customers are looking for – the key to competitive differentiation.

    Mobile

    • Smartphones and other mobile devices were adopted faster than the worldwide web in the late 1990s, and the business and sales implications of widespread adoption cannot be ignored – mobile is changing how businesses operate.
      • Accenture’s Mobility Research Report states that 87% of companies in the study have been guided by a formal mobility strategy – either one that spans the enterprise or for specific business functions.
    • Mobile is now the first point of interaction with businesses. With this trend, gaining visibility into customer insights with mobile analytics is a top priority for organizations.
    • Enterprises need to develop and optimize mobile experiences for internal salespeople and customers alike as part of their sales strategy – use mobile to enable a competitive, differentiated sales force.
    • The use of mobile platforms by sales managers is becoming a norm. Sales enablement suites should support real-time performance metrics on mobile dashboards.

    Understand the art of the possible and how emerging trends will affect your application portfolio (2)

    Social

    • The rise of social networking brought customers together. Customers are now conversing with each other over a wide range of community channels that businesses neither own nor control.
      • The Power Shift: The use of social channels empowered customers to engage in real-time, unstructured conversations for the purpose of product/service evaluations. Those who are active in social environments come to wield considerable influence over the buying decisions of other prospects and customers.
    • Organizations need to identify the influencers and strategically engage them as well as developing an active presence in social communities that lead to sales.
    • Social media does have an impact on sales, both B2C and B2B. A study conducted in 2012 by Social Centered Selling states that 72.6% of sales people using social media as part of their sales process outperformed their peers and exceeded their quota 23% more often (see charts at right).

    The image shows two bar graphs, the one on top titled Achieving Quota: 2010-2012 and the one below titled Exceeding Quota: 2010-2012.

    (Social Centered Learning, n.d.)

    Understand the art of the possible and how emerging trends will affect your application portfolio (3)

    Internet of Things

    • Definition: The Internet of Things (IoT) is the network of physical objects accessed through the internet. These objects contain embedded technology to interact with internal states or the external environment.
    • Why is this interesting?
      • IoT will make it possible for everybody and everything to be connected at all times, processing information in real time. The result will be new ways of making business and sales decisions supported by the availability of information.
      • With ubiquitous connectivity, the current product design-centric view of consumers is changing to one of experience design that aims to characterize the customer relationship with a series of integrated interaction touchpoints.
      • The above change contributes to the shift in focus from experience and will mean further acceleration of the convergence of customer-centric business functions. IoT will blur the lines between marketing, sales, and customer service.
      • Products or systems linked to products are capable of self-operating, learning, updating, and correcting by analyzing real-time data.
      • Take for example, an inventory scale in a large warehouse connected to the company’s supply chain management (SCM) system. When a certain inventory weight threshold is reached due to outgoing shipments, the scale automatically sends out a purchase requisition to restock inventory levels to meet upcoming demand.
    • The IoT will eventually begin to transform existing business processes and force organizations to fundamentally rethink how they produce, operate, and service their customers.

    The image shows a graphic titled The Connected Life by 2020, and shows a number of statistics on use of connected devices over time.

    For categories covered by existing applications, determine the disposition for each app: grow it or cut it loose

    Use the two-by-two matrix below to structure your optimal CXM application portfolio. For more help, refer to Info-Tech’s blueprint, Use Agile Application Rationalization Instead of Going Big Bang.

    1

    0

    Richness of Functionality

    		 INTEGRATE RETAIN
    1
    REPLACE REPLACE OR ENHANCE

    0

    Degree of Integration

    Integrate: The application is functionally rich, so spend time and effort integrating it with other modules by building or enhancing interfaces.

    Retain: The application satisfies both functionality and integration requirements, so it should be considered for retention.

    Replace/Enhance: The module offers poor functionality but is well integrated with other modules. If enhancing for functionality is easy (e.g. through configuration or custom development), consider enhancement or replace it.

    Replace: The application neither offers the functionality sought nor is it integrated with other modules, and thus should be considered for replacement.

    Activity: Brainstorm the art of the possible, and build and finalize the CXM application portfolio

    2.3.10 1-2 hours

    Input

    • Process gaps identified (output of Activity 2.3.9)

    Output

    • CXM application portfolio
    • CXM Strategy Stakeholder Presentation

    Materials

    Participants

    • Project Team

    Instructions

    1. Review the complete list of strategic requirements identified in the preceding exercises, as well as business process maps.
    2. Identify which application would link to which process (e.g. customer acquisition, customer service resolution, etc.).
    3. Use Info-Tech’s CXM Portfolio Designer to create an inventory of high-value customer interaction applications.
    4. Define rationalization and investment areas.
    5. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Brainstorming the Art of the Possible

    Application Gap Satisfied Related Process Number of Linked Requirements Do we have the system? Priority
    LMA
    • Lead Generation
    • Social Lead Management
    • CRM Integration
    		Sales 8 No Business Critical
    Customer Intelligence
    • Web Analytics
    • Customer Journey Tracking
    		Customer Service 6 Yes Business Enabling
    ... ... ... ... ... ...

    Use Info-Tech’s comprehensive reports to make granular vendor selection decisions

    Now that you have developed the CXM application portfolio and identified areas of new investment, you’re well positioned to execute specific vendor selection projects. After you have built out your initiatives roadmap in phase 3, the following reports provide in-depth vendor reviews, feature guides, and tools and templates to assist with selection and implementation.

    Info-Tech Insight

    Not all applications are created equally well for each use case. The vendor reports help you make informed procurement decisions by segmenting vendor capabilities among major use cases. The strategic requirements identified as part of this project should be used to select the use case that best fits your needs.

    If you want additional support, have our analyst guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.3.2; 2.3.3 Shortlist and map the key top-level business processes

    Based on experience working with organizations in similar verticals, the facilitator will help your team map out key sample workflows for marketing, sales, and customer service.

    2.3.6 Create your strategic requirements for CXM

    Drawing on the preceding exercises, the facilitator will work with the team to create a comprehensive list of strategic requirements that will be used to drive technology decisions and roadmap initiatives.

    2.3.10 Create and finalize the CXM application portfolio

    Using the strategic requirements gathered through internal, external, and technology analysis up to this point, a facilitator will assist you in assembling a categorical technology application portfolio to support CXM.

    Step 2.4: Develop Deployment Best Practices

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Develop a CXM integration map
    • Develop a mitigation plan for poor quality customer data
    • Create a framework for end-user adoption of CXM applications

    Outcomes:

    • CXM application portfolio integration map
    • Data quality preservation plan
    • End-user adoption plan

    Develop an integration map to specify which applications will interface with each other

    Integration is paramount: your CXM application portfolio must work as a unified face to the customer. Create an integration map to reflect a system of record and the exchange of data.

    • CRM
      • ERP
      • Telephony Systems (IVR, CTI)
      • Directory Services
      • Email
      • Content Management
      • Point Solutions (SMMP, MMS)

    The points of integration that you’ll need to establish must be based on the objectives and requirements that have informed the creation of the CXM application portfolio. For instance, achieving improved customer insights would necessitate a well-integrated portfolio with customer interaction point solutions, business intelligence tools, and customer data warehouses in order to draw the information necessary to build insight. To increase customer engagement, channel integration is a must (i.e. with robust links to unified communications solutions, email, and VoIP telephony systems).

    Info-Tech Insight

    If the CXM application portfolio is fragmented, it will be nearly impossible to build a cohesive view of the customer and deliver a consistent customer experience. Points of integration (POIs) are the junctions between the applications that make up the CXM portfolio. They are essential to creating value, particularly in customer insight-focused and omnichannel-focused deployments. Be sure to include enterprise applications that are not included in the CXM application portfolio. Popular systems to consider for POIs include billing, directory services, content management, and collaboration tools.

    After identifying points of integration, profile them by business significance, complexity, and investment required

    • After enumerating points of integration between the CRM platform and other CXM applications and data sources, profile them by business significance and complexity required to determine a rank-ordering of priorities.
    • Points of integration that are of high business significance with low complexity are your must do’s – these are your quick wins that deliver maximum value without too much cost. This is typically the case when integrating a vendor-to-vendor solution with available native connectors.
    • On the opposite end of the spectrum are your POIs that will require extensive work to deliver but offer negligible value. These are your should not do’s – typically, these are niche requests for integration that will only benefit the workflows of a small (and low priority) group of end users. Only accommodate them if you have slack time and budget built into your implementation timeline.

    The image shows a square matrix with Point of Integration Value Matrix in the centre. On the X-axis is Business Significance, and on the Y-axis is POI complexity. In the upper left quadrant is Should Not Do, upper right is Should Do, lower left is Could Do, and lower right is Must do.

    "Find the absolute minimum number of ‘quick wins’ – the POIs you need from day one that are necessary to keep end users happy and deliver value." – Maria Cindric, Australian Catholic University Source: Interview

    Activity: Develop a CXM application integration map

    2.4.1 1 hour

    Input

    • CXM application portfolio (output of Activity 2.3.10)

    Output

    • CXM application portfolio integration map
    • CXM Strategy Stakeholder Presentation

    Materials

    • Sticky notes
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. On sticky notes, record the list of applications that comprise the CXM application portfolio (built in Activity 2.3.10) and all other relevant applications. Post the sticky notes on a whiteboard so you can visualize the portfolio.
    2. Discuss the key objectives and requirements that will drive the integration design of the CXM application portfolio.
    3. As deemed necessary by step 2, rearrange the sticky notes and draw connecting arrows between applications to reflect their integration. Allow the point of the arrow to indicate direction of data exchanges.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Mapping the Integration of CXM Applications

    The image shows several yellow rectangles with text in them, connected by arrows.

    Plug the hole and bail the boat – plan to be preventative and corrective with customer data quality initiatives

    Data quality is king: if your customer data is garbage in, it will be garbage out. Enable strategic CXM decision making with effective planning of data quality initiatives.

    Identify and Eliminate Dead Weight

    Poor data can originate in the firm’s system of record, which is typically the CRM system. Custom queries, stored procedures, or profiling tools can be used to assess the key problem areas.

    Loose rules in the CRM system lead to records of no significant value in the database. Those rules need to be fixed, but if changes are made before the data is fixed, users could encounter database or application errors, which will reduce user confidence in the system.

    • Conduct a data flow analysis: map the path that data takes through the organization.
    • Use a mass cleanup to identify and destroy dead weight data. Merge duplicates either manually or with the aid of software tools. Delete incomplete data, taking care to reassign related data.
    • COTS packages typically allow power users to merge records without creating orphaned records in related tables, but custom-built applications typically require IT expertise.

    Create and Enforce Standards & Policies

    Now that the data has been cleaned, protect the system from relapsing.

    Work with business users to find out what types of data require validation and which fields should have changes audited. Whenever possible, implement drop-down lists to standardize values and make programming changes to ensure that truncation ceases.

    • Truncated data is usually caused by mismatches in data structures during either one-time data loads or ongoing data integrations.
    • Don’t go overboard on assigning required fields – users will just put key data in note fields.
    • Discourage the use of unstructured note fields: the data is effectively lost unless it gets subpoenaed.
    • To specify policies, use Info-Tech’s Master Data Record Tool.

    Profile your customer and sales-related data

    Applications are a critical component of how IT supports Sales, but IT also needs to help Sales keep its data current and accurate. Conducting a sales data audit is critical to ensure Sales has the right information at the right time.

    Info-Tech Insight

    Data is king. More than ever, having accurate data is essential for your organization to win in hyper-competitive marketplaces. Prudent current state analysis looks at both the overall data model and data architecture, as well as assessing data quality within critical sales-related repositories. As the amount of customer data grows exponentially due to the rise of mobility and the Internet of Things, you must have a forward-looking data model and data marts/customer data warehouse to support sales-relevant decisions.

    • A current state analysis for sales data follows a multi-step process:
      • Determine the location of all sales-relevant and customer data – the sales data inventory. Data can reside in applications, warehouses, and documents (e.g. Excel and Access files) – be sure to take a holistic approach.
    • For each data source, assess data quality across the following categories:
      • Completeness
      • Currency (Relevancy)
      • Correctness
      • Duplication
    • After assessing data quality, determine which repositories need the most attention by IT and Sales. We will look at opportunities for data consolidation later in the blueprint.

    INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Develop a Master Data Management Strategy and Roadmap blueprint for further reference and assistance in data management for your sales-IT alignment.

    Activity: Develop a mitigation plan for poor quality customer data

    2.4.2 30 minutes

    Input

    • List of departments involved in maintenance of CXM data

    Output

    • Data quality preservation plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Inventory a list of departments that will be interacting directly with CXM data.
    2. Identify data quality cleansing and preservation initiatives, such as those in previous examples.
    3. Assign accountability to an individual in the department as a data steward. When deciding on a data steward, consider the following:
    • Data stewards are designated full-time employees who serve as the go-to resource for all issues pertaining to data quality, including keeping a particular data silo clean and free of errors.
    • Data stewards are typically mid-level managers in the business (not IT), preferably with an interest in improving data quality and a relatively high degree of tech-savviness.
    • Data stewards can sometimes be created as a new role with a dedicated FTE, but this is not usually cost effective for small and mid-sized firms.
    • Instead, diffuse the steward role across several existing positions, including one for CRM and other marketing, sales, and service applications.
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • Example: Data Steward Structure

    Department A

    • Data Steward (CRM)
    • Data Steward (ERP)

    Department B

    • Data Steward (All)

    Department C

    • Data Steward (All)

    Determine if a customer data warehouse will add value to your CXM technology-enablement strategy

    A customer data warehouse (CDW) “is a subject-oriented, integrated, time-variant, non-volatile collection of data used to support the strategic decision-making process across marketing, sales, and service. It is the central point of data integration for customer intelligence and is the source of data for the data marts, delivering a common view of customer data” (Corporate Information Factory, n.d.).

    Analogy

    CDWs are like a buffet. All the food items are in the buffet. Likewise, your corporate data sources are centralized into one repository. There are so many food items in a buffet that you may need to organize them into separate food stations (data marts) for easier access.

    Examples/Use Cases

    • Time series analyses with historical data
    • Enterprise level, common view analyses
    • Integrated, comprehensive customer profiles
    • One-stop repository of all corporate information

    Pros

    • Top-down architectural planning
    • Subject areas are integrated
    • Time-variant, changes to the data are tracked
    • Non-volatile, data is never over-written or deleted

    Cons

    • A massive amount of corporate information
    • Slower delivery
    • Changes are harder to make
    • Data format is not very business friendly

    Activity: Assess the need for a customer data warehouse

    2.4.3. 30 minutes

    Input

    • List of data sources
    • Data inflows and outflows

    Output

    • Data quality preservation plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Create a shortlist of customer data sources.
    2. Profile the integration points that are necessary to support inflows and outflows of customer data.
    3. Ask the following questions around the need for a CDW based on these data sources and points of integration:
    • What is the volume of customer information that needs to be stored? The greater the capacity, the more likely that you should build a dedicated CDW.
    • How complex is the data? The more complex the data, the greater the need for a CDW.
    • How often will data interchange happen between various applications and data sources? The greater and more frequent the interchange, the greater the need for a CDW.
    • What are your organizational capabilities for building a CDW? Do you have the resources in-house to create a CDW at this time?
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Build an Agile Data Warehouse blueprint for more information on building a centralized and integrated data warehouse.

    Create a plan for end-user training on new (or refocused) CXM applications and data quality processes

    All training modules will be different, but some will have overlapping areas of interest.

    – Assign Project Evangelists – Analytics Training – Mobile Training

    Application Training

    • Customer Service - Assign Project Evangelists – Analytics Training – Mobile Training
      • Focus training on:
        • What to do with inbound tickets.
        • Routing and escalation features.
        • How to use knowledge management features effectively.
        • Call center capabilities.
    • Sales – Assign Project Evangelists – Analytics Training – Mobile Training
      • Focus training on:
        • Recording of opportunities, leads, and deals.
        • How to maximize sales with sales support decision tree.
    • Marketing - Assign Project Evangelists – Analytics Training
      • Focus training on:
        • Campaign management features.
        • Social media monitoring and engagement capabilities.
    • IT
      • Focus training on:
        • Familiarization with the software.
        • Software integration with other enterprise applications.
        • The technical support needed to maintain the system in the future.

    Info-Tech Insight

    Train customers too. Keep the customer-facing sales portals simple and intuitive, have clear explanations/instructions under important functions (e.g. brief directions on how to initiate service inquiries), and provide examples of proper uses (e.g. effective searches). Make sure customers are aware of escalation options available to them if self-service falls short.

    Ensure adoption with a formal communication process to keep departments apprised of new application rollouts

    The team leading the rollout of new initiatives (be they applications, new governance structures, or data quality procedures) should establish a communication process to ensure management and users are well informed.

    CXM-related department groups or designated trainers should take the lead and implement a process for:

    • Scheduling application platform/process rollout/kick-off meetings.
    • Soliciting preliminary input from the attending groups to develop further training plans.
    • Establishing communication paths and the key communication agents from each department who are responsible for keeping lines open moving forward.

    The overall objective for inter-departmental kick-off meetings is to confirm that all parties agree on certain key points and understand alignment rationale and new sales app or process functionality.

    The kick-off process will significantly improve internal communications by inviting all affected internal IT groups, including business units, to work together to address significant issues before the application process is formally activated.

    The kick-off meeting(s) should encompass:

    • Target business-user requirements
    • The high-level application overview
    • Tangible business benefits of alignment
    • Special consideration needs
    • Other IT department needs
    • Target quality of service (QoS) metrics

    Info-Tech Insight

    Determine who in each department will send out a message about initiative implementation, the tone of the message, the medium, and the delivery date.

    Construct a formal communication plan to engage stakeholders through structured channels

    Tangible Elements of a Communications Plan

    • Stakeholder Group Name
    • Stakeholder Description
    • Message
    • Concerns Relative to Application Maintenance
    • Communication Medium
    • Role Responsible for Communication
    • Frequency
    • Start and End Date

    Intangible Elements of a Communications Plan

    • Establish biweekly meetings with representatives from sales functional groups, who are tasked with reporting on:
      • Benefits of revised processes
      • Metrics of success
      • Resource restructuring
    • Establish a monthly interdepartmental meeting, where all representatives from sales and IT leadership discuss pressing bug fixes and minor process improvements.
    • Create a webinar series, complete with Q&A, so that stakeholders can reference these changes at their leisure.

    Info-Tech Insight

    Every piece of information that you give to a stakeholder that is not directly relevant to their interests is a distraction from your core message. Always remember to tailor the message, medium, and timing accordingly.

    Carry the CXM value forward with linkage and relationships between sales, marketing, service, and IT

    Once the sales-IT alignment committees have been formed, create organizational cadence through a variety of formal and informal gatherings between the two business functions.

    • Organizations typically fall in one of three maturity stages: isolation, collaboration, or synergy. Strive to achieve business-technology synergy at the operational level.
    • Although collaboration cannot be mandated, it can be facilitated. Start with a simple gauge of the two functions’ satisfaction with each other, and determine where and how inter-functional communication and synergy can be constructed.

    Isolation

    The image shows four shapes, with the words IT, Sales, Customer Service, and Marketing in them.

    • Point solutions are implemented on an ad-hoc basis by individual departments for specific projects.
    • Internal IT is rarely involved in these projects from beginning to end.

    Collaboration

    The image features that same four shapes and text from the previous image, but this time they are connected by dotted lines.

    • There is a formal cross-departmental effort to integrate some point solutions.
    • Internal IT gets involved to integrate systems and then support system interactions.

    Synergy

    The image features the same shapes and text from previous instances, except the shapes are now connect by solid lines and the entire image is surrounded by dotted lines.

    • Cross-functional, business technology teams are established to work on IT-enabled revenue generation initiatives.
    • Team members are collocated if possible.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.4.1 Develop a CXM application integration map

    Using the inventory of existing CXM-supporting applications and the newly formed CXM application portfolio as inputs, your facilitator will assist you in creating an integration map of applications to establish a system of record and flow of data.

    2.4.2 Develop a mitigation plan for poor quality customer data

    Our facilitator will educate your stakeholders on the importance of quality data and guide you through the creation of a mitigation plan for data preservation.

    2.4.3 Assess the need for a customer data warehouse

    Addressing important factors such as data volume, complexity, and flow, a facilitator will help you assess whether or not a customer data warehouse for CXM is the right fit for your organization.

    Phase 3

    Finalize the CXM Framework

    Build a Strong Technology Foundation for Customer Experience Management

    Phase 3 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Finalize the CXM Framework

    Proposed Time to Completion: 1 week

    Step 3.1: Create an Initiative Rollout Plan

    Start with an analyst kick-off call:

    • Discuss strategic requirements and the associated application portfolio that has been proposed.

    Then complete these activities…

    • Initiatives prioritization

    With these tools & templates:

    • CXM Strategy Stakeholder Presentation Template

    Step 3.2: Confirm and Finalize the CXM Blueprint

    Review findings with analyst:

    • Discuss roadmap and next steps in terms of rationalizing and implementing specific technology-centric initiatives or rollouts.

    Then complete these activities…

    • Confirm stakeholder strategy presentation

    With these tools & templates:

    • CXM Strategy Stakeholder Presentation Template

    Phase 3 Results & Insights:

    • Initiatives roadmap

    Step 3.1: Create an Initiative Rollout Plan

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Create a risk management plan
    • Brainstorm initiatives for CXM roadmap
    • Identify dependencies and enabling projects for your CXM roadmap
    • Complete the CXM roadmap

    Outcomes:

    • Risk management plan
    • CXM roadmap
      • Quick-win initiatives

    A CXM technology-enablement roadmap will provide smooth and timely implementation of your apps/initiatives

    Creating a comprehensive CXM strategy roadmap reduces the risk of rework, misallocation of resources, and project delays or abandonment.

    • People
    • Processes
    • Technology
    • Timeline
    • Tasks
    • Budget

    Benefits of a Roadmap

    1. Prioritize execution of initiatives in alignment with business, IT, and needs.
    2. Create clearly defined roles and responsibilities for IT and business stakeholders.
    3. Establish clear timelines for rollout of initiatives.
    4. Identify key functional areas and processes.
    5. Highlight dependencies and prerequisites for successful deployment.
    6. Reduce the risk of rework due to poor execution.

    Implement planning and controls for project execution

    Risk Management

    • Track risks associated with your CXM project.
    • Assign owners and create plans for resolving open risks.
    • Identify risks associated with related projects.
    • Create a plan for effectively communicating project risks.

    Change Management

    • Brainstorm a high-level training plan for various users of the CXM.
    • Create a communication plan to notify stakeholders and impacted users about the tool and how it will alter their workday and performance of role activities.
    • Establish a formal change management process that is flexible enough to meet the demands for change.

    Project Management

    • Conduct a post-mortem to evaluate the completion of the CXM strategy.
    • Design the project management process to be adaptive in nature.
    • Communication is key to project success, whether it is to external stakeholders or internal project team members..
    • Review the project’s performance against metrics and expectations.

    INFO-TECH OPPORTUNITIES

    Optimize the Change Management Process

    You need to design a process that is flexible enough to meet demand for change and strict enough to protect the live environment from change-related incidents.

    Create Project Management Success

    Investing time up front to plan the project and implementing best practices during project execution to ensure the project is delivered with the planned outcome and quality is critical to project success.

    Activity: Create a risk management plan

    3.1.1 45 minutes

    Input

    • Inventory of risks

    Output

    • Risk management plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Create a list of possible risks that may hamper the progress of your CXM project.
    2. Classify risks as strategy-based, related to planning, or systems-based, related to technology.
    3. Brainstorm mitigation strategies to overcome each listed risk.
    4. On a score of 1 to 3, determine the impact of each risk on the success of the project.
    5. On a score of 1 to 3, determine the likelihood of the occurrence for each risk.
    6. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Constructing a Risk Management Plan

    Risk Impact Likelihood Mitigation Effort
    Strategy Risks Project over budget
    • Detailed project plan
    • Pricing guarantees
    Inadequate content governance
    System Risks Integration with additional systems
    • Develop integration plan and begin testing integration methods early in the project
    .... ... ... ...

    Likelihood

    1 – High/ Needs Focus

    2 – Can Be Mitigated

    3 - Unlikely

    Impact

    1 - High Risk

    2 - Moderate Risk

    3 - Minimal Risk

    Prepare contingency plans to minimize time spent handling unexpected risks

    Understanding technical and strategic risks can help you establish contingency measures to reduce the likelihood that risks will occur. Devise mitigation strategies to help offset the impact of risks if contingency measures are not enough.

    Remember

    The biggest sources of risk in a CXM strategy are lack of planning, poorly defined requirements, and lack of governance.

    Apply the following mitigation tips to avoid pitfalls and delays.

    Risk Mitigation Tips

    • Upfront planning
    • Realistic timelines
    • Resource support
    • Change management
    • Executive sponsorship
    • Sufficient funding
    • Expectation setting
    1. Project Starts
    • Expectations are high
  • Project Workload Increases
    • Expectations are high
  • Pit of Despair
    • Why are we doing this?
  • Project Nears Close
    • Benefits are being realized
  • Implementation is Completed
    • Learning curve dip
  • Standardization & Optimization
    • Benefits are high

    • Identify factors to complete your CXM initiatives roadmap

    Completion of initiatives for your CXM project will be contingent upon multiple variables.

    Defining Dependencies

    Initiative complexity will define the need for enabling projects. Create a process to define dependencies:

    1. Enabling projects: complex prerequisites.
    2. Preceding tasks: direct and simplified assignments.

    Establishing a Timeline

    • Assign realistic timelines for each initiative to ensure smooth progress.
    • Use milestones and stage gates to track the progress of your initiatives and tasks.

    Defining Importance

    • Based on requirements gathering, identify the importance of each initiative to your marketing department.
    • Each initiative can be ranked high, medium, or low.

    Assigning Ownership

    • Owners are responsible for on-time completion of their assigned initiatives.
    • Populate a RACI chart to ensure coverage of all initiatives.

    Complex....Initiative

    • Enabling Project
      • Preceding Task
      • Preceding Task
    • Enabling Project
      • Preceding Task
      • Preceding Task

    Simple....Initiative

    • Preceding Task
    • Preceding Task
    • Preceding Task

    Activity: Brainstorm CXM application initiatives for implementation in alignment with business needs

    3.1.2 45 minutes

    Input

    • Inventory of CXM initiatives

    Output

    • Prioritized and quick-win initiatives
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. As a team, identify and list CXM initiatives that need to be addressed.
    2. Plot the initiatives on the complexity-value matrix to determine priority.
    3. Identify quick wins: initiatives that can realize quick benefits with little effort.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Importance-Capability Matrix

    The image shows a matrix, with Initiative Complexity on the X-axis, and Business Value on the Y-axis. There are circle of different sizes in the matrix.

    Pinpoint quick wins: high importance, low effort initiatives.

    The size of each plotted initiative must indicate the effort or the complexity and time required to complete.
    Top Right Quadrant Strategic Projects
    Top Left Quadrant Quick Wins
    Bottom Right Quadrant Risky Bets
    Bottom Left Quadrant Discretionary Projects

    Activity: Identify any dependencies or enabling projects for your CXM roadmap

    3.1.3 1 hour

    Input

    • Implementation initiatives
    • Dependencies

    Output

    • CXM project dependencies

    Materials

    • Sticky notes
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Using sticky notes and a whiteboard, have each team member rank the compiled initiatives in terms of priority.
    2. Determine preceding tasks or enabling projects that each initiative is dependent upon.
    3. Determine realistic timelines to complete each quick win, enabling project, and long-term initiative.
    4. Assign an owner for each initiative.

    Example: Project Dependencies

    Initiative: Omnichannel E-Commerce

    Dependency: WEM Suite Deployment; CRM Suite Deployment; Order Fulfillment Capabilities

    Activity: Complete the implementation roadmap

    3.1.4 30 minutes

    Input

    • Implementation initiatives
    • Dependencies

    Output

    • CXM Roadmap
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Establish time frames to highlight enabling projects, quick wins, and long-term initiatives.
    2. Indicate the importance of each initiative as high, medium, or low based on the output in Activity 3.1.2.
    3. Assign each initiative to a member of the project team. Each owner will be responsible for the execution of a given initiative as planned.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Importance-Capability Matrix

    Importance Initiative Owner Completion Date
    Example Projects High Gather business requirements. Project Manager MM/DD/YYYY
    Quick Wins
    Long Term Medium Implement e-commerce across all sites. CFO & Web Manager MM/DD/YYYY

    Importance

    • High
    • Medium
    • Low

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1.1 Create a risk management plan

    Based on the workshop exercises, the facilitator will work with the core team to design a priority-based risk mitigation plan that enumerates the most salient risks to the CXM project and addresses them.

    3.1.2; 3.1.3; 3.1.4 Identify initiative dependencies and create the CXM roadmap

    After identifying dependencies, our facilitators will work with your IT SMEs and business stakeholders to create a comprehensive roadmap, outlining the initiatives needed to carry out your CXM strategy roadmap.

    Step 3.2: Confirm and Finalize the CXM Blueprint

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Identify success metrics
    • Create a stakeholder power map
    • Create a stakeholder communication plan
    • Complete and present CXM strategy stakeholder presentation

    Outcomes:

    • Stakeholder communication plan
    • CXM strategy stakeholder presentation

    Ensure that your CXM applications are improving the performance of targeted processes by establishing metrics

    Key Performance Indicators (KPIs)

    Key performance indicators (KPIs) are quantifiable measures that demonstrate the effectiveness of a process and its ability to meet business objectives.

    Questions to Ask

    1. What outputs of the process can be used to measure success?
    2. How do you measure process efficiency and effectiveness?

    Creating KPIs

    Specific

    Measurable

    Achievable

    Realistic

    Time-bound

    Follow the SMART methodology when developing KPIs for each process.

    Adhering to this methodology is a key component of the Lean management methodology. This framework will help you avoid establishing general metrics that aren’t relevant.

    Info-Tech Insight

    Metrics are essential to your ability to measure and communicate the success of the CXM strategy to the business. Speak the same language as the business and choose metrics that relate to marketing, sales, and customer service objectives.

    Activity: Identify metrics to communicate process success

    3.2.1 1 hour

    Input

    • Key organizational objectives

    Output

    • Strategic business metrics
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Recap the major functions that CXM will focus on (e.g. marketing, sales, customer service, web experience management, social media management, etc.)
    2. Identify business metrics that reflect organizational objectives for each function.
    3. Establish goals for each metric (as exemplified below).
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.
    5. Communicate the chosen metrics and the respective goals to stakeholders.

    Example: Metrics for Marketing, Sales, and Customer Service Functions

    Metric Example
    Marketing Customer acquisition cost X% decrease in costs relating to advertising spend
    Ratio of lifetime customer value X% decrease in customer churn
    Marketing originated customer % X% increase in % of customer acquisition driven by marketing
    Sales Conversion rate X% increase conversion of lead to sale
    Lead response time X% decrease in response time per lead
    Opportunity-to-win ratio X% increase in monthly/annual opportunity-to-win ratio
    Customer Service First response time X% decreased time it takes for customer to receive first response
    Time-to-resolution X% decrease of average time-to-resolution
    Customer satisfaction X% improvement of customer satisfaction ratings on immediate feedback survey

    Use Info-Tech’s Stakeholder Power Map Template to identify stakeholders crucial to CXM application rollouts

    3.2.2 Stakeholder Power Map Template

    Use this template and its power map to help visualize the importance of various stakeholders and their concerns. Prioritize your time according to the most powerful and most impacted stakeholders.

    Answer questions about each stakeholder:

    • Power: How much influence does the stakeholder have? Enough to drive the project forward or into the ground?
    • Involvement: How interested is the stakeholder? How involved is the stakeholder in the project already?
    • Impact: To what degree will the stakeholder be impacted? Will this significantly change how they do their job?
    • Support: Is the stakeholder a supporter of the project? Neutral? A resistor?

    Focus on key players: relevant stakeholders who have high power, should have high involvement, and are highly impacted.

    INFO-TECH DELIVERABLE

    Stakeholder Power Map Template

    Use Info-Tech’s Stakeholder Communication Planning Template to document initiatives and track communication

    3.2.3 Stakeholder Communication Planning Template

    Use the Stakeholder Communication Planning Template to document your list of initiative stakeholders so you can track them and plan communication throughout the initiative.

    Track the communication methods needed to convey information regarding CXM initiatives. Communicate how a specific initiative will impact the way employees work and the work they do.

    Sections of the document:

    1. Document the Stakeholder Power Map (output of Tool 3.2.2).
    2. Complete the Communicate Management Plan to aid in the planning and tracking of communication and training.

    INFO-TECH DELIVERABLE

    Activity: Create a stakeholder power map and communication plan

    3.2.4 1 hour

    Input

    • Stakeholder power map

    Output

    • Stakeholder communication plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech’s Stakeholder Communication Planning Template
    • Info-Tech’s Stakeholder Power Map Template

    Participants

    • Project Team

    Instructions

    1. Using Info-Tech’s Stakeholder Power Map Template, identify key stakeholders for ensuring the success of the CXM strategy (Tool 3.2.2).
    2. Using Info-Tech’s Stakeholder Communication Plan Template, construct a communication plan to communicate and track CXM initiatives with all CXM stakeholders (Tool 3.2.3).
    3. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Use Info-Tech’s CXM Strategy Stakeholder Presentation Template to sell your CXM strategy to the business

    3.2.5 CXM Strategy Stakeholder Presentation Template

    Complete the presentation template as indicated when you see the green icon throughout this deck. Include the outputs of all activities that are marked with this icon.

    Info-Tech has designed the CXM Strategy Stakeholder Presentation Template to capture the most critical aspects of the CXM strategy. Customize it to best convey your message to project stakeholders and to suit your organization.

    The presentation should be no longer than one hour. However, additional slides can be added at the discretion of the presenter. Make sure there is adequate time for a question and answer period.

    INFO-TECH DELIVERABLE

    After the presentation, email the deck to stakeholders to ensure they have it available for their own reference.

    Activity: Determine the measured value received from the project

    3.2.6 30 minutes

    Input

    • Project Metrics

    Output

    • Measured Value Calculation

    Materials

    • Workbook

    Participants

    • Project Team

    Instructions

    1. Review project metrics identified in phase 1 and associated benchmarks.
    2. After executing the CXM project, compare metrics that were identified in the benchmarks with the revised and assess the delta.
    3. Calculate the percentage change and quantify dollar impact (i.e. as a result of increased customer acquisition or retention).

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.2.4 Create a stakeholder power map and communication plan

    An analyst will walk the project team through the creation of a communication plan, inclusive of project metrics and their respective goals. If you are planning a variety of CXM initiatives, track how the change will be communicated and to whom. Determine the employees who will be impacted by the change.

    Insight breakdown

    Insight 1

    • IT must work in lockstep with Marketing, Sales, and Customer Service to develop a comprehensive technology-enablement strategy for CXM.
    • As IT works with its stakeholders in the business, it must endeavor to capture and use the voice of the customer in driving strategic requirements for CXM portfolio design.
    • IT must consider the external environment, customer personas, and internal processes as it designs strategic requirements to build the CXM application portfolio.

    Insight 2

    • The cloud is bringing significant disruption to the CXM space: to maintain relevancy, IT must become deeply involved in ensuring alignment between vendor capabilities and strategic requirements.
    • IT must serve as a trusted advisor on technical implementation challenges related to CXM, such as data quality, integration, and end-user training and adoption.
    • IT is responsible for technology enablement and is an indispensable partner in this regard; however, the business must ultimately own the objectives and communication strategy for customer engagement.

    Insight 3

    • When crafting a portfolio for CXM, be aware of the art of the possible: capabilities are rapidly merging and evolving to support new interaction channels. Social, mobile, and IoT are disrupting the customer experience landscape.
    • Big data and analytics-driven decision making is another significant area of value. IT must allow for true customer intelligence by providing an integration framework across customer-facing applications.

    Summary of accomplishment

    Knowledge Gained

    • Voice of the Customer for CXM Portfolio Design
    • Understanding of Strategic Requirements for CXM
    • Customer Personas and Scenarios
    • Environmental Scan
    • Deployment Considerations
    • Initiatives Roadmap Considerations

    Processes Optimized

    • CXM Technology Portfolio Design
    • Customer Data Quality Processes
    • CXM Integrations

    Deliverables Completed

    • Strategic Summary for CXM
    • CXM Project Charter
    • Customer Personas
    • External and Competitive Analysis
    • CXM Application Portfolio

    Bibliography

    Accenture Digital. “Growing the Digital Business: Accenture Mobility Research 2015.” Accenture. 2015. Web.

    Afshar, Vala. “50 Important Customer Experience Stats for Business Leaders.” Huffington Post. 15 Oct. 2015. Web.

    APQC. “Marketing and Sales Definitions and Key Measures.” APQC’s Process Classification Framework, Version 1.0.0. APQC. Mar. 2011. Web.

    CX Network. “The Evolution of Customer Experience in 2015.” Customer Experience Network. 2015. Web.

    Genesys. “State of Customer Experience Research”. Genesys. 2018. Web.

    Harvard Business Review and SAS. “Lessons From the Leading Edge of Customer Experience Management.” Harvard Business School Publishing. 2014. Web.

    Help Scout. “75 Customer Service Facts, Quotes & Statistics.” Help Scout. n.d. Web.

    Inmon Consulting Services. “Corporate Information Factory (CIF) Overview.” Corporate Information Factory. n.d. Web

    Jurevicius, Ovidijus. “VRIO Framework.” Strategic Management Insight. 21 Oct. 2013. Web.

    Keenan, Jim, and Barbara Giamanco. “Social Media and Sales Quota.” A Sales Guy Consulting and Social Centered Selling. n.d. Web.

    Malik, Om. “Internet of Things Will Have 24 Billion Devices by 2020.” Gigaom. 13 Oct. 2011. Web.

    McGovern, Michele. “Customers Want More: 5 New Expectations You Must Meet Now.” Customer Experience Insight. 30 July 2015. Web.

    McGinnis, Devon. “40 Customer Service Statistics to Move Your Business Forward.” Salesforce Blog. 1 May 2019. Web.

    Bibliography

    Reichheld, Fred. “Prescription for Cutting Costs”. Bain & Company. n.d. Web.

    Retail Congress Asia Pacific. “SAP – Burberry Makes Shopping Personal.” Retail Congress Asia Pacific. 2017. Web.

    Rouse, Margaret. “Omnichannel Definition.” TechTarget. Feb. 2014. Web.

    Salesforce Research. “Customer Expectations Hit All-Time High.” Salesforce Research. 2018. Web.

    Satell, Greg. “A Look Back at Why Blockbuster Really Failed and Why It Didn’t Have To.” Forbes. 5 Sept. 2014. Web.

    Social Centered Learning. “Social Media and Sales Quota: The Impact of Social Media on Sales Quota and Corporate Review.” Social Centered Learning. n.d. Web.

    Varner, Scott. “Economic Impact of Experience Management”. Qualtrics/Forrester. 16 Aug. 2017. Web.

    Wesson, Matt. “How to Use Your Customer Data Like Amazon.” Salesforce Pardot Blog. 27 Aug. 2012. Web.

    Winterberry Group. “Taking Cues From the Customer: ‘Omnichannel’ and the Drive For Audience Engagement.” Winterberry Group LLC. June 2013. Web.

    Wollan, Robert, and Saideep Raj. “How CIOs Can Support a More Agile Sales Organization.” The Wall Street Journal: The CIO Report. 25 July 2013. Web.

    Zendesk. “The Impact of Customer Service on Customer Lifetime Value 2013.” Z Library. n.d. Web.

    Assess Your IT Financial Management Maturity Effectively

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    • Parent Category Name: Cost & Budget Management
    • Parent Category Link: /cost-and-budget-management

    Organizations wishing to mature their IT financial management (ITFM) maturity often face the following obstacles:

    • Unfamiliarity: Lack of knowledge and understanding related to ITFM maturity.
    • Shortsightedness: Randomly reacting to changing circumstances.
    • Exchange: Inability to consistently drive dialogues.
    • Perception: IT is perceived as a cost center instead of a trustworthy strategic partner.

    Our Advice

    Critical Insight

    No matter where you currently stand in your ITFM practice, there is always room for improvement. Hence, a maturity assessment should be viewed as a self-improvement tool that is only valuable if you are willing to act on it.

    Impact and Result

    A mature ITFM practice leads to many benefits.

    • Foundation: Improved governance, skill sets, processes, and tools.
    • Data: An appropriate taxonomy/data model alongside accurate data for high-quality reporting and insights.
    • Language: A common vocabulary across the organization.
    • Organization Culture: Improved communication and collaboration between IT and business partners.

    Assess Your IT Financial Management Maturity Effectively Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess Your IT Financial Management Maturity Effectively Storyboard – A framework and step-by-step methodology to assess your ITFM maturity.

    This research seeks to support IT leaders and ITFM practitioners in evaluating and improving their current maturity. It will help document both current and target states as well as prioritize focus areas for improvement.

    • Assess Your IT Financial Management Maturity Effectively Storyboard

    2. IT Financial Management Maturity Assessment Tool – A structured tool to help you assess your ITFM maturity.

    This Excel workbook guides IT finance practitioners to effectively assess their IT financial management practice. Incorporate the visual outputs into your final executive presentation document. Key activities include context setting, completing the assessment, and prioritizing focus areas based on results.

    • IT Financial Management Maturity Assessment Tool

    3. IT Financial Management Maturity Assessment Report Template – A report summarizing your ITFM maturity assessment results to help you communicate with stakeholders.

    Use this template to document your final ITFM maturity outputs, including the current and target states and your identified priorities.

    • IT Financial Management Maturity Assessment Report Template
    [infographic]

    Further reading

    Assess Your IT Financial Management Maturity Effectively

    Influence your organization’s strategic direction.

    Analyst Perspective

    Make better informed data-driven business decisions.

    Technology has been evolving throughout the years, increasing complexity and investments, while putting more stress on operations and people involved. As an IT leader, you are now entrusted to run your outfit as a business, sit at the executive table as a true partner, and be involved in making decisions that best suit your organization. Therefore, you have an obligation to fulfill the needs of your end customers and live up to their expectations, which is not an easy task.

    IT financial management (ITFM) helps you generate value to your organization’s clientele by bringing necessary trade-offs to light, while driving effective dialogues with your business partners and leadership team.

    This research will focus on Info-Tech’s approach to ITFM maturity, aiming for a state of continuous improvement, where an organization can learn and grow as it adapts to change. As the ITFM practice matures, IT and business leaders will be able to better understand one another and together make better business decisions, driven by data.

    This client advisory presentation and accompanying tool seek to support IT leaders and ITFM practitioners in evaluating and improving their current maturity. It will help document both current and target states as well as prioritize focus areas for improvement.

    Photo of Bilal Alberto Saab, Research Director, IT Financial Management, Info-Tech Research Group. Bilal Alberto Saab
    Research Director, IT Financial Management
    Info-Tech Research Group

    Executive Summary

    The value of ITFM is undermined

    ITFM is often discarded and not given enough importance and relevance due to the operational nature of IT, and the specialized skillset of its people, leading to several problems and challenges, such as:

    • Unfamiliarity: Lack of knowledge and understanding related to ITFM maturity.
    • Shortsightedness: Randomly reacting to changing circumstances.
    • Exchange: Inability to consistently drive dialogues.
    • Perception: IT is perceived as a cost center instead of a trustworthy strategic partner.

    Constructive dialogues with business partners are not the norm

    Business-driven conversations around financials (spending, cost, revenue) are a rarity in IT due to several factors, including:

    • Foundation: Weak governance, inadequate skillset, and less than perfect processes and tools.
    • Data: Lack of adequate taxonomy/data model, alongside inaccurate data leading to poor reporting and insights.
    • Language: Lack of a common vocabulary across the organization.
    • Organization culture: No alignment, alongside minimal communication and collaboration between IT and business partners.

    Follow Info-Tech’s approach to move up the ITFM maturity ladder

    Mature your ITFM practice by activating the means to make informed business decisions.

    Info-Tech’s methodology helps you move the dial by focusing on three maturity focus areas:

    • Build an ITFM Foundation
    • Manage and Monitor IT Spending
    • Bridge the Language Barrier

    Info-Tech Insight

    Influence your organization’s strategic direction by maturing your ITFM practice.

    What is ITFM?

    ITFM is not just about finance.

    • ITFM has evolved from traditional budgeting, accounting, and cost optimization; however, it is much more than those activities alone.
    • It starts with understanding the financial implications of technology by adopting different perspectives to become adept in communicating with various stakeholders, including finance, business partners, IT managers, and your CEO.
    • Armed with this knowledge, ITFM helps you address a variety of questions, such as:
      • How are technology funds being spent?
      • Which projects is IT prioritizing and why?
      • What are the resources needed to speed IT delivery?
      • What’s the value of IT within the organization?
    • ITFM’s main objective is thus to improve decision-making capabilities by facilitating communication between IT leaders and stakeholders, while enabling a customer focus attitude throughout the organization.

    “ITFM embeds technology in financial management practices. Through cost, demand, and value, ITFM brings technology and business together, forging the necessary relationships and starting the right conversations to enable the best decisions for the organization.”
    – Monica Braun, Research Director, Info-Tech Research Group

    Your challenge

    IT leaders struggle to articulate and communicate business value.

    • IT spending is often questioned by different stakeholders, such as business partners and various IT business units. These questions, usually resulting from shifts in business needs, may revolve around investments, expenditures, services, and speed to market, among others. While IT may have an idea about its spending habits, aligning it to the business strategy may prove difficult.
    • IT staff often does not have access to, or knowledge of, the business model and its intricacies. In an operational environment, the focus tends to be on technical issues rather than overall value.
    • People tend to fear what they do not know. Some business managers may not be comfortable with technology. They do not recognize the implications and ramifications of certain implementations or understand the related terminology, which puts a strain on any conversation.

    “Value is not the numbers you visualize on a chart, it’s the dialogue this data generates with your business partners and leadership team.”
    – Dave Kish, Practice Lead, Info-Tech Research Group

    Technology is constantly evolving

    Increasing IT spending and decision-making complexity.

    Timeline of IT technology evolution, starting with 'Timesharing' in the 1980s to 'All Things Digital' in the 2020s. 'IT Spend Growth' grows from start to finish.

    Common obstacles

    IT leaders are not able to have constructive dialogues with their stakeholders.

    • The way IT funds are spent has changed significantly, moving from the purchase of discrete hardware and software tools to implementing data lakes, cloud solutions, the metaverse and blockchain. This implies larger investments and more critical decisions. Conversations around interoperability, integration, and service-based solutions that focus more on big-picture architecture than day-to-day operations have become the norm.
    • Speed to market is now a survival criterion for most organizations, requiring IT to shift rapidly based on changing priorities and customer expectations. This leads to the need for greater financial oversight, with the CFO as the gatekeeper. Today’s IT leaders need to possess both business and financial management savvy to justify their spending with various stakeholders.
    • Any IT budget increase is tied to expectations of greater value. Hence, the compelling demands for IT to prove its worth to the business. Promoting value comes in two ways: 1) objectively, based on data, KPIs, and return on investment; and 2) subjectively, based on stakeholder satisfaction, alongside relationships. Building trust, credibility, and confidence can go a long way.

    In a technology-driven world, advances come at a price. With greater spending required, more complex and difficult conversations arise.

    Constructive dialogues are key

    You don’t know what you don’t know.

    • IT, being historically focused on operations, has become a hub for technically savvy personnel. On the downside, technology departments are often alien to business, causing problems such as:
      • IT staff have no knowledge of the business model and lack customer focus.
      • Business is not comfortable with technology and related jargon.
    • The lack of two-way communication and business alignment is hence an important ramification. If the business does not understand technology, and IT does not speak in business terms, where does that lead us?
    • Poor data quality and governance practices, alongside overly manual processes can only exasperate the situation.

    IT Spending Survey

    79% of respondents believe that decisions taking too long to make is either a significant or somewhat of a challenge (Flexera 2022 Tech Spend Pulse; N=501).

    81% of respondents believe that ensuring spend efficiency (avoiding waste) is either a challenge or somewhat of a challenge (Flexera 2022 Tech Spend Pulse; N=501).

    ITFM is trailing behind

    IT leaders must learn to speak business.

    In today’s world, where organizations are driving customer experience through technology investments, having a seat at the table means IT leaders must be well versed in business language and practice, including solid financial management skills.

    However, IT staff across all industries aren’t very confident in how well IT is doing in managing its finances. This becomes evident after looking at three core processes:

    • Demonstrating IT’s value to the business.
    • Accounting of costs and budgets.
    • Optimizing costs to gain the best return on investment.

    Recent data from 4,137 respondents to Info-Tech’s IT Management & Governance Diagnostic shows that while most IT staff feel that these three financial management processes are important, notably fewer feel that IT management is effective at executing on them.

    IT leadership’s capabilities around fundamental cost data capture appear to be lagging, not to mention the essential value-added capabilities around optimizing costs and demonstrating IT’s contribution to business value.

    Bar charts comparing percentages of people who 'Agree process is important' and 'Agree process is effective' for three processes: Business Value, Cost & Budget Management, and Cost Optimization. In all instances, the importance outweighed the perceived effectiveness.
    Source: Info-Tech Research Group, IT Management & Governance Diagnostic, 2023.

    Info-Tech’s approach

    We take a holistic approach to ITFM and support you throughout your maturity journey.

    Visualization of the IT maturity levels with three goals at the bottom, 'Build am ITFM Foundation', 'Manage & Monitor IT Spending', and 'Bridge the Language Barrier'. The 5 levels, from bottom to top, are 'Nascent - Level 1, Inability to consistently deliver financial planning services', 'Cost Operator - Level 2, Rudimentary financial planning capabilities', 'Trusted Coordinator - Level 3, Enablement of business through cost-effective supply of technology', 'Value Optimizer - Level 4, Effective impact on business performance', and 'Strategic Partner - Level 5, Influence on the organization's strategic direction'.

    The Info-Tech difference:

    • Info-Tech has a methodology and set of tools that will help assess your ITFM maturity and take the first step in developing an improvement plan. We have identified three maturity focus areas:
      • Build an ITFM Foundation
      • Manage and Monitor IT Spending
      • Bridge the Language Barrier
        •
    • No matter where you currently stand in your ITFM practice, there is always room for improvement. Hence, a maturity assessment should be viewed as a self-improvement tool, which is only valuable if you are willing to act on it.

    Note: See Appendix A for maturity level definitions and descriptions.

    Climb the maturity ladder

    By growing along three maturity focus areas.

    A diagram with '3 Maturity Focus Areas' and '9 Maturity Levers' within them. The first area is 'Build an ITFM Foundation' with levers 'Establish your Team', 'Set up your Governance Structure', and 'Adopt ITFM Processes & Tools'. The second area is 'Manage & Monitor IT Spending', with levers 'Standardize your Taxonomy & Data Model', 'Identify, Gather & Prepare your Data', and 'Analyze your Findings and Develop your Reports'. The third area is 'Bridge the Language Barrier' with levers 'Communicate your IT Spending', 'Educate the Masses', and 'Influence your Organization's Culture'.

    Info-Tech identified three maturity focus areas, each containing three levers.

    Identify where you stand across the nine maturity levers, detect the gaps, and determine your priorities as a first step to develop an improvement plan.

    Note: See Appendix B for maturity level definitions and descriptions per lever.

    Key project deliverables

    Each step of this activity is accompanied by supporting deliverables to help you accomplish your goals.

    IT Financial Management Maturity Assessment Report Template

    A template of an ITFM maturity assessment report that can be customized based on your own results.

    IT Financial Management Maturity Assessment Tool

    A workbook including an ITFM maturity survey, generating a summary of your current state, target state, and priorities.

    Measure the value of this activity

    Reach your 12-month maturity target.

    • Determine your 12-month maturity target, identify your gaps, and set your priorities.
    • Use the ITFM maturity assessment to kickstart your improvement plan by developing actionable initiatives.
    • Implement your initiatives and monitor your progress to reach your 12-month target.

    Sample of a result page from the ITFM maturity assessment.

    Build your improvement plan and implement your initiatives to move the dial and climb the maturity ladder.

    Sample of a result page from the ITFM maturity assessment with a graph.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Step 1

    Prepare for the ITFM maturity assessment

    Content Overview

    1. Identify your stakeholders
    2. Set the context
    3. Determine the methodology
    4. Identify assessment takers

    This step involves the following participants:

    • CIO/IT director
    • CFO/finance director
    • IT finance lead
    • IT audit lead
    • Other IT management

    1. Prepare to take the ITFM maturity assessment

    3 hours

    Input: Understanding your context, objectives, and methodology

    Output: ITFM maturity assessment stakeholders and their objectives, ITFM maturity assessment methodology, ITFM maturity assessment takers

    Materials: 1a. Prepare for Assessment tab in the ITFM Maturity Assessment Tool

    Participants: CIO/IT director, CFO/finance director, IT finance lead, IT audit lead, Other IT management

    1. Identify your stakeholders and document it in the ITFM Maturity Assessment Tool (see next slides). We recommend having representatives from different business units across the organization, most notably IT, IT finance, finance, and IT audit.
    2. Set the context with your stakeholders and document it in the ITFM Maturity Assessment Tool. Discuss the reason behind taking the ITFM maturity assessment among the various stakeholders. Why do each of your stakeholders want to take the assessment? What are their main objectives? What would they like to achieve?
    3. Determine the methodology and document it in the ITFM Maturity Assessment Tool. Discuss how you want to go about taking the assessment with your stakeholders. Do you want to have representatives from each business unit take the assessment individually, then share and discuss their findings? Do you prefer forming a working group with representatives from each business unit and go through the assessment together? Or does any of your stakeholders have a different suggestion? You will have to consider the effort, skillset, and knowledge required.
    4. Identify the assessment takers and document it in the ITFM Maturity Assessment Tool. Determine who will be taking the assessment (specific names of stakeholders). Consider their availability, knowledge, and skills.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Document your stakeholders, objectives, and methodology

    Excel Workbook: ITFM Maturity Assessment Tool – Prepare for Assessment worksheet

    Refer to the example and guidelines below on how to document stakeholders, objectives, and methodology (table range: columns B to G and rows 8 to 15).

    Example table from the ITFM Maturity Assessment Tool re: 'Maturity Assessment Stakeholders'.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Text Enter the full name of each stakeholder on a separate row.
    D Text Enter the job title related to each stakeholder.
    E Text Enter the objective(s) related to each stakeholder.
    F Text Enter the agreed upon methodology.
    G Text Enter any notes or comments per stakeholder (optional).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to the 1a. Prepare for Assessment tab.
    2. Enter the full names and job titles of the ITFM maturity assessment stakeholders.
    3. Document the maturity assessment objective of each of your stakeholders.
    4. Document the agreed-upon methodology.
      5.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Document your assessment takers

    Excel Workbook: ITFM Maturity Assessment Tool – Prepare for Assessment worksheet

    Refer to the example and guidelines below on how to document assessment takers (table range: columns B to E and rows 18 to 25).

    Example table from the ITFM Maturity Assessment Tool re: 'Maturity Assessment Takers'.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Text Enter the full name of each assessment taker on a separate row.
    D Text Enter the job title related to each stakeholder to identify which party is being represented per assessment taker.
    E Text Enter any notes or comments per stakeholder (optional).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to the 1a. Prepare for Assessment tab.
    2. Enter the full name of each assessment taker, along with the job title of the stakeholder they are representing.
      3.

    Download the IT Financial Management Maturity Assessment Tool

    Step 2

    Take the ITFM maturity assessment

    Content Overview

    1. Complete the survey
    2. Review your assessment results
    3. Determine your priorities

    This step involves the following participants:

    • CIO/IT director
    • CFO/finance director
    • IT finance lead
    • IT audit lead
    • Other IT management

    2. Take the ITFM maturity assessment

    3 hours

    Input: Understanding of your ITFM current state and 12-month target state, ITFM maturity assessment results

    Output: ITFM current- and target-state maturity levels, average scores, and variance, ITFM current- and target-state average scores, variance, and priority by maturity focus area and maturity lever

    Materials: 1b. Glossary, 2a. Assess ITFM Foundation, 2b. Assess Mngt. & Monitoring, 2c. Assess Language, and 3. Assessment Summary tabs in the ITFM Maturity Assessment Tool

    Participants: CIO/IT director, CFO/finance director, IT finance lead, IT audit lead, Other IT management

    1. Complete the survey: select the current and target state of each statement – refer to the glossary as needed for definitions of key terms – in the ITFM Maturity Assessment Tool (see next slides). There are three tabs (one per maturity focus area) with three tables each (nine maturity levers). Review and discuss statements with all assessment takers: consider variations, differing opinions, and reach an agreement on each statement inputs.
    2. Review assessment results: navigate to the Assessment Summary tab in the ITFM maturity assessment tool (see next slides) to view your results. Review and discuss with all assessment takers: consider any shocking output and adjust survey input if necessary.
    3. Determine your priorities: decide on the priority (Low/Medium/High) by maturity focus area and/or maturity lever. Rank your maturity focus area priorities from 1 to 3 and your maturity lever priorities from 1 to 9. Consider the feasibility in terms of timeframe, effort, and skillset required, positive and negative impacts on business and technology, likelihood of failure, and necessary approvals. Document your priorities in the ITFM maturity assessment tool (see next slides).
      Review and discuss priorities with all assessment takers: consider variations, differing opinions, and reach an agreement on each priority.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Complete the survey

    Excel workbook: ITFM Maturity Assessment Tool – Survey worksheets

    Refer to the example and guidelines below on how to complete the survey.

    Example table from the ITFM Maturity Assessment Tool re: Survey worksheets.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Formula Automatic calculation, no entry required: ITFM maturity statement to assess.
    D, E Dropdown Select the maturity levels of your current and target states. One of five maturity levels for each statement, from “1. Nonexistent” (lowest maturity) to “5. Advanced” (highest maturity).
    F, G, H Formula Automatic calculation, no entry required: scores associated with your current and target state selection, along with related variance (column G – column F).
    I Text Enter any notes or comments per ITFM maturity statement (optional).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to the survey tabs: 2a. Assess ITFM Foundation, 2b. Assess Management and Monitoring, and 2c. Assess Language.
    2. Select the appropriate current and target maturity levels.
    3. Add any notes or comments per ITFM maturity statement where necessary or helpful.
      4.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Review your overall result

    Excel Workbook: ITFM Maturity Assessment Tool – Assessment Summary worksheet

    Refer to the example and guidelines below on how to review your results.

    Example table from the ITFM Maturity Assessment Tool re: Assessment Summary worksheet.

    Column ID Input Type Guidelines
    K Formula Automatic calculation, no entry required.
    L Formula Automatic calculation, no entry required: Current State, Target State, and Variance entries. Please ignore the current state benchmark, it’s a placeholder for future reference.
    M Formula Automatic calculation, no entry required: average overall maturity score for your Current State and Target State entries, along with related Variance.
    N, O Formula Automatic calculation, no entry required: maturity level and related name based on the overall average score (column M), where level 1 corresponds to an average score less than or equal to 1.49, level 2 corresponds to an average score between 1.5 and 2.49 (inclusive), level 3 corresponds to an average score between 2.5 and 3.49 (inclusive), level 4 corresponds to an average score between 3.5 and 4.49 (inclusive), and level 5 corresponds to an average score between 4.5 and 5 (inclusive).
    P, Q Formula Automatic calculation, no entry required: maturity definition and related description based on the maturity level (column N).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to tab 3. Assessment Summary.
    2. Review your overall current state and target state result along with the corresponding variance.
      3.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Set your priorities

    Excel Workbook: ITFM Maturity Assessment Tool – Assessment Summary worksheet

    Refer to the example and guidelines below on how to review your results per maturity focus area and maturity lever, then prioritize accordingly.

    Example table from the ITFM Maturity Assessment Tool re: Assessment Summary worksheet.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Formula Automatic calculation, no entry required: ITFM maturity focus area or lever, depending on the table.
    D Placeholder Ignore this column because it’s a placeholder for future reference.
    E, F, G Formula Automatic calculation, no entry required: average score related to the current state and target state, along with the corresponding variance per maturity focus area or lever (depending on the table).
    H Formula Automatic calculation, no entry required: preliminary priority based on the average variance (column G), where Low corresponds to an average variance between 0 and 0.5 (inclusive), Medium corresponds to an average variance between 0.51 and 0.99 (inclusive), and High corresponds to an average variance greater than or equal to 1.
    J Dropdown Select your final priority (Low, Medium, or High) per ITFM maturity focus area or lever, depending on the table.
    K Whole Number Enter the appropriate rank based on your priorities; do not use the same number more than once. A whole number between 1 and 3 to rank ITFM maturity focus areas, and between 1 and 9 to rank ITFM maturity levers, depending on the table.

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to tab 3. Assessment Summary.
    2. Review your current-state and target-state result along with the corresponding variance per maturity focus area and maturity lever.
    3. Select the appropriate priority for each maturity focus area and maturity lever.
    4. Enter a unique rank for each maturity focus area (1 to 3).
    5. Enter a unique rank for each maturity lever (1 to 9).
      6.

    Download the IT Financial Management Maturity Assessment Tool

    Step 3

    Communicate your ITFM maturity results

    Content Overview

    1. Review your assessment charts
    2. Customize the assessment report
    3. Communicate your results

    This step involves the following participants:

    • CIO/IT director
    • CFO/finance director
    • IT finance lead
    • IT audit lead
    • Other IT management

    3. Communicate your ITFM maturity results

    3 hours

    Input: ITFM maturity assessment results

    Output: Customized ITFM maturity assessment report

    Materials: 3. Assessment Summary tab in the ITFM Maturity Assessment Tool, ITFM Maturity Assessment Report Template

    Participants: CIO/IT director, CFO/finance director, IT finance lead, IT audit lead, Other IT management

    1. Review assessment charts: navigate to the Assessment Summary tab in the ITFM Maturity Assessment Tool (see next slides) to view your results and related charts.
    2. Edit the report template: complete the template based on your results and priorities to develop your customized ITFM maturity assessment report (see next slide).
    3. Communicate results: communicate and deliberate the assessment results with assessment takers at a first stage, and with your stakeholders at a second stage. The objective is to agree on next steps, including developing an improvement plan.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Review assessment charts

    Excel Workbook: ITFM Maturity Assessment Tool – Assessment Summary worksheet

    Refer to the example below on charts depicting different views of the maturity assessment results across the three focus areas and nine levers.

    Samples of different tabs from the ITFM Maturity Assessment Tool: 'Assessment Summary tab: From cell B49 to cell M100' and 'Assessment Summary tab: From cell K13 to cell Q34'.

    From the Excel workbook, after completing your potential initiatives and filling all related entries in the Outline Initiatives tab:

    1. Navigate to tab 3. Assessment Summary.
    2. Review each of the charts.
    3. Navigate back to the survey tabs to examine, drill down, and amend individual entries as you deem necessary.
      4.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Customize your report

    PowerPoint presentation: ITFM Maturity Assessment Report Template

    Refer to the example below on slides depicting different views of the maturity assessment results across the three maturity focus areas and nine maturity levers.

    Samples of different slides from the ITFM Maturity Assessment Report Template, detailed below.

    Slide 6: Edit levels based on your assessment results. Copy and paste the appropriate maturity level definition and description from slide 4.

    Slide 7: Copy related charts from the assessment summary tab in the Excel workbook and remove the chart title. You can use the “Outer Offset: Bottom” shadow under shape effects on the chart.

    Slide 8: Copy related charts from the assessment summary tab in the Excel workbook and remove the chart title and legend. You can use the “Outer Offset: Center” shadow under shape effects on the chart.

    From the ITFM Maturity Assessment Report Template:

    1. Edit the report based on your results found in the assessment summary tab of the Excel workbook (see previous slide).
    2. Review slides 6 to 8 and bring necessary adjustments.
      3.

    Download the IT Financial Management Maturity Assessment Report Template

    Make informed business decisions

    Take a holistic approach to ITFM.

    • A thorough understanding of your technology spending in relation to business needs and drivers is essential to make informed decisions. As a trusted partner, you cannot have effective conversations around budgets and cost optimization without a solid foundation.
    • It is important to realize that ITFM is not a one-time exercise, but a continuous, sustainable process to educate (teach, mentor, and train), increase transparency, and assign responsibility.
    • Move up the ITFM maturity ladder by improving across three maturity focus areas:
      • Build an ITFM Foundation
      • Manage and Monitor IT Spending
      • Bridge the Language Barrier

    What’s Next?

    Communicate your maturity results with stakeholders and develop an actionable ITFM improvement plan.

    And remember, having informed discussions with your business partners and stakeholders, where technology helps propel your organization forward, is priceless!

    IT Financial Management Team

    Photo of Dave Kish, Practice Lead, ITFM Practice, Info-Tech Research Group. Dave Kish
    Practice Lead, ITFM Practice
    Info-Tech Research Group
    Photo of Jennifer Perrier, Principal Research Director, ITFM Practice, Info-Tech Research Group. Jennifer Perrier
    Principal Research Director, ITFM Practice
    Info-Tech Research Group
    Photo of Angie Reynolds, Principal Research Director, ITFM Practice, Info-Tech Research Group. Angie Reynolds
    Principal Research Director, ITFM Practice
    Info-Tech Research Group
    Photo of Monica Braun, Research Director, ITFM Practice, Info-Tech Research Group. Monica Braun
    Research Director, ITFM Practice
    Info-Tech Research Group
    Photo of Rex Ding, Research Specialist, ITFM Practice, Info-Tech Research Group. Rex Ding
    Research Specialist, ITFM Practice
    Info-Tech Research Group
    Photo of Aman Kumari, Research Specialist, ITFM Practice, Info-Tech Research Group. Aman Kumari
    Research Specialist, ITFM Practice
    Info-Tech Research Group

    Research Contributors and Experts

    Photo of Amy Byalick, Vice President, IT Finance, Info-Tech Research Group. Amy Byalick
    Vice President, IT Finance
    Info-Tech Research Group     		Amy Byalick is an IT Finance practitioner with 15 years of experience supporting CIOs and IT leaders elevating the IT financial storytelling and unlocking insights. Amy is currently working at Johnson Controls as the VP, IT Finance, previously working at PepsiCo, AmerisourceBergen, and Jacobs.
    Photo of Carol Carr, Technical Counselor, Executive Services, Info-Tech Research Group. Carol Carr
    Technical Counselor, Executive Services
    Info-Tech Research Group
    Photo of Scott Fairholm, Executive Counselor, Executive Services, Info-Tech Research Group. Scott Fairholm
    Executive Counselor, Executive Services
    Info-Tech Research Group
    Photo of Gokul Rajan, Executive Counselor, Executive Services, Info-Tech Research Group. Gokul Rajan
    Executive Counselor, Executive Services
    Info-Tech Research Group
    Photo of Allison Kinnaird, Practice Lead, Infrastructure & Operations, Info-Tech Research Group. Allison Kinnaird
    Practice Lead, Infrastructure & Operations
    Info-Tech Research Group
    Photo of Isabelle Hertanto, Practice Lead, Security & Privacy, Info-Tech Research Group. Isabelle Hertanto
    Practice Lead, Security & Privacy
    Info-Tech Research Group

    Related Info-Tech Research

    Sample of the IT spending transparency research. Achieve IT Spending Transparency

    Mature your ITFM practice by activating the means to make informed business decisions.

    Sample of the IT cost optimization roadmap research. Build Your IT Cost Optimization Roadmap

    Develop an IT cost optimization strategy based on your specific circumstances and timeline.

    Bibliography

    Eby, Kate. “The Complete Guide to Organizational Maturity: Models, Levels, and Assessments.” Smartsheet, 8 June 2022. Web.

    “Financial Management Maturity Model.” National Audit Office, n.d. Accessed 28 Apr. 2023.

    “ITFM/TBM Program Maturity Guide.” Nicus Software, n.d. Accessed 28 Apr. 2023.

    Jouravlev, Roman. "Service Financial Management: ITIL 4 Practice Guide." Axelos, 2020.

    McCarthy, Seamus. “Financial Management Maturity Model: A Good Practice Guide.” Office of the Comptroller & Auditor General, 26 June 2018. Web.

    “Principles for Effective Risk Data Aggregation and Risk Reporting.“ Bank for International Settlements, Jan. 2013. Web.

    “Role & Influence of the Technology Decision-Maker 2022.” Foundry, 2022. Web.

    Stackpole, Beth. “State of the CIO, 2022: Focus turns to IT fundamentals.” CIO, 21 March 2022. Web.

    “Tech Spend Pulse.” Flexera, 2022. Web.

    Appendix A

    Definition and Description
    Per Maturity Level

    ITFM maturity levels and definitions

    Maturity Level

    Definition

    Description
    Nascent
    Level 1     		Inability to consistently deliver financial planning services ITFM practices are almost inexistent. Only the most basic financial tasks and activities are being performed on an ad hoc basis to fulfill the Finance department’s requests.
    Cost Operator
    Level 2     		Rudimentary financial planning capabilities. ITFM activities revolve around minimizing the IT budget as much as possible. ITFM practices are not well defined, and IT’s financial view is limited to day-to-day technical operations.
    IT is only involved in low complexity decision making, where financial conversations center on general ledger items and IT spending.
    Trusted Coordinator
    Level 3     		Enablement of business through cost-effective supply of technology. ITFM activities revolve around becoming a proficient and cost-effective technology supplier to business partners.
    ITFM practices are in place, with moderate coordination and adherence to execution. Various IT business units coordinate to produce a consolidated financial view focused on business services.
    IT is involved in moderate complexity decision making, as a technology subject matter expert, where financial conversations center on IT spending in relation to technology services or solutions provided to business partners.
    Value Optimizer
    Level 4     		Effective impact on business performance. ITFM activities revolve around optimizing existing technology investments to improve both IT and business performance.
    ITFM practices are well managed, established, documented, repeatable, and integrated as necessary across the organization. IT’s financial view tie technology investments to lines of business, business products, and business capabilities.
    Business partners are well informed on the technology mix and drive related discussion. IT is trusted to contribute to complex decision making around existing investments to cost-effectively plan initiatives, as well as enhance business performance.
    Strategic Partner
    Level 5     		Influence on the organization’s strategic direction. ITFM activities revolve around predicting the outcome of new or potential technology investments to continuously optimize business performance.
    ITFM practices are fully optimized, reviewed, and improved in a continuous and sustainable manner, and related execution is tracked by gathering qualitative and quantitative feedback. IT’s financial view is holistic and fully integrated with the business, with an outlook on innovation, growth, and strategic transformation.
    Business and IT leaders know the financial ramifications of every business and technology investment decision. IT is trusted to contribute to strategic decision making around potential and future investments to grow and transform the business.

    Appendix B

    Maturity Level Definitions and Descriptions
    Per Lever

    Establish your ITFM team

    Maturity focus area: Build an ITFM foundation.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide any type of financial insight.ITFM tasks, activities, and functions are not being met in any way, shape, or form.
    Cost Operator
    Level 2    		Ability to provide basic financial insights.There is no dedicated ITFM team.


    Basic ITFM tasks, activities, and functions are being performed on an ad hoc basis, such as high-level budget reporting.

    Trusted Coordinator
    Level 3    		Ability to provide basic business insights.A dedicated team is fulfilling essential ITFM tasks, activities, and functions.


    ITFM team can combine and analyze financial and technology data to produce necessary reports.

    Value Optimizer
    Level 4    		Ability to provide valuable business driven insights.A dedicated ITFM team with well-defined roles and responsibilities can provide effective advice to IT leaders, in a timely fashion, and positively influence IT decisions.
    Strategic Partner
    Level 5    		Ability to influence both technology and business decisions.A dedicated and highly specialized ITFM team is trusted and valued by both IT and Business leaders.


    Insights provided by the ITFM team can influence and shape the organization’s strategy.

    Set up your governance structure

    Maturity focus area: Build an ITFM foundation

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to ensure any adherence to rules and regulations.ITFM frameworks, guidelines, policies, and procedures are not developed nor documented.
    Cost Operator
    Level 2    		Ability to ensure basic adherence to rules and regulations.Basic ITFM frameworks, guidelines, policies, and procedures are in place, developed on an ad hoc basis, with no apparent coherence or complete documentation.
    Trusted Coordinator
    Level 3    		Ability to ensure compliance to rules and regulations, as well as accountability across ITFM processes.Essential ITFM frameworks, guidelines, policies, and procedures are in place, coherent, and documented, aiming to (a) comply with rules and regulations, and (b) provide clear accountability.
    Value Optimizer
    Level 4    		Ability to ensure compliance to rules and regulations, as well as structure, transparency, and business alignment across ITFM processes.ITFM frameworks, guidelines, policies, and procedures are well defined, coherent, documented, and regularly reviewed, aiming to (a) comply with rules and regulations, (b) provide clear accountability, and (c) maintain business alignment.
    Strategic Partner
    Level 5    		Ability to:
    • Ensure compliance to rules and regulations, as well as ITFM processes are transparent, structured, focused on business objectives, and support decision making.
    • Reinforce and shape the organization culture.
    		ITFM frameworks, guidelines, policies, and procedures are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to (a) comply with rules and regulations, (b) provide clear accountability, (c) maintain business alignment, and (d) facilitate the decision-making process.


    Enforcement of the ITFM governance structure can influence the organization culture.

    Adopt ITFM processes and tools

    Maturity focus area: Build an ITFM foundation.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to deliver IT financial planning and performance output.ITFM processes and tools are not developed nor documented.
    Cost Operator
    Level 2    		Ability to deliver basic IT financial planning output.Basic ITFM processes and tools are in place, developed on an ad hoc basis, with no apparent coherence or complete documentation.
    Trusted Coordinator
    Level 3    		Ability to deliver accurate IT financial output and basic IT performance output in a consistent cadence.Essential ITFM processes and tools are in place, coherent, and documented, aiming to (a) maintain integrity across activities, tasks, methodologies, data, and reports; (b) deliver IT financial planning and performance output needed by stakeholders; and (c) provide clear accountability. ITFM tools and processes are adopted by the ITFM team and some IT business units but are not fully integrated.
    Value Optimizer
    Level 4    		Ability to deliver accurate IT financial planning and performance output at the needed level of detail to stakeholders in a consistent cadence.ITFM processes and tools are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to (a) maintain integrity across activities, tasks, methodologies, data, and reports; (b) deliver IT financial planning and performance output needed by stakeholders; (c) provide clear accountability; and (d) facilitate decision-making. ITFM tools and processes are adopted by IT and business partners but are not fully integrated.
    Strategic Partner
    Level 5    		Ability to:
    • Deliver accurate IT financial planning and performance output at the needed level of detail to stakeholders.
    • Leverage IT financial planning and performance output in real time and when needed by stakeholders.
    		ITFM processes and tools are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to (a) maintain integrity across activities, tasks, methodologies, data, and reports; (b) deliver IT financial planning and performance output needed by stakeholders; (c) provide clear accountability; and (d) facilitate decision making.


    ITFM processes and tools are automated to the full extent needed by the organization, utilized to their full potential, and integrated into a single enterprise platform, providing a holistic view of IT spending and IT performance.

    Standardize your taxonomy and data model

    Maturity focus area: Manage and monitor IT spending.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide transparency across technology spending.ITFM taxonomy and data model are not developed nor documented.
    Cost Operator
    Level 2    		Ability to provide transparency and support IT financial planning data, analysis, and reporting needs of finance stakeholders.ITFM taxonomy and data model are in place, developed on an ad hoc basis, with no apparent coherence or complete documentation, to comply with, and meet the needs of finance stakeholders.
    Trusted Coordinator
    Level 3    		Ability to provide transparency and support IT financial planning and performance data, analysis, and reporting needs of IT and finance stakeholders.ITFM taxonomy and data model are in place, coherent, and documented to meet the needs of IT and finance stakeholders.
    Value Optimizer
    Level 4    		Ability to provide transparency and support IT financial planning and performance data, analysis, and reporting needs of IT, finance, business, and executive stakeholders.ITFM taxonomy and data model are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to provide (a) a holistic view of IT spending and IT performance, (b) visibility and transparency, (c) flexibility, and (d) valuable insights to facilitate data driven decision making.


    ITFM taxonomy and data model are standardized to meet the needs of IT, finance, business, and executive stakeholders, but not flexible enough to be adjusted in a timely fashion as needed.

    Strategic Partner
    Level 5    		Ability to:
    • Provide transparency and support IT financial planning and performance data, analysis, and reporting needs of IT, finance, business, and executive stakeholders.
    • Change to meet evolving needs.
    		ITFM taxonomy and data model are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to provide (a) a holistic view of IT spending and IT performance, (b) visibility and transparency, (c) flexibility, and (d) valuable insights to facilitate data driven decision making.


    ITFM taxonomy and data model are standardized and meet the changing needs of IT, finance, business, and executive stakeholders.

    Identify, gather, and prepare your data

    Maturity focus area: Manage and monitor IT spending.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide accurate and complete across technology spending.ITFM data needs and requirements are not understood.
    Cost Operator
    Level 2    		Ability to provide accurate, but incomplete IT financial planning data to meet the needs of finance stakeholders.Technology spending data is extracted, transformed, and loaded on an ad hoc basis to meet the needs of finance stakeholders.
    Trusted Coordinator
    Level 3    		Ability to provide accurate and complete IT financial planning data to meet the needs of IT and finance stakeholders, but IT performance data remain incomplete.IT financial planning data is extracted, transformed, and loaded in a regular cadence to meet the needs of IT and finance stakeholders.


    IT financial planning data is (a) complete and accurate, as defined in related control documents (guideline, policies, procedures, etc.), (b) regularly validated for inconsistencies, and (c) sourced from the organization’s system of record.

    Value Optimizer
    Level 4    		Ability to provide accurate and complete IT financial planning and performance data to meet the needs of IT, finance, business, and executive stakeholders.ITFM data needs and requirements are understood.


    ITFM data is extracted, transformed, and loaded in a regular cadence to meet the needs of IT, finance, business, and executive stakeholders.


    IT financial planning and performance data are (a) complete and accurate, as defined in related control documents (guideline, policies, procedures, etc.), (b) regularly validated for inconsistencies, and (c) sourced from the organization’s system of record.

    Strategic Partner
    Level 5    		Ability to provide accurate and complete IT financial planning and performance data real time and when needed by IT, finance, business, and executive stakeholders.ITFM data needs and requirements are understood.


    IT financial planning and performance data are (a) complete and accurate, as defined in related control documents (guideline, policies, procedures, etc.), (b) regularly validated for inconsistencies, (c) available and refreshed as needed, and (d) sourced from the organization’s system of record.

    Analyze your findings and develop your reports

    Maturity focus area: Manage and monitor IT spending.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide any type of financial insight.ITFM analysis and reports are not developed nor documented.
    Cost Operator
    Level 2    		Ability to provide basic financial insights.IT financial planning analysis is conducted on an ad hoc basis to meet the needs of finance stakeholders.
    Trusted Coordinator
    Level 3    		Ability to provide basic financial planning and performance insights to meet the needs of IT and finance stakeholders.IT financial planning and performance analysis are methodical and rigorous, as defined in related control documents (guideline, policies, procedures, etc.).


    IT financial planning and performance reports are accurate, precise, and methodical, as defined in related control documents (guideline, policies, procedures, etc.).

    Value Optimizer
    Level 4    		Ability to provide practical insights and useful recommendations as needed by IT, finance, business, and executive stakeholders to facilitate business decision making around technology investments.ITFM analysis and reports support business decision making around technology investments.


    IT financial planning and performance analysis are methodical and rigorous, as defined in related control documents (guideline, policies, procedures, etc.).


    IT financial planning and performance reports are (a) accurate, precise, and methodical, as defined in related control documents (guideline, policies, procedures, etc.), (b) fit for purpose, and (c) regularly validated for inconsistencies.

    Strategic Partner
    Level 5    		Ability to provide practical insights and useful recommendations as needed by IT, finance, business, and executive stakeholders to facilitate strategic decision making.ITFM analysis and reports support strategic decision making.


    IT financial planning and performance analysis are methodical and rigorous, as defined in related control documents (guideline, policies, procedures, etc.), and consider multiple point of views (hypotheses, interpretations, opinions, etc.).


    IT financial planning and performance reports are (a) accurate, precise, and methodical, as defined in related control documents (guideline, policies, procedures, etc.), (b) fit for purpose, (c) comprehensive, and (d) regularly validated for inconsistencies.

    Communicate your IT spending

    Maturity focus area: Bridge the language barrier.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability of organization stakeholders to communicate and understand each other.The organization stakeholders including IT, finance, business, and executives do not understand one another, and cannot speak the same language.
    Cost Operator
    Level 2    		Ability to understand business and finance requirements.IT understands and meets business and financial planning requirements but does not communicate in a similar language.


    IT cannot influence finance or business decision making.

    Trusted Coordinator
    Level 3    		Ability to understand the needs of different stakeholders including IT, finance, business, and executives and take part in decision making around technology spending.The organization stakeholders including IT, finance, business, and executives understand each other’s needs, but do not communicate in a common language.


    IT leaders provide insights as technology subject matter experts, where conversations center on IT spending in relation to technology services or solutions provided to business partners.


    IT can influence technology decisions around its own budget.

    Value Optimizer
    Level 4    		Ability to communicate in a common vocabulary across the organization and take part in business decision making around technology investments.The organization stakeholders including IT, finance, business, and executives communicate in a common vocabulary and understand one another.


    IT and business leaders, along with their respective teams, collaborate frequently across various initiatives.


    IT leaders provide valuable insight to support and influence business decision making around existing technology investments.

    Strategic Partner
    Level 5    		Ability to communicate in a common vocabulary across the organization and take part in strategic decision making.The organization stakeholders including IT, finance, business, and executives communicate in a common vocabulary and understand one another.


    IT and business leaders, along with their respective teams, collaborate frequently across various initiatives.


    IT leaders provide valuable insight to facilitate decision making around potential and future investments to grow and transform the business, thus influencing the organization’s overall strategic direction.

    Educate the masses

    Maturity focus area: Bridge the language barrier.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability of organization stakeholders to acquire knowledge.Educational resources are inexistent.
    Cost Operator
    Level 2    		Ability to acquire financial knowledge and understand financial concepts.IT leaders have access to educational resources to gain the financial knowledge necessary to perform their duties.
    Trusted Coordinator
    Level 3    		Ability to acquire financial and business knowledge and understand related concepts.IT leaders and their respective teams have access to educational resources to gain the financial and business knowledge necessary to perform their duties.


    ITFM team has access to the necessary educational resources to keep up with changing financial regulations and technology developments.

    Value Optimizer
    Level 4    		Ability to acquire knowledge, across technology, business, and finance as needed by different organization stakeholders, and the leadership understand concepts across these various domains.Stakeholders including IT, finance, business, and executives have access to various educational resources to gain knowledge in different domains as needed.


    IT leaders have a good understanding of business and financial concepts.


    Business leaders have a good understanding of technology concepts.

    Strategic Partner
    Level 5    		Ability to acquire knowledge, and understand concepts across technology, business, and finance as needed by different organization stakeholders.The organization promotes continuous learning through well designed programs including training, mentorship, and academic courses. Thus, stakeholders including IT, finance, business, and executives have access to various educational resources to gain knowledge in different domains as needed.


    IT leaders and their respective teams have a good understanding of business and financial concepts.


    Business leaders and their respective teams have a good understanding of technology concepts.

    Influence your organization’s culture

    Maturity focus area: Bridge the language barrier.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide and foster an environment of collaboration and continuous improvement.Stakeholders including IT, finance, business, and executives operate in silos, and collaboration between different teams is inexistent.
    Cost Operator
    Level 2    		Ability to provide an environment of cooperation to meet the needs of IT, finance, and business leaders.IT, finance, and business leaders cooperate to meet financial planning requirements as necessary to perform their duties.
    Trusted Coordinator
    Level 3    		Ability to provide and foster an environment of collaboration across the organization.IT, finance, and business collaborate on various initiatives.

    ITFM employees are trusted and supported by their stakeholders (IT, finance, and business).

    Value Optimizer
    Level 4    		Ability to provide and foster an environment of collaboration and continuous improvement, where employees across the organization feel trusted, supported, empowered, and valued.Stakeholders including IT, finance, business, and executives support and promote continuous improvement, transparency practices, and collaboration across the organization.


    Employees are trusted, supported, empowered, and valued.

    Strategic Partner
    Level 5    		Ability to provide and foster an environment of collaboration and continuous improvement, where leaders are willing to change, and employees across the organization feel trusted, supported, empowered, and valued.Stakeholders including IT, finance, business, and executives support and promote continuous improvement, transparency practices, and collaboration across the organization.


    The organization’s leadership is adaptable and open to change.


    Employees are trusted, supported, empowered, and valued.

    Master the MSA for Your Managed Services Providers

    • Buy Link or Shortcode: {j2store}235|cart{/j2store}
    • member rating overall impact: 9.7/10 Overall Impact
    • member rating average dollars saved: $9,869 Average $ Saved
    • member rating average days saved: 4 Average Days Saved
    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Master Services Agreements and Service Level Agreements are tedious, and reviewers may lack the skills and experience to effectively complete the process.
    • Managed services providers have a repository of contract terms and conditions that are road-tested and prepackaged, and which are often biased in their favor.
    • With many different pricing options, it is difficult to choose the services you need.

    Our Advice

    Critical Insight

    • Manage your managed services providers. Added value is realized when managed service providers are in tune with your IT strategies, goals, and mission.
    • Negotiate an agreement that is beneficial to both parties. The most successful partnerships are a win-win agreement.
    • Lawyers can’t ensure you get the best business deal. They tend to look at general terms and conditions and may overlook IT-specific components.

    Impact and Result

    • Understanding managed services providers, including their roles and pricing models, will give you valuable insight into negotiating the best deal for your organization.
    • Info-Tech’s contract review methodology will help you navigate the complex process of managed services provider contract evaluation and review all the key details to maximize the benefits to your organization.
    • This blueprint provides guidance on catching vendor-biased terms and conditions, and suggests tips for getting managed services providers to take on their fair share of responsibilities.

    Master the MSA for Your Managed Services Providers Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should master the MSA for your MSPs, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Review terms and conditions for your MSP contract

    Use Info-Tech’s MSA Contract Review Tool to locate and track improvement areas in your MSAs.

    • Master the MSA for Your Managed Services Providers – Phase 1: Review Terms and Conditions of Your MSP Contract
    • MSA Contract Review Tool
    [infographic]

    Security Priorities 2023

    • Buy Link or Shortcode: {j2store}254|cart{/j2store}
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    • Parent Category Name: Security Strategy & Budgeting
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    • Most people still want a hybrid work model but there is a shortage in security workforce to maintain secure remote work, which impacts confidence in the security practice.
    • Pressure of operational excellence drives organizational modernization with the consequence of higher risks of security attacks that impact not only cyber but also physical systems.
    • The number of regulations with stricter requirements and reporting is increasing, along with high sanctions for violations.
    • Accurate assessment of readiness and benefits to adopt next-gen cybersecurity technologies can be difficult. Additionally, regulation often faces challenges to keep up with next-gen cybersecurity technologies implications and risks of adoption, which may not always be explicit.
    • Software is usually produced as part of a supply chain instead in a silo. Thus, a vulnerability in any part of the supply chain can become a threat surface.

    Our Advice

    Critical Insight

    • Secure remote work still needs to be maintained to facilitate the hybrid work model post pandemic.
    • Despite all the cybersecurity risks, organizations continue modernization plans due to the long-term overall benefits. Hence, we need to secure organization modernization.
    • Organizations should use regulatory changes to improve security practices, instead of treating them as a compliance burden.
    • Next-gen cybersecurity technologies alone are not the silver bullet. A combination of technologies with skilled talent, useful data, and best practices will give a competitive advantage.

    Impact and Result

    • Use this report to help decide your 2023 security priorities by:
      • Collecting and analyzing your own related data, such as your organization 2022 incident reports. Use Info-Tech’s Security Priorities 2023 material for guidance.
      • Identifying your needs and analyzing your capabilities. Use Info-Tech's template to explain the priorities you need to your stakeholders.
      • Determining the next steps. Refer to Info-Tech's recommendations and related research.

    Security Priorities 2023 Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Security Priorities 2023 Report – A report to help decide your 2023 security priorities.

    Each organization is different, so a generic list of security priorities will not be applicable to every organization. Thus, you need to:

  • Collect and analyze your own related data such as your organization 2022 incident reports. Use Info-Tech’s Security Priorities 2023 material for guidance.
  • Identify your needs and analyze your capabilities. Use Info-Tech's template to explain the priorities you need to your stakeholders.
  • Refer to Info-Tech's recommendations and related research for guidance on the next steps.

    • Security Priorities 2023 Report

    Infographic

    Further reading

    Security Priorities 2023

    How we live post pandemic

    Each organization is different, so a generic list of priorities will not be applicable to every organization.

    During 2022, ransomware campaigns declined from quarter to quarter due to the collapse of experienced groups. Several smaller groups are developing to recapture the lost ransomware market. However, ransomware is still the most worrying cyber threat.

    Also in 2022, people returned to normal activities such as traveling and attending sports or music events but not yet to the office. The reasons behind this trend can be many fold, such as employees perceive that work from home (WFH) has positive productivity effects and time flexibility for employees, especially for those with families with younger children. On the other side of the spectrum, some employers perceive that WFH has negative productivity effects and thus are urging employees to return to the office. However, employers also understand the competition to retain skilled workers is harder. Thus, the trend is to have hybrid work where eligible employees can WFH for a certain portion of their work week.

    Besides ransomware and the hybrid work model, in 2022, we saw an evolving threat landscape, regulatory changes, and the potential for a recession by the end of 2023, which can impact how we prioritize cybersecurity this year. Furthermore, organizations are still facing the ongoing issues of insufficient cybersecurity resources and organization modernization.

    This report will explore important security trends, the security priorities that stem from these trends, and how to customize these priorities for your organization.

    In Q2 2022, the median ransom payment was $36,360 (-51% from Q1 2022), a continuation of a downward trend since Q4 2021 when the ransom payment median was $117,116.
    Source: Coveware, 2022

    From January until October 2022, hybrid work grew in almost all industries in Canada especially finance, insurance, real estate, rental and leasing (+14.7%), public administration and professional services (+11.8%), and scientific and technical services (+10.8%).
    Source: Statistics Canada, Labour Force Survey, October 2022; N=3,701

    Hybrid work changes processes and infrastructure

    Investment on remote work due to changes in processes and infrastructure

    As part of our research process for the 2023 Security Priorities Report, we used the results from our State of Hybrid Work in IT Survey, which collected responses between July 10 and July 29, 2022 (total N=745, with n=518 completed surveys). This survey details what changes in processes and IT infrastructure are likely due to hybrid work.

    Process changes to support hybrid work

    A bar graph is depicted with the following dataset: None of the above - 12%; Change management - 29%; Asset management - 34%; Service request support - 41%; Incident management - 42%

    Survey respondents (n=518) were asked what processes had the highest degree of change in response to supporting hybrid work. Incident management is the #1 result and service request support is #2. This is unsurprising considering that remote work changed how people communicate, how they access company assets, and how they connect to the company network and infrastructure.

    Infrastructure changes to support hybrid work

    A bar graph is depicted with the following dataset: Changed queue management and ticketing system(s) - 11%; Changed incident and service request processes - 23%; Addition of chatbots as part of the Service Desk intake process - 29%; Reduced the need for recovery office spaces and alternative work mitigations - 40%; Structure & day-to-day operation of Service Desk - 41%; Updated network architecture - 44%

    For 2023, we believe that hybrid work will remain. The first driver is that employees still prefer to work remotely for certain days of the week. The second driver is the investment from employers on enabling WFH during the pandemic, such as updated network architecture (44%) and the infrastructure and day-to-day operations (41%) as shown on our survey.

    Top cybersecurity concerns and organizational preparedness for them

    Concerns may correspond to readiness.

    In the Info-Tech Research Group 2023 Trends and Priorities Survey of IT professionals, we asked about cybersecurity concerns and the perception about readiness to meet current and future government legislation regarding cybersecurity requirements.

    Cybersecurity issues

    A bar graph is depicted with the following dataset: Cyber risks are not on the radar of the executive leaders or board of directors - 3.19; Organization is not prepared to respond to a cyber attack - 3.08; Supply chain risks related to cyber threats - 3.18; Talent shortages leading to capacity constraints in cyber security - 3.51; New government or industry-imposed regulations - 3.15

    Survey respondents were asked how concerned they are about certain cybersecurity issues from 1 (not concerned at all) to 5 (very concerned). The #1 concern was talent shortages. Other issues with similar concerns included cyber risks not on leadership's radar, supply chain risks, and new regulations (n=507).

    Cybersecurity legislation readiness

    A bar graph is depicted with the following dataset: 1 (Not confident at all) - 2.4%; 2 - 11.2%; 3 - 39.7%; 4 - 33.3%; 5 (Very confident) - 13.4%

    When asked about how confident organizations are about being prepared to meet current and future government legislation regarding cybersecurity requirements, from 1 (not confident at all) to 5 (very confident), the #1 response was 3 (n=499).

    Unsurprisingly, the ever-changing government legislation environment in a world emerging from a pandemic and ongoing wars may not give us the highest confidence.

    We know the concerns and readiness…

    But what is the overall security maturity?

    As part of our research process for the 2023 Security Priorities Report, we reviewed results of completed Info-Tech Research Group Security Governance and Management Benchmark diagnostics (N=912). This report details what we see in our clients' security governance maturity. Setting aside the perception on readiness – what are their actual security maturity levels?

    A bar graph is depicted with the following dataset: Security Culture - 47%; Policy and Process Governance - 47%; Event and Incident Management - 58%; Vulnerability - 57%; Auditing - 52%; Compliance Management - 58%; Risk Analysis - 52%

    Overall, assessed organizations are still scoring low (47%) on Security Culture and Policy and Process Governance. This justifies why most security incidents are still due to gaps in foundational security and security awareness, not lack of advanced controls such as event and incident management (58%).

    And how will the potential recession impact security?

    Organizations are preparing for recession, but opportunities for growth during recession should be well planned too.

    As part of our research process for the 2023 Security Priorities Report, we reviewed the results of the Info-Tech Research Group 2023 Trends and Priorities Survey of IT professionals, which collected responses between August 9 and September 9, 2022 (total N=813 with n=521 completed surveys).

    Expected organizational spending on cybersecurity compared to the previous fiscal year

    A bar graph is depicted with the following dataset: A decrease of more than 10% - 2.2%; A decrease of between 1-10% - 2.6%; About the same - 41.4%; An increase of between 1-10% - 39.6%; An increase of more than 10% - 14.3%

    Keeping the same spending is the #1 result and #2 is increasing spending up to 10%. This is a surprising finding considering the survey was conducted after the middle of 2022 and a recession has been predicted since early 2022 (n=489).

    An infographic titled Cloudy with a Chance of Recession

    Source: Statista, 2022, CC BY-ND

    US recession forecast

    Contingency planning for recessions normally includes tight budgeting; however, it can also include opportunities for growth such as hiring talent who have been laid off by competitors and are difficult to acquire in normal conditions. This can support our previous findings on increasing cybersecurity spending.

    Five Security Priorities for 2023

    This image describes the Five Security Priorities for 2023.

    Maintain Secure Hybrid Work

    PRIORITY 01

    • HOW TO STRATEGICALLY ACQUIRE, RETAIN, OR UPSKILL TALENT TO MAINTAIN SECURE SYSTEMS.

    Executive summary

    Background

    If anything can be learned from COVID-19 pandemic, it is that humans are resilient. We swiftly changed to remote workplaces and adjusted people, processes, and technologies accordingly. We had some hiccups along the way, but overall, we demonstrated that our ability to adjust is amazing.

    The pandemic changed how people work and how and where they choose to work, and most people still want a hybrid work model. However, the number of days for hybrid work itself varies. For example, from our survey in July 2022 (n=516), 55.8% of employees have the option of 2-3 days per week to work offsite, 21.0% for 1 day per week, and 17.8% for 4 days per week.

    Furthermore, the investment (e.g. on infrastructure and networks) to initiate remote work was huge, and the cost doesn't end there, as we need to maintain the secure remote work infrastructure to facilitate the hybrid work model.

    Current situation

    Remote work: A 2022 survey by WFH Research (N=16,451) reports that ~14% of full-time employees are fully remote and ~29% are in a hybrid arrangement as of Summer-Fall 2022.

    Security workforce shortage: A 2022 survey by Bridewell (N=521) reports that 68% of leaders say it has become harder to recruit the right people, impacting organizational ability to secure and monitor systems.

    Confidence in the security practice: A 2022 diagnostic survey by Info-Tech Research Group (N=55) reports that importance may not correspond to confidence; for example, the most important selected cybersecurity area, namely Data Access/Integrity (93.7%), surprisingly has the lowest confidence of the practice (80.5%).

    "WFH doubled every 15 years pre-pandemic. The increase in WFH during the pandemic was equal to 30 years of pre-pandemic growth."

    Source: National Bureau of Economic Research, 2021

    Leaders must do more to increase confidence in the security practice

    Importance may not correspond to confidence

    As part of our research process for the 2023 Security Priorities Report, we analyzed results from the Info-Tech Research Group diagnostics. This report details what we see in our clients' perceived importance of security and their confidence in existing security practices.

    Cybersecurity importance

    A bar graph is depicted with the following dataset: Importance to the Organization - 94.3%; Importance to My Department 92.2%

    Cybersecurity importance areas

    A bar graph is depicted with the following dataset: Mobility (Remote & Mobile Access) - 90.2%; Regulatory Compliance - 90.1%; Desktop Computing - 90.9%; Data Access / Integrity - 93.7%

    Confidence in cybersecurity practice

    A bar graph is depicted with the following dataset: Confidence in the Organization's Overall Security - 79.4%; Confidence in Security for My Department - 79.8%

    Confidence in cybersecurity practice areas

    A bar graph is depicted with the following dataset: Mobility (Remote & Mobile Access) - 75.8%; Regulatory Compliance - 81.5%; Desktop Computing - 80.9%; Data Access / Integrity - 80.5%

    Diagnostics respondents (N=55) were asked about how important security is to their organization or department. Importance to the overall organization is 2.1 percentage points (pp) higher, but confidence in the organization's overall security is slightly lower (-0.4 pp).

    If we break down to security areas, we can see that the most important area, Data Access/Integrity (93.7%), surprisingly has the lowest confidence of the practice: 80.5%. From this data we can conclude that leaders must build a strong cybersecurity workforce to increase confidence in the security practice.

    Use this template to explain the priorities you need your stakeholders to know about.

    Maintain secure hybrid work plan

    Provide a brief value statement for the initiative.

    Build a strong cybersecurity workforce to increase confidence in the security practice to facilitate hybrid work.

    Initiative Description:

    • Description must include what organization will undertake to complete the initiative.
    • Review your security strategy for hybrid work.
    • Identify skills gaps that hinder the successful execution of the hybrid work security strategy.
    • Use the identified skill gaps to define the technical skill requirements for current and future work roles.
    • Conduct a skills assessment on your current workforce to identify employee skill gaps.
    • Decide whether to train, hire, contract, or outsource each skill gap.

    Drivers:

    List initiative drivers.

    • Employees still prefer to WFH for certain days of the week.
    • The investment on WFH during pandemic such as updated network architecture and infrastructure and day-to-day operations.
    • Tech companies' huge layoffs, e.g. Meta laid off more than 11,000 employees.

    Risks:

    List initiative risks and impacts.

    • Unskilled workers lacking certificates or years of experience who are trained and become skilled workers then quit or are hijacked by competitors.
    • Organizational and cultural changes cause friction with work-life balance.
    • Increased attack surface of remote/hybrid workforce.

    Benefits:

    List initiative benefits and align to business benefits or benefits for the stakeholder groups that it impacts.

    • Increase perceived productivity by employees and increase retention.
    • Increase job satisfaction and work-life balance.
    • Hiring talent that has been laid off who are difficult to acquire in normal conditions.

    Related Info-Tech Research:

    Recommended Actions

    1. Identify skill requirements to maintain secure hybrid work

    Review your security strategy for hybrid work.

    Determine the skill needs of your security strategy.

    2. Identify skill gaps

    Identify skills gaps that hinder the successful execution of the hybrid work security strategy.

    Use the identified skill gaps to define the technical skill requirements for work roles.

    3. Decide whether to build or buy skills

    Conduct a skills assessment on your current workforce to identify employee skill gaps.

    Decide whether to train, hire, contract, or outsource each skill gap.

    Source: Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan, Info-Tech

    Secure Organization Modernization

    PRIORITY 02

    • TRENDS SUGGEST MODERNIZATION SUCH AS DIGITAL
      TRANSFORMATION TO THE CLOUD, OPERATIONAL TECHNOLOGY (OT),
      AND THE INTERNET OF THINGS (IOT) IS RISING; ADDRESSING THE RISK
      OF CONVERGING ENVIRONMENTS CAN NO LONGER BE DEFERRED.

    Executive summary

    From computerized milk-handling systems in Wisconsin farms, to automated railway systems in Europe, to Ausgrid's Distribution Network Management System (DNMS) in Australia, to smart cities and beyond; system modernization poses unique challenges to cybersecurity.

    The threats can be safety, such as the trains stopped in Denmark during the last weekend of October 2022 for several hours due to an attack on a third-party IT service provider; economics, such as a cream cheese production shutdown that occurred at the peak of cream cheese demand in October 2021 due to hackers compromising a large cheese manufacturer's plants and distribution centers; and reliability, such as the significant loss of communication for the Ukrainian military, which relied on Viasat's services.

    Despite all the cybersecurity risks, organizations continue modernization plans due to the long-term overall benefits.

    Current situation

    • Pressure of operational excellence: Competitive markets cannot keep pace with demand without modernization. For example, in automated milking systems, the labor time saved from milking can be used to focus on other essential tasks such as the decision-making process.
    • Technology offerings: Technologies are available and affordable such as automated equipment, versatile communication systems, high-performance human machine interaction (HMI), IIoT/Edge integration, and big data analytics.
    • Higher risks of cyberattacks: Modernization enlarges attack surfaces, which are not only cyber but also physical systems. Most incidents indicate that attackers gained access through the IT network, which was followed by infiltration into OT networks.

    IIoT market size is USD 323.62 billion in 2022 and projected to be around USD 1 trillion in 2028.

    Source: Statista,
    March 2022

    Modernization brings new opportunities and new threats

    Higher risks of cyberattacks on Industrial Control System (ICS)

    Target: Australian sewage plant.

    Method: Insider attack. Impact: 265,000 gallons of untreated sewage released.

    Target: Middle East energy companies.

    Method: Shamoon.

    Impact: Overwritten Windows-based systems files.

    Target: German Steel Mill

    Method: Spear-phishing

    Impact: Blast furnace control shutdown failure.

    Target: Middle East Safety Instrumented System (SIS).

    Method: TRISIS/TRITON.

    Impact: Modified safety system ladder logic.

    Target: Viasat's KA-SAT Network.

    Method: AcidRain.

    Impact: Significant loss of communication for the Ukrainian military, which relied on Viasat's services.

    A timeline displaying the years 1903; 2000; 2010; 2012; 2013; 2014; 2018; 2019; 2021; 2022 is displayed.

    Target: Marconi wireless telegraphs presentation. Method: Morse code.

    Impact: Fake message sent "Rats, rats, rats, rats. There was a young fellow of Italy, Who diddled the public quite prettily."

    Target: Iranian uranium enrichment plant.

    Method: Stuxnet.

    Impact: Compromised programmable logic controllers (PLCs).

    Target: ICS supply chain.

    Method: Havex.

    Impact: Remote Access Trojan (RAT) collected information and uploaded data to command-and-control (C&C) servers.

    Target: Ukraine power grid.

    Method: BlackEnergy.

    Impact: Manipulation of HMI View causing 1-6 hour power outages for 230,000 consumers.

    Target: Colonial Pipeline.

    Method: DarkSide ransomware.

    Impact: Compromised billing infrastructure halted the pipeline operation.

    Sources:

    • DOE, 2018
    • CSIS, 2022
    • MIT Technology Review, 2022

    Info-Tech Insight

    Most OT incidents start with attacks against IT networks and then move laterally into the OT environment. Therefore, converging IT and OT security will help protect the entire organization.

    Use this template to explain the priorities you need your stakeholders to know about.

    Secure organization modernization

    Provide a brief value statement for the initiative.

    The systems (OT, IT, IIoT) are evolving now – ensure your security plan has you covered.

    Initiative Description:

    • Description must include what organization will undertake to complete the initiative.
    • Identify the drivers to align with your organization's business objectives.
    • Build your case by leveraging a cost-benefit analysis and update your security strategy.
    • Identify people, process, and technology gaps that hinder the modernization security strategy.
    • Use the identified skill gaps to update risks, policies and procedures, IR, DR, and BCP.
    • Evaluate and enable modernization technology top focus areas and refine security processes.
    • Decide whether to train, hire, contract, or outsource to fill the security workforce gap.

    Drivers:

    List initiative drivers.

    • Pressure of operational excellence
    • Technology offerings
    • Higher risks of cyberattacks

    Risks:

    List initiative risks and impacts.

    • Complex systems with many components to implement and manage require diligent change management.
    • Organizational and cultural changes cause friction between humans and machines.
    • Increased attack surface of cyber and physical systems.

    Benefits:

    List initiative benefits and align to business benefits or benefits for the stakeholder groups that it impacts.

    • Improve service reliability through continuous and real-time operation.
    • Enhance efficiency through operations visibility and transparency.
    • Gain cost savings and efficiency to automate operations of complex and large equipment and instrumentations.

    Related Info-Tech Research:

    Recommended Actions

    1. Identify modernization business cases to secure

    Identify the drivers to align with your organization's business objectives.

    Build your case by leveraging a cost-benefit analysis, and update your security strategy.

    2. Identify gaps

    Identify people, process, and technology gaps that hinder the modernization
    security strategy.

    Use the identified skill gaps to update risks, policies and procedures, IR, DR, and BCP.

    3. Decide whether to build or buy capabilities

    Evaluate and enable modernization technology top focus areas and refine
    security processes.

    Decide whether to train, hire, contract, or outsource to fill the security workforce gap.

    Sources:

    Industrial Control System (ICS) Modernization: Unlock the Value of Automation in Utilities, Info-Tech

    Secure IT-OT Convergence, Info-Tech

    Develop a cost-benefit analysis

    Identify a modernization business case for security.

    Benefits

    Metrics

    Operational Efficiency and Cost Savings

    • Reduction in truck rolls and staff time of manual operations of equipment or instrumentation.
    • Cost reduction in energy usage such as substation power voltage level or water treatment chemical level.

    Improve Reliability and Resilience

    • Reduction in field crew time to identify the outage locations by remotely accessing field equipment to narrow down the
      fault areas.
    • Reduction in outage time impacting customers and avoiding financial penalty in service quality metrics.
    • Improve operating reliability through continuous and real-time trend analysis of equipment performance.

    Energy & Capacity Savings

    • Optimize energy usage of operation to reduce overall operating cost and contribution to organizational net-zero targets.

    Customers & Society Benefits

    • Improve customer safety for essential services such as drinkable water consumption.
    • Improve reliability of services and address service equity issues based on data.

    Cost

    Metrics

    Equipment and Infrastructure

    Upgrade existing security equipment or instrumentation or deploy new, e.g. IPS on Enterprise DMZ and Operations DMZ.

    Implement communication network equipment and labor to install and configure.

    Upgrade or construct server room including cooling/heating, power backup, and server and rack hardware.

    Software and Commission

    The SCADA/HMI software and maintenance fee as well as lifecycle upgrade implementation project cost.

    Labor cost of field commissioning and troubleshooting.

    Integration with security systems, e.g. log management and continuous monitoring.

    Support and Resources

    Cost to hire/outsource security FTEs for ongoing managing and operating security devices, e.g. SOC.

    Cost to hire/outsource IT/OT FTEs to support and troubleshoot systems and its integrations with security systems, e.g. MSSP.

    An example of a cost-benefit analysis for ICS modernization

    Sources:

    Industrial Control System (ICS) Modernization: Unlock the Value of Automation in Utilities, Info-Tech

    Lawrence Berkeley National Laboratory, 2021

    IT-OT convergence demands new security approach and solutions

    Identify gaps

    Attack Vectors

    IT

    • User's compromised credentials
    • User's access device, e.g. laptop, smartphone
    • Access method, e.g. denial-of-service to modem, session hijacking, bad data injection

    OT

    • Site operations, e.g. SCADA server, engineering workstation, historian
    • Controls, e.g. SCADA Client, HMI, PLCs, RTUs
    • Process devices, e.g. sensors, actuators, field devices

    Defense Strategies

    • Limit exposure of system information
    • Identify and secure remote access points
    • Restrict tools and scripts
    • Conduct regular security audits
    • Implement a dynamic network environment

    (Control System Defense: Know the Opponent, CISA)

    An example of a high-level architecture of an electric utility's control system and its interaction with IT systems.

    An example of a high-level architecture of an electric utility's control system and its interaction with IT systems.

    Source: ISA-99, 2007

    RESPOND TO REGULATORY CHANGES

    PRIORITY 03

    • GOVERNMENT-ENACTED POLICY CHANGES AND INDUSTRY REGULATORY CHANGES COULD BE A COMPLIANCE BURDEN … OR PREVENT YOUR NEXT SECURITY INCIDENT.

    Executive summary

    Background

    Government-enacted regulatory changes are occurring at an ever-increasing rate these days. As one example, on November 10, 2022, the EU Parliament introduced two EU cybersecurity laws: the Network and Information Security (NIS2) Directive (applicable to organizations located within the EU and organizations outside the EU that are essential within an EU country) and the Digital Operational Resilience Act (DORA). There are also industry regulatory changes such as PCI DSS v4.0 for the payment sector and the North American Electric Reliability Corporation Critical Infrastructure Protection (NERC CIP) for Bulk Electric Systems (BES).

    Organizations should use regulatory changes as a means to improve security practices, instead of treating them as a compliance burden. As said by lead member of EU Parliament Bart Groothuis on NIS2, "This European directive is going to help around 160,000 entities tighten their grip on security […] It will also enable information sharing with the private sector and partners around the world. If we are being attacked on an industrial scale, we need to respond on an industrial scale."

    Current situation

    Stricter requirements and reporting: Regulations such as NIS2 include provisions for incident response, supply chain security, and encryption and vulnerability disclosure and set tighter cybersecurity obligations for risk management reporting obligations.

    Broader sectors: For example, the original NIS directive covers 19 sectors such as Healthcare, Digital Infrastructure, Transport, and Energy. Meanwhile, the new NIS2 directive increases to 35 sectors by adding other sectors such as providers of public electronic communications networks or services, manufacturing of certain critical products (e.g. pharmaceuticals), food, and digital services.

    High sanctions for violations: For example, Digital Services Act (DSA) includes fines of up to 6% of global turnover and a ban on operating in the EU single market in case of repeated serious breaches.

    Approximately 100 cross-border data flow regulations exist in 2022.

    Source: McKinsey, 2022

    Stricter requirements for payments

    Obligation changes to keep up with emerging threats and technologies

    64 New requirements were added
    A total of 64 requirements have been added to version 4.0 of the PCI DSS.

    13 New requirements become effective March 31, 2024
    The other 51 new requirements are considered best practice until March 31, 2025, at which point they will become effective.

    11 New requirements only for service providers
    11 of the new requirements are applicable only to entities that provide third-party services to merchants.

    Defined roles must be assigned for requirements.

    Focus on periodically assessing and documenting scope.

    Entities may choose a defined approach or a customized approach to requirements.

    An example of new requirements for PCI DSS v4.0

    Source: Prepare for PCI DSS v4.0, Info-Tech

    Use this template to explain the priorities you need your stakeholders to know about.

    Respond to regulatory changes

    Provide a brief value statement for the initiative.

    The compliance obligations are evolving – ensure your security plan has you covered.

    Initiative Description:

    Description must include what organization will undertake to complete the initiative.

    • Identify relevant security and privacy compliance and conformance levels.
    • Identify gaps for updated obligations, and map obligations into control framework.
    • Review, update, and implement policies and strategy.
    • Develop compliance exception process and forms.
    • Develop test scripts.
    • Track status and exceptions

    Drivers:

    List initiative drivers.

    • Pressure of new regulations
    • Governance, risk & compliance (GRC) tool offerings
    • High administrative or criminal penalties of non-compliance

    Risks:

    List initiative risks and impacts.

    • Complex structures and a great number of compliance requirements
    • Restricted budget and lack of skilled workforce for organizations such as local municipalities and small or medium organizations compared to private counterparts
    • Personal liability for some regulations for non-compliance

    Benefits:

    List initiative benefits and align to business benefits or benefits for the stakeholder groups that it impacts.

    • Reduces compliance risk.
    • Reduces complexity within the control environment by using a single framework to align multiple compliance regimes.
    • Reduces costs and efforts related to managing IT audits through planning and preparation.

    Related Info-Tech Research:

    Recommended Actions

    1. Identify compliance obligations

    Identify relevant security and privacy obligations and conformance levels.

    Identify gaps for updated obligations, and map obligations into control framework.

    2. Implement compliance strategy

    Review, update, and implement policies and strategy.

    Develop compliance exception process.

    3. Track and report

    Develop test scripts to check your remediations to ensure they are effective.

    Track and report status and exceptions.

    Sources: Build a Security Compliance Program and Prepare for PCI DSS v4.0, Info-Tech

    Identify relevant security and privacy compliance obligations

    Identify obligations

    # Security Jurisdiction
    1 Network and Information Security (NIS2) Directive European Union (EU) and organizations outside the EU that are essential within an EU country
    2 North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) North American electrical utilities
    3 Executive Order (EO) 14028: Improving the Nation's Cybersecurity, The White House, 2021 United States

    #

    		Privacy Jurisdiction
    1 General Data Protection Regulation (GDPR) EU and EU citizens
    2 Personal Information Protection and Electronic Documents Act (PIPEDA) Canada
    3 California Consumer Privacy Act (CCPA) California, USA
    4 Personal Information Protection Law of the People’s Republic of China (PIPL) China

    An example of security and privacy compliance obligations

    How much does it cost to become compliant?

    • It is important to understand the various frameworks and to adhere to the appropriate compliance obligations.
    • Many factors influence the cost of compliance, such as the size of organization, the size of network, and current security readiness.
    • To manage compliance obligations, it is important to use a platform that not only performs internal and external monitoring but also provides third-party vendors (if applicable) with visibility into potential threats in their organization.

    Adopt Next-Generation Cybersecurity Technologies

    PRIORITY 04

    • GOVERNMENTS AND HACKERS ARE RECOGNIZING THE IMPORTANCE OF EMERGING TECHNOLOGIES, SUCH AS ZERO TRUST ARCHITECTURE AND AI-BASED CYBERSECURITY. SO SHOULD YOUR ORGANIZATION.

    Executive summary

    Background

    The cat and mouse game between threat actors and defenders is continuing. The looming question "can defenders do better?" has been answered with rapid development of technology. This includes the automation of threat analysis (signature-based, specification-based, anomaly-based, flow-based, content-based, sandboxing) not only on IT but also on other relevant environments, e.g. IoT, IIoT, and OT based on AI/ML.

    More fundamental approaches such as post-quantum cryptography and zero trust (ZT) are also emerging.
    ZT is a principle, a model, and also an architecture focused on resource protection by always verifying transactions using the least privilege principle. Hopefully in 2023, ZT will be more practical and not just a vendor marketing buzzword.

    Next-gen cybersecurity technologies alone are not a silver bullet. A combination of skilled talent, useful data, and best practices will give a competitive advantage. The key concepts are explainable, transparent, and trustworthy. Furthermore, regulation often faces challenges to keep up with next-gen cybersecurity technologies, especially with the implications and risks of adoption, which may not always be explicit.

    Current situation

    ZT: Performing an accurate assessment of readiness and benefits to adopt ZT can be difficult due to ZT's many components. Thus, an organization needs to develop a ZT roadmap that aligns with organizational goals and focuses on access to data, assets, applications, and services; don't select solutions or vendors too early.

    Post-quantum cryptography: Current cryptographic applications, such as RSA for PKI, rely on factorization. However, algorithms such as Shor's show quantum speedup for factorization, which can break current crypto when sufficient quantum computing devices are available. Thus, threat actors can intercept current encrypted information and store it to decrypt in the future.

    AI-based threat management: AI helps in analyzing and correlating data extremely fast compared to humans. Millions of telemetries, malware samples, raw events, and vulnerability data feed into the AI system, which humans cannot process manually. Furthermore, AI does not get tired in processing this big data, thus avoiding human error and negligence.

    Data breach mitigation cost without AI: USD 6.20 million; and with AI: USD 3.15 million

    Source: IBM, 2022

    Traditional security is not working

    Alert Fatigue

    Too many false alarms and too many events to process. Evolving threat landscapes waste your analysts' valuable time on mundane tasks, such as evidence collection. Meanwhile, only limited time is spared for decisions and conclusions, which results in the fear of missing an incident and alert fatigue.

    Lack of Insight

    To report progress, clear metrics are needed. However, cybersecurity still lacks in this area as the system itself is complex and some systems work in silos. Furthermore, lessons learned are not yet distilled into insights for improving future accuracy.

    Lack of Visibility

    System integration is required to create consistent workflows across the organization and to ensure complete visibility of the threat landscape, risks, and assets. Also, the convergence of OT, IoT, and IT enhances this challenge.

    Source: IBM Security Intelligence, 2020

    A business case for AI-based cybersecurity

    Threat management

    Prevention

    Risk scores are generated by machine learning based on variables such as behavioral patterns and geolocation. Zero trust architecture is combined with machine learning. Asset management leverages visibility using machine learning. Comply with regulations by improving discovery, classification, and protection of data using machine learning. Data security and data privacy services use machine learning for data discovery.

    Detection

    AI, advanced machine learning, and static approaches, such as code file analysis, combine to automatically detect and analyze threats and prevent threats from spreading, assisted by threat intelligence.

    Response

    AI helps in orchestrating security technologies for organizations to reduce the number of security agents installed, which may not talk to each other or, worse, may conflict with each other.

    Recovery

    AI continuously tunes based on lessons learned, such as creating security policies for improving future accuracy. AI also does not get fatigue, and it assists humans in a faster recovery.

    Prevention; Detection; Response; Recovery

    AI has been around since the 1940s, but why is it only gaining traction now? Because supporting technologies are only now available, including faster GPUs for complex computations and cheaper storage for massive volumes of data.

    Use this template to explain the priorities you need your stakeholders to know about.

    Adopt next-gen cybersecurity technologies

    Use this template to explain the priorities you need your stakeholders to know about.

    Develop a practical roadmap that shows the business value of next-gen cybersecurity technologies investment.

    Initiative Description:

    Description must include what organization will undertake to complete the initiative.

    • Identify the stakeholders who will be affected by the next-gen cybersecurity technologies implementation and define responsibilities based on skillsets and the degree of support.
    • Adopt well-established data governance practices for cross-functional teams.
    • Conduct a maturity assessment of key processes and highlight interdependencies.
    • Develop a baseline and periodically review risks, policies and procedures, and business plan.
    • Develop a roadmap and deploy next-gen cybersecurity architecture and controls step by step, working with trusted technology partners.
    • Monitor metrics on effectiveness and efficiency.

    Drivers:

    List initiative drivers.

    • Pressure of attacks by sophisticated threat actors
    • Next-gen cybersecurity technologies tool offerings
    • High cost of traditional security, e.g. longer breach lifecycle

    Risks:

    List initiative risks and impacts.

    • Lack of transparency of the model or bias, leading to non-compliance with policies/regulations
    • Risks related with data quality and inadequate data for model training
    • Adversarial attacks, including, but not limited to, adversarial input and model extraction

    Benefits:

    List initiative benefits and align to business benefits or benefits for the stakeholder groups that it impacts.

    • Reduces the number of alerts, thus reduces alert fatigue.
    • Increases the identification of unknown threats.
    • Leads to faster detection and response.
    • Closes skills gap and increases productivity.

    Related Info-Tech Research:

    Recommended Actions

    1. People

    Identify the stakeholders who will be affected by the next-gen cybersecurity technologies implementation and define responsibilities based on skillsets and the degree of support.

    Adopt well-established data governance practices for cross-functional teams.

    2. Process

    Conduct a maturity assessment of key processes and highlight interdependencies.

    Develop a baseline and periodically review risks, policies and procedures, and business plan.

    3. Technology

    Develop a roadmap and deploy next-gen cybersecurity architecture and controls step by step, working with trusted technology partners.

    Monitor metrics on effectiveness and efficiency.

    Source: Leverage AI in Threat Management (keynote presentation), Info-Tech

    Secure Services and Applications

    PRIORITY 05

    • APIS ARE STILL THE #1 THREAT TO APPLICATION SECURITY.

    Executive summary

    Background

    Software is usually produced as part of a supply chain instead of in silos. A vulnerability in any part of the supply chain can become a threat surface. We have learned this from recent incidents such as Log4j, SolarWinds, and Kaseya where attackers compromised a Virtual System Administrator tool used by managed service providers to attack around 1,500 organizations.

    DevSecOps is a culture and philosophy that unifies development, security, and operations to answer this challenge. DevSecOps shifts security left by automating, as much as possible, development and testing. DevSecOps provides many benefits such as rapid development of secure software and assurance that, prior to formal release and delivery, tests are reliably performed and passed.

    DevSecOps practices can apply to IT, OT, IoT, and other technology environments, for example, by integrating a Secure Software Development Framework (SSDF).

    Current situation

    Secure Software Supply Chain: Logging is a fundamental feature of most software, and recently the use of software components, especially open source, are based on trust. From the Log4j incident we learned that more could be done to improve the supply chain by adopting ZT to identify related components and data flows between systems and to apply the least privilege principle.

    DevSecOps: A software error wiped out wireless services for thousands of Rogers customers across Canada in 2021. Emergency services were also impacted, even though outgoing 911 calls were always accessible. Losing such services could have been avoided, if tests were reliably performed and passed prior to release.

    OT insecure-by-design: In OT, insecurity-by-design is still a norm, which causes many vulnerabilities such as insecure protocols implementation, weak authentication schemes, or insecure firmware updates. Additional challenges are the lack of CVEs or CVE duplication, the lack of Software Bill of Materials (SBOM), and product supply chains issues such as vulnerable products that are certified because of the scoping limitation and emphasis on functional testing.

    Technical causes of cybersecurity incidents in EU critical service providers in 2019-2021 shows: software bug (12%) and faulty software changes/update (9%).

    Source: CIRAS Incident reporting, ENISA (N=1,239)

    Software development keeps evolving

    DOD Maturation of Software Development Best Practices

    Best Practices 30 Years Ago 15 Years Ago Present Day
    Lifecycle Years or Months Months or Weeks Weeks or Days
    Development Process Waterfall Agile DevSecOps
    Architecture Monolithic N-Tier Microservices
    Deployment & Packaging Physical Virtual Container
    Hosting Infrastructure Server Data Center Cloud
    Cybersecurity Posture Firewall + SIEM + Zero Trust

    Best practices in software development are evolving as shown on the diagram to the left. For example, 30 years ago the lifecycle was "Years or Months," while in the present day it is "Weeks or Days."

    These changes also impact security such as the software architecture, which is no longer "Monolithic" but "Microservices" normally built within the supply chain.

    The software supply chain has known integrity attacks that can happen on each part of it. Starting from bad code submitted by a developer, to compromised source control platform (e.g. PHP git server compromised), to compromised build platform (e.g. malicious behavior injected on SolarWinds build), to a compromised package repository where users are deceived into using the bad package by the similarity between the malicious and the original package name.

    Therefore, we must secure each part of the link to avoid attacks on the weakest link.

    Software supply chain guidance

    Secure each part of the link to avoid attacks on the weakest link.

    Guide for Developers

    Guide for Suppliers

    		 Guide for Customers

    Secure product criteria and management, develop secure code, verify third-party components, harden build environment, and deliver code.

    Define criteria for software security checks, protect software, produce well-secured software, and respond to vulnerabilities.

    Secure procurement and acquisition, secure deployment, and secure software operations.

    Source: "Securing the Software Supply Chain" series, Enduring Security Framework (ESF), 2022

    "Most software today relies on one or more third-party components, yet organizations often have little or no visibility into and understanding of how these software components are developed, integrated, and deployed, as well as the practices used to ensure the components' security."

    Source: NIST – NCCoE, 2022

    Use this template to explain the priorities you need your stakeholders to know about.

    Secure services and applications

    Provide a brief value statement for the initiative.

    Adopt recommended practices for securing the software supply chain.

    Initiative Description:

    Description must include what organization will undertake to complete the initiative.

    • Define and keep security requirements and risk assessments up to date.
    • Require visibility into provenance of product, and require suppliers' self-attestation of security hygiene.
    • Verify distribution infrastructure, product and individual components integrity, and SBOM.
    • Use multi-layered defenses, e.g. ZT for integration and control configuration.
    • Train users on how to detect and report anomalies and when to apply updates to a system.
    • Ensure updates from authorized and authenticated sources and verify the integrity of the updated SBOM.

    Drivers:

    List initiative drivers.

    • Cyberattacks exploit the vulnerabilities of weak software supply chain
    • Increased need to enhance software supply chain security, e.g. under the White House Executive Order (EO) 14028
    • OT insecure-by-design hinders OT modernization

    Risks:

    List initiative risks and impacts.

    Only a few developers and suppliers explicitly address software security in detail.

    Time pressure to deliver functionality over security.

    Lack of security awareness and lack of trained workforce.

    Benefits:

    List initiative benefits and align to business benefits or benefits for the stakeholder groups that it impacts.

    Customers (acquiring organizations) achieve secure acquisition, deployment, and operation of software.

    Developers and suppliers provide software security with minimal vulnerabilities in its releases.

    Automated processes such as automated testing avoid error-prone and labor-intensive manual test cases.

    Related Info-Tech Research:

    Recommended Actions

    1. Procurement and Acquisition

    Define and keep security requirements and risk assessments up to date.

    Perform analysis on current market and supplier solutions and acquire security evaluation.

    Require visibility into provenance of product, and require suppliers' self-attestation of security hygiene

    2. Deployment

    Verify distribution infrastructure, product and individual components integrity, and SBOM.

    Save and store the tests and test environment and review and verify the
    self-attestation mechanism.

    Use multi-layered defenses, e.g. ZT for integration and control configuration.

    3. Software Operations

    Train users on how to detect and report anomalies and when to apply updates to a system.

    Ensure updates from authorized and authenticated sources and verify the integrity of the updated SBOM.

    Apply supply chain risk management (SCRM) operations.

    Source: "Securing the Software Supply Chain" series, Enduring Security Framework (ESF), 2022

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    Research Contributors and Experts

    Andrew Reese
    Cybersecurity Practice Lead
    Zones

    Ashok Rutthan
    Chief Information Security Officer (CISO)
    Massmart

    Chris Weedall
    Chief Information Security Officer (CISO)
    Cheshire East Council

    Jeff Kramer
    EVP Digital Transformation and Cybersecurity
    Aprio

    Kris Arthur
    Chief Information Security Officer (CISO)
    SEKO Logistics

    Mike Toland
    Chief Information Security Officer (CISO)
    Mutual Benefit Group

    2022 Tech Trends

    • Buy Link or Shortcode: {j2store}94|cart{/j2store}
    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • The post-pandemic workplace continues to shift and requires collaboration between remote workers and office workers.
    • Digital transformation has accelerated across every organization and CIOs must maneuver to keep pace.
    • Customer expectations have shifted, and spending habits are moving away from in-person activities to online.
    • IT must improve its maturity in key capabilities to maintain relevance in the organization.

    Our Advice

    Critical Insight

    • Improve the capabilities that matter. Focus on IT capabilities that are most relevant to competing in the digital economy and will enable the CEO's mission for growth.
    • Assess how external environment presents opportunities or threats to your organization using a scenarios approach, then chart a plan.

    Impact and Result

    • Use the data and analysis from Info-Tech's 2022 Tech Trends report to inform your digital strategic plan.
    • Discover the five trends shaping IT's path in 2022 and explore use cases for emerging technologies.
    • Hear directly from leading subject matter experts on each trend with featured episodes from our Tech Insights podcast.

    2022 Tech Trends Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. 2022 Tech Trends Report – A deck that discusses five use cases that can improve on your organization’s ability to compete in the digital economy.

    The post-pandemic pace of change continues to accelerate as the economic rapidly becomes more digital. To keep pace with shifting consumer expectations, CIOs must help the CEO compete in the digital economy by focusing on five key capabilities: innovation, human resources management, data architecture, security strategy, and business process controls and internal audit. Raising maturity in these capabilities will help CIOs deliver on opportunities to streamline back-office processes and develop new lines of revenue.

    • 2022 Tech Trends Report

    Infographic

    Further reading

    2022 Tech Trends

    Enabling the digital economy

    Supporting the CEO for growth

    The post-pandemic pace of change

    The disruptions to the way we work caused by the pandemic haven’t bounced back to normal.

    As part of its research process for the 2022 Tech Trends Report, Info-Tech Research Group conducted an open online survey among its membership and wider community of professionals. The survey was fielded from August 2021 through to September 2021, collecting 475 responses. We asked some of the same questions as last year’s survey so we can compare results as well as new questions to explore new trends.

    How much do you expect your organization to change permanently compared to how it was operating before the pandemic?

    • 7% – No change. We'll keep doing business as we always have.
    • 33% – A bit of change. Some ways of working will shift long term
    • 47% – A lot of change. The way we work will be differ in many ways long term. But our business remains...
    • 13% – Transformative change. Our fundamental business will be different and we'll be working in new ways.

    This year, about half of IT professionals expect a lot of change to the way we work and 13% expect a transformative change with a fundamental shift in their business. Last year, the same percentage expected a lot of change and only 10% expected transformative change.

    30% more professionals expect transformative permanent change compared to one year ago.

    47% of professionals expect a lot of permanent change; this remains the same as last year. (Info-Tech Tech Trends 2022 Survey)

    The pandemic accelerated the speed of digital transformation

    With the massive disruption preventing people from gathering, businesses shifted to digital interactions with customers.

    A visualization of the growth of 'Global average share of customer interactions that are digital' from December 2019 to July 2020. In that time it went from 36% to 58% with an 'Acceleration of 3 years'.

    Companies also accelerated the pace of creating digital or digitally enhanced products and services.

    A visualization of the growth of 'Global average share of partially or fully digitized products and/or services' from December 2019 to July 2020. In that time it went from 35% to 55% with an 'Acceleration of 7 years'. (McKinsey, 2020)

    “The Digital Economy incorporates all economic activity reliant on or significantly enhanced by the use of digital inputs, including digital technologies, digital infrastructure, digital services and data.” (OECD Definition)

    IT must enable participation in the digital economy

    Consumer spending is tilting more digital.

    Consumers have cut back spending on sectors where purchases are mostly made offline. That spending has shifted to digital services and online purchases. New habits formed during the pandemic are likely to stick for many consumers, with a continued shift to online consumption for many sectors.

    Purchases on online platforms are projected to rise from 10% today to 33% by 2030.

    Estimated online share of consumption
    Recreation & culture 30%
    Restaurants & hotels 50%
    Transport 10%
    Communications 90%
    Education 50%
    Health 20%
    Housing & utilities 50%
    (HSBC, 2020)

    Changing customer expectations pose a risk.

    IT practitioners agree that customer expectations are changing. They expect this to be more likely to disrupt their business in the next 12 months than new competition, cybersecurity incidents, or government-enacted policy changes.

    Factors likely to disrupt business in next 12 months
    Government-enacted policy changes 22%
    Cybersecurity incidents 56%
    Regulatory changes 45%
    Established competitor wins 26%
    New player enters the market 23%
    Changing customer expectations 68%
    (Info-Tech Tech Trends 2022 Survey)

    This poses a challenge to IT departments below the “expand” level of maturity

    CIOs must climb the maturity ladder to help CEOs drive growth.

    Most IT departments rated their maturity in the “optimize” or “support” level on Info-Tech’s maturity ladder.

    CIOs at the “optimize” level can play a role in digital transformation by improving back-office processes but should aim for a higher mandate.

    CIOs achieving at the “expand” level can help directly improve revenues by improving customer-facing products and services, and those at the “transform” level can help fundamentally change the business to create revenue in new ways. CIOs can climb the maturity ladder by enabling new digital capabilities.

    Maturity is heading in the wrong direction.

    Only half of IT practitioners described their department’s maturity as “transform” compared to last year’s survey, and more than twice the number rated themselves as “struggle.”

    A colorful visualization of the IT 'Maturity Ladder' detailing levels of IT function within an organization. Percentages represent answers from IT practitioners to an Info-Tech survey about the maturity level of their company. Starting from the bottom: 13% answered 'Struggle', compared to 6% in 2020; 35% answered 'Support'; 37% answered 'Optimize'; 12% answered 'Expand'; and only 3% answered 'Transform', compared to 6% in 2020.

    48% rate their IT departments as low maturity.

    Improve maturity by focusing on key capabilities to compete in the digital economy

    Capabilities to unlock digital

    Innovation: Identify innovation opportunities and plan how to use technology innovation to create a competitive advantage or achieve improved operational effectiveness and efficiency.

    Human Resources Management: Provide a structured approach to ensure optimal planning, evaluation, and development of human resources.

    Data Architecture: Manage the business’ data stores, including technology, governance, and people that manage them. Establish guidelines for the effective use of data.

    Security Strategy: Define, operate, and monitor a system for information security management. Keep the impact and occurrence of information security incidents within risk appetite levels.

    Business Process Controls and Internal Audit: Manage business process controls such as self-assessments and independent assurance reviews to ensure information related to and used by business processes meets security and integrity requirements. (ISACA, 2020)

    A periodic table-esque arrangement of Info-Tech tools and templates titled 'IT Management and Governance Framework', subtitled 'A comprehensive and connected set of research to help you optimize and improve your core IT processes', and anchored by logos for Info-Tech and COBIT. Color-coded sections with highlighted tools or templates are: 'Strategy and Governance' with 'APO04 Innovation' highlighted; 'People and Resources' with 'APO07 Human Resources Management' highlighted; 'Security and Risk' with 'APO13 Security Strategy' and 'DSS06 MEA02 Business Process Controls and Internal Audit' highlighted; 'Data and BI' with 'ITRG07 Data Architecture' highlighted. Other sections are 'Financial Management', 'Service planning and architecture', 'Infrastructure and operations', 'Apps', and 'PPM and projects'.

    5 Tech Trends for 2022

    In this report, we explore five use cases for emerging technology that can improve on capabilities needed to compete in the digital economy. Use cases combine emerging technologies with new processes and strategic planning.

    DIGITAL ECONOMY

    TREND 01 | Human Resources Management

    HYBRID COLLABORATION
    Provide a digital employee experience that is flexible, contextual, and free from the friction of hybrid operating models.

    TREND 02 | Security Strategy

    BATTLE AGAINST RANSOMWARE
    Prevent ransomware infections and create a response plan for a worst-case scenario. Collaborate with relevant external partners to access resources and mitigate risks.

    TREND 03 | Business Process Controls and Internal Audit

    CARBON METRICS IN ENERGY 4.0
    Use internet of things (IoT) and auditable tracking to provide insight into business process implications for greenhouse gas emissions.

    TREND 04 | Data Architecture

    INTANGIBLE VALUE CREATION
    Provide governance around digital marketplace and manage implications of digital currency. Use blockchain technology to turn unique intellectual property into saleable digital products

    TREND 05 | Innovation

    AUTOMATION AS A SERVICE
    Automate business processes and access new sophisticated technology services through platform integration.

    Hybrid Collaboration

    TREND 01 | HUMAN RESOURCES MANAGEMENT

    Provide a digital employee experience that is flexible, contextual, and free from the friction of hybrid operating models.

    Emerging technologies:
    Intelligent conference rooms; intelligent workflows, platforms

    Introduction

    Hybrid work models enable productive, diverse, and inclusive talent ecosystems necessary for the digital economy.

    Hybrid work models have become the default post-pandemic work approach as most knowledge workers prefer the flexibility to choose whether to work remotely or come into the office. CIOs have an opportunity lead hybrid work by facilitating collaboration between employees mixed between meeting at the office and virtually.

    IT departments rose to the challenge to quickly facilitate an all-remote work scenario for their organizations at the outset of the pandemic. Now they must adapt again to facilitate the hybrid work model, which brings new friction to collaboration but also new opportunities to hire a talented, engaged, and diverse workforce.

    79% of organizations will have a mix of workers in the office and at home. (Info-Tech Tech Trends 2022 Survey)

    35% view role type as a determining factor in the feasibility of the hybrid work model.

    Return-to-the-office tensions

    Only 18% of employees want to return to the office full-time.

    But 70% of employers want people back in the office. (CNBC, April 2021)

    Signals

    IT delivers the systems needed to make the hybrid operating model a success.

    IT has an opportunity to lead by defining the hybrid operating model through technology that enables collaboration. To foster collaboration, companies plan to invest in the same sort of tools that helped them cope during the pandemic.

    As 79% of organizations envision a hybrid model going forward, investments into hybrid work tech stacks – including web conferencing tools, document collaboration tools, and team workspaces – are expected to continue into 2022.

    Plans for future investment in collaboration technologies

    Web Conferencing 41%
    Document Collaboration and Co-Authoring 39%
    Team Workspaces 38%
    Instant Messaging 37%
    Project and Task Management Tools 36%
    Office Meeting Room Solutions 35%
    Virtual Whiteboarding 30%
    Intranet Sites 21%
    Enterprise Social Networking 19%
    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    COVID-19

    Vaccination rates around the world are rising and allowing more offices to welcome back workers because the risk of COVID-19 transmission is reduced and jurisdictions are lifting restrictions limiting gatherings.

    Worker satisfaction

    Most workers don't want to go to the office full-time. In a Bloomberg poll (2021), almost half of millennial and Gen Z workers say they would quit their job if not given an option to work remotely.

    IT spending

    Companies are investing more into IT budgets to find ways to support a mix of remote work and in-office resources to cope with work disruption. This extra spending is offset in some cases by companies saving money from having employees work from home some portion of the time. (CIO Dive, 2021)

    Risks and Benefits

    Benefits

    Flexibility Employees able to choose between working from home and working in the office have more control over their work/life balance.
    Intelligence Platforms that track contextual work relationships can accelerate workflows through smart recommendations that connect people at the right time, in the right place.
    Talent Flexible work arrangements provide businesses with access to the best talent available around the world and employees with more career options as they work from a home office (The Official Microsoft Blog, 2021).

    Risks

    Uncertainty The pandemic lacks a clear finish line and local health regulations can still waver between strict control of movement and open movement. There are no clear assurances of what to expect for how we'll work in the near future.
    FOMO With some employees going back to the office while others remain at home, employee bases could be fractured along the lines of those seeing each other in person every day and those still connecting by videoconference.
    Complexity Workers may not know in advance whether they're meeting certain people in person or online, or a mix of the two. They'll have to use technology on the fly to try and collaborate across a mixed group of people in the office and people working remotely (McKinsey Quarterly, 2021).

    “We have to be careful what we automate. Do we want to automate waste? If a company is accustomed to having a ton of meetings and their mode in the new world is to move that online, what are you going to do? You're going to end up with a lot of fatigue and disenchantment…. You have to rethink your methods before you think about the automation part of it." (Vijay Sundaram, Chief Strategy Officer, Zoho)

    Photo of Vijay Sundaram, Chief strategy officer, Zoho.

    Listen to the Tech Insights podcast: Unique approach to hybrid collaboration

    Case Study: Zoho

    Situation

    Zoho Corp. is a cloud software firm based in Chennai, India. It develops a wide range of cloud software, including enterprise collaboration software and productivity tools. Over the past decade, Zoho has used flexible work models to grant remote work options to some employees.

    When the coronavirus pandemic hit, not only did the office have to shut down but also many employees had to relocate back with families in rural areas. The human costs of the pandemic experienced by staff required Zoho to respond by offering counseling services and material support to employees.

    Complication

    Zoho prides itself as an employee-centric company and views its culture as a community that's purpose goes beyond work. That sense of community was lost because of the disruption caused by the pandemic. Employees lost their social context and their work role models. Zoho had to find a way to recreate that without the central hub of the office or find a way to work with the limitations of it not being possible.

    Resolution

    To support employees in rural settings, Zoho sent out phones to provide redundant bandwidth. As lockdowns in India end, Zoho is taking a flexible approach and giving employees the option to come to the office. It's seeing more people come back each week, drawn by the strong community.

    Zoho supports the hybrid mix of workers by balancing synchronous and asynchronous collaboration. It holds meetings when absolutely necessary through tools like Zoho Meet but tries to keep more work context to asynchronous collaboration that allows people to complete tasks quickly and move on. Its applications are connected to a common platform that is designed to facilitate workflows between employees with context and intelligence. (Interview with Vijay Sundaram, Chief Strategy Officer, Zoho)

    “We tend to think of it on a continuum of synchronous to asynchronous work collaboration. It’s become the paramount norm for so many different reasons…the point is people are going to work at different times in different locations. So how do we enable experiences where everyone can participate?" (Jason Brommet, Head of Modern Work and Security Business Group at Microsoft)

    Photo of Jason Brommet, Head of Modern Work and Security Business Group at Microsoft.

    Listen to the Tech Insights podcast: Microsoft on the ‘paradox of hybrid work’

    Case Study: Microsoft

    Situation

    Before the pandemic, only 18% of Microsoft employees were working remotely. As of April 1, 2020, they were joined by the other 82% of non-essential workers at the company in working remotely.

    As with its own customers, Microsoft used its own software to enable this new work experience, including Microsoft Teams for web conferencing and instant messaging and Office 365 for document collaboration. Employees proved just as productive getting their work done from home as they were working in the office.

    Complication

    At Microsoft, the effects of firm-wide remote work changed the collaboration patterns of the company. Even though a portion of the company was working remotely before the pandemic, the effects of everyone working remotely were different. Employees collaborated in a more static and siloed way, focusing on scheduled meetings with existing relationships. Fewer connections were made with more disparate parts of the organization. There was also a decrease in synchronous communication and an increase in asynchronous communication.

    Resolution

    Microsoft is creating new tools to break down the silos in organizations that are grappling with hybrid work challenges. For example, Viva Insights is designed to inform workers about their collaboration habits with analytics. Microsoft wants to provide workers with insights on their collaborative networks and whether they are creating new connections or deepening existing connections. (Interview with Jason Brommet, Head of Modern Work and Security Business Group, Microsoft; Nature Human Behaviour, 2021)

    What's Next?

    Distributed collaboration space:

    International Workplace Group says that more companies are taking advantage of its full network deals on coworking spaces. Companies such as Standard Charter are looking to provide their workers with a happy compromise between working from home and making the commute all the way to the central office. The hub-and-spoke model gives employees the opportunity to work near home and looks to be part of the hybrid operating model mix for many companies. (Interview with Wayne Berger, CEO of IWG Canada & Latin America)

    Optimized hybrid meetings:

    Facilitating hybrid meetings between employees grouped in the office and remote workers will be a major pain point. New hybrid meeting solutions will provide cameras embedded with intelligence to put boardroom participants into independent video streams. They will also focus on making connecting to the same meeting from various locations as convenient as possible and capture clear and crisp audio from each speaker.

    Uncertainties

    Mix between office and remote work:

    It's clear we're not going to work the way we used to previously with central work hubs, but full-on remote work isn't the right path forward either. A new hybrid work model is emerging, and organizations are experimenting to find the right approach.

    Attrition:

    Between April and September 2021, 15 million US workers quit their jobs, setting a record pace. Employees seek a renewed sense of purpose in their work, and many won’t accept mandates to go back to the office. (McKinsey, 2021)

    Equal footing in meetings:

    What are the new best practices for conducting an effective meeting between employees in the office and those who are remote? Some companies ask each employee to connect via a laptop. Others are using conference rooms with tech to group in-office workers together and connect them with remote workers.

    Hybrid Collaboration Scenarios

    Organizations can plan their response to the hybrid work context by plotting their circumstances across two continuums: synchronous to asynchronous collaboration approach and remote work to central hub work model.

    A map of hybrid collaboration scenarios with two axes representing 'Work Context, From all remote work to gathering in a central hub' and 'Collaboration Style, From collaborating at the same time to collaborating at different times'. The axes split the map into quarters. 'Work Context' ranges from 'Remote Work' on the left to 'Central Hub' on the right. 'Collaboration Style' ranges from 'Synchronous' on top to 'Asynchronous' on bottom. The top left quarter, synchronous remote work, reads 'Virtual collective collaboration via videoconference and collaboration software, with some workers meeting in coworking spaces.' The top right quarter, synchronous central hub, reads 'In-person collective collaboration in the office.' The bottom left quarter, asynchronous remote work, reads 'Virtual group collaboration via project tracking tools and shared documents.' The bottom right quarter, asynchronous central hub, reads 'In-person group collaboration in coworking spaces and the main office.'

    Recommendations

    Rethink technology solutions. Don't expect your pre-pandemic videoconference rooms to suffice. And consider how to optimize your facilities and infrastructure for hot-desking scenarios.

    Optimize remote work. Shift from the collaboration approach you put together just to get by to the program you'll use to maximize flexibility.

    Enable effective collaboration. Enable knowledge sharing no matter where and when your employees work and choose the best collaboration software solutions for your scenario.

    Run better meetings. Successful hybrid workplace plans must include planning around hybrid meetings. Seamless hybrid meetings are the result of thoughtful planning and documented best practices.

    89% of organizations invested in web conferencing technology to facilitate better collaboration, but only 43% invested in office meeting room solutions. (Info-Tech Tech Trends 2022 Survey)

    Info-Tech Resources

    Battle Against Ransomware

    TREND 02 | SECURITY STRATEGY

    Prevent ransomware infections and create a response plan for a worst-case scenario. Collaborate with relevant external partners to access resources and mitigate risks.

    Emerging technologies:
    Open source intelligence; AI-powered threat detection

    “It has been a national crisis for some time…. For every [breach] that hits the news there are hundreds that never make it.” (Steve Orrin, Federal Chief Technology Officer, Intel)

    Photo of Steve Orrin, Federal Chief Technology Officer, Intel.

    Listen to the Tech Insights podcast: Ransomware crisis and AI in military

    Introduction

    Between 2019 and 2020, ransomware attacks rose by 62% worldwide and by 158% in North America. (PBS NewsHour, 2021)

    Security strategies are crucial for companies to control access to their digital assets and confidential data, providing it only to the right people at the right time. Now security strategies must adapt to a new caliber of threat in ransomware to avoid operational disruption and reputational damage.

    In 2021, ransomware attacks exploiting flaws in widely used software from vendors Kaseya, SolarWinds, and Microsoft affected many companies and saw record-breaking ransomware payments made to state-sponsored cybercriminal groups.

    After a ransomware attack caused Colonial Pipeline to shut down its pipeline operations across the US, the ransomware issue became a topic of federal attention with executives brought before Senate committees. A presidential task force to combat ransomware was formed.

    62% of IT professionals say they are more concerned about being a victim of ransomware than they were one year ago. (Info-Tech Tech Trends 2022 Survey)

    $70 million demanded by REvil gang in ransom to unlock firms affected by the Kaseya breach. (TechRadar, 2021)

    Signals

    Organizations are taking a multi-faceted approach to preparing for the event of a ransomware breach.

    The most popular methods to prepare for ransomware are to buy an insurance policy or create offline backups and redundant systems. Few are making an effort to be aware of free decryption tools, and only 2% admit to budgeting to pay ransoms.

    44% of IT professionals say they spent time and money specifically to prevent ransomware over the past year. (Info-Tech Tech Trends 2022 Survey)

    Approaches to prepare for ransomware

    Kept aware of free decryption tools available 9%
    Set aside budget to pay ransoms 2%
    Designed network to contain ransomware 24%
    Implemented technology to eradicate ransomware 36%
    Created a specific incident response plan for ransomware 26%
    Created offline backups and redundant systems 41%
    Purchased insurance covering cyberattacks 47%

    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    National security concerns

    Attacks on US infrastructure and government agencies have prompted the White House to treat ransomware as a matter of national security. The government stance is that Russia supports the attacks. The US is establishing new mechanisms to address the threat. Plans include new funding to support ransomware response, a mandate for organizations to report incidents, and requirements for organizations to consider the alternatives before paying a ransom. (Institute for Security and Technology, 2021)

    Advice from cybersecurity insurance providers

    Increases in ransom payouts have caused cybersecurity insurance providers to raise premiums and put in place more security requirements for policyholders to try and prevent ransomware infection. However, when clients are hit with ransomware, insurance providers advise to pay the ransom as it's usually the cheapest option. (ProPublica, 2019)

    Reputational damage

    Ransomware attacks also often include a data breach event with hackers exfiltrating the data before encrypting it. Admitting a breach to customers can seriously damage an organization's reputation as trustworthy. Organizations may also be obligated to pay for credit protection of their customers. (Interview with Frank Trovato, Research Director – Infrastructure, Info-Tech Research Group)

    Risks and Benefits

    Benefits

    Privacy Protecting personal data from theft improves people’s confidence that their privacy is being respected and they are not at risk of identity theft.
    Productivity Ransomware can lock out employees from critical work systems and stop them from being able to complete their tasks.
    Access Ransomware has prevented public access to transportation, healthcare, and any number of consumer services for days at a time. Ransomware prevention ensures public service continuity.

    Risks

    Expenses Investing in cybersecurity measures to protect against attacks is becoming more expensive, and recently cybersecurity insurance premiums have gone up in response to expensive ransoms.
    Friction More security requirements could create friction between IT priorities and business priorities in trying to get work done.
    Stability If ransomware attacks become worse or cybercriminals retaliate for not receiving payments, people could find their interactions with government services and commercial services are disrupted.

    Case Study: Victim to ransomware

    Situation

    In February 2020, a large organization found a ransomware note on an admin’s workstation. They had downloaded a local copy of the organization’s identity management database for testing and left a port open on their workstation. Hackers exfiltrated it and encrypted the data on the workstation. They demanded a ransom payment to decrypt the data.

    Complication

    Because private information of employees and customers was breached, the organization decided to voluntarily inform the state-level regulator. With 250,000 accounts affected, plans were made to require password changes en masse. A public announcement was made two days after the breach to ensure that everyone affected could be reached.

    The organization decided not to pay the ransom because it didn’t need the data back, since it had a copy on an unaffected server.

    Resolution

    After a one-day news cycle for the breach, the story about the ransom was over. The organization also received praise for handling the situation well and quickly informing stakeholders.

    The breach motivated the organization to put more protections in place. It implemented a deny-by-default network and turned off remote desktop protocol and secure shell. It mandated multi-factor authentication and put in a new endpoint-detection and response system. (Interview with CIO of large enterprise)

    What's Next

    AI for cybersecurity:

    New endpoint protections using AI are being deployed to help defend against ransomware and other cybersecurity intrusions. The solutions focus on the prevention and detection of ransomware by learning about the expected behavior of an environment and then detecting anomalies that could be attack attempts. This type of approach can be applied to everything from reading the contents of an email to helping employees detect phishing attempts to lightweight endpoint protection deployed to an Internet of Things device to detect an unusual connection attempt.

    Unfortunately, AI is a tool available to both the cybersecurity industry and hackers. Examples of hackers tampering with cybersecurity AI to bypass it have already surfaced. (Forbes, 23 Sept. 2021)

    Uncertainties

    Government response:

    In the US, the Ransomware Task Force has made recommendations to the government but it's not clear whether all of them will be followed. Other countries such as Russia are reported to be at least tolerating ransomware operations if not supporting them directly with resources.

    Supply chain security:

    Sophisticated attacks using zero-day exploits in widely used software show that organizations simply can't account for every potential vulnerability.

    Arms escalation:

    The ransomware-as-a-service industry is doing good business and finding new ways to evade detection by cybersecurity vendors. New detection techniques involving AI are being introduced by vendors, but will it just be another step in the back-and-forth game of one-upmanship? (Interview with Frank Trovato)

    Battle Against Ransomware Scenarios

    Determine your organization’s threat profile for ransomware by plotting two variables: the investment made in cybersecurity and the sophistication level of attacks that you should be prepared to guard against.

    A map of Battle Against Ransomware scenarios with two axes representing 'Attack Sophistication, From off-the-shelf, ransomware-as-a-service kits to state-sponsored supply chain attacks' and 'Investment in Cybersecurity, From low, minimal investment to high investment for a multi-layer approach.'. The axes split the map into quarters. 'Attack Sophistication' ranges from 'Ransomware as a Service' on the left to 'State-Sponsored' on the right. 'Investment in Cybersecurity' ranges from 'High' on top to 'Low' on bottom. The top left quarter, highly invested ransomware as a service, reads 'Organization is protected from most ransomware attacks and isn’t directly targeted by state-sponsored attacks.' The top right quarter, highly invested state-sponsored, reads 'Organization is protected against most ransomware attacks but could be targeted by state-sponsored attacks if considered a high-value target.' The bottom left quarter, low investment ransomware as a service, reads 'Organization is exposed to most ransomware attacks and is vulnerable to hackers looking to make a quick buck by casting a wide net.' The bottom right quarter, low investment state-sponsored, reads 'Organization is exposed to most ransomware attacks and risks being swept up in a supply chain attack by being targeted or as collateral damage.'

    Recommendations

    Create a ransomware incident response plan. Assess your current security practices and identify gaps. Quantify your ransomware risk to prioritize investments and run tabletop planning exercises for ransomware attacks.

    Reduce your exposure to ransomware. Focus on securing the frontlines by improving phishing awareness among staff and deploying AI tools to help flag attacks. Use multi-factor authentication. Take a zero-trust approach and review your use of RDP, SSH, and VPN.

    Require security in contracts. Security must be built into vendor contracts. Government contracts are now doing this, elevating security to the same level as functionality and support features. This puts money incentives behind improving security. (Interview with Intel Federal CTO Steve Orrin)

    42% of IT practitioners feel employees must do much more to help defend against ransomware. (Info-Tech Tech Trends 2022 Survey)

    Info-Tech Resources

    Carbon Metrics in Energy 4.0

    TREND 03 | BUSINESS PROCESS CONTROLS AND INTERNAL AUDIT

    Use Internet of Things (IoT) and auditable tracking to provide insight into business process implications for greenhouse gas emissions.

    Emerging technologies:
    IoT

    Introduction

    Making progress towards a carbon-neutral future.

    A landmark report published in 2021 by the United Nations Intergovernmental Panel on Climate Change underlines that human actions can still determine the future course of climate change. The report calls on governments, individuals, and organizations to stop putting new greenhouse gas emissions into the atmosphere no later than 2050, and to be at the halfway point to achieving that by 2030.

    With calls to action becoming more urgent, organizations are making plans to reduce the use of fossil fuels, move to renewable energy sources, and reduce consumption that causes more emissions downstream. As both voluntary and mandatory regulatory requirements task organizations with reducing emissions, they will first be challenged to accurately measure the size of their footprint.

    CIOs in organizations are well positioned to make conscious decisions to both influence how technology choices impact carbon emissions and implement effective tracking of emissions across the entire enterprise.

    Canada’s CIO strategy council is calling on organizations to sign a “sustainable IT pledge” to cut emissions from IT operations and supply chain and to measure and disclose emissions annually. (CIO Strategy Council, Sustainable IT Pledge)

    SCOPE 3 – Indirect Consumption

    • Goods and services
    • Fuel, travel, distribution
    • Waste, investments, leased assets, employee activity

    SCOPE 2 – Indirect Energy

    • Electricity
    • Heat and cooling

    SCOPE 1 – Direct

    • Facilities
    • Vehicles

    Signals

    Emissions tracking requires a larger scope.

    About two-thirds of organizations have a commitment to reduce greenhouse gas emissions. When asked about what tactics they use to reduce emissions, the most popular options affect either scope 1 emissions (retiring older IT equipment) or scope 2 emissions (using renewable energy sources). Fewer are using tactics that would measure scope 3 emissions such as using IoT to track or using software or AI.

    68% of organizations say they have a commitment to reduce greenhouse gas emissions. (Info-Tech Tech Trends 2022 Survey)

    Approaches to reducing carbon emissions

    Using "smart technologies" or IoT to help cut emissions 12%
    Creating incentive programs for staff to reduce emissions 10%
    Using software or AI to manage energy use 8%
    Using external DC or cloud on renewable energy 16%
    Committing to external emissions standards 15%
    Retiring/updating older IT equipment 33%
    Using renewable energy sources 41%

    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    Investor pressure

    The world’s largest asset manager, at $7 trillion in investments, says it will move away from investing in firms that are not aligned to the Paris Agreement. (The New York Times, 2020)

    Compliance tipping point

    International charity CDP has been collecting environmental disclosure from organizations since 2002. In 2020, more than 9,600 of the world’s largest companies – representing over 50% of global market value – took part. (CDP, 2021)

    International law

    In 2021, six countries have net-zero emissions policies in law, six have proposed legislations, and 20 have policy documents. (Energy & Climate Intelligence Unit, 2021)

    Employee satisfaction

    In 2019, thousands of workers walked out of offices of Amazon, Google, Twitter, and Microsoft to demand their employers do more to reduce carbon emissions. (NBC News, 2021)

    High influence factors for carbon reduction

    • 25% – New government laws or policies
    • 9% – External social pressures
    • 9% – Pressure from investors
    • 8% – International climate compliance efforts
    • 7% – Employee satisfaction

    (Info-Tech Tech Trends 2022 Survey)

    Risks and Benefits

    Benefits

    Trust Tracking carbon emissions creates transparency into an organization’s operations and demonstrates accountability to its carbon emissions reduction goals.
    Innovation As organizations become more proficient with carbon measurement and modeling, insights can be leveraged as a decision-making tool.
    Resilience Reducing energy usage shrinks your carbon footprint, increases operational efficiency, and decreases energy costs.

    Risks

    Regulatory Divergence Standardization of compliance enforcement around carbon emissions is a work in progress. Several different voluntary frameworks exist, and different governments are taking different approaches including taxation and cap-and-trade markets.
    Perceptions Company communications that speak to emissions reduction targets without providing proof can be accused of “greenwashing” or falsely trying to improve public perception.
    Financial Pain Institutional investments are requiring clear commitments and plans to reduce greenhouse gases. Some jurisdictions are now taxing carbon emissions.

    “When you can take technology and embed that into management change decisions that impact the environment, you can essentially guarantee that [greenhouse gas] offset. Companies that are looking to reduce their emissions can buy those offsets and it creates value for everybody.” (Wade Barnes, CEO and founder of Farmers Edge)

    Photo of Wade Barnes, CEO and founder of Farmers Edge.

    Listen to the Tech Insights podcast: The future of farming is digital

    Case Study

    Situation

    The Alberta Technology Innovation and Emissions Reduction Regulation is Alberta’s approach to reduce emissions from large industrial emitters. It prices GHG and provides a trading system.

    No-till farming and nitrogen management techniques sequester up to 0.3 metric tons of GHG per year.

    Complication

    Farmers Edge offers farmers a digital platform that includes IoT and a unified data warehouse. It can turn farm records into digital environmental assets, which are aggregated and sold to emitters.

    Real-time data from connected vehicles, connected sensors, and other various inputs can be verified by third-party auditors.

    Resolution

    Farmers Edge sold aggregated carbon offsets to Alberta power producer Capital Power to help it meet regulatory compliance.

    Farmers Edge is expanding its platform to include farmers in other provinces and in the US, providing them opportunity to earn revenue via its Smart Carbon program.

    The firm is working to meet standards outlined by the U.S. Department of Agriculture’s Natural Resources Conservation Service. (Interview with Wade Barnes, CEO, Farmers Edge)

    What's Next

    Global standards:

    The International Sustainability Standards Board (ISSB) has been formed by the International Financial Reporting Standards Foundation and will have its headquarters location announced in November at a United Nations conference. The body is already governing a set of global standards that have a roadmap for development through 2023 through open consultation. The standards are expected to bring together the multiple frameworks for sustainability standards and offer one global set of standards. (Business Council of Canada, 2021)

    CIOs take charge:

    The CIO is well positioned to take the lead role on corporate sustainability initiatives, including measuring and reducing an organization’s carbon footprint (or perhaps even monetizing carbon credits for an organization that is a negative emitter). CIOs can use their position as facilities managers and cross-functional process owners and mandate to reduce waste and inefficiency to take accountability for this important role. CIOs will expand their roles to deliver transparent and auditable reporting on environmental, social, and governance (ESG) goals for the enterprise.

    Uncertainties

    International resolve:

    Fighting the climate crisis will require governments and private sector collaboration from around the world to commit to creating new economic structures to discourage greenhouse gas emissions and incentivize long-term sustainable thinking. If some countries or private sector forces continue to prioritize short-term gains over sustainability, the U.N.’s goals won’t be achieved and the human costs as a result of climate change will become more profound.

    Cap-and-trade markets:

    Markets where carbon credits are sold to emitters are organized by various jurisdictions around the world and have different incentive structures. Some are created by governments and others are voluntary markets created by industry. This type of organization for these markets limits their size and makes it hard to scale the impact. Organizations looking to sell carbon credits at volume face the friction of having to navigate different compliance rules for each market they want to participate in.

    Carbon Metrics in Energy 4.0 Scenarios

    Determine your organization’s approach to measuring carbon dioxide and other greenhouse gas emissions by considering whether your organization is likely to be a high emitter or a carbon sink. Also consider your capability to measure and report on your carbon footprint.

    A map of Carbon Metrics in Energy 4.0 scenarios with two axes representing 'Quantification Capability, From not tracking any emissions whatsoever to tracking all emissions at every scope' and 'Greenhouse Gas Emissions, From mitigating more emissions than you create to emitting more than regulations allow'. The axes split the map into quarters. 'Quantification Capability' ranges from 'No Measures' on the left to 'All Emissions Measured' on the right. 'Greenhouse Gas Emissions' ranges from 'More Than Allowed' on top to 'Net-Negative' on bottom. The top left quarter, no measures and more than allowed, reads 'Companies that are likely to be high emitters and not measuring will attract the most scrutiny from regulators and investors.' The top right quarter, all measured and more than allowed, reads 'Companies emit more than regulators allow but the measurements show a clear path to mitigation through the purchase of carbon credits.' The bottom left quarter, no measures and net-negative, reads 'Companies able to achieve carbon neutrality or even be net-negative in emissions but unable to demonstrate it will still face scrutiny from regulators.' The bottom right quarter, all measured and net-negative, reads 'Companies able to remove more emissions than they create have an opportunity to aggregate those reductions and sell on a cap-and-trade market.'

    Recommendations

    Measure the whole footprint. Devise a plan to measure scope 1, 2, and 3 greenhouse gas emissions at a level that is auditable by a third party.

    Gauge the impact of Industry 4.0. New technologies in Industry 4.0 include IoT, additive manufacturing, and advanced analytics. Make sustainability a core part of your focus as you plan out how these technologies will integrate with your business.

    Commit to net zero. Make a clear commitment to achieve net-zero emissions by a specific date as part of your organization’s core strategy. Take a continuous improvement approach to make progress towards the goal with measurable results.

    New laws from governments will have the highest degree of influence on an organization’s decision to reduce emissions. (Info-Tech Tech Trends 2022 Survey)

    Info-Tech Resources

    Intangible Value Creation

    TREND 04 | DATA ARCHITECTURE

    Use blockchain technology to turn unique intellectual property into saleable digital products. Provide governance around marketplaces where sales are made.

    Emerging technologies:
    Blockchain, Distributed Ledger Technology, Virtual Environments

    Introduction

    Decentralized technologies are propelling the digital economy.

    As the COVID-19 pandemic has accelerated our shift into virtual social and economic systems, blockchain technology poses a new technological frontier – further disrupting digital interactions and value creation by providing a modification of data without relying on third parties. New blockchain software developments are being used to redefine how central banks distribute currency and to track provenance for scarce digital assets.

    Tokenizing the blockchain

    Non-fungible tokens (NFTs) are distinct cryptographic tokens created from blockchain technology. The rarity systems in NFTs are redefining digital ownership and being used to drive creator-centric communities.

    Not crypto-currency, central currency

    Central Bank Digital Currencies (CBDC) combine the same architecture of cryptocurrencies built on blockchain with the financial authority of a central bank. These currencies are not decentralized because they are controlled by a central authority, rather they are distributed systems. (Decrypt, 2021)

    80% of banks are working on a digital currency. (Atlantic Council, 2021)

    Brands that launched NFTs

    NBA, NFL, Formula 1, Nike, Stella Artois, Coca-Cola, Mattel, Dolce & Gabbana, Ubisoft, Charmin

    Banks that launched digital currencies

    The Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, Grenada

    Signals

    ID on the blockchain

    Blockchains can contain smart contracts that automatically execute given specific conditions, protecting stakeholders involved in a transaction. These have been used by central banks to automate when and how currency can be spent and by NFT platforms to attribute a unique identity to a digital asset. Automation and identity verification are the most highly valued digital capabilities of IT practitioners.

    $69.3 million – The world’s most expensive NFT artwork sale, for Beeple’s “Everydays: The First 5,000 Days” (The New York Times, Mar. 2021)

    Digital capabilities that provide high value to the organization

    E-commerce 50%
    Automation 79%
    Smart contracts 42%
    Community building and engagement 55%
    Real-time payments 46%
    Tracking provenance 33%
    Identity verification 74%

    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    Financial autonomy

    Central banks view cryptocurrencies as "working against the public good" and want to maintain control over their financial system to maintain the integrity of payments and provide financial crime oversight and protections against money laundering. (Board of Governors of the Federal Reserve System, 2021)

    Bitcoin energy requirements and greenhouse gas emissions

    Annual energy consumption of the Bitcoin blockchain in China is estimated to peak in 2024 at 297 TwH and generate 130.5 million metric tons of carbon emissions. That would exceed the annual GHG of the Czech Republic and Qatar and rank in the top 10 among 182 cities and 42 industrial sectors in China. This is motiving cryptocurrency developers and central banks to move away from the energy-intensive "Proof of Work" mining approach and towards the "Proof of Stake" approach. (Nature Communications, 2021)

    Digital communities

    During the pandemic, people spent more time exploring digital spaces and interacting in digital communities. Asset ownership within those communities is a way for individuals to show their own personal investment in the community and achieve a status that often comes with additional privileges. The digital assets can also be viewed as an investment vehicle or to gain access to exclusive experiences.

    “The pillars of the music economy have always been based on three things that the artist has never had full control of. The idea of distribution is freed up. The way we are going to connect to fans in this direct to fan value prop is very interesting. The fact we can monetize it, and that money exchange, that transaction is immediate. And on a platform like S!NG we legitimately have a platform to community build…. Artists are getting a superpower.” (Raine Maida, Chief Product Officer, S!NG Singer, Our Lady Peace)

    Raine Maida, Chief Product Officer, S!NG, and Singer, Our Lady Peace.

    Listen to the Tech Insights podcast: Raine Maida's startup is an NFT app for music

    Case Study

    Situation

    Artists can create works and distribute them to a wide audience more easily than ever with the internet. Publishing a drawing or a song to a website allows it to be infinitely copied. Creators can use social media accounts and digital advertisements to build up a fan base for their work and monetize it through sales or premium-access subscriber schemes.

    Complication

    The internet's capacity for frictionless distribution is a boon and a burden for artists at the same time. Protecting copyright in a digital environment is difficult because there is no way to track a song or a picture back to its creator. This devalues the work because it can be freely exchanged by users.

    Resolution

    S!NG allows creators to mint their works with a digital token that stamps its origin to the file and tracks provenance as it is reused and adapted into other works. It uses the ERC 721 standard on the Ethereum blockchain to create its NFT tokens. They are portable files that the user can create for free on the S!NG platform and are interoperable with other digital token platforms. This enables a collaboration utility by reducing friction in using other people's works while giving proper attribution. Musicians can create mix tracks using the samples of others’ work easily and benefit from a smart-contract-based revenue structure that returns money to creators when sales are made. (Interview with Geoff Osler and Raine Maida, S!NG Executives)

    Risks and Benefits

    Benefits

    Autonomy Digital money and assets could proliferate the desire for autonomy as users have greater control over their assets (by cutting out the middlemen, democratizing access to investments, and re-claiming ownership over intangible data).
    Community Digital worlds and assets offer integrated and interoperable experiences influenced by user communities.
    Equity Digital assets allow different shareholder equity models as they grant accessible and affordable access to ownership.

    Risks

    Volatility Digital assets are prone to volatile price fluctuations. A primary reason for this is due to its perceived value relative to the fiat currency and the uncertainty around its future value.
    Security While one of the main features of blockchain-based digital assets is security, digital assets are vulnerable to breaches during the process of storing and trading assets.
    Access Access to digital marketplaces requires a steep learning curve and a base level of technical knowledge.

    What's Next

    Into the Metaverse:

    Digital tokens are finding new utility in virtual environments known as the Metaverse. Decentraland is an example of a virtual reality environment that can be accessed via a web browser. Based on the Ethereum blockchain, it's seen sales of virtual land plots for hundreds of thousands of dollars. Sotheby's is one buyer, building a digital replica of its New Bond Street gallery in London, complete with commissionaire Hans Lomuldur in avatar form to greet visitors. The gallery will showcase and sell Sotheby's digital artworks. (Artnet News, 2021)

    Bitcoin as legal tender:

    El Salvador became the first country in the world to make Bitcoin legal tender in September 2021. The government intended for this to help citizens avoid remittance fees when receiving money sent from abroad and to provide a way for citizens without bank accounts to receive payments. Digital wallet Chivo launched with technical glitches and in October a loophole that allowed “price scalping” had to be removed to stop speculators from using the app to trade for profit. El Salvador’s experiment will influence whether other countries consider using Bitcoin as legal tender. (New Scientist, 2021)

    Uncertainties

    Stolen goods at the mint:

    William Shatner complained that Twitter account @tokenizedtweets had taken his content without permission and minted tokens for sale. In doing so, he pointed out there’s no guarantee a minted digital asset is linked to the creator of the attached intellectual property.

    Decentralized vs. distributed finance:

    Will blockchain-based markets be controlled by a single platform operator or become truly open? For example, Dapper Labs centralizes the minting of NFTs on its Flow blockchain and controls sales through its markets. OpenSea allows NFTs minted elsewhere to be brought to the platform and sold.

    Supply and demand:

    Platforms need to improve the reliability of minting technology to create tokens in the future. Ethereum's network is facing more demand than it can keep up with and requires future upgrades to improve its efficiency. Other platforms that support minting tokens are also awaiting upgrades to be fully functional or have seen limited NFT projects launched on their platform.

    Intangible Value Creation Scenarios

    Determine your organization’s strategy by considering the different scenarios based on two main factors. The design decisions are made around whether digital assets are decentralized or distributed and whether the assets facilitate transactions or collections.

    A map of Intangible Value Creation scenarios with two axes representing 'Fungibility, From assets that are designed to be exchanged like currency to assets that are unique' and 'Asset Control Model, From decentralized control with open ownership to centralized control with distributed assets'. The axes split the map into quarters. 'Fungibility' ranges from 'Transactional' on the left to 'Collectible' on the right. 'Asset Control Model' ranges from 'Distributed' on top to 'Decentralized' on bottom. The top left quarter, distributed transactional, reads 'Platform-controlled digital exchanges and utility (e.g. tokens exchanged for fan experiences, central bank digital currency, S!NG).' The top right quarter, distributed collectible, reads 'Platform-controlled digital showcases and community (e.g. NBA Top Shot, Decentraland property).' The bottom left quarter, decentralized transactional, reads 'Peer-controlled digital exchanges and utility (e.g. Bitcoin).' The bottom right quarter, decentralized collectible, reads 'Peer-controlled digital showcases and community (e.g. OpenSea and Ethereum-based NFTs).'

    Recommendations

    Determine your role in the digital asset ecosystem.
    • Becoming a platform provider for digital tokens will require a minting capability to create blockchain-based assets and a marketplace for users to exchange them.
    • Issuing digital tokens to a platform through a sale will require making partnerships and marketing.
    • Investing in digital assets will require management of digital wallets and subject-matter expert analysis of the emerging markets.
    Track the implications of digital currencies.

    Track what your country’s central bank is planning for digital currency and determine if you’ll need to prepare to support it. Be informed about payment partner support for cryptocurrency and consider any complications that may introduce.

    $1 billion+ – The amount of cryptocurrency spent by consumers globally through crypto-linked Visa cards in first half of 2021. (CNBC, July 2021)

    Info-Tech Resources

    Automation as a Service

    TREND 05 | INNOVATION

    Automate business processes and access new sophisticated technology services through platform integration.

    Emerging technologies:
    Cloud platforms, APIs, Generative AI

    Introduction

    The glue for innovation

    Rapidly constructing a business model that is ready to compete in a digital economy requires continuous innovation. Application programming interfaces (APIs) can accelerate innovation by unlocking marketplaces of ready-to-use solutions to business problems and automating manual tasks to make more time for creativity. APIs facilitate a microarchitecture approach and make it possible to call upon a new capability with a few lines of code. This is not a new tool, as the first API was specified in 1951, but there were significant advances of both scale and capability in this area in 2021.

    In the past 18 months, API adoption has exploded and even industries previously considered as digital laggards are now integrating them to reinvent back-office processes. Technology platforms specializing in API management are attracting record-breaking investment. And sophisticated technology services such as artificial intelligence are being delivered by APIs.

    APIs can play a role in every company’s digital strategy, from transforming back-office processes to creating revenue as part of a platform.

    $500,000 was invested in API companies in 2016. (Forbes, May 2021)

    $2,000,000,000+ was invested in API companies in 2020. (Forbes, May 2021)

    69% of IT practitioners say digital transformation has been a high priority for their organization during the pandemic. (Info-Tech Tech Trends 2022 Survey)

    51% of developers used more APIs in 2020 than in 2019. (InsideHPC, 2021)

    71% of developers planned to use even more APIs in 2021. (InsideHPC, 2021)

    Signals

    IT practitioners indicate that digital transformation was a strong focus for their organization during the pandemic and will remain so during the period afterwards, and one-third say their organizations were “extremely focused” on digital transformation.

    When it came to shifting processes from being done manually to being completed digitally, more than half of IT practitioners say they shifted at least 21% of their processes during the past year. More than one in five say that at least 60% of their processes were shifted from manual to digital in the past year.

    3.5 trillion calls were performed on API management platform Apigee, representing a 50% increase year over year. (SiliconANGLE, 2021)

    Processes shifted from manual to digital in the past year

    A horizontal bar chart recording survey responses regarding the percent of processes that shifted from manual to digital in the past year. The horizontal axis is 'percent of survey respondents' with values from 0 to 35%. The vertical axis is 'percent of process shifted to digital' with bar labels 'Between 0 to 20%', 'Between 21 to 40%', and so on until 'Between 81 to 100%'. 20% of respondents answered '0 to 20%' of processes went digital. 28% of respondents answered '21 to 40%' of processes went digital. 30% of respondents answered '41 to 60%' of processes went digital. 15% of respondents answered '61 to 80%' of processes went digital. 7% of respondents answered '81 to 100%' of processes went digital.

    Drivers

    Covid-19

    The pandemic lockdowns pushed everyone into a remote-work scenario. With in-person interaction not an option, even more traditional businesses had to adapt to digital processes.

    Customer Expectations

    The success of digital services in the consumer space is causing expectations to rise in other areas, such as professional services. Consumers now want their health records to be portable and they want to pay their lawyer through e-transfer, not by writing a cheque. (Interview with Mik Lernout)

    Standardization

    Technology laggard industries such as legal and healthcare are recognizing the pain of working with siloed systems. New standardization efforts are driving the adoption of open APIs at a rapid rate. (Interview with Jennifer Jones, Research Director – Industry, Info-Tech Research Group)

    Risks and Benefits

    Benefits

    Speed Using a microarchitecture approach with readily available services constructed in different ways provides a faster way to get from idea to minimum-viable product.
    Intelligence Open APIs have more than ever exposed people to sophisticated AI algorithms that were in the domain of only advanced researchers just a couple years ago. Developers can integrate AI with a couple lines of code. Non-technical users can train algorithms with low-code and no-code tools (Forbes, Sept. 2021).
    Resilience If one function of a solution doesn't work, it can be easily replaced with another one available on the market and the overall experience is maintained.

    Risks

    Loss of Privacy APIs are being targeted by hackers as a way to access personal information. Recent API-related leaks affected Experian, John Deere, Clubhouse, and Peloton (VentureBeat, 2021).
    Complexity Using a decentralized approach to assemble applications means that there is no single party accountable for the solution. Different pieces can break, or oversights can go unnoticed.
    Copycats Platforms that take the approach of exposing all functions via API run the risk of having their services used by a competitor to offer the same solution but with an even better user experience.

    “When we think about what the pandemic did, we had this internal project called 'back to the future.' It kind of put the legal industry in a time machine and it kind of accelerated the legal industry 5, maybe even 10 years. A lot of the things we saw with the innovators became table stakes.” (Mik Lernout, Vice President of Product, Clio)

    Photo of Mik Lernout, Vice president of product, Clio.

    Listen to the Tech Insights podcast: Clio drives digital transformation to redefine the legal industry

    Case Study

    Situation

    The COVID-19 pandemic required the legal industry to shift to remote work. A typically change-resistant industry was now holding court hearings over videoconference, taking online payments, and collecting e-signatures on contracts. For Clio, a software-as-a-service software vendor that serves the legal industry, its client base grew and its usage increased. It previously focused on the innovators in the legal industry, but now it noticed laggards were going digital too.

    Complication

    Law firms have very different needs depending on their legal practice area (e.g. family law, corporate law, or personal injury) and what jurisdiction they operate in.

    Clients are also demanding more from their lawyers in terms of service experience. They don't want to travel to the law office to drop off a check but expect digital interactions on par with service they receive in other areas.

    Resolution

    Since its inception, Clio built its software product so that all of its functions could be called upon by an API as well. It describes its platform as the "operating system for the legal industry." Its API functions include capabilities like managing activities, billing, and contracts. External developers can submit applications to the Clio Marketplace to add new functionality. Its platform approach enables it to find solutions for its 150,000+ users. During the pandemic, Clio saw its customers rely on its APIs more than ever before. It expects this accelerated adoption to be the way of working in the future. (ProgrammableWeb, 2021; Interview with Mik Lernout)

    What's Next

    GOOGLE’S API-FIRST APPROACH:

    Google is expanding its Apigee API management platform so enterprises will be able to connect existing data and applications and access them via APIs. It's part of Google's API-first approach to digital transformation, helping enterprises with their integration challenges. The new release includes tools and a framework that's needed to integrate services in this way and includes pre-built connectors for common business apps and services such as Salesforce, Cloud SQL, MySQL, and BigQuery. (SiliconANGLE, 2021)

    Uncertainties

    API SECURITY:

    APIs represent another potential vulnerability for hackers to exploit and the rise in popularity has come with more security incidents. Companies using APIs have leaked data through APIs, with one research report on the state of API security finding that 91% of organizations have suffered an API security incident. Yet more than a quarter of firms running production APIs don’t have an API security strategy. (VentureBeat, 2021)

    For low IT maturity organizations moving onto platforms that introduce API capabilities, education is required about the consequences of creating more integrations. Platforms must bear some responsibility for monitoring for irregular activity. (Interview with Mik Lernout)

    Automation as a Service Scenarios

    Determine your organization’s platform strategy from the basis of your digital maturity – from that of a laggard to a native – and whether it involves monetized APIs vs. freely available public APIs. A strategy can include both the consumption of APIs and the creation of them.

    A map of Automation as a Service scenarios with two axes representing 'Business Model, From an open and public API to a monetized pay-for-use API' and 'Digital Maturity, From being a digital laggard to being a digital native'. The axes split the map into quarters. 'Business Model' ranges from 'Public APIs' on the left to 'Monetized APIs' on the right. 'Digital Maturity' ranges from 'Digital Native' on top to 'Digital Laggard' on bottom. The top left quarter, digital native public APIs, reads 'Platform business model that grows through adoption of free APIs (e.g. Clio).' The top right quarter, digital native monetized APIS, reads 'Platform business model with spectrum of API services including free tiers.' The bottom left quarter, digital laggard public APIs, reads 'Consume public APIs to simplify and automate business processes and improve customer experience (e.g. law firms using Clio).' The bottom right quarter, digital laggard monetized APIs, reads 'Consume paid APIs to provide customers with expanded services (e.g. retailer Lowe’s uses AccuWeather to predict supply and demand).'

    Recommendations

    Leverage APIs to connect your systems. Create a repeatable process to improve the quality, reusability, and governance of your web APIs.

    Transform your business model with digital platforms. Use the best practices of digital native enterprises and leverage your core assets to compete in a digital economy.

    Deliver sophisticated new capabilities with APIs. Develop an awareness of new services made available through API integration, such as artificial intelligence, and take advantage of them.

    4.5 billion words per day generated by the OpenAI natural language API GPT-3, just nine months after launch. (OpenAI, 2021)

    Info-Tech Resources

    Behind the design

    Inspiration provided by the golden ratio

    The golden ratio has long fascinated humans for its common occurrence in nature and inspired artists who adopted its proportions as a guiding principle for their creations. A new discovery of the golden ratio in economic cycles was published in August 2021 by Bert de Groot, et al. As the boundaries of value creation blur between physical and digital and the pace of change accelerates, these digital innovations may change our lives in many ways. But they are still bound by the context of the structure of the economy. Hear more about this surprising finding from de Groot and from this report’s designer by listening to our podcast. (Technological Forecasting and Social Change, 2021)

    “Everything happening will adapt itself into the next cycle, and that cycle is one phi distance away.” (Bert de Groot, professor of economics at Erasmus University Rotterdam)

    Photo of Bert de Groot, Professor of Economics at Erasmus University Rotterdam.

    Listen to the Tech Insights podcast: New discovery of the golden ratio in the economy

    Contributing Experts

    Vijay Sundaram
    Chief Strategy Officer, Zoho
    		 Photo of Vijay Sundaram, Chief Strategy Officer, Zoho.
    Jason Brommet
    Head of Modern Work and Security Business Group, Microsoft
    		 Photo of Jason Brommet, Head of Modern Work and Security Business Group at Microsoft.
    Steve Orrin
    Federal Chief Technology Officer, Intel
    		 Photo of Steve Orrin, Federal Chief Technology Officer, Intel.
    Wade Barnes
    CEO and Founder, Farmers Edge
    		 Photo of Wade Barnes, CEO and founder of Farmers Edge.

    Contributing Experts

    Raine Maida
    Chief Product Officer, S!NG
    Singer, Our Lady Peace
    		 Raine Maida, Chief Product Officer, S!NG Singer, Our Lady Peace.
    Geoff Osler
    CEO, S!NG
    		 Photo of Geoff Osler, CEO, S!NG.
    Mik Lernout
    Vice President of Product, Clio
    		 Photo of Mik Lernout, Vice President of Product, Clio.
    Bert de Groot
    Professor of Economics, Erasmus University Rotterdam
    		 Photo of Bert de Groot, Professor of Economics at Erasmus University Rotterdam.

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    Herskowitz, Nicole. “Brace Yourselves: Hybrid Work Is Hard. Here’s How Microsoft Teams and Office 365 Can Help.” Microsoft 365 Blog, 9 Sept. 2021. Web.

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    Spataro, Jared. “Microsoft and LinkedIn Share Latest Data and Innovation for Hybrid Work.” The Official Microsoft Blog, 9 Sept. 2021. Web.

    Subin, Samantha. “The new negotiation over job benefits and perks in post-Covid hybrid work.” CNBC, 23 Apr. 2021. Web.

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    Wong, Christine. “How the hybrid workplace will affect IT spending.” ExpertIP, 15 July 2021. Web.

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    Bibliography – Battle Against Ransomware

    Berg, Leandro. “RTF Report: Combatting Ransomware.” Institute for Security and Technology (IST), 2021. Accessed 21 Sept. 2021.

    Dudley, Renee. “The Extortion Economy: How Insurance Companies Are Fueling a Rise in Ransomware Attacks.” ProPublica, 27 Aug. 2019. Accessed 22 Sept. 2021.

    Durbin, Steve. “Council Post: Artificial Intelligence: The Future Of Cybersecurity?” Forbes, 23 Sept. 2021. Accessed 21 Oct. 2021.

    “FACT SHEET: Ongoing Public U.S. Efforts to Counter Ransomware.” The White House, 13 Oct. 2021. Web.

    Jeffery, Lynsey, and Vignesh Ramachandran. “Why ransomware attacks are on the rise — and what can be done to stop them.” PBS NewsHour, 8 July 2021. Web.

    McBride, Timothy, et al. Data Integrity: Recovering from Ransomware and Other Destructive Events. NIST Special Publication (SP) 1800-11, National Institute of Standards and Technology, 22 Sept. 2020. NIST Computer Security Resource Center (CSRC), https://doi.org/10.6028/NIST.SP.1800-11.

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    Sharma, Mayank. “Hackers demand $70m ransom after executing massive Solar Winds-like attack.” TechRadar, 5 July 2021. Web.

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    Bibliography – Carbon Metrics in Energy 4.0

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    About the research

    Tech trends survey

    As part of its research process for the 2022 Tech Trends Report, Info-Tech Research Group conducted an open online survey among its membership and wider community of professionals. The survey was fielded from August 2021 to September 2021, collecting 475 responses.

    The underlying metrics are diverse, capturing 14 countries and regions and 16 Industries.

    A geospatial chart of the world documenting the percentage of respondents from each country to Info-Tech's '2022 Tech Trends Report' Percentages are below.
    01 United States 45.3% 08 India 1.7%
    02 Canada 19.2% 09 Other (Asia) 1.7%
    03 Africa 9.3% 10 New Zealand 1.5%
    04 Other (Europe) 5.3% 11 Germany 0.8%
    05 Australia 4.2% 12 Mexico 0.4%
    06 Great Britain 3.8% 13 Netherlands 0.4%
    07 Middle East 2.9% 14 Japan 0.2%

    Industry

    01 Government 18.9%
    02 Media, Information, & Technology 12.8%
    03 Professional Services 12.8%
    04 Manufacturing 9.9%
    05 Education 8.8%
    06 Healthcare 8.2%
    07 Financial Services 7.8%
    08 Transportation & Logistics 3.4%
    09 Utilities 3.4%
    10 Insurance 2.5%
    11 Retail & Wholesale 2.5%
    12 Construction 2.3%
    13 Natural Resources 2.1%
    14 Real Estate & Property Management 1.7%
    15 Arts & Leisure 1.5%
    16 Professional Associations 1.3%

    Department

    IT (information technology) 88.2%
    Other (Department) 3.79%
    Operations 2.32%
    Research & Development 1.89%
    Sales 1.26%
    Administration 1.06%
    Finance 0.42%
    HR (Human Resources) 0.42%
    Marketing 0.42%
    Production 0.21%

    Role

    Manager 24%
    Director-level 22%
    C-level officer 19%
    VP-level 9%
    Team lead / supervisor 7%
    Owner / President / CEO 7%
    Team member 7%
    Consultant 5%
    Contractor 1%

    IT Spend

    Respondents on average spent 35 million per year on their IT budget.

    Accounting for the outlier responses – the median spend sits closer to 4.5 million per year. The highest spend on IT was within the Government, Healthcare, and Retail & Wholesale sectors.

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    Gain insights from data-driven recommendations and have decision support to make informed decisions.

    Tell Your Story With Data Visualization Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Tell Your Story With Data Visualization Deck – Solve challenging business problems more effectively and improve communication with audiences by demonstrating significant insights through data storytelling with impactful visuals.

    Here is our step-by-step process of getting value out of effective storytelling with data visualization:

  • Step 1: Frame the business problem and the outcomes required.
  • Step 2: Explore the potential drivers and formulate hypotheses to test.
  • Step 3: Construct a meaningful narrative which the data supports.

    • Tell Your Story With Data Visualization Storyboard

    2. Storytelling Whiteboard Canvas Template – Plan out storytelling using Info-Tech’s whiteboard canvas template.

    This storytelling whiteboard canvas is a template that will help you create your visualization story narrative by:

  • Identifying the problem space.
  • Finding logical relationships and data identification.
  • Reviewing analysis and initial insights.
  • Building the story and logical conclusion.

    • Storytelling Whiteboard Canvas Template
    [infographic]

    Further reading

    Tell Your Story With Data Visualization

    Build trust with your stakeholders.

    Analyst Perspective

    Build trust with your stakeholders.

    Data visualization refers to graphical representations of data which help an audience understand. Without good storytelling, however, these representations can distract an audience with enormous amounts of data or even lead them to incorrect conclusions.

    Good storytelling with data visualization involves identifying the business problem, exploring potential drivers, formulating a hypothesis, and creating meaningful narratives and powerful visuals that resonate with all audiences and ultimately lead to clear actionable insights.

    Follow Info-Tech's step-by-step approach to address the business bias of tacit experience over data facts, improve analysts' effectiveness and support better decision making.

    Ibrahim Abdel-Kader, Research Analyst

    Ibrahim Abdel-Kader
    Research Analyst,
    Data, Analytics, and Enterprise Architecture

    Nikitha Patel, Research Specialist

    Nikitha Patel
    Research Specialist,
    Data, Analytics, and Enterprise Architecture

    Ruyi Sun, Research Specialist

    Ruyi Sun
    Research Specialist,
    Data, Analytics, and Enterprise Architecture

    Our understanding of the problem

    This research is designed for

    • Business analysts, data analysts, or their equivalent who (in either a centralized or federated operating model) look to solve challenging business problems more effectively and improve communication with audiences by demonstrating significant insights through visual data storytelling.

    This research will also assist

    • A CIO or business unit (BU) leader looking to improve reporting and analytics, reduce time to information, and embrace decision making.

    This research will help you

    • Identify the business problem and root causes that you are looking to address for key stakeholders.
    • Improve business decision making through effective data storytelling.
    • Focus on insight generation rather than report production.
    • Apply design thinking principles to support the collection of different perspectives.

    This research will help them

    • Understand the report quickly and efficiently, regardless of their data literacy level.
    • Grasp the current situation of data within the organization.

    Executive Summary

    Your Challenge Common Obstacles Info-Tech's Approach
    As analysts, you may experience some critical challenges when presenting a data story.
    • The graphical representation does not provide meaningful or actionable insights.
    • Difficulty selecting the right visual tools or technologies to create visual impact.
    • Lack of empowerment, where analysts don't feel like they can challenge requirements.
    • Data quality issues that prevent the creation of accurate and helpful information.
    		 Some common roadblocks may prevent you from addressing these challenges.
    • Lack of skills and context to identify the root cause or the insight that adds the most value.
    • Lack of proper design or over-visualization of data will mislead/confuse the audience.
    • Business audience bias, leading them to ignore reliable insights presented.
    • Lack of the right access to obtain data could hinder the process.
    • Understand and dissect the business problem through Info-Tech's guidance on root cause analysis and design thinking process.
    • Explore each potential hypothesis and construct your story's narratives.
    • Manage data visualization using evolving tools and create visual impact.
    • Inform business owners how to proceed and collect feedback to achieve continuous improvement.

    Info-Tech Insight
    As organizations strive to become more data-driven, good storytelling with data visualization supports growing corporate data literacy and helps analysts provide insights that improve organizational decision-making and value-driving processes, which ultimately boosts business performance.

    Glossary

    • Data: Facts or figures, especially those stored in a computer, that can be used for calculating, reasoning, or planning. When data is processed, organized, structured, or presented in a given context to make it useful, it is called information. Data leaders are accountable for certain data domains and sets.
    • Data storytelling: The ability to create a narrative powered by data and analytics that supports the hypothesis and intent of the story. Narrators of the story should deliver a significant view of the message in a way easily understood by the target audience. Data visualization can be used as a tactic to enhance storytelling.
    • Data visualization: The ability to visually represent a complete story to the target audience powered by data & analytics, using data storytelling as an enabling mechanism to convey narratives. Typically, there are two types of visuals used as part of data visualization: explanatory/informative visuals (the entire story or specific aspects delivered to the audience) and exploratory visuals (the collected data used to clarify what questions must be answered).
    • Data literacy: The ability to read, work with, analyze, and argue with data. Easy access to data is essential to exercising these skills. All organizational employees involved with data-driven decisions should learn to think critically about the data they use for analytics and how they assess and interpret the results of their work.
    • Data quality: A measure of the condition of data based on factors such as accuracy, completeness, consistency, reliability, and being up-to-date. This is about how well-suited a data set is to serve its intended purpose, therefore business users and stakeholders set the standards for what is good enough. The governance function along with IT ensures that data quality measures are applied, and corrective actions taken.
    • Analytics/Business intelligence (BI): A technology-driven process for analyzing data and delivering actionable information that helps executives, managers, and workers make informed business decisions. As part of the BI process, organizations collect data from internal IT systems and external sources, prepare it for analysis, run queries against the data, and create data visualizations.
      Note: In some frameworks, analytics and BI refer to different types of analyses (i.e. analytics predict future outcomes, BI describes what is or has been).

    Getting value out of effective storytelling with data visualization

    Data storytelling is gaining wide recognition as a tool for supporting businesses in driving data insights and making better strategic decisions.

    92% of respondents agreed that data storytelling is an effective way of communicating or delivering data and analytics results.

    87% of respondents agreed that if insights were presented in a simpler/clearer manner, their organization's leadership team would make more data-driven decisions.

    93% of respondents agreed that decisions made based on successful data storytelling could potentially help increase revenue.

    Source: Exasol, 2021

    Despite organizations recognizing the value of data storytelling, issues remain which cannot be remedied solely with better technology.

    61% Top challenges of conveying important insights through dashboards are lack of context (61%), over-communication (54%), and inability to customize contents for intended audiences (46%).

    49% of respondents feel their organizations lack storytelling skills, regardless of whether employees are data literate.

    Source: Exasol, 2021

    Info-Tech Insight
    Storytelling is a key component of data literacy. Although enterprises are increasingly investing in data analytics software, only 21% of employees are confident with their data literacy skills. (Accenture, 2020)

    Prerequisite Checklist

    Before applying Info-Tech's storytelling methodology, you should have addressed the following criteria:

    • Select the right data visualization tools.
    • Have the necessary training in statistical analysis and data visualization technology.
    • Have competent levels of data literacy.
    • Good quality data founded on data governance and data architecture best practices.

    To get a complete view of the field you want to explore, please refer to the following Info-Tech resources:

    Select and Implement a Reporting and Analytics Solution

    Build a Data Architecture Roadmap

    Establish Data Governance

    Build Your Data Quality Program

    Foster Data-Driven Culture With Data Literacy

    Info-Tech's Storytelling With Data Visualization Framework

    Data Visualization Framework

    Info-Tech Insight
    As organizations strive to become more data-driven, good storytelling with data visualization supports growing corporate data literacy and helps analysts provide insights that improve organizational decision-making and value-driving processes, which ultimately boosts business performance.

    Research Benefits

    Member Benefits Business Benefits
    • Reduce time spent on getting your audience in the room and promote business involvement with the project.
    • Eliminate ineffectively used reports and dashboards being disregarded for lack of storytelling skills, resulting in real-time savings and monetary impact.
    • Example: A $50k reporting project has a 49% risk of the company being unable to communicate effective data stories (Exasol, 2021). Therefore, a $50k project has an approx. 50% chance of being wasted. Using Info-Tech's methodology, members can remove the risk, saving $25k and the time required to produce each report.
    • Address the common business bias of tacit experience over data-supported facts and increase audience understanding and acceptance of data-driven solutions.
    • Clear articulation of business context and problem.
    • High-level improvement objectives and return on investment (ROI).
    • Gain insights from data-driven recommendations to assist with making informed decisions.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit Guided Implementation Workshop Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks are used throughout all four options.

    Make the Case for Product Delivery

    • Buy Link or Shortcode: {j2store}184|cart{/j2store}
    • member rating overall impact: 9.5/10 Overall Impact
    • member rating average dollars saved: $41,674 Average $ Saved
    • member rating average days saved: 13 Average Days Saved
    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • Organizations are traditionally organized to deliver initiatives in specific periods of time. This is in contention with product-centric delivery practices. This form of delivery acknowledges the reality that solutions of all shapes and sizes deliver continual and evolving business value over their lifetime.
    • Delivering multiple products together creates additional challenges because each product has its own pedigree, history, and goals.
    • Product owners struggle to prioritize changes to deliver product value. This creates a gap and conflict between product and enterprise goals.

    Our Advice

    Critical Insight

    • Delivering products doesn’t mean you will stop delivering projects! Product-centric delivery is intended to address the misalignment between the long-term delivery of value that organizations demand and the nature of traditional project-focused environments.

    Impact and Result

    • We will help you build a proposal deck to make the case to your stakeholders for product-centric delivery.
    • You will build this proposal deck by answering key questions about product-centric delivery so you can identify:
      • A common definition of product.
      • How this form of delivery differs from traditional project-centric approaches.
      • Key challenges and benefits.
      • The capabilities needed to effectively own products and deliver value.
      • What you are asking of stakeholders.
      • A roadmap of how to get started.

    Make the Case for Product Delivery Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Make the Case for Product Delivery Deck – A guide to help align your organization on the practices to deliver what matters most.

    This project will help you define “product” for your organization, define your drivers and goals for moving to product delivery, understand the role of product ownership, lay out the case to your stakeholders, and communicate what comes next for your transition to product.

    • Make the Case for Product Delivery Storyboard

    2. Make the Case for Product Delivery Presentation Template – A template to help you capture and detail your case for product delivery.

    Build a proposal deck to help make the case to your stakeholders for product-centric delivery.

    • Make the Case for Product Delivery Presentation Template

    3. Make the Case for Product Delivery Workbook – A tool to capture the results of exercises to build your case to change your product delivery method.

    This workbook is designed to capture the results of the exercises in the Make the Case for Product Delivery Storyboard. Each worksheet corresponds to an exercise in the storyboard. The workbook is also a living artifact that should be updated periodically as the needs of your team and organization change.

    • Make the Case for Product Delivery Workbook
    [infographic]

    Further reading

    Make the Case for Product Delivery

    Align your organization on the practices to deliver what matters most.

    Table of Contents

    Define product

    Define your drivers and goals

    Understand the role of product ownership

    Communicate what comes next

    Make the case to your stakeholders

    Appendix: Additional research

    Appendix: Product delivery strategy communication

    Appendix: Manage stakeholder influence

    Appendix: Product owner capability details

    Executive Summary

    Your Challenge
    • Products are the lifeblood of an organization. They deliver the capabilities needed to deliver value to customers, internal users, and stakeholders.
    • Organizations are under pressure to align the value they provide with the organization’s goals and overall company vision.
    • You need to clearly convey the direction and strategy of your product portfolio to gain alignment, support, and funding from your organization.
    		 Common Obstacles
    • IT organizations are traditionally organized to deliver initiatives in specific periods of time. This is in contention with product-centric delivery.
    • Product delivery acknowledges the reality that solutions of all shapes and sizes deliver continual and evolving business value over their lifetime.
    • Delivering multiple products together creates additional challenges because each product has its own pedigree, history, and goals.
    • Product owners struggle to prioritize changes to deliver product value. This creates a gap and conflict between product and enterprise goals.
    		 Info-Tech’s Approach
    • Info-Tech will enable you to build a proposal deck to make the case to your stakeholders for product-centric delivery.
    • You will build this proposal deck by answering key questions about product-centric delivery so you can identify:
      • A common definition of product.
      • How this form of delivery differs from traditional project-centric approaches.
      • Key challenges and benefits.
      • The capabilities needed to effectively own products and deliver value.
      • What you are asking of stakeholders.
      • A roadmap of how to get started.

    Info-Tech Insight

    Delivering products doesn’t mean you will stop delivering projects! Product-centric delivery is intended to address the misalignment between the long-term delivery of value that organizations demand and the nature of traditional project-focused environments.

    Many executives perceive IT as being poorly aligned with business objectives

    Info-Tech’s CIO Business Vision Survey data highlights the importance of IT initiatives in supporting the business in achieving its strategic goals.

    However, Info-Tech’s CEO-CIO Alignment Survey (2021; N=58) data indicates that CEOs perceive IT to be poorly aligned to business’ strategic goals.

    Info-Tech CEO-CIO Alignment Diagnostics, 2021 (N=58)

    40% Of CEOs believe that business goals are going unsupported by IT.

    34% Of business stakeholders are supporters of their IT departments (n=334).

    40% Of CIOs/CEOs are misaligned on the target role for IT.

    Info-Tech Insight

    Great technical solutions are not the primary driver of IT success. Focusing on delivery of digital products that align with organizational goals will produce improved outcomes and will foster an improved relationship between business and IT.

    Increase product success by involving IT, business, and customers in your product roadmaps, planning, and delivery

    Product management and delivery seek to promote improved relationships among IT, business, and customers, a critical driver for business satisfaction.

    IT

    Stock image of an IT professional.

    1

    		 Collaboration

    IT, business, and customers work together through all stages of the product lifecycle, from market research through the roadmapping and delivery processes and into maintenance and retirement. The goal is to ensure the risks and dependencies are realized before work is committed.

    Stakeholders, Customers, and Business

    Stock image of a business professional.

    2

    		 Communication

    Prioritize high-value modes of communication to break down existing silos and create common understanding and alignment across functions. This approach increases transparency and visibility across the entire product lifecycle.

    3

    		 Integration

    Explore methods to integrate the workflows, decision making, and toolsets among the business, IT, and customers. The goal is to become more reactive to changes in business and customer expectations and more proactive about market trends.

    Product does not mean the same thing to everyone

    Do not expect a universal definition of products.
    Every organization and industry has a different definition of what a product is. Organizations structure their people, processes, and technologies according to their definition of the products they manage. Conflicting product definitions between teams increase confusion and misalignment of product roadmaps.

    “A product [is] something (physical or not) that is created through a process and that provides benefits to a market.” (Mike Cohn, Founding Member of Agile Alliance and Scrum Alliance) “A product is something ... that is created and then made available to customers, usually with a distinct name or order number.” (TechTarget) “A product is the physical object ... , software or service from which customer gets direct utility plus a number of other factors, services, and perceptions that make the product useful, desirable [and] convenient.” (Mark Curphey)

    Organizations need a common understanding of what a product is and how it pertains to the business.

    This understanding needs to be accepted across the organization.

    “There is not a lot of guidance in the industry on how to define [products]. This is dangerous because what will happen is that product backlogs will be formed in too many areas. All that does is create dependencies and coordination across teams … and backlogs.” (Chad Beier, “How Do You Define a Product?” Scrum.org)

    Products enable the long-term and continuous delivery of value

    Diagram laying out the lifecycles and roadmaps contributing to the 'Continuous delivery of value'. Beginning with 'Project Lifecycle' in which Projects with features and services end in a Product Release that is disconnected from the continuum. Then the 'Hybrid Lifecycle' and 'Product Lifecycle' which are connected by a 'Product Roadmap' and 'Product Backlog' have Product Releases that connect to the continuum.

    Phase 1

    Build the case for product-centric delivery

    Phase 1
    1.1 Define product
    1.2 Define your drivers and goals
    1.3 Understand the role of product ownership
    1.4 Communicate what comes next
    1.5 Make the case to your stakeholders

    This phase will walk you through the following activities:

    • Define product in your context.
    • Define your drivers and goals for moving to product delivery.
    • Understand the role of product ownership.
    • Communicate what comes next for your transition to product.
    • Lay out the case to your stakeholders.

    This phase involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Step 1.1

    Define product

    Activities
    • 1.1.1 Define “product” in your context
    • 1.1.2 Consider examples of what is (and is not) a product in your organization
    • 1.1.3 Identify the differences between project and product delivery

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A clear definition of product in your organization’s context.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Exercise 1.1.1 Define “product” in your context

    30-60 minutes

    Output: Your enterprise/organizational definition of products and services

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Discuss what “product” means in your organization.
    2. Create a common, enterprise-wide definition for “product.”
    “A product [is] something (physical or not) that is created through a process and that provides benefits to a market.” (Mike Cohn, Founding Member of Agile Alliance and Scrum Alliance) “A product is something ... that is created and then made available to customers, usually with a distinct name or order number.” (TechTarget) “A product is the physical object ... , software or service from which customer gets direct utility plus a number of other factors, services, and perceptions that make the product useful, desirable [and] convenient.” (Mark Curphey)

    Record the results in the Make the Case for Product-Centric Delivery Workbook.

    Example: What is a product?

    Not all organizations will define products in the same way. Take this as a general example:

    “A tangible solution, tool, or service (physical or digital) that enables the long-term and evolving delivery of value to customers and stakeholders based on business and user requirements.”

    Info-Tech Insight

    A proper definition of product recognizes three key facts:

    1. Products are long-term endeavors that don’t end after the project finishes.
    2. Products are not just “apps” but can be software or services that drive the delivery of value.
    3. There is more than one stakeholder group that derives value from the product or service.
    		Stock image of an open human head with gears and a city for a brain.

    How do we know what is a product?

    What isn’t a product:
    • Features (on their own)
    • Transactions
    • Unstructured data
    • One-time solutions
    • Non-repeatable processes
    • Solutions that have no users or consumers
    • People or teams
    		 You have a product if the given item...
    • Has end users or consumers
    • Delivers quantifiable value
    • Evolves or changes over time
    • Has predictable delivery
    • Has definable boundaries
    • Has a cost to produce and operate

    Exercise 1.1.2 Consider examples of what is (and is not) a product in your organization

    15 minutes

    Output: Examples of what is and isn’t a product in your specific context.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Leverage the definition you created in exercise 1.1.1 and the explanation on the slide What is a product?
    2. Pick examples that effectively show the difference between products and non-products and facilitate a conversation on the ones that seem to be on the line. Specific server instances, or instances of providing a service, are worthwhile examples to consider.
    3. From the list you come up with, take the top three examples and put them into the Make the Case for Product Delivery Presentation Template.
    Example:
    What isn’t a product?
    • Month-end SQL scripts to close the books
    • Support Engineer doing a password reset
    • Latest research project in R&D
    		 What is a product?
    • Self-service password reset portal
    • Oracle ERP installation
    • Microsoft Office 365

    Record the results in the Make the Case for Product Delivery Workbook.

    Product delivery practices should consider everything required to support it, not just what users see.

    Cross-section of an iceberg above and below water with visible product delivery practices like 'Funding', 'External Relationships', and 'Stakeholder Management' above water and internal product delivery practices like 'Product Governance', 'Business Functionality', and 'R&D' under water. There are far more processes below the water.

    Products and services share the same foundation and best practices

    For the purpose of this blueprint, product/service and product owner/service owner are used interchangeably. Product is used for consistency but would apply to services as well.

    Product = Service

    		 “Product” and “service” are terms that each organization needs to define to fit its culture and customers (internal and external). The most important aspect is consistent use and understanding of:
    • External products
    • Internal products
    • External services
    • Internal services
    • Products as a service (PaaS)
    • Productizing services (SaaS)

    Exercise 1.1.3 Identify the differences between project and product delivery

    30-60 minutes

    Output: List of differences between project and product delivery

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Consider project delivery and product delivery.
    2. Discuss what some differences are between the two.
      Note: This exercise is not about identifying the advantages and disadvantages of each style of delivery. This is to identify the variation between the two.
    Theme Project Delivery (Current) Product Delivery (Future)
    Timing Defined start and end Does not end until the product is no longer needed
    Funding Funding projects Funding products and teams
    Prioritization LoB sponsors Product owner
    Capacity Management Project management Managed by product team

    Record the results in the Make the Case for Product Delivery Workbook.

    Identify the differences between a project-centric and a product-centric organization

    Project Product
    Fund projects — Funding –› Fund products or teams
    Line of business sponsor — Prioritization –› Product owner
    Makes specific changes to a product —Product management –› Improves product maturity and support
    Assignment of people to work — Work allocation –› Assignment of work to product teams
    Project manager manages — Capacity management –› Team manages capacity

    Info-Tech Insights

    • Product ownership should be one of your first areas of focus when transitioning from project to product delivery.
    • Product delivery requires significant shifts in the way you complete development work and deliver value to your users. Make the changes that support improving end-user value and enterprise alignment.

    Projects can be a mechanism for funding product changes and improvements

    Diagram laying out the lifecycles and roadmaps contributing to the 'Continuous delivery of value'. Beginning with 'Project Lifecycle' in which Projects with features and services end in a Product Release that is disconnected from the continuum. Then the 'Hybrid Lifecycle' and 'Product Lifecycle' which are connected by a 'Product Roadmap' and 'Product Backlog' have Product Releases that connect to the continuum. Projects within products

    Regardless of whether you recognize yourself as a product-based or project-based shop, the same basic principles should apply.

    The purpose of projects is to deliver the scope of a product release. The shift to product delivery leverages a product roadmap and backlog as the mechanism for defining and managing the scope of the release.

    Eventually, teams progress to continuous integration/continuous delivery (CI/CD) where they can release on demand or as scheduled, requiring org change management.

    Step 1.2

    Define your drivers and goals

    Activities
    • 1.2.1 Understand your drivers for product-centric delivery
    • 1.2.2 Define the goals for your product-centric organization

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A clear understanding of your motivations and desired outcomes for moving to product delivery.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Exercise 1.2.1 Understand your drivers for product-centric delivery

    30-60 minutes

    Output: Organizational drivers to move to product-centric delivery.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify your pain points in the current delivery model.
    2. What is the root cause of these pain points?
    3. How will a product-centric delivery model fix the root cause (drivers)?
    Pain Points
    • Lack of ownership
    		 Root Causes
    • Siloed departments
    		 Drivers
    • Accountability

    Record the results in the Make the Case for Product Delivery Workbook.

    Exercise 1.2.2 Define the goals for your product-centric organization

    30 minutes

    Output: Goals for product-centric delivery

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Review the differences between project and product delivery from exercise 1.1.3 and the list of drivers from exercise 1.2.1.
    2. Define your goals for achieving a product-centric organization.
      Note: Your drivers may have already covered the goals. If so, review if you would like to change the drivers based on your renewed understanding of the differences between project and product delivery.
    Pain Points
    • Lack of ownership
    		Root Causes
    • Siloed departments
    		Drivers
    • Accountability
    		Goals
    • End-to-end ownership

    Record the results in the Make the Case for Product Delivery Workbook.

    Step 1.3

    Understand the role of product ownership

    Activities
    • 1.3.1 Identify product ownership capabilities

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • Product owner capabilities that you agree are critical to start your product transformation.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Accountability for the delivery of value through product ownership is not optional

    Tree of 'Enterprise Goals and Priorities' leading to 'Product' through a 'Product Family'.

    Info-Tech Insight

    People treat the assignment of accountability for products (aka product ownership) as optional. Without assigning accountability up front, your transition to product delivery will stall. Accountable individuals will be focused on the core outcome for product delivery, which is the delivery of the right value, at the right time, to the right people.

    		Description of the tree levels shown in the diagram on the left. First is 'Enterprise Goals and Priorities', led by 'Executive Leadership' using the 'Enterprise Strategic Roadmap'. Second is 'Product Family', led by 'Product Manager' using the 'Product Family Roadmap'. Last is 'Product', led by the 'Product Owner' using the 'Product Roadmap' and 'Backlog' on the strategic end, and 'Releases' on the Tactical end. In the holistic context, 'Product Family is considered 'Strategic' while 'Product' is 'Tactical'.

    Recognize the different product owner perspectives

    Business
    • Customer facing, revenue generating
    		 Technical
    • IT systems and tools
    		 Operations
    • Keep the lights on processes

    Info-Tech Best Practice

    Product owners must translate needs and constraints from their perspective into the language of their audience. Kathy Borneman, Digital Product Owner at SunTrust Bank, noted the challenges of finding a common language between lines of business and IT (e.g. what is a unit?).

    Info-Tech Insight

    Recognize that product owners represent one of three primary perspectives. Although all share the same capabilities, how they approach their responsibilities is influenced by their perspective.

    “A Product Owner in its most beneficial form acts like an Entrepreneur, like a 'mini-CEO'. The Product Owner is someone who really 'owns' the product.” (Robbin Schuurman, “Tips for Starting Product Owners”)

    Implement the Info-Tech product owner capability model

    As discussed in Build a Better Product Owner, most product owners operate with an incomplete knowledge of the skills and capabilities needed to perform the role. Common gaps include focusing only on product backlogs, acting as a proxy for product decisions, and ignoring the need for key performance indicators (KPIs) and analytics in both planning and value realization. 'Product Owner Capabilities': 'Vision', 'Leadership', 'Product Lifecycle Management', 'Value Realization'.
    Vision
    • Market Analysis
    • Business Alignment
    • Product Roadmap
    		 Leadership
    • Soft Skills
    • Collaboration
    • Decision Making
    		 Product Lifecycle Management
    • Plan
    • Build
    • Run
    		 Value Realization
    • KPIs
    • Financial Management
    • Business Model

    Details on product ownership capabilities can be found in the appendix.

    Exercise 1.3.1 Identify product ownership capabilities

    60 minutes

    Output: Product owner capability mapping

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Write down the capabilities product owners need to perform their duties (one per sticky note) in order to describe product ownership in your organization. Consider people, processes, and tools.
    2. Mark each capability with a plus (current capability), circle (some proficiency), or dash (missing capability).
    3. Discuss each capability and place on the appropriate quadrant.

    'Product Owner Capabilities': 'Vision', 'Leadership', 'Product Lifecycle Management', 'Value Realization'.

    Record the results in the Make the Case for Product Delivery Workbook.

    Differentiate between product owners and product managers

    Product Owner (Tactical Focus)
    • Backlog management and prioritization
    • Epic/story definition, refinement in conjunction with business stakeholders
    • Sprint planning with Scrum Master
    • Working with Scrum Master to minimize disruption to team velocity
    • Ensuring alignment between business and Scrum teams during sprints
    • Profit and loss (P&L) product analysis and monitoring
    		 Product Manager (Strategic Focus)
    • Product strategy, positioning, and messaging
    • Product vision and product roadmap
    • Competitive analysis and positioning
    • New product innovation/definition
    • Release timing and focus (release themes)
    • Ongoing optimization of product-related marketing and sales activities
    • P&L product analysis and monitoring

    Info-Tech Insight

    “Product owner” and “product manager” are terms that should be adapted to fit your culture and product hierarchy. These are not management relationships but rather a way to structure related products and services that touch the same end users.

    Step 1.4

    Communicate what comes next

    Activities
    • 1.4.1 How do we get started?

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A now, next, later roadmap indicating your overall next steps.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Make a plan in order to make a plan!

    Consider some of the techniques you can use to validate your strategy.

    		 Cyclical diagram of the 'Continuous Delivery of Value' within 'Business Value'. Surrounding attributes are 'User Centric', 'Adaptable', 'Accessible', 'Private & Secured', 'Informative & Insightful', 'Seamless Application Connection', 'Relationship & Network Building', 'Fit for Purpose'.

    Go to your backlog and prioritize the elements that need to be answered sooner rather than later.

    Possible areas of focus:

    • Regulatory requirements or questions to answer around accessibility, security, privacy.
    • Stress testing any new processes against situations that may occur.
    Learning Milestones

    The completion of a set of artifacts dedicated to validating business opportunities and hypotheses.

    Possible areas of focus:

    • Align teams on product strategy prior to build
    • Market research and analysis
    • Dedicated feedback sessions
    • Provide information on feature requirements
    Stock image of people learning.    		 Sprint Zero (AKA Project-before-the-project)

    The completion of a set of key planning activities, typically the first sprint.

    Possible areas of focus:

    • Focus on technical verification to enable product development alignment
    • Sign off on architectural questions or concerns
    Stock photo of a person writing on a board of sticky notes.

    The “Now, Next, Later” roadmap

    Use this when deadlines and delivery dates are not strict. This is best suited for brainstorming a product plan when dependency mapping is not required.

    • Now
      What are you going to do now?
    • Next
      What are you going to do very soon?
    • Later
      What are you going to do in the future?
    		 A priority map laid out as a half rainbow with 'Now' as the inner, 'Next' as the middle, and 'Later' as the outer. Various 'Features', 'Releases', and an 'MVP' are mapped into the sections.
    (Source: “Tips for Agile product roadmaps & product roadmap examples,” Scrum.org, 2017)

    Exercise 1.4.1 How do we get started?

    30-60 minutes

    Output: Product transformation critical steps and basic roadmap

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify what the critical steps are for the organization to embrace product-centric delivery.
    2. Group each critical step by how soon you need to address it:
      • Now: Let’s do this ASAP.
      • Next: Sometime very soon, let’s do these things.
      • Later: Much further off in the distance, let’s consider these things.
    		 A priority map laid out as a half rainbow with 'Now' as the inner, 'Next' as the middle, and 'Later' as the outer. Various 'Features', 'Releases', and an 'MVP' are mapped into the sections.
    (Source: “Tips for Agile product roadmaps & product roadmap examples,” Scrum.org, 2017)

    Record the results in the Make the Case for Product Delivery Workbook.

    Example

    Example table for listing tasks to complete Now, Next, or Later

    Step 1.5

    Make the case to your stakeholders

    Activities
    • 1.5.1 Identify what support you need from your stakeholders
    • 1.5.2 Build your pitch for product delivery

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A deliverable that helps make the case for product delivery.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Develop a stakeholder strategy to define your product owner landscape

    Stakeholder Influence

    Stakeholders are a critical cornerstone to product ownership. They provide the context, alignment, and constraints that influence or control what a product owner is able to accomplish.

    Product teams operate within this network of stakeholders who represent different perspectives within the organization.

    See the appendix for activities and guidance on how to devise a strategy for managing stakeholders.

    		 Image of four puzzle pieces being put together, labelled 'Product Lifecycle', 'Project Delivery', 'Operational Support', 'and Stakeholder Management'.

    Exercise 1.5.1 Identify what support you need from your stakeholders

    30 minutes

    Output: Clear understanding of stakeholders, what they need from you, and what you need from them.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. If you don’t yet know who your stakeholders are, consider completing one or more of the stakeholder management exercises in the appendix.
    2. Identify your key stakeholders who have an interest in solution delivery.
    3. Consider their perspective on product-centric delivery. (For example: For head of support, what does solution delivery mean to them?)
    4. Identify what role each stakeholder would play in the transformation.
      • This role represents what you need from them for this transformation to product-centric delivery.
    Stakeholder
    		What does solution delivery mean to them?
    		What do you need from them in order to be successful?

    Record the results in the Make the Case for Product Delivery Workbook.

    Exercise 1.5.2 Build your pitch deck

    30 minutes (and up)

    Output: A completed presentation to help you make the case for product delivery.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Take the results from the Make the Case for Product Delivery Workbook and transfer them into the presentation template.
    2. Follow the instructions on each page listed in the instruction bubbles to know what results to place where.
    3. This is meant to be a template; you are welcome to add and remove slides as needed to suit your audience!

    Sample of slides from the Make the Case for Product Delivery Workbook with instruction bubbles overlaid.

    Record the results in the Make the Case for Product Delivery Workbook.

    Appendix

    Additional research to start your journey

    Related Info-Tech Research

    Product Delivery

    Deliver on Your Digital Product Vision

    • Build a product vision your organization can take from strategy through execution.

    Build a Better Product Owner

    • Strengthen the product owner role in your organization by focusing on core capabilities and proper alignment.

    Build Your Agile Acceleration Roadmap

    • Quickly assess the state of your Agile readiness and plan your path forward to higher value realization.

    Implement Agile Practices That Work

    • Improve collaboration and transparency with the business to minimize project failure.

    Implement DevOps Practices That Work

    • Streamline business value delivery through the strategic adoption of DevOps practices.

    Deliver Digital Products at Scale

    • Deliver value at the scale of your organization through defining enterprise product families.

    Extend Agile Practices Beyond IT

    • Further the benefits of Agile by extending a scaled Agile framework to the business.

    Build Your BizDevOps Playbook

    • Embrace a team sport culture built around continuous business-IT collaboration to deliver great products.

    Embed Security Into the DevOps Pipeline

    • Shift security left to get into DevSecOps.

    Spread Best Practices With an Agile Center of Excellence

    • Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Application Portfolio Management

    Application Portfolio Management (APM) Research Center

    • See an overview of the APM journey and how we can support the pieces in this journey.

    Application Portfolio Management for Small Enterprises

    • There is no one-size-fits-all rationalization. Tailor your framework to meet your goals.

    Streamline Application Maintenance

    • Effective maintenance ensures the long-term value of your applications.

    Build an Application Rationalization Framework

    • Manage your application portfolio to minimize risk and maximize value.

    Modernize Your Applications

    • Justify modernizing your application portfolio from both business and technical perspectives.

    Review Your Application Strategy

    • Ensure your applications enable your business strategy.

    Application Portfolio Management Foundations

    • Ensure your application portfolio delivers the best possible return on investment.

    Streamline Application Management

    • Move beyond maintenance to ensuring exceptional value from your apps.

    Optimize Applications Release Management

    • Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Embrace Business-Managed Applications

    • Empower the business to implement their own applications with a trusted business-IT relationship.

    Related Info-Tech Research

    Value, Delivery Metrics, Estimation

    Build a Value Measurement Framework

    • Focus product delivery on business value–driven outcomes.

    Select and Use SDLC Metrics Effectively

    • Be careful what you ask for, because you will probably get it.

    Application Portfolio Assessment: End User Feedback

    • Develop data-driven insights to help you decide which applications to retire, upgrade, re-train on, or maintain to meet the demands of the business.

    Create a Holistic IT Dashboard

    • Mature your IT department by measuring what matters.

    Refine Your Estimation Practices With Top-Down Allocations

    • Don’t let bad estimates ruin good work.

    Estimate Software Delivery With Confidence

    • Commit to achievable software releases by grounding realistic expectations

    Reduce Time to Consensus With an Accelerated Business Case

    • Expand on the financial model to give your initiative momentum.

    Optimize IT Project Intake, Approval, and Prioritization

    • Deliver more projects by giving yourself the voice to say “no” or “not yet” to new projects.

    Enhance PPM Dashboards and Reports

    • Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Org Design and Performance

    Redesign Your IT Organizational Structure

    • Focus product delivery on business value–driven outcomes.

    Build a Strategic IT Workforce Plan

    • Have the right people, in the right place, at the right time.

    Implement a New IT Organizational Structure

    • Reorganizations are inherently disruptive. Implement your new structure with minimal pain for staff while maintaining IT performance throughout the change.

    Build an IT Employee Engagement Program

    • Measure employee sentiment to drive IT performance

    Set Meaningful Employee Performance Measures

    • Set holistic measures to inspire employee performance.

    Master Organizational Change Management Practices

    • PMOs, if you don't know who is responsible for org change, it's you.

    Appendix

    Product delivery strategy communication

    Product roadmaps guide delivery and communicate your strategy

    In Deliver on Your Digital Product Vision, we demonstrate how the product roadmap is core to value realization. The product roadmap is your communicated path, and as a product owner, you use it to align teams and changes to your defined goals while aligning your product to enterprise goals and strategy.

    Diagram on how to get from product owner capabilities to 'Business Value Realization' through 'Product Roadmap' with a 'Tiered Backlog', 'Delivery Capacity and Throughput' via a 'Product Delivery Pipeline'.
    (Adapted from: Pichler, “What Is Product Management?”)

    Info-Tech Insight

    The quality of your product backlog – and your ability to realize business value from your delivery pipeline – is directly related to the input, content, and prioritization of items in your product roadmap.

    Define product value by aligning backlog delivery with roadmap goals

    In each product plan, the backlogs show what you will deliver.
    Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    Two-part diagram showing the 'Product Backlog' segmented into '1. Current: Features/ Stories', '2. Near-term: Capabilities', and '3. Future: Epics', and then the 'Product Roadmap' with the same segments placed into a timeline.

    Multiple roadmap views can communicate differently, yet tell the same truth

    Product managers and product owners have many responsibilities, and a roadmap can be a useful tool to complete those objectives through communication or organization of tasks.

    However, not all roadmaps address the correct audience and achieve those objectives. Care must be taken to align the view to the given audience.

    Pie Chart showing the surveyed most important reason for using a product roadmap. From largest to smallest are 'Communicate a strategy', 'Plan and prioritize', 'Communicate milestones and releases', 'Get consensus on product direction', and 'Manage product backlog'.
    Surveyed most important reason for using a product roadmap (Source: ProductPlan, 2018)
    Audience
    		 Business/ IT leaders Users/Customers Delivery teams
    Roadmap View
    		 Portfolio Product Technology
    Objectives
    		 To provide a snapshot of the portfolio and priority apps To visualize and validate product strategy To coordinate and manage teams and show dev. progress
    Artifacts
    		 Line items or sections of the roadmap are made up of individual apps, and an artifact represents a disposition at its highest level. Artifacts are generally grouped by various product teams and consist of strategic goals and the features that realize those goals. Artifacts are grouped by the teams who deliver that work and consist of features and technical enablers that support those features.

    Appendix

    Managing stakeholder influence

    From Build a Better Product Owner

    Step 1.3 (from Build a Better Product Owner)

    Manage Stakeholder Influence

    Activities
    • 1.3.1 Visualize interrelationships to identify key influencers
    • 1.3.2 Group your product owners into categories
    • 1.3.3 Prioritize your stakeholders
    • 1.3.4 Delegation Poker: Reach better decisions

    This step will walk you through the following activities:

    To be successful, product owners need to identify and manage all stakeholders for their products. This step will build a stakeholder map and strategy.

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Outcomes of this step

    • Relationships among stakeholders and influencers
    • Categorization of stakeholders and influencers
    • Stakeholder and influencer prioritization
    • Better understanding of decision-making approaches and delegation
    Product Owner Foundations
    Step 1.1 Step 1.2 Step 1.3

    Develop a product owner stakeholder strategy

    Stakeholder Influence

    Stakeholders are a critical cornerstone to product ownership. They provide the context, alignment, and constraints that influence or control what a product owner is able to accomplish.

    Product owners operate within this network of stakeholders who represent different perspectives within the organization.

    First, product owners must identify members of their stakeholder network. Next, they should devise a strategy for managing stakeholders.

    Without accomplishing these missing pieces, product owners will encounter obstacles, resistance, or unexpected changes.

    		Image of four puzzle pieces being put together, labelled 'Product Lifecycle', 'Project Delivery', 'Operational Support', 'and Stakeholder Management'.

    Create a stakeholder network map to product roadmaps and prioritization

    Follow the trail of breadcrumbs from your direct stakeholders to their influencers to uncover hidden stakeholders.

    Legend
    Black arrow with a solid line and single direction. Black arrows indicate the direction of professional influence
    Green arrow with a dashed line and bi-directional. Dashed green arrows indicate bidirectional, informal influence relationships

    Info-Tech Insight

    Your stakeholder map defines the influence landscape your product operates in. It is every bit as important as the teams who enhance, support, and operate your product directly.

    Use “connectors” to determine who may be influencing your direct stakeholders. They may not have any formal authority within the organization, but they may have informal yet substantive relationships with your stakeholders.

    1.3.1 Visualize interrelationships to identify key influencers

    60 minutes

    Input: List of product stakeholders

    Output: Relationships among stakeholders and influencers

    Materials: Whiteboard/flip charts, Markers, Build a Better Product Owner Workbook

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. List direct stakeholders for your product.
    2. Determine the stakeholders of your stakeholders and consider adding each of them to the stakeholder list.
    3. Assess who has either formal or informal influence over your stakeholders; add these influencers to your stakeholder list.
    4. Construct a diagram linking stakeholders and their influencers together.
      1. Use black arrows to indicate the direction of professional influence.
      2. Use dashed green arrows to indicate bidirectional, informal influence relationships.
    5. Record the results in the Build a Better Product Owner Workbook.

    Record the results in the Build a Better Product Owner Workbook.

    Categorize your stakeholders with a prioritization map

    A stakeholder prioritization map helps product owners categorize their stakeholders by their level or influence and ownership in the product and/or teams.

    Stakeholder prioritization map split into four quadrants along two axes, 'Influence', and 'Ownership/Interest': 'Players' (high influence, high interest); 'Mediators' (high influence, low interest); 'Noisemakers' (low influence, high interest); 'Spectators' (low influence, low interest). Source: Info-Tech Research Group

    		 There are four areas in the map, and the stakeholders within each area should be treated differently.
    • Players – players have a high interest in the initiative and the influence to effect change over the initiative. Their support is critical, and a lack of support can cause significant impediment to the objectives.
    • Mediators – mediators have a low interest but significant influence over the initiative. They can help to provide balance and objective opinions to issues that arise.
    • Noisemakers – noisemakers have low influence but high interest. They tend to be very vocal and engaged, either positively or negatively, but have little ability to enact their wishes.
    • Spectators – generally, spectators are apathetic and have little influence over or interest in the initiative.

    1.3.2 Group your product owners into categories

    30 minutes

    Input: Stakeholder map

    Output: Categorization of stakeholders and influencers

    Materials: Whiteboard/flip charts, Markers, Build a Better Product Owner Workbook

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify your stakeholder’s interest in and influence on your Agile implementation as high, medium, or low by rating the attributes below.
    2. Map your results to the model below to determine each stakeholder’s category.
    3. Record the results in the Build a Better Product Owner Workbook.
    		 Same stakeholder prioritization map as before but with example positions mapped onto it.
    Level of Influence
    • Power: Ability of a stakeholder to effect change.
    • Urgency: Degree of immediacy demanded.
    • Legitimacy: Perceived validity of stakeholder’s claim.
    • Volume: How loud their “voice” is or could become.
    • Contribution: What they have that is of value to you.
    		 Level of Interest

    How much are the stakeholder’s individual performance and goals directly tied to the success or failure of the product?

    Record the results in the Build a Better Product Owner Workbook.

    Prioritize your stakeholders

    There may be too many stakeholders to be able to manage them all. Focus your attention on the stakeholders that matter most.

    Stakeholder prioritization table with 'Stakeholder Category' as row headers ('Player', 'Mediator', 'Noisemaker', 'Spectator') and 'Level of Support' as column headers ('Supporter', 'Evangelist', 'Neutral', 'Blocker'). Importance ratings are 'Critical', 'High', 'Medium', 'Low', and 'Irrelevant'.

    Consider the three dimensions for stakeholder prioritization: influence, interest, and support. Support can be determined by rating the following question: how likely is it that your stakeholder would recommend your product? These parameters are used to prioritize which stakeholders are most important and should receive the focus of your attention. The table to the right indicates how stakeholders are ranked.

    1.3.3 Prioritize your stakeholders

    30 minutes

    Input: Stakeholder matrix, Stakeholder prioritization

    Output: Stakeholder and influencer prioritization

    Materials: Whiteboard/flip charts, Markers, Build a Better Product Owner Workbook

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify the level of support of each stakeholder by answering the following question: how likely is it that your stakeholder would endorse your product?
    2. Prioritize your stakeholders using the prioritization scheme on the previous slide.
    3. Record the results in the Build a Better Product Owner Workbook.
    Stakeholder Category Level of Support Prioritization
    CMO Spectator Neutral Irrelevant
    CIO Player Supporter Critical

    Record the results in the Build a Better Product Owner Workbook.

    Define strategies for engaging stakeholders by type

    Stakeholder strategy map assigning stakeholder strategies to stakeholder categories, as described in the adjacent table.

    Info-Tech Insight

    Each group of stakeholders draws attention and resources away from critical tasks. By properly identifying your stakeholder groups, the product owner can develop corresponding actions to manage stakeholders in each group. This can dramatically reduce wasted effort trying to satisfy Spectators and Noisemakers, while ensuring the needs of the Mediators and Players are met.

    Type Quadrant Actions
    Players High influence; high interest – actively engage Keep them updated on the progress of the project. Continuously involve Players in the process and maintain their engagement and interest by demonstrating their value to its success.
    Mediators High influence; low interest – keep satisfied They can be the game changers in groups of stakeholders. Turn them into supporters by gaining their confidence and trust and including them in important decision-making steps. In turn, they can help you influence other stakeholders.
    Noisemakers Low influence; high interest – keep informed Try to increase their influence (or decrease it if they are detractors) by providing them with key information, supporting them in meetings, and using Mediators to help them.
    Spectators Low influence; low interest – monitor They are followers. Keep them in the loop by providing clarity on objectives and status updates.

    Appendix

    Product owner capability details

    From Build a Better Product Owner

    Develop product owner capabilities

    Capability 'Vision' with sub-capabilities 'Market Analysis, 'Business Alignment', and 'Product Roadmap'.

    Each capability has three components needed for successful product ownership.

    Definitions are on the following slides.

    Central diagram title 'Product Owner Capabilities'.

    Define the skills and activities in each component that are directly related to your product and culture.

    		 Capability 'Leadership' with sub-capabilities 'Soft Skills', 'Collaboration', and 'Decision Making'.
    Capability 'Product Lifecycle Management' with sub- capabilities 'Plan', 'Build', and 'Run'. Capability 'Value Realization' with sub-capabilities 'KPIs', 'Financial Management', and 'Business Model'.

    Capabilities: Vision

    Market Analysis

    • Unique solution: Identify the target users and unique value your product provides that is not currently being met.
    • Market size: Define the size of your user base, segmentation, and potential growth.
    • Competitive analysis: Determine alternative solutions, products, or threats that affect adoption, usage, and retention.

    Business Alignment

    • SWOT analysis: Complete a SWOT analysis for your end-to-end product lifecycle. Use Info-Tech’s Business SWOT Analysis Template.
    • Enterprise alignment: Align product to enterprise goals, strategies, and constraints.
    • Delivery strategy: Develop a delivery strategy to achieve value quickly and adapt to internal and external changes.

    Product Roadmap

    • Roadmap strategy: Determine the duration, detail, and structure of your roadmap to accurately communicate your vision.
    • Value prioritization: Define criteria used to evaluate and sequence demand.
    • Go to market strategy: Create organizational change management, communications, and a user implementation approach.

    Info-Tech Insight

    Data comes from many places and may still not tell the complete story.

    Capability 'Vision' with sub-capabilities 'Market Analysis, 'Business Alignment', and 'Product Roadmap'.

    “Customers are best heard through many ears.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Capabilities: Leadership

    Soft Skills

    • Communication: Maintain consistent, concise, and appropriate communication using SMART guidelines (specific, measurable, attainable, relevant, and timely).
    • Integrity: Stick to your values, principles, and decision criteria for the product to build and maintain trust with your users and teams.
    • Influence: Manage stakeholders using influence and collaboration over contract negotiation.

    Collaboration

    • Stakeholder management: Build a communications strategy for each stakeholder group, tailored to individual stakeholders.
    • Relationship management: Use every interaction point to strengthen relationships, build trust, and empower teams.
    • Team development: Promote development through stretch goals and controlled risks to build team capabilities and performance.

    Decision Making

    • Prioritized criteria: Remove personal bias by basing decisions off data analysis and criteria.
    • Continuous improvement: Balance new features with the need to ensure quality and create an environment of continuous improvement.
    • Team empowerment/negotiation: Push decisions to teams closest to the problem and solution, using Delegation Poker to guide you.

    Info-Tech Insight

    Product owners cannot be just a proxy for stakeholder decisions. The product owner owns product decisions and management of all stakeholders.

    Capability 'Leadership' with sub-capabilities 'Soft Skills', 'Collaboration', and 'Decision Making'.

    “Everything walks the walk. Everything talks the talk.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Capabilities: Product lifecycle management

    Plan

    • Product backlog: Follow a schedule for backlog intake, refinement, updates, and prioritization.
    • Journey map: Create an end-user journey map to guide adoption and loyalty.
    • Fit for purpose: Define expected value and intended use to ensure the product meets your end user’s needs.

    Build

    • Capacity management: Work with operations and delivery teams to ensure consistent and stable outcomes.
    • Release strategy: Build learning, release, and critical milestones into a repeatable release plan.
    • Compliance: Build policy compliance into delivery practices to ensure alignment and reduce avoidable risk (privacy, security).

    Run

    • Adoption: Focus attention on end-user adoption and proficiency to accelerate value and maximize retention.
    • Support: Build operational support and business continuity into every team.
    • Measure: Measure KPIs and validate expected value to ensure product alignment to goals and consistent product quality.

    Info-Tech Insight

    Product owners must actively manage the full lifecycle of the product.

    Capability 'Product Lifecycle Management' with sub- capabilities 'Plan', 'Build', and 'Run'.

    “Pay fantastic attention to detail. Reward, recognize, celebrate.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Capabilities: Value realization

    Key Performance Indicators (KPIs)

    • Usability and user satisfaction: Assess satisfaction through usage monitoring and end-user feedback.
    • Value validation: Directly measure performance against defined value proposition, goals, and predicted ROI.
    • Fit for purpose: Verify the product addresses the intended purpose better than other options.

    Financial Management

    • P&L: Manage each product as if it were its own business with profit and loss statements.
    • Acquisition cost/market growth: Define the cost of acquiring a new consumer, onboarding internal users, and increasing product usage.
    • User retention/market share: Verify product usage continues after adoption and solution reaches new user groups to increase value.

    Business Model

    • Defines value proposition: Dedicate your primary focus to understanding and defining the value your product will deliver.
    • Market strategy and goals: Define your acquisition, adoption, and retention plan for users.
    • Financial model: Build an end-to-end financial model and plan for the product and all related operational support.

    Info-Tech Insight

    Most organizations stop with on-time and on-budget. True financial alignment needs to define and manage the full lifecycle P&L.

    Capability 'Value Realization' with sub-capabilities 'KPIs', 'Financial Management', and 'Business Model'.

    “The competition is anyone the customer compares you with.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Avoid common capability gaps

    Vision

    • Focusing solely on backlog refining (tactical only)
    • Ignoring or failing to align product roadmap to enterprise goals
    • Operational support and execution
    • Basing decisions on opinion rather than market data
    • Ignoring or missing internal and external threats to your product

    Leadership

    • Failing to include feedback from all teams who interact with your product
    • Using a command-and-control approach
    • Viewing product owner as only a delivery role
    • Acting as a proxy for stakeholder decisions
    • Avoiding tough strategic decisions in favor of easier tactical choices

    Product Lifecycle Management

    • Focusing on delivery and not the full product lifecycle
    • Ignoring support, operations, and technical debt
    • Failing to build knowledge management into the lifecycle
    • Underestimating delivery capacity, capabilities, or commitment
    • Assuming delivery stops at implementation

    Value Realization

    • Focusing exclusively on “on time/on budget” metrics
    • Failing to measure a 360-degree end-user view of the product
    • Skipping business plans and financial models
    • Limiting financial management to project/change budgets
    • Ignoring market analysis for growth, penetration, and threats

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    Kendis Team. “Exploring Key Elements of Spotify’s Agile Scaling Model.” Medium.com, 23 July 2018. Web.

    Lindstrom, Lowell. “7 Skills You Need to Be a Great Product Owner.” Scrum Alliance, n.d. Web.

    Lukassen, Chris. “The Five Belts Of The Product Owner.” Xebia.com, 20 Sept. 2016. Web.

    Management 3.0. “Delegation Poker Product Image.” Management 3.0, n.d. Web.

    McCloskey, Heather. “Scaling Product Management: Secrets to Defeating Common Challenges.” ProductPlan, 12 July 2019. Web.

    Bibliography – Product Ownership

    McCloskey, Heather. “When and How to Scale Your Product Team.” UserVoice, 21 Feb. 2017. Web.

    Mironov, Rich. “Scaling Up Product Manager/Owner Teams: Rich Mironov's Product Bytes.” Rich Mironov's Product Bytes, Mironov Consulting, 12 April 2014 . Web.

    Overeem, Barry. “A Product Owner Self-Assessment.” Barry Overeem, 6 March 2017. Web.

    Overeem, Barry. “Retrospective: Using the Team Radar.” Barry Overeem, 27 Feb. 2017. Web.

    Pichler, Roman. “How to Scale the Scrum Product Owner.” Roman Pichler, 28 June 2016 . Web.

    Pichler, Roman. “Product Management Framework.” Pichler Consulting Limited, 2014. Web.

    Pichler, Roman. “Sprint Planning Tips for Product Owners.” LinkedIn, 4 Sept. 2018. Web.

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    Radigan, Dan. “Putting the ‘Flow' Back in Workflow With WIP Limits.” Atlassian, n.d. Web.

    Schuurman, Robbin. “10 Tips for Product Owners on Agile Product Management.” Scrum.org, 28 Nov. 2017. Web.

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    Schuurman, Robbin. “10 Tips for Product Owners on Product Backlog Management.” Scrum.org, 5 Dec. 2017. Web.

    Schuurman, Robbin. “10 Tips for Product Owners on the Product Vision.” Scrum.org, 29 Nov. 2017. Web.

    Schuurman, Robbin. “Tips for Starting Product Owners.” Scrum.org, 27 Nov. 2017. Web.

    Sharma, Rohit. “Scaling Product Teams the Structured Way.” Monetary Musings, 28 Nov. 2016. Web.

    Bibliography – Product Ownership

    Steiner, Anne. “Start to Scale Your Product Management: Multiple Teams Working on Single Product.” Cprime, 6 Aug. 2019. Web.

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    Bibliography – Product Roadmap

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    Research Contributors and Experts

    Photo of Emily Archer, Lead Business Analyst, Enterprise Consulting, authentic digital agency.

    Emily Archer
    Lead Business Analyst,
    Enterprise Consulting, authentic digital agency

    Emily Archer is a consultant currently working with Fortune 500 clients to ensure the delivery of successful projects, products, and processes. She helps increase the business value returned for organizations’ investments in designing and implementing enterprise content hubs and content operations, custom web applications, digital marketing, and e-commerce platforms.

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    David Berg
    Founder & CTO
    Strainprint Technologies Inc.

    David Berg is a product commercialization expert that has spent the last 20 years of his career delivering product management and business development services across a broad range of industries. Early in his career, David worked with product management and engineering teams to build core network infrastructure products that secure and power the internet we benefit from today. David’s experience also includes working with clean technologies in the area of clean power generation, agritech, and Internet of Things infrastructure. Over the last five years, David has been focused on his latest venture, Strainprint Technologies, a data and analytics company focused on the medical cannabis industry. Strainprint has built the largest longitudinal medical cannabis dataset in the world with the goal to develop an understanding of treatment behavior, interactions, and chemical drivers to guide future product development.

    Research Contributors and Experts

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    Kathy Borneman
    Digital Product Owner, SunTrust Bank

    Kathy Borneman is a senior product owner who helps people enjoy their jobs again by engaging others in end-to-end decision making to deliver software and operational solutions that enhance the client experience and allow people to think and act strategically.

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    Charlie Campbell
    Product Owner, Merchant e-Solutions

    Charlie Campbell is an experienced problem solver with the ability to quickly dissect situations and recommend immediate actions to achieve resolution, liaise between technical and functional personnel to bridge the technology and communication gap, and work with diverse teams and resources to reach a common goal.

    Research Contributors and Experts

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    Yarrow Diamond
    Sr. Director, Business Architecture
    Financial Services

    Yarrow Diamond is an experienced professional with expertise in enterprise strategy development, project portfolio management, and business process reengineering across financial services, healthcare and insurance, hospitality, and real estate environments. She has a master’s in Enterprise Architecture from Penn State University, LSSMBB, PMP, CSM, ITILv3.

    		 Photo of Cari J. Faanes-Blakey, CBAP, PMI-PBA, Enterprise Business Systems Analyst, Vertex, Inc.

    Cari J. Faanes-Blakey, CBAP, PMI-PBA
    Enterprise Business Systems Analyst,
    Vertex, Inc.

    Cari J. Faanes-Blakey has a history in software development and implementation as a Business Analyst and Project Manager for financial and taxation software vendors. Active in the International Institute of Business Analysis (IIBA), Cari participated on the writing team for the BA Body of Knowledge 3.0 and the certification exam.

    Research Contributors and Experts

    Photo of Kieran Gobey, Senior Consultant Professional Services, Blueprint Software Systems.

    Kieran Gobey
    Senior Consultant Professional Services
    Blueprint Software Systems

    Kieran Gobey is an IT professional with 24 years of experience, focused on business, technology, and systems analysis. He has split his career between external and internal customer-facing roles, and this has resulted in a true understanding of what is required to be a Professional Services Consultant. His problem-solving skills and ability to mentor others have resulted in successful software implementations.

    Kieran’s specialties include deep system troubleshooting and analysis skills, facilitating communications to bring together participants effectively, mentoring, leadership, and organizational skills.

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    Rupert Kainzbauer
    VP Product, Digital Wallets
    Paysafe Group

    Rupert Kainzbauer is an experienced senior leader with a passion for defining and delivering products that deliver real customer and commercial benefit. Together with a team of highly experienced and motivated product managers, he has successfully led highly complex, multi-stakeholder payments initiatives, from proposition development and solution design through to market delivery. Their domain experience is in building online payment products in high-risk and emerging markets, remittance, prepaid cards, and mobile applications.

    Research Contributors and Experts

    Photo of Saeed Khan, Founder, Transformation Labs.

    Saeed Khan
    Founder,
    Transformation Labs

    Saeed Khan has been working in high tech for 30 years in both Canada and the US and has held a number of leadership roles in Product Management over that time. He speaks regularly at conferences and has been writing publicly about technology product management since 2005.

    Through Transformation Labs, Saeed helps companies accelerate product success by working with product teams to improve their skills, practices, and processes. He is a cofounder of ProductCamp Toronto and currently runs a Meetup group and global Slack community called Product Leaders, the only global community of senior-level product executives.

    		 Photo of Hoi Kun Lo, Product Owner, Nielsen.

    Hoi Kun Lo
    Product Owner
    Nielsen

    Hoi Kun Lo is an experienced change agent who can be found actively participating within the IIBA and WITI groups in Tampa, FL, and a champion for Agile, architecture, diversity, and inclusion programs at Nielsen. She is currently a Product Owner in the Digital Strategy team within Nielsen Global Watch Technology.

    Research Contributors and Experts

    Photo of Abhishek Mathur, Sr Director, Product Management, Kasisto, Inc.

    Abhishek Mathur
    Sr Director, Product Management
    Kasisto, Inc.

    Abhishek Mathur is a product management leader, an artificial intelligence practitioner, and an educator. He has led product management and engineering teams at Clarifai, IBM, and Kasisto to build a variety of artificial intelligence applications within the space of computer vision, natural language processing, and recommendation systems. Abhishek enjoys having deep conversations about the future of technology and helping aspiring product managers enter and accelerate their careers.

    		 Photo of Jeff Meister, Technology Advisor and Product Leader.

    Jeff Meister
    Technology Advisor and Product Leader

    Jeff Meister is a technology advisor and product leader. He has more than 20 years of experience building and operating software products and the teams that build them. He has built products across a wide range of industries and has built and led large engineering, design, and product organizations.

    Jeff most recently served as Senior Director of Product Management at Avanade, where he built and led the product management practice. This involved hiring and leading product managers, defining product management processes, solution shaping and engagement execution, and evangelizing the discipline through pitches, presentations, and speaking engagements.

    Jeff holds a Bachelor of Applied Science (Electrical Engineering) and a Bachelor of Arts from the University of Waterloo, an MBA from INSEAD (Strategy), and certifications in product management, project management, and design thinking.

    Research Contributors and Experts

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    Vincent Mirabelli
    Principal,
    Global Project Synergy Group

    With over 10 years of experience in both the private and public sectors, Vincent Mirabelli possesses an impressive track record of improving, informing, and transforming business strategy and operations through process improvement, design and re-engineering, and the application of quality to business analysis, project management, and process improvement standards.

    		 Photo of Oz Nazili, VP, Product & Growth, TWG.

    Oz Nazili
    VP, Product & Growth
    TWG

    Oz Nazili is a product leader with a decade of experience in both building products and product teams. Having spent time at funded startups and large enterprises, he thinks often about the most effective way to deliver value to users. His core areas of interest include Lean MVP development and data-driven product growth.

    Research Contributors and Experts

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    Mark Pearson
    Principal IT Architect
    First Data Corporation

    Mark Pearson is an executive business leader grounded in the process, data, technology, and operations of software-driven business. He knows the enterprise software landscape and is skilled in product, technology, and operations design and delivery within information technology organizations, outsourcing firms, and software product companies.

    		 Photo of Brenda Peshak, Product Owner, Widget Industries, LLC.

    Brenda Peshak
    Product Owner,
    Widget Industries, LLC

    Brenda Peshak is skilled in business process, analytical skills, Microsoft Office Suite, communication, and customer relationship management (CRM). She is a strong product management professional with a Master’s focused in Business Leadership (MBL) from William Penn University.

    Research Contributors and Experts

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    Mike Starkey
    Director of Engineering
    W.W. Grainger

    Mike Starkey is a Director of Engineering at W.W. Grainger, currently focusing on operating model development, digital architecture, and building enterprise software. Prior to joining W.W. Grainger, Mike held a variety of technology consulting roles throughout the system delivery lifecycle spanning multiple industries such as healthcare, retail, manufacturing, and utilities with Fortune 500 companies.

    		 Photo of Anant Tailor, Cofounder & Head of Product, Dream Payments Corp.

    Anant Tailor
    Cofounder & Head of Product
    Dream Payments Corp.

    Anant Tailor is a cofounder at Dream Payments where he currently serves as the COO and Head of Product, having responsibility for Product Strategy & Development, Client Delivery, Compliance, and Operations. He has 20+ years of experience building and operating organizations that deliver software products and solutions for consumers and businesses of varying sizes.

    Prior to founding Dream Payments, Anant was the COO and Director of Client Services at DonRiver Inc, a technology strategy and software consultancy that he helped to build and scale into a global company with 100+ employees operating in seven countries.

    Anant is a Professional Engineer with a Bachelor’s degree in Electrical Engineering from McMaster University and a certificate in Product Strategy & Management from the Kellogg School of Management at Northwestern University.

    Research Contributors and Experts

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    Angela Weller
    Scrum Master, Businessolver

    Angela Weller is an experienced Agile business analyst who collaborates with key stakeholders to attain their goals and contributes to the achievement of the company’s strategic objectives to ensure a competitive advantage. She excels when mediating or facilitating teams.

    Enterprise Storage Solution Considerations

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    • Parent Category Name: Storage & Backup Optimization
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    • Enterprise storage technology and options are challenging to understand.
    • There are so many options. How do you decide what the best solution is for your storage challenge??
    • Where do you start when trying to solve your enterprise storage challenge?

    Our Advice

    Critical Insight

    Take the time to understand the various data storage formats, disk types, and associated technology, as well as the cloud-based and on-premises options. This will help you select the right tool for your needs.

    Impact and Result

    Look to existing use cases based on actual Info-Tech analyst calls to help in your decision-making process.

    Enterprise Storage Solution Considerations Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Enterprise Storage Solution Considerations – Narrow your focus with the right product type and realize efficiencies.

    Explore the building blocks of enterprise storage so you can select the best solution, narrow your focus with the correct product type, explore the features that should be considered when evaluating enterprise storage offerings, and examine use cases based on actual Info-Tech analyst calls to find a storage solution for your situation.

    • Enterprise Storage Solution Considerations Storyboard

    2. Modernize Enterprise Storage Workbook – Understand your data requirements.

    The first step in solving your enterprise storage challenge is identifying your data sources, data volumes, and growth rates. This information will give you insight into what data sources could be stored on premises or in the cloud, how much storage you will require for the coming five to ten years, and what to consider when exploring enterprise storage solutions. This tool can be a valuable asset for determining your current storage drivers and future storage needs, structuring a plan for future storage purchases, and determining timelines and total cost of ownership.

    • Modernize Enterprise Storage Workbook
    [infographic]

    Further reading

    Enterprise Storage Solution Considerations

    Narrow your focus with the right product type and realize efficiencies.

    Analyst Perspective

    The vendor landscape is continually evolving, as are the solutions they offer. The options and features are increasing and appealing.

    The image contains a picture of P.J. Ryan.

    To say that the current enterprise storage landscape looks interesting would be an understatement. The solutions offered by vendors continue to grow and evolve. Flash and NVMe are increasing the speed of storage media and reducing latency. Software-defined storage is finding the most efficient use of media to store data where it is best served while managing a variety of vendor storage and older storage area networks and network-attached storage devices.

    Storage as a service is taking on a new meaning with creative solutions that let you keep the storage appliance on premises or in a colocated data center while administration, management, and support are performed by the vendor for a nominal monthly fee.

    We cannot discuss enterprise storage without mentioning the cloud. Bring a thermometer because you must understand the difference between hot, warm, and cold storage when discussing the cloud options. Very hot and very cold may also come into play.

    Storage hardware can assume a higher total cost of ownership with support options that replace the controllers on a regular basis. The options with this type of service are also varied, but the concept of not having to replace all disks and chassis nor go through a data migration is very appealing to many companies.

    The cloud is growing in popularity when it comes to enterprise storage, but on-premises solutions are still in demand, and whether you choose cloud or on premises, you can be guaranteed an array of features and options to add stability, security, and efficiency to your enterprise storage.

    P.J. Ryan
    Research Director, Infrastructure & Operations
    Info-Tech Research Group

    Executive Summary

    Info-Tech Insight

    The vendor landscape is continually evolving, as are the solutions they offer.

    Storage providers are getting acquired by bigger players, “outside the box” thinking is disrupting the storage support marketplace, “as a service” storage offerings are evolving, and what is a data lake and do I need one? The traditional storage vendors are not alone in the market, and the solutions they offer are no longer traditional either. Explore the landscape and understand your options before you make any enterprise storage solution purchases.

    Understand the building blocks of storage so you can select the best solution.

    There are multiple storage formats for data, along with multiple hardware form factors and disk types to hold those various data formats. Software plays a significant role in many of these storage solutions, and cloud offerings take advantage of all the various formats, form factors, and disks. The challenge is matching your data type with the correct storage format and solution.

    Look to existing use cases to help in your decision-making process.

    Explore previous experiences from others by reading use cases to determine what the best solution is for your challenge. You’re probably not the first to encounter the challenge you’re facing. Another organization may have previously reached out for assistance and found a viable solution that may be just what you also need.

    Enterprise storage has evolved, with more options than ever

    Data is growing, data security will always be a concern, and vendors are providing more and more options for enterprise storage.

    “By 2025, it’s estimated that 463 exabytes of data will be created each day globally – that’s the equivalent of 212,765,957 DVDs per day!” (Visual Capitalist)

    “Modern criminal groups target not only endpoints and servers, but also central storage systems and their backup infrastructure.” (Continuity Software)

    Cloud or on premises? Maybe a hybrid approach with both cloud and on premises is best for you. Do you want to remove the headaches of storage administration, management, and support with a fully managed storage-as-a-service solution? Would you like to upgrade your controllers every three or four years without a major service interruption? The options are increasing and appealing.

    High-Level Considerations

    1. Understand Your Data

    Understand how much data you have and where it is located. This will be crucial when evaluating enterprise storage solutions.

    2. Plan for Growth

    Your enterprise storage considerations should include your data needs now and in the future.

    3. Understand the Mechanics

    Take the time to understand the various data storage formats, disk types, and associated technology, as well as the cloud-based and on-premises options. This will help you select the right tool for your needs.

    Storage formats, disk drives, and technology

    Common data storage formats, technology, and drive types are outlined below. Understanding how data is stored as well as the core building blocks for larger systems will help you decide which solution is best for your storage needs.

    Format

    What it is

    Disk Drives and Technology

    File Storage

    File storage is hierarchical storage that uses files, folders, subfolders, and directories. You enter a specific filename and path to access the file, such as P:\users\johndoe\strategy\cloud.doc. If you ever saved a file on a server, you used file storage. File storage is usually managed by some type of file manager, such as File Explorer in Windows. Network-attached storage (NAS) devices use file storage.

    Hard Disk Drives (HDD)

    HDD use a platter of spinning disks to magnetically store data. The disks are thick enough to make them rigid and are referred to as hard disks.

    HDD is older technology but is still in demand and offered by vendors.

    Object Storage

    Object storage is when data is broken into distinct units, called objects. These objects are stored in a flat, non-hierarchical structure in a single location or repository. Each object is identified by its associated ID and metadata. Objects are accessed by an application programming interface (API).

    Flash

    Flash storage uses flash memory chips to store data. The flash memory chips are written with electricity and contain no moving parts. Flash storage is very fast, which is how the technology got its name (“Flash vs. SSD Storage,” Enterprise Storage Forum, 2018).

    Block Storage

    Block storage is when data is divided up into fixed-size blocks and stored with a unique identifier. Blocks can be stored in different environments, such as Windows or Linux. Storage area networks (SANs) use block storage.

    Solid-State Drive (SSD)

    SSD is a storage mechanism that also does not use any moving parts. Most SSD drives use flash storage, but other options are available for SSD.

    Nonvolatile Memory Express (NVMe)

    NVMe is a communications standard developed specially for SSDs by a consortium of vendors including Intel, Samsung, SanDisk, Dell, and Seagate. It operates across the PCIe bus (hence the “Express” in the name), which allows the drives to act more like the fast memory that they are rather than the hard disks they imitate (PCWorld).

    Narrow your focus with the right product type

    On-premises enterprise storage solutions fit into a few distinct product types.

    Network-Attached Storage

    Storage Area Network

    Software-Defined Storage

    Hyperconverged Infrastructure

    NAS refers to a storage device that is connected directly to your network. Any user or device with access to your network can access the available storage provided by the NAS. NAS storage is easily scalable and can add data redundancy through RAID technology. NAS uses the file storage format.

    NAS storage may or may not be the first choice in terms of enterprise storage, but it does have a solid market appeal as an on-premises primary backup storage solution.

    A SAN is a dedicated network of pooled storage devices. The dedicated network, separate from the regular network, provides high speed and scalability without concern for the regular network traffic. SANs use block storage format and can be divided into logical units that can be shared between servers or segregated from other servers. SANs can be accessed by multiple servers and systems at the same time. SANs are scalable and offer high availability and redundancy through RAID technology.

    SANs can use a variety of disk types and sizes and are quite common among on-premises storage solutions.

    “Software-defined storage (SDS) is a storage architecture that separates storage software from its hardware. Unlike traditional network-attached storage (NAS) or storage area network (SAN) systems, SDS is generally designed to perform on any industry-standard or x86 system, removing the software’s dependence on proprietary hardware.” (RedHat)

    SDS uses software-based policies and rules to grow and protect storage attached to applications.

    SDS allows you to use server-based storage products to add management, protection, and better usage.

    Hyperconverged storage uses virtualization and software-defined storage to combine the storage, compute, and network resources along with a hypervisor into one appliance.

    Hyperconverged storage can scale out by adding more nodes or appliances, but scaling up, or adding more resources to each appliance, can have limitations. There is flexibility as hyperconverged storage can work with most network and compute manufacturers.

    Cloud storage

    • Cloud storage is online storage offered by a cloud provider. Cloud storage is available almost anywhere and is set up with high availability features such as data duplication, redundancy, backup, and power failure protection.
    • Cloud storage is very scalable and typically is offered as object storage, block storage, or file storage. Cloud storage vendors may have their own naming scheme for object, block, or file storage.
    • Cloud-hosted data is marketed according to the frequency of access and length of time in storage. There are typically three main levels of storage: hot, warm, or cold. Vendors may have their own naming convention for hot, warm, and cold storage. Some may also add more layers such as very hot or very cold.
      • Hot storage is for data that is frequently accessed and modified. It is available on demand and is the most costly of the storage levels.
      • Cold storage is for data that will sit for a long period of time and not need to be accessed. Cold storage is usually only available after several hours or days. Cold storage is very low cost and, in some cases, even free, but retrieval or restoration for the free services can be costly.
      • Warm storage sits in between hot and cold storage. It is for data that is infrequently needed. The cost of warm storage is also in between hot and cold storage costs, and access times are measured in terms of minutes or hours.
      • It is not uncommon for data to start in hot storage and, as it ages, move to warm and eventually cold storage.

    “Enterprise cloud storage offers nearly unlimited scalability. Enterprises can add storage quickly and easily as it is needed, eliminating the risk and cost of over-provisioning.”

    – Spectrum Enterprise

    “Hot data will operate on fresh data. Cold data will operate on less frequent data and [is] used mainly for reporting and planning. Warm data is a balance between the two.”

    – TechBlost

    Enterprise storage features

    The features listed below, while not intended to cover all features offered by all vendors, should be considered and could act as a baseline for discussions with storage providers when evaluating enterprise storage offerings.

    • Scalability
      • What are the options to expand, and how easy or difficult it is to expand capacity in the future?
    • Security
      • Does the solution offer data encryption options as well as ransomware protections?
    • Integration options
      • Can the solution support seamless connectivity with other solutions and applications, such as cloud-based storage or backup software?
    • Storage reduction
      • Does the solution offer space-reduction options such as deduplication or data compression?
    • Replication
      • Does the solution offer replication options such as device to device on premises, device to device when geographically separated, device to cloud, or a combination of these scenarios?
    • Performance
      • “Enterprise storage systems have two main ‘speed’ measurements: throughput and IOPS. Throughput is the data transfer rate to and from storage media, measured in bytes per second; IOPS measures the number of reads and writes – input/output (I/O) operations – per second.” (Computer Weekly)
    • Protocol support
      • Does the solution support object-based, block-based, and file-based storage protocols?
    • Storage Efficiency
      • How efficient is the solution? Can they prove it?
      • Storage efficiencies must be available and baselined.
    • Management platform
      • A management/reporting platform should be a component included in the system.
    • Multi-parity
      • Does the solution offer multi-level block “parity” for RAID 6 protection equivalency, which would allow for the simultaneous failure of two disks?
    • Proactive support
      • Features such as call home, dial in, or remote support must be available on the system.
    • Financial considerations
      • The cost is always a concern, but are there subscription-based or “as-a-service” options?
      • Internally, is it better for this expenditure to be a capital expenditure or an ongoing operating expense?

    What’s new in enterprise storage

    • Data warehouses are not a new concept, but the data storage evolution and growth of data means that data lakes and data lakehouses are growing in popularity.
      • “A data lake is a centralized repository that allows you to store all your structured and unstructured data at any scale. You can store your data as-is, without having to first structure the data” (Amazon Web Services).
      • Analytics with a data lake is possible, but manipulation of the data is hindered due to the nature of the data. A data lakehouse adds data management and analytics to a data lake, similar to the data warehouse functionality added to databases.
    • Options for on-premises hardware support is changing.
      • Pure Storage was the first to shake up the SAN support model with its Evergreen support option. Evergreen//Forever support allows for storage controller upgrades without having to migrate data or replace your disks or chassis (Pure Storage).
      • In response to the Pure Storage Evergreen offering, Dell, HPE, NetApp, and others have come out with similar programs that offer controller upgrades while maintaining the data, disks, and chassis.
    • “As a service” is available as a hybrid solution.
      • Storage as a service (STaaS) originally referred to hosted, fully cloud-based offerings without the need for any on-premises hardware.
      • The latest STaaS offerings provide on-premises or colocated hardware with pay-as-you-go subscription pricing for data consumption. Administration, management, and support are included. The vendor will supply support and manage everything on your behalf.
      • Most of the major storage vendors offer a variation of storage as a service.

    “Because data lakes mostly consist of raw unprocessed data, a data scientist with specialized expertise is typically needed to manipulate and translate the data.”

    – DevIQ

    “A Lakehouse is also a type of centralized data repository, integrated from heterogeneous sources. As can be expected from its name, It shares features with both datawarehouses and data lakes.”

    – Cesare

    “Storage as a service (STaaS) eliminates Capex, simplifies management and offers extensive flexibility.”

    – TechTarget

    Major vendors

    The current vendor landscape for enterprise storage solutions represents a range of industry veterans and the brands they’ve aggregated along the way, as well as some relative newcomers who have come to the forefront within the past ten years.

    Vendors like Dell EMC and HPE are longstanding veterans of storage appliances with established offerings and a back catalogue of acquisitions fueling their growth. Others such as Pure Storage offer creative solutions like all-flash arrays, which are becoming more and more appealing as flash storage becomes more commoditized.

    Cloud-based vendors have become popular options in recent years. Cloud storage provides many options and has attracted many other vendors to provide a cloud option in addition to their on-premises solutions. Some software and hardware vendors also partner with cloud vendors to offer a complete solution that includes storage.

    Info-Tech Insight

    Explore your current vendor’s solutions as a starting point, then use that understanding as a reference point to dive into other players in the market

    Key Players

    • Amazon
    • Cisco
    • Dell EMC
    • Google
    • Hewlett Packard Enterprise
    • Hitachi Vantara
    • IBM
    • Microsoft
    • NetApp
    • Nutanix
    • Pure Storage

    Enterprise Storage Use Cases

    Block, object, or file storage? NAS, SAN, SDS, or HCI? Cloud or on prem? Hot, warm, or cold?
    Which one do you choose?
    The following use cases based on actual Info-Tech analyst calls may help you decide.

    1. Offsite backup solution
    2. Infrastructure consolidation
    3. DR/BCP datacenter duplication
    4. Expansion of existing storage
    5. Complete backup solution
    6. Existing storage solution going out of support soon
    7. Video storage
    8. Classify and offload storage

    Offsite backup solution

    “Offsite” may make you think of geographical separation or even cloud-based storage, but what is the best option and why?

    Use Case: How a manufacturing company dealt with retired applications

    • A leading manufacturing company had to preserve older applications no longer in use.
    • The company had completed several acquisitions and ended up with multiple legacy applications that had been merged or migrated into replacement solutions. These legacy applications were very important to the original companies, and although the data they held had been migrated to a replacement solution, executives felt they should hold on to these applications for a period of time, just in case.
    • A modern archiving solution was considered, but a research advisor from Info-Tech Research joined a call with the manufacturing company and helped the client realize that the solution was a modified backup. The application data had already been preserved through the migration, so data could be accessed in the production environment.
    • The data could be exported from the legacy application into a nonsequential database, compressed, and stored in cloud-based cold storage for less than $5 per terabyte per month. The manufacturing company staff realized that they could apply this same approach to several of their legacy applications and save tens of thousands of dollars in the process.
    • Cold storage is inexpensive until you start retrieving that data frequently. The manufacturing company knew they did not have a requirement to retrieve the application and data for a very long time, so cloud-based cold storage was ideal.

    “Data retrieval from cold storage is harder and slower than it is from hot storage. … Because of the longer retrieval time, online cold storage plans are often much cheaper. … The downside is that you’d incur additional costs when retrieving the data.”

    – Ben Stockton, Cloudwards

    Infrastructure consolidation

    Hyperconverged infrastructure combines storage, virtual infrastructure, and associated management into one piece of equipment.

    Use Case: How one company dealt with equipment and storage needs

    • One Info-Tech client had recently started in the role of IT director and realized he had inherited aging infrastructure along with a serious data challenge. The storage appliances were old and out of support. The appliances were performing inadequately, and the client was in need of more data due to ongoing growth, but he also realized that the virtual environment was running on very old servers that were no longer supported. The IT director reached out to Info-Tech to find solutions to the virtualization challenge, but the storage problem also came up throughout the course of the conversation with an analyst.
    • The analyst quickly realized that the IT director was an ideal candidate for a hyperconverged infrastructure (HCI) storage solution, which would also provide the necessary virtual environment.
    • The analyst explained the benefits of having a single appliance that would provide virtualization needs as well as storage needs. The built-in management features would ease the burden of administration, and the software-defined nature of the HCI would allow for the migration of data as well as future expansion options.
    • Hyperconverged infrastructure is offered by many vendors under a variety of names. Most are similar but some may have a better interface or other features. The expansion process is simple, and HCI is a good fit for many organizations looking to consolidate virtual infrastructure and storage.

    “HCI environments use a hypervisor, usually running on a server that uses direct-attached storage (DAS), to create a data center pool of systems and resources.”

    – Samuel Greengard, Datamation

    Datacenter duplication

    SAN providers offer a varied range of options for their products, and those options are constantly evolving.

    Use Case: Independent school district provides better data access using SAN technology

    • An independent school district was expanding by adding a second data center in a new school. This new data center would be approximately 20 miles away from the original data center used by the district. The intent was not to replace the original data center but to use both centers to store data and provide services concurrently. The district’s ideal scenario would be that users would not know or care which data center they were reaching, and there would be no difference in the service received from each data center. The school district reached out to Info-Tech when planning discussions reached the topic of data duplication and replication software.
    • An Info-Tech analyst joined a call with the school district and guided the conversation toward the existing environment to understand what options might be available. The analyst quickly discovered that all the district’s servers were virtual, and all associated data was stored on a single SAN.
    • The analyst informed the school district staff about SAN options, including SAN-to-SAN replication. If the school district had a sufficient link between the two data centers, SAN-to-SAN replication would work for them and provide the two identical copies of data at two locations.
    • The analyst continued to offer explanations of other features that some vendors offer with their SANs, such as the ability to turn on or off deduplication and compression, as well as disk options such as flash or NVMe.
    • The school district was moving to the request for proposal (RFP) stage but hoped to have SAN-to-SAN replication implemented before the next academic year started.

    “SAN-to-SAN replication is a low-cost, highly efficient way to manage mounting quantities of stored data.”

    – Secure Infrastructure & Services

    Expansion of existing storage

    That old storage area network may still have some useful life left in it.

    Use Case: Municipality solves data storage aging and growth challenge

    • A municipality in the United States reached out to Info-Tech for guidance on its storage challenge. The municipality had accumulated multiple SANs from different vendors over the years. These SANs were running out of storage, and more data storage was needed. The municipality’s data was growing at a rapid pace, thanks to municipal growth and expansion of services. The IT team was also concerned with modernizing their storage and not hindering their long-term growth by making the wrong purchase decision for their current storage needs.
    • An analyst from Info-Tech discussed several options with the municipality but in the end advised that software-defined storage may be the best solution.
    • Software-defined storage (SDS) would allow the municipality to gain better visibility into existing storage while making more efficient use of existing and new storage. SDS could take over the management of the existing storage from multiple vendors and add additional storage as required. SDS would also be able to integrate cloud-based storage if that was the direction taken by the municipality in the future.
    • The municipality moved forward with an SDS solution and added some additional storage capacity. They used some of their existing SANs but retired the more troublesome ones. The SDS system managed all the storage instances and data management. The administration of the storage environment was easier for the storage admins, and long-term savings were achieved through better storage management.

    “Often enterprises have added storage on an ad hoc basis as they needed it for various applications. That can result in a mishmash of heterogenous storage hardware from a wide variety of vendors. SDS offers the ability to unify management of these different storage devices, allowing IT to be more efficient.”

    – Cynthia Harvey, Enterprise Storage Forum (“What Is Software Defined Storage?”, 2018)

    Complete backup solution

    Many backup software solutions can provide backups to multiple locations, making two-location backups simple.

    Use Case: How an oil refinery modernized its backup solution

    • A large oil refinery needed a better solution for the storage of backups. The refinery was replacing its backup software solution but also wanted to improve the backup storage situation and move away from tape-based storage. All other infrastructure was reasonably modern and not in need of replacement at this time.
    • A research analyst from Info-Tech helped the client realize that the solution was a modified backup. The general guidance for backups is have a least one copy offsite, so the cloud was the obvious focal point. The analyst also explained that it would be beneficial to have a recent copy of the backup available on site for common restoration requests in addition to having the offsite copy for disaster recovery (DR) purposes.
    • The refinery staff conducted a data analysis to determine how much data was being backed up on a daily basis. The solution proposed by the analyst included network-attached storage (NAS) with adequate storage to hold 30 days' worth of on-premises data. The backup software would also simultaneously copy each backup to a cloud-based storage repository. The backup software was smart enough to only back up and transfer data that had changed since the previous backup, so transfer time and capacity was not a factor.
    • The NAS would allow for the restoration of any local, on-premises data while the cloud storage would provide a safe location offsite for backup data. It could also serve as the backup location for other cloud-based services that required a backup.

    “Data protection demands that enterprises have multiple methods of keeping data safe and replicating it in case of disaster or loss.”

    – Drew Robb, Enterprise Storage Forum, 2021

    Storage going out of support

    SAN solutions have come a long way with improvements in how data is stored and what is used to store the data.

    Use Case: How one organization replaced its old storage with a similar solution

    • A government organization was looking for a solution for its aging storage area network appliances. The SANs were old and would be no longer supported by the manufacturer within four months. The SANs had slower spinning disks and their individual capacity was at its limit through the addition of extra shelves and disks over the years.
    • The organization reached out to Info-Tech for guidance. An analyst arranged a call with them, and they discussed the storage situation in detail, including desired benefits from a storage solution and growth requirements. They also discussed cloud storage, but the government organization was not in a position to move its data to the cloud for a variety of reasons.
    • Although the individual SANs were at their storage capacity limit, the total amount of data was well within the limits of many modern on-premises storage solutions. SSD and flash or NVMe storage can store large amounts of data in small footprints and form factors.
    • The analyst reviewed several vendors with the client and discussed some advantages and disadvantages of each. They explored the features offered as well as scalability options.
    • SANs have been around for a long time but the features and capabilities that come with them has evolved. They are still a very viable solution for many organizations in a variety of scenarios.

    “A rapidly growing portion of SAN deployments leverages all-flash storage to gain its high performance, consistent low latency, and lower total cost when compared to spinning disk.”

    – NetApp

    Video storage

    Cloud storage would not be sufficient if you were using a dial up connection, just as on-premises storage solutions would not suffice if they were using floppy disks.

    Use Case: Body cams and public cameras in municipalities are driving storage growth

    • Municipal law enforcement agencies are wearing body cameras more frequently, for their own protection as well as for the protection of the public. Camera footage can be useful in legal situations as well. Municipalities are also installing more and more public cameras for the purposes of public safety. The recorded video footage from these cameras can result in large data files, which in turn drive data storage requirements.
    • Info-Tech analysts are joining calls about video data storage with increasing frequency. The concerns are repetitive, and the guidance is similar on most of these calls.
    • The “object” storage format is ideal for video and media data. Most cloud-based storage solutions use object storage, but it is also available with on-premises solutions such as NAS or SAN. The challenges clients are expressing are typically related to inadequate bandwidth for cloud-based storage or other storage formats instead of “object” storage. Cloud-based storage can also grow beyond the budgeted numbers, causing an increase in the monthly cloud cost. Older, slower on-premises hardware sometimes reveals itself as the latency culprit.
    • Object storage is well suited for the unstructured data that is video footage. It uses metadata to tag the video file for future retrieval and is easily expandable, which also makes it cost effective.
    • Video data stored in a cloud-based repository will work fine as long as the bandwidth is adequate. On-premises storage of video data is also quite adequate on the right storage format, with fast disks and a reasonably up-to-date network infrastructure.

    “The captured video is stored for days, weeks, months and sometimes years and consumes a lot of space. Data storage plays a new and important role in these systems. Object storage is ideal to store the video data.”

    – Object-Storage.Info

    Classify and offload primary storage

    Some software products have storage options available as a result of agreements with other storage vendors. Several backup and archive software products fall into this category.

    Use Case: Enterprise storage can help reduce data sprawl

    • A large engineering firm was trying to manage its data sprawl. The team sampled a small percentage of their data and quickly realized that when they applied their findings on the 1% of data to their entire data estate, the sheer volume of personal files, older files, and unclassified data was going to be a challenge.
    • They found a solution in archiving software. The archiving software would tag data based on several factors. The software would move older files away from primary storage to an alternate storage platform but still leave a stub of the moved file in place and maintain limited access to those files. This would reduce primary storage requirements and allow the firm to eliminate multiple file servers
    • The engineering firm reached out to Info-Tech and participated in an analyst call. During that call, they laid out their plans, and the analyst made them aware of cloud storage. The positive and negative aspects of cloud storage were discussed, and the firm fully understood that the colder the storage tier, the slower the recovery. The firm's stance was if the files had not been accessed in the past six months, waiting a day or two for retrieval would not be a concern, and the firm was content with cold storage in the cloud.
    • The firm had not purchased the archiving software at the time of the analyst call, and the analyst also explained to them that the archiving software may have an existing agreement with a cloud provider for storage options, which could be more cost effective than purchasing cloud storage separately.
    • Cold cloud-based storage was the preferred solution for this firm, but this use case also highlights the option that some software products carry regarding storage. Several backup and archive products have a cloud storage option that should be investigated, as they may be cost-effective options.

    “Cold storage is perfect for archiving your data. Online backup providers offer low-cost, off-site data backups at the expense of fast speeds and easy access, even though data retrieval often comes at an added cost. If you need to keep your data long-term, but don’t need to access it often, this is the kind of storage you need.”

    – Ben Stockton, Cloudwards

    Understand your data requirements

    Activity

    The first step in solving your enterprise storage challenge is identifying your data sources or drivers, data volume size, and growth rates. This information will give you insight into what data sources could be stored on premises or in the cloud, how much storage you will require for the coming five to ten years, and what to consider when exploring enterprise storage solutions.

    • Info-Tech’s Modernize Enterprise Storage Workbook can be a valuable asset for determining your current storage drivers and future storage needs, structuring a plan for future storage purchases, and determining timelines and total cost of ownership.
    • An example of the Storage Capacity Calculator tab from that workbook is displayed on the right. Using the Storage Capacity Requirements Calculator requires minimal steps.
    1. Enter the current date and planning timeline (horizon) in months
    2. Identify the top sources of data within the business – the current data drivers. Areas of focus could include business applications, file shares, backup, and archives.
    3. For each of these data drivers, include your best estimate of:
    • Current data volume
    • Growth rate
  • Identify the top future data drivers, such as new applications or initiatives that will result from current business plans and priorities, and record the following details:
    • Initial data volumes
    • Projected growth rates
    • Planned implementation date
  • The spreadsheet will automatically calculate the data volume at the planning horizon based on the growth rate.

    • Download the Modernize Enterprise Storage Workbook and take the first step toward understanding your data requirements.

    The image contains a screenshot of the Modernize Enterprise Storage Workbook.

    Download the Modernize Enterprise Storage Workbook

    Related Info-Tech Research

    Modernize Enterprise Storage

    Current and emerging storage technologies are disrupting the status quo – prepare your infrastructure for the exponential rise in data and its storage requirements.

    Modernize Enterprise Storage Workbook

    This workbook will complement the discussions and activities found in the Modernize Enterprise Storage blueprint. Use this workbook in conjunction with the blueprint to develop a strategy for storage modernization.

    Bibliography

    Bakkianathan, Raghunathan. “What is the difference between Hot Warm and Cold data storage?” TechBlost, n.d.. Accessed 14 July 2022.
    Cesare. “Data warehouse vs Data lake vs Lakehouse… and DeltaLake?“ Medium, 14 June 2021. Accessed 26 July 2022.
    Davison, Shawn and Ryan Sappenfield. “Data Lake Vs Lakehouse Vs Data Mesh: The Evolution of Data Transformation.” DevIQ, May 2022. Accessed 23 July 2022.
    Desjardins, Jeff. “Infographic: How Much Data is Generated Each Day?” Visual Capitalist, 15 April 2019. Accessed 26 July 2022.
    Greengard, Samuel. “Top 10 Hyperconverged Infrastructure (HCI) Solutions.” Datamation, 22 December 2020. Accessed 23 July 2022.
    Harvey, Cynthia. “Flash vs. SSD Storage: Is there a Difference?” Enterprise Storage Forum, 10 July 2018. Accessed 23 July 2022.
    Harvey, Cynthia. “What Is Software Defined Storage? Features & Benefits.” Enterprise Storage Forum, 22 February 2018. Accessed 23 July 2022.
    Hecht, Gil. “4 Predictions for storage and backup security in 2022.” Continuity Software, 09 January 2022. Accessed 22 July 2022.
    Jacobi, Jonl. “NVMe SSDs: Everything you need to know about this insanely fast storage.” PCWorld, 10 March 2019. Accessed 22 July 2022
    Pritchard, Stephen. “Briefing: Cloud storage performance metrics.” Computer Weekly, 16 July 2021. Accessed 23 July 2022
    Robb, Drew. “Best Enterprise Backup Software & Solutions 2022.” Enterprise Storage Forum, 09 April 2021. Accessed 23 July 2022.
    Sheldon, Robert. “On-premises STaaS shifts storage buying to Opex model.” TechTarget, 10 August 2020. Accessed 22 July 2022.
    “Simplify Your Storage Ownership, Forever.” PureStorage. Accessed 20 July 2022.
    Stockton, Ben. “Hot Storage vs Cold Storage in 2022: Instant Access vs Long-Term Archives.” Cloudwards, 29 September 2021. Accessed 22 July 2022.
    “The Cost Savings of SAN-to-SAN Replication.” Secure Infrastructure and Services, 31 March 2016. Accessed 16 July 2022.
    “Video Surveillance.” Object-Storage.Info, 18 December 2019. Accessed 25 July 2022.
    “What is a Data Lake?” Amazon Web Services, n.d. Accessed 17 July 2022.
    “What is enterprise cloud storage?” Spectrum Enterprise, n.d. Accessed 28 July 2022.
    “What is SAN (Storage Area Network).” NetApp, n.d. Accessed 25 July 2022.
    “What is software-defined storage?” RedHat, 08 March 2018. Accessed 16 July 2022.

    Select Software With the Right Satisfaction Drivers in Mind

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    • Software selection needs to provide satisfaction. Across the board, satisfaction is easy to achieve in the short term, but long-term satisfaction is much harder to attain. It’s not clear what leads to long-term satisfaction, and it’s even more difficult to determine which software continuously delivers on key satisfaction drivers to support the business.

    Our Advice

    Critical Insight

    • Software satisfaction drops over time. After the initial purchase, the novelty factor of new software begins to wane, and only long-term satisfaction drivers sustain satisfaction after five years.
    • Surface-level satisfaction has immediate effects, but it only provides satisfaction in the short term. Deep satisfaction has a lasting impact that can shape organizational satisfaction and productivity in meaningful ways.
    • Empower IT decision makers with knowledge about what drives satisfaction in the top five and bottom five software vendors in spotlighted categories.

    Impact and Result

    • Reorient discussion around how software is implemented around satisfaction rather than what’s in fashion.
    • Identify software satisfaction drivers that provide deep satisfaction to get the most out of software over the long term.
    • Appreciate the best from the rest and learn which software categories and brands buck the trend of declining satisfaction.

    Select Software With the Right Satisfaction Drivers in Mind Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand what drives user satisfaction

    Gain insight on the various factors that influence software satisfaction.

    • Select Software With the Right Satisfaction Drivers in Mind Storyboard

    2. Learn what provides deep satisfaction

    Reduce the size of your RFPs or skip them entirely to limit time spent watching vendor dog and pony shows.

    3. Appreciate what separates the best from the rest

    Narrow the field to four contenders prior to in-depth comparison and engage in accelerated enterprise architecture oversight.

    [infographic]

    Get really good at resilience

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    Why be resilient?

    Well, your clients demand it. And it makes business sense; it is much cheaper to retain a client than to acquire new ones. By all means, always expand your client base; just don't make it a zero-sum game by losing clients because you cannot provide decent service. 

    Although the term has existed since the 17th century, it has only received legal attention since 2020. Now, several years later, the EU and the US require companies to prove their resilience.

    To understand what resilience is, please read our article on resilience. 

    What does it take to become really good at IT resilience?

    IT resilience is a mindset, a collection of techniques, and people management focused on providing consistent service to clients, all rolled into one discipline. While we discuss IT resilience, it takes more than IT staff or IT processes to become a truly resilient business.

    Here are 10 themes relevant to the (IT) resilient organization:

    Transparent culture

    A transparent company culture empowers its people to act confidently, respond swiftly to challenges, and continuously learn and improve. This builds a strong foundation for resilience, enabling the organization to navigate disruption or adversity much more easily.

    At its core, transparency is about open communication, sharing information, and fostering a culture of honesty and trust. These traits directly influence the various aspects of resilience.

    Client service focus

    A client service focus isn't just about customer satisfaction; it's an integral part of a company's resilience strategy. Service stability and continuous value delivery are the elements that retain existing clients and attract new ones through reputation.  System outages, slowdowns, and errors lead to client frustration and erode confidence. In other words, client service focuses on making sure you are available. Once you have that, then you can look at enhancing and expanding services and products. 

    Resilient systems and processes often also include tools and capabilities for proactive communication with clients. This can include automated notifications during system maintenance or updates, providing transparency and minimizing inconvenience. A proactive approach to communication creates a sense of partnership, and it demonstrates that you value your clients' time and business.

    Adaptability

    Adaptable systems and processes give you the flexibility for rapid incident response and easy workarounds, bringing your service back to the level it is supposed to be at.

    In the bigger picture, when you design your systems for flexibility and modification, you can rapidly adjust to new market conditions, evolving customer demands, and technological advancements. This agility allows you to pivot swiftly, seizing opportunities while mitigating risks.

    In the same vein, adaptable processes, fostered by a culture of continuous improvement and open communication, empower teams to innovate and refine workflows in response to challenges. This constant evolution ensures the company remains competitive and aligned with its ever-changing environment.

    Robust change management

    When you establish standardized procedures for planning, testing, and implementing changes, IT change management ensures that every modification, no matter how seemingly small, is carefully considered and assessed for its impact on the broader IT ecosystem. This structured approach significantly reduces the risk of unexpected side effects, unforeseen conflicts, and costly downtime, protecting the company's operations and its reputation.

    It does not have to be a burdensome bureaucratic process. Modern processes and tools take the sting out of these controls. Many actions within change management can be automated without losing oversight by both the IT custodians and the business process owners.

    Redundancy and fault tolerance

    By having duplicates of essential components or systems in place, you ensure that even if one part fails, another is ready to take over. This helps you minimize the impact of unexpected events like hardware issues, software glitches, or other unforeseen problems. This might mean replicating critical policy data across multiple servers or data centers in different locations.

    Fault tolerance is all about your systems and processes being able to keep working even when facing challenges. By designing your software and systems architecture with fault tolerance in mind, you are sure it can gracefully handle errors and failures, preventing those small problems from causing bigger issues, outages, and unhappy clients.

    Security

    Clients entrust you with valuable information. Demonstrating a commitment to data security through resilient systems builds trust and provides reassurance that their data is safeguarded against breaches and unauthorized access.

    Monitoring and alerting

    Trusting that all working is good. making sure is better.  When you observe your systems and receive timely notifications when something seems off, you'll be able to address issues before they snowball into real problems. 

    In any industry, monitoring helps you keep an eye on crucial performance metrics, resource usage, and system health. You'll get insights into how your systems behave, allowing you to identify bottlenecks or potential points of failure before they cause serious problems. And with a well-tuned alerting system, you'll get those critical notifications when something requires immediate attention. This gives you the chance to respond quickly, minimize downtime, and keep things running smoothly for your customers.

    Monitoring is also all about business metrics. Keep your service chains running smoothly and understand the ebb and flow of when clients access your services. Then update and enhance in line with what you see happening. 

    Incident response processes

    Well-thought-out plans and processes are key. Work with your incident managers, developers, suppliers, business staff and product owners and build an embedded method for reacting to incidents. 

    The key is to limit the time of the service interruption. Not everything needs to be handled immediately, so your plan must be clear on how to react to important vs lower-priority incidents. Making the plan and process well-known in the company helps everybody and keeps the calm.

    Embedded business continuity

    Business continuity planning anticipates and prepares for various scenarios, allowing your company to adapt and maintain essential functions even in the face of unexpected disruptions.

    When you proactively address these non-IT aspects of recovery, you build resilience that goes beyond simply restoring technology. It enables you to maintain customer relationships, meet contractual obligations, and safeguard your reputation, even in the face of significant challenges.

    Business continuity is not about prevention; it is about knowing what to do when bad things happen that may threaten your company in a more existential way or when you face issues like a power outage in your building, a pandemic, major road works rendering your business unreachable and such events.

    Effective disaster recovery  

    Disaster recovery is your lifeline when the worst happens. Whether it's a major cyberattack, a natural disaster, or a catastrophic hardware failure, a solid disaster recovery plan ensures your business doesn't sink. It's your strategy to get those critical systems back online and your data restored as quickly as possible.

    Think of it this way: disaster recovery, just like business continuity, isn't about preventing bad things from happening; it's about being prepared to bounce back when they do. It's like having a spare tire in your car, you hope you never need it, but if you get a flat, you're not stranded. With a well-tested disaster recovery plan, you can minimize downtime, reduce data loss, and keep your operations running even in the face of the unexpected. That translates to happier customers, protected revenue, and a reputation for reliability even amidst chaos.

     

    Resilience is the result of a well-conducted orchestra. Many disciplines come together to help you service your clients in a consistent way.

    The operational lifeline of your company and the reason it exists in the first place is to provide your clients with what they need, when they need it, and be able to command a good price for it. And that will keep your shareholders happy as well.

    Create and Manage Enterprise Data Models

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    • Business executives don’t understand the value of Conceptual and Logical Data Models and how they define their data assets.
    • Data, like mercury, is difficult to manage and contain.
    • IT needs to justify the time and cost of developing and maintaining Data Models.
    • Data as an asset is only perceived from a physical point of view, and the metadata that provides context and definition is often ignored.

    Our Advice

    Critical Insight

    • Data Models tell the story of the organization and its data in pictures to be used by a business as a tool to evolve the business capabilities and processes.
    • Data Architecture and Data Modeling have different purposes and should be represented as two distinct processes within the software development lifecycle (SDLC).
    • The Conceptual Model provides a quick win for both business and IT because it can convey abstract business concepts and thereby compartmentalize the problem space.

    Impact and Result

    • A Conceptual Model can be used to define the semantics and relationships for your analytical layer.
      • It provides a visual representation of your data in the semantics of business.
      • It acts as the anchor point for all data lineages.
      • It can be used by business users and IT for data warehouse and analytical planning.
      • It provides the taxonomies for data access profiles.
      • It acts as the basis for your Enterprise Logical and Message Models.

    Create and Manage Enterprise Data Models Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create enterprise data models, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Setting the stage

    Prepare your environment for data architecture.

    • Enterprise Data Models

    2. Revisit your SDLC

    Revisit your SDLC to embed data architecture.

    • Enterprise Architecture Tool Selection

    3. Develop a Conceptual Model

    Create and maintain your Conceptual Data Model via an iterative process.

    4. Data Modeling Playbook

    View the main deliverable with sample models.

    • Data Modeling Playbook
    [infographic]

    Workshop: Create and Manage Enterprise Data Models

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Establish the Data Architecture Practice

    The Purpose

    Understand the context and goals of data architecture in your organization.

    Key Benefits Achieved

    A foundation for your data architecture practice.

    Activities

    1.1 Review the business context.

    1.2 Obtain business commitment and expectations for data architecture.

    1.3 Define data architecture as a discipline, its role, and the deliverables.

    1.4 Revisit your SDLC to embed data architecture.

    1.5 Modeling tool acquisition if required.

    Outputs

    Data Architecture vision and mission and governance.

    Revised SDLC to include data architecture.

    Staffing strategy.

    Data Architecture engagement protocol.

    Installed modeling tool.

    2 Business Architecture and Domain Modeling

    The Purpose

    Identify the concepts and domains that will inform your data models.

    Key Benefits Achieved

    Defined concepts for your data models.

    Activities

    2.1 Revisit business architecture output.

    2.2 Business domain selection.

    2.3 Identify business concepts.

    2.4 Organize and group of business concepts.

    2.5 Build the Business Data Glossary.

    Outputs

    List of defined and documented entities for the selected.

    Practice in the use of capability and business process models to identify key data concepts.

    Practice the domain modeling process of grouping and defining your bounded contexts.

    3 Harvesting Reference Models

    The Purpose

    Harvest reference models for your data architecture.

    Key Benefits Achieved

    Reference models selected.

    Activities

    3.1 Reference model selection.

    3.2 Exploring and searching the reference model.

    3.3 Harvesting strategies and maintaining linkage.

    3.4 Extending the conceptual and logical models.

    Outputs

    Established and practiced steps to extend the conceptual or logical model from the reference model while maintaining lineage.

    4 Harvesting Existing Data Artifacts

    The Purpose

    Gather more information to create your data models.

    Key Benefits Achieved

    Remaining steps and materials to build your data models.

    Activities

    4.1 Use your data inventory to select source models.

    4.2 Match semantics.

    4.3 Maintain lineage between BDG and existing sources.

    4.4 Select and harvest attributes.

    4.5 Define modeling standards.

    Outputs

    List of different methods to reverse engineer existing models.

    Practiced steps to extend the logical model from existing models.

    Report examples.

    5 Next Steps and Wrap-Up (offsite)

    The Purpose

    Wrap up the workshop and set your data models up for future success.

    Key Benefits Achieved

    Understanding of functions and processes that will use the data models.

    Activities

    5.1 Institutionalize data architecture practices, standards, and procedures.

    5.2 Exploit and extend the use of the Conceptual model in the organization.

    Outputs

    Data governance policies, standards, and procedures for data architecture.

    List of business function and processes that will utilize the Conceptual model.

    Assess the Viability of M365-O365 Security Add-Ons

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    • Parent Category Name: Security Strategy & Budgeting
    • Parent Category Link: /security-strategy-and-budgeting

    The technical side of IT security demands the best security possible, but the business side of running IT demands that you determine what is cost-effective and can still do the job. You likely shrugged off the early iterations of Microsoft’s security efforts, but you may have heard that things have changed. Where do you start in evaluating Microsoft’s security products in terms of effectiveness? The value proposition sounds tremendous to the CFO, “free” security as part of your corporate license, but how does it truly measure up and how do you articulate your findings to the business?

    Our Advice

    Critical Insight

    Microsoft’s security products have improved to the point where they are often ranked competitively with mainstream security products. Depending on your organization’s licensing of Office 365/Microsoft 365, some of these products are included in what you’re already paying for. That value proposition is hard to deny.

    Impact and Result

    Determine what is important to the business, and in what order of priority.

    Take a close look at your current solution and determine what are table stakes, what features you would like to have in its replacement, and what your current solution is missing.

    Consider Microsoft’s security solutions using an objective methodology. Sentiment will still be a factor, but it shouldn’t dictate the decision you make for the good of the business.

    Assess the Viability of M365/O365 Security Add-Ons Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to assess the viability of M365/O365 security add-ons. Review Info-Tech’s methodology and understand the four key steps to completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Review your current state

    Examine what you are licensed for, what you are paying, what you need, and what your constraints are.

    • Microsoft 365/Office 365 Security Add-Ons Assessment Tool

    2. Assess your needs

    Determine what is “good enough” security and assess the needs of your organization.

    3. Select your path

    Decide what you will go with and start planning your next steps.

    [infographic]

    Network Segmentation

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    • Many legacy networks were built for full connectivity and overlooked potential security ramifications.
    • Malware, ransomware, and bad actors are proliferating. It is not a matter of if you will be compromised but how can the damage be minimized.
    • Cyber insurance will detective control, not a preventative one. Prerequisite audits will look for appropriate segmentation.

    Our Advice

    Critical Insight

    • Lateral movement amplifies damage. Contain movement within the network through segmentation.
    • Good segmentation is a balance between security and manageability. If solutions are too complex, they won’t be updated or maintained.
    • Network services and users change over time, so must your segmentation strategy. Networks are not static; your segmentation must maintain pace.

    Impact and Result

    • Create a common understanding of what is to be built, for whom, and why.
    • Define what services will be offered and how they will be governed.
    • Understand which assets that you already have can jump start the project.

    Network Segmentation Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Network Segmentation Deck – A deck to help you minimize risk by controlling traffic flows within the network.

    Map out appropriate network segmentation to minimize risk in your network.

    • Network Segmentation Storyboard
    [infographic]

    Further reading

    Network Segmentation

    Protect your network by controlling the conversations within it.

    Executive Summary

    Info-Tech Insight

    Lateral movement amplifies damage

    From a security perspective, bad actors often use the tactic of “land and expand.” Once a network is breached, if east/west or lateral movement is not restricted, an attacker can spread quickly within a network from a small compromise.

    Good segmentation is a balance between security and manageability

    The ease of management in a network is usually inversely proportional to the amount of segmentation in that network. Highly segmented networks have a lot of potential complications and management overhead. In practice, this often leads to administrators being confused or implementing shortcuts that circumvent the very security that was intended with the segmentation in the first place.

    Network services and users change over time, so must your segmentation strategy

    Network segmentation projects should not be viewed as singular or “one and done.” Services and users on a network are constantly evolving; the network segmentation strategy must adapt with these changes. Be sure to monitor and audit segmentation deployments and change or update them as required to maintain a proper risk posture.

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    Networks are meant to facilitate communication, and when devices on a network cannot communicate, it is generally seen as an issue. The simplest answer to this is to design flat, permissive networks. With the proliferation of malware, ransomware, and advanced persistent threats (ATPs) a flat or permissive network is an invitation for bad actors to deliver more damage at an increased pace.

    Cyber insurance may be viewed as a simpler mitigation than network reconfiguration or redesign, but this is not a preventative solution, and the audits done before policies are issued will flag flat networks as a concern.

    Network segmentation is not a “bolt on” fix. To properly implement a minimum viable product for segmentation you must, at a minimum:

    • Understand the endpoints and their appropriate traffic flows.
    • Understand the technologies available to implement segmentation.

    Implementing appropriate segmentation often involves elements of (if not a full) network redesign.

    To ensure the best results in a timely fashion, Info-Tech recommends a methodology that consists of:

    • Understand the network (or subset thereof) and prioritizing segmentation based on risk.
    • Align the appropriate segmentation methodology for each surfaced segment to be addressed.
    • Monitor the segmented environment for compliance and design efficacy, adding to and modifying existing as required.

    Info-Tech Insight

    The aim of networking is communication, but unfettered communication can be a liability. Appropriate segmentation in networks, blocking communications where they are not required or desired, restricts lateral movement within the network, allowing for better risk mitigation and management.

    Network segmentation

    Compartmentalization of risk:

    Segmentation is the practice of compartmentalizing network traffic for the purposes of mitigating or reducing risk. Segmentation methodologies can generally be grouped into three broad categories:

    1. Physical Segmentation

    The most common implementation of physical segmentation is to build parallel networks with separate hardware for each network segment. This is sometimes referred to as “air gapping.”

    2. Static Virtual Segmentation

    Static virtual segmentation is the configuration practice of using technologies such as virtual LANs (VLANs) to assign ports or connections statically to a network segment.

    3. Dynamic Virtual Segmentation

    Dynamic virtual segmentation assigns a connection to a network segment based on the device or user of the connection. This can be done through such means as software defined networking (SDN), 802.1x, or traffic inspection and profiling.

    Common triggers for network segmentation projects

    1. Remediate Audit Findings

    Many security audits (potentially required for or affecting premiums of cyber insurance) will highlight the potential issues of non-segmented networks.

    2. Protect Vulnerable Technology Assets

    Whether separating IT and OT or segmenting off IoT/IIoT devices, keeping vulnerable assets separated from potential attack vectors is good practice.

    3. Minimize Potential for Lateral Movement

    Any organization that has experienced a cyber attack will realize the value in segmenting the network to slow a bad actor’s movement through technology assets.

    How do you execute on network segmentation?

    The image contains a screenshot of the network segmentation process. The process includes: identify risk, design segmentation, and operate and optimize.

    Identify risks by understanding access across the network

    Gain visibility

    Create policy

    Prioritize change

    "Security, after all, is a risk business. As companies don't secure everything, everywhere, security resilience allows them to focus their security resources on the pieces of the business that add the most value to an organization, and ensure that value is protected."

    – Helen Patton,

    CISO, Cisco Security Business Group, qtd. In PR News, 2022

    Discover the data flows within the network. This should include all users on the network and the environments they are required to access as well as access across environments.

    Examine the discovered flows and define how they should be treated.

    Change takes time. Use a risk assessment to prioritize changes within the network architecture.

    Understand the network space

    A space is made up of both services and users.

    Before starting to consider segmentation solutions, define whether this exercise is aimed at addressing segmentation globally or at a local level. Not all use cases are global and many can be addressed locally.

    When examining a network space for potential segmentation we must include:

    • Services offered on the network
    • Users of the network

    To keep the space a consumable size, both of these areas should be approached in the abstract. To abstract, users and services should be logically grouped and generalized.

    Groupings in the users and services categories may be different across organizations, but the common thread will be to contain the amount of groupings to a manageable size.

    Service Groupings

    • Are the applications all components of a larger service or environment?
    • Do the applications serve data of a similar sensitivity?
    • Are there services that feed data and don’t interact with users (IoT, OT, sensors)?

    User Groupings

    • Do users have similar security profiles?
    • Do users use a similar set of applications?
    • Are users in the same area of your organization chart?
    • Have you considered access by external parties?

    Info-Tech Insight

    The more granular you are in the definition of the network space, the more granular you can be in your segmentation. The unfortunate corollary to this is that the difficulty of managing your end solution grows with the granularity of your segmentation.

    Create appropriate policy

    Understand which assets to protect and how.

    Context is key in your ability to create appropriate policy. Building on the definition of the network space that has been created, context in the form of the appropriateness of communications across the space and the vulnerabilities of items within the space can be layered on.

    To decide where and how segmentation might be appropriate, we must first examine the needs of communication on the network and their associated risk. Once defined, we can assess how permissive or restrictive we should be with that communication.

    The minimum viable product for this exercise is to define the communication channel possibilities, then designate each possibility as one of the following:

    • Permissive – we should freely allow this traffic
    • Restricted – we should allow some of the traffic and/or control it
    • Rejected – we should not allow this traffic

    Appropriate Communications

    • Should a particular group of users have access to a given service?
    • Are there external users involved in any grouping?

    Potential Vulnerabilities

    • Are the systems in question continually patched/updated?
    • Are the services exposed designed with the appropriate security?

    Prioritize the potential segmentation

    Use risk as a guide to prioritize segmentation.

    For most organizations, the primary reason for network segmentation is to improve security posture. It follows that the prioritization of initiatives and/or projects to implement segmentation should be based on risk.

    When examining risk, an organization needs to consider both:

    • Impact and likelihood of visibility risk in respect to any given asset, data, or user
    • The organization’s level of risk tolerance

    The assets or users that are associated with risk levels higher than the tolerance of the organization should be prioritized to be addressed.

    Service Risks

    • If this service was affected by an adverse event, what would the impact on the organization be?

    User Risks

    • Are the users in question FTEs as opposed to contractors or outsourced resources?
    • Is a particular user group more susceptible to compromise than others?

    Info-Tech Insight

    Be sure to keep this exercise relative so that a clear ranking occurs. If it turns out that everything is a priority, then nothing is a priority. When ranking things relative to others in the exercise, we ensure clear “winners” and “losers.”

    Assess risk and prioritize action

    1-3 hours

    1. Define a list of users and services that define the network space to be addressed. If the lists are too long, use an exercise like affinity diagramming to appropriately group them into a smaller subset.
    2. Create a matrix from the lists (put users and services along the rows and columns). In the intersecting points, label how the traffic should be treated (e.g. Permissive, Restricted, Rejected).
    3. Examine the matrix and assess the intersections for risk using the lens of impact and likelihood of an adverse event. Label the intersections for risk level with one of green (low impact/likelihood), yellow (medium impact/likelihood), or red (high impact/likelihood).
    4. Find commonalities within the medium/high areas and list the users or services as priorities to be addressed.
    Input Output
    • Network, application, and security documentation
    • A prioritized list of areas to address with segmentation
    Materials Participants
    • Whiteboard/Flip Charts

    OR

    • Excel spreadsheet
    • Network Team
    • Application Team
    • Security Team
    • Data Team

    Design segmentation

    Segmentation comes in many flavors; decide which is right for the specific circumstance.

    Methodology

    Access control

    "Learning to choose is hard. Learning to choose well is harder. And learning to choose well in a world of unlimited possibilities is harder still, perhaps too hard."

    ― Barry Schwartz, The Paradox of Choice: Why More Is Less

    What is the best method to segment the particular user group, service, or environment in question?

    How can data or user access move safely and securely between network segments?

    Decide on which methods work for your circumstances

    You always have options…

    There are multiple lenses to look through when making the decision of what the correct segmentation method might be for any given user group or service. A potential subset could include:

    • Effort to deploy
    • Cost of the solution
    • Skills required to operate
    • Granularity of the segmentation
    • Adaptability of the solution
    • Level of automation in the solution

    Info-Tech Insight

    Network segmentation within an organization is rarely a one-size-fits-all proposition. Be sure to look at each situation that has been identified to need segmentation and align it with an appropriate solution. The overall number of solutions deployed has to maintain a balance between that appropriateness and the effort to manage multiple environments.

    Framework to examine segmentation methods

    To assess we need to understand.

    To assess when technologies or methodologies are appropriate for a segmentation use case, we need to understand what those options are. We will be examining potential segmentation methods and concepts within the following framework:

    WHAT

    A description of the segmentation technology, method, or concept.

    WHY

    Why would this be used over other choices and/or in what circumstances?

    HOW

    A high-level overview of how this option could or would be deployed.

    Notional assessments will be displayed in a sidebar to give an idea of Effort, Cost, Skills, Granularity, Adaptability, and Automation.

    Implement

    Notional level of effort to implement on a standard network
    Cost

    Relative cost of implementing this segmentation strategy
    Maintain

    Notional level of time and skills needed to maintain
    Granularity

    How granular this type of segmentation is in general
    Adaptability

    The ability of the solution to be easily modified or changed
    Automation

    The level of automation inherent in the solution

    Air gap

    … And never the twain shall meet.

    – Rudyard Kipling, “The Ballad of East and West.”

    WHAT

    Air gapping is a strategy to protect portions of a network by segmenting those portions and running them on completely separate hardware from the primary network. In an air gap scenario, the segmented network cannot have connectivity to outside networks. This difference makes air gapping a very specific implementation of parallel networks (which are still segmented and run on separate hardware but can be connected through a control point).

    WHY

    Air gap is a traditional choice when environments need to be very secure. Examples where air gaps exist(ed) are:

    • Operational technology (OT) networks
    • Military networks
    • Critical infrastructure

    HOW

    Most networks are not overprovisioned to a level that physical segmentation can be done without purchasing new equipment. The major steps required for constructing an air gap include:

    • Design segmentation
    • Purchase and install new hardware
    • Cable to new hardware

    The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

    Info-Tech Insight

    An air gapped network is the ultimate in segmentation and security … as long as the network does not require connectivity. It is unfortunately rare in today’s world that a network will stand on its own without any need for external connectivity.

    VLAN

    Do what you can, with what you’ve got…

    – Theodore Roosevelt

    WHAT

    Virtual local area networks (VLANs) are a standard feature on today’s firewalls, routers, and manageable switches. This configuration option allows for network traffic to be segmented into separate virtual networks (broadcast domains) on existing hardware. This segmentation is done at layer 2 of the OSI model. All traffic will share the same hardware but be partitioned based on “tags” that the local device applies to the traffic. Because of these tags, traffic is handled separately at layer 2 of the OSI model, but traffic can pass between segments at layer 3 (e.g. IP layer).

    WHY

    VLANs are commonly used because most existing deployments already have the technology available without extra licensing. VLANs are also potentially used as foundational components in more complex segmentation strategies such as static or dynamic overlays.

    HOW

    VLANs allow for segmentation of a device at the port level. VLAN strategies are generally on a location level (e.g. most VLAN deployments are local to a site, though the same structure may be used among sites). To deploy VLANs you must:

    • Define VLAN segments
    • Assign ports appropriately

    The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

    Info-Tech Insight

    VLANs are tried and true segmentation workhorses. The fact that they are already included in modern manageable solutions means that there is very little reason to not have some level of segmentation within a network.

    Micro-segmentation

    Everyone is against micromanaging, but macro managing means you’re working on the big picture but don’t understand the details.

    – Henry Mintzberg

    WHAT

    Micro-segmentation is used to secure and control network traffic between workloads. This is a foundational technology when implementing zero trust or least-privileged access network designs. Segmentation is done at or directly adjacent to the workload (on the system or its direct network connectivity) through firewall or similar policy controls. The controls are set to only allow the network communication required to execute the workload and is limited to appropriate endpoints. This restrictive design restricts all traffic (including east-west) and reduces the attack surface.

    WHY

    Micro-segmentation is primarily used:

    • In server-to-server communication.
    • When lateral movement by bad actors is identified as a concern.

    HOW

    Micro-segmentation can be deployed at different places within the connectivity depending on the technologies used:

    • Workload/server (e.g. server firewall)
    • VM network overlay (e.g. VMware NSX)
    • Network port (e.g. ACL, firewall, ACI)
    • Cloud native (e.g. Azure Firewall)

    Info-Tech Insight

    Micro-segmentation is necessary in the data center to limit lateral movement. Just be sure to be thorough in defining required communication as this technology works on allowlists, not traditional blocklists.

    Static overlay

    Adaptability is key.

    – Marc Andreessen

    WHAT

    Static overlays are a form of virtual segmentation that allows multiple network segments to exist on the same device. Most of these solutions will also allow for these segments to expand across multiple devices or sites, creating overlay virtual networks on top of the existing physical networks. The static nature of the solution is because the ports that participate in the overlays are statically assigned and configured. Connectivity between devices and sites is done through encapsulation and may have a dynamic component of the control plane handled through routing protocols.

    WHY

    Static overlays are commonly deployed when the need is to segment different use cases or areas of the organization consistently across sites while allowing easy access within the segments between sites. This could be representative of segmenting a department like Finance or extending a layer 2 segment across data centers.

    HOW

    Static overlays are can segment and potentially extend a layer 2 or layer 3 network. These solutions could be executed with technologies such as:

    • VXLAN (Virtual eXtensible LAN)
    • MPLS (Multi Protocol Label Switching)
    • VRF (Virtual Routing & Forwarding)

    The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

    Info-Tech Insight

    Static overlays are commonly deployed by telecommunications providers when building out their service offerings due to the multitenancy requirements of the network.

    Dynamic overlay

    Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.

    – George S. Patton

    WHAT

    A dynamic overlay segmentation solution has the ability to make security or traffic decisions based on policy. Rather than designing and hardcoding the network architecture, the policy is architected and the network makes decisions based on that policy. Differing levels of control exist in this space, but the underlying commonality is that the segmentation would be considered “software defined” (SDN).

    WHY

    Dynamic overlay solutions provide the most flexibility of the presented solutions. Some use cases such as BYOD or IoT devices may not be easily identified or controlled through static means. As a general rule of thumb, the less static the network is, the more dynamic your segmentation solution must be.

    HOW

    Policy is generally applied at the network ingress. When applying policy, which policy to be applied can be identified through different methodologies such as:

    • Authentication (e.g. 802.1x)
    • Device agents
    • Device profiling

    The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

    Info-Tech Insight

    Dynamic overlays allow for more flexibility through its policy-based configurations. These solutions can provide the highest value when positioned where we have less control of the points within a network (e.g. BYOD scenarios).

    Define how your segments will communicate

    No segment is an island…

    Network segmentation allows for protection of devices, users, or data through the act of separating the physical or virtual networks they are on. Counter to this protective stance, especially in today’s networks, these devices, users, or data tend to need to interact with each other outside of the neat lines we draw for them. Proper network segmentation has to allow for the transfer of assets between networks in a safe and secure manner.

    Info-Tech Insight

    The solutions used to facilitate the controlled communication between segments has to consider the friction to the users. If too much friction is introduced, people will try to find a way around the controls, potentially negating the security that is intended with the solution.

    Potential access methods

    A ship in harbor is safe, but that is not what ships are built for.

    – John A. Shedd

    Firewall

    Two-way controlled communication

    Firewalls are tried and true control points used to join networks. This solution will allow, at minimum, port-level control with some potential for deeper inspection and control beyond that.

    • Traditionally firewalls are sized to handle internet-bound (North-South) traffic. When being used between segments, (East-West) loads are usually much higher, necessitating a more powerful device.

    Jump Box

    A place between worlds

    Also sometimes referred to as a “Bastion Host,” a jump box is a special-purpose computer/server that has been hardened and resides on multiple segments of a network. Administrators or users can log into this box and use it to securely use the tools installed to act on other segments of the network.
    • Jump box security is of utmost importance. Special care should be taken in hardening, configuration, and application installed to ensure that users cannot use the box to tunnel or traverse between the segments outside of well-defined and controlled circumstances.

    Protocol Gateway

    Command-level control

    A protocol gateway is a specific and special subset of a firewall. Whereas a firewall is a security generalist, a protocol gateway is designed to understand and have rule-level control over the commands passing through it within defined protocols. This granularity, for example, allows for control and filtering to only allow defined OT commands to be passed to a secure SCADA network.
    • Protocol gateways are generally specific feature sets of a firewall and traditionally target OT network security as their core use case.

    Network Pump

    One-way data extraction

    A network pump is a concept designed to allow data to be transferred from a secure network to a less secure network while still protecting against covert channels such as using the ACK within a transfer to transmit data. A network pump will consist of trusted processes and schedulers that allow for data to pass but control channels to be sufficiently modified so as to not allow security concerns.
    • Network pumps would generally be deployed in the most security demanding of environments and are generally not “off the shelf” products.

    Operate and optimize

    Security is not static. Monitor and iterate on policies within the environment.

    Monitor

    Iterate

    Two in three businesses (68%) allow more employee data access than necessary.

    GetApp's 2022 Data Security Survey Report

    Are the segmentation efforts resulting in the expected traffic changes? Are there any anomalies that need investigation?

    Using the output from the monitoring stage, refine and optimize the design by iterating on the process.

    Monitor for efficacy, compliance, and the unknown

    Monitor to ensure your intended results and to identify new potential risks.

    Monitoring network segments

    A combination of passive and active monitoring is required to ensure that:

    • The rules that have been deployed are working as expected.
    • Appropriate proof of compliance is in place for auditing and insurance purposes.
    • Environments are being monitored for unexpected traffic.

    Active monitoring goes beyond the traditional gathering of information for alerts and dashboards and moves into the space of synthetic users and anomaly detection. Using these strategies helps to ensure that security is enforced appropriately and responses to issues are timely.

    "We discovered in our research that insider threats are not viewed as seriously as external threats, like a cyberattack. But when companies had an insider threat, in general, they were much more costly than external incidents. This was largely because the insider that is smart has the skills to hide the crime, for months, for years, sometimes forever."

    – Dr. Larry Ponemon, Chairman Ponemon Institute, at SecureWorld Boston

    Info-Tech Insight

    Using solutions like network detection and response (NDR) will allow for monitoring to take advantage of advanced analytical techniques like artificial intelligence (AI) and machine learning (ML). These technologies can help identify anomalies that a human might miss.

    Monitoring options

    It’s not what you look at that matters, it’s what you see.

    – Henry David Thoreau

    Traditional

    Monitor cumulative change in a variable

    Traditional network monitoring is a minimum viable product. With this solution variables can be monitored to give some level of validation that the segmentation solution is operating as expected. Potential areas to monitor include traffic volumes, access-list (ACL) matches, and firewall packet drops.
    • This is expected baseline monitoring. Without at least this level of visibility, it is hard to validate the solutions in place

    Rules Based

    Inspect traffic to find a match against a library of signatures

    Rules-based systems will monitor traffic against a library of signatures and alert on any matches. These solutions are good at identifying the “known” issues on the network. Examples of these systems include security incident and event management (SIEM) and intrusion detection/prevention systems (IDS/IPS).
    • These solutions are optimally used when there are known signatures to validate traffic against.
    • They can identify known attacks and breaches.

    Anomaly Detection

    Use computer intelligence to compare against baseline

    Anomaly detection systems are designed to baseline the network traffic then compare current traffic against that to find anomalies using technologies like Bayesian regression analysis or artificial intelligence and machine learning (AI/ML). This strategy can be useful in analyzing large volumes of traffic and identifying the “unknown unknowns.”
    • Computers can analyze large volumes of data much faster than a human. This allows these solutions to validate traffic in (near) real-time and alert on things that are out of the ordinary and would not be easily visible to a human.

    Synthetic Data

    Mimic potential traffic flows to monitor network reaction

    Rather than wait for a bad actor to find a hole in the defenses, synthetic data can be used to mimic real-world traffic to validate configuration and segmentation. This often takes the form of real user monitoring tools, penetration testing, or red teaming.
    • Active monitoring or testing allows a proactive stance as opposed to a reactive one.

    Gather feedback, assess the situation, and iterate

    Take input from operating the environment and use that to optimize the process and the outcome.

    Optimize through iteration

    Output from monitoring must be fed back into the process of maintaining and optimizing segmentation. Network segmentation should be viewed as an ongoing process as opposed to a singular structured project.

    Monitoring can and will highlight where and when the segmentation design is successful and when new traffic flows arise. If these inputs are not fed back through the process, designs will become stagnant and admins or users will attempt to find ways to circumvent solutions for ease of use.

    "I think it's very important to have a feedback loop, where you're constantly thinking about what you've done and how you could be doing it better. I think that's the single best piece of advice: constantly think about how you could be doing things better and questioning yourself."

    – Elon Musk, qtd. in Mashable, 2012

    Info-Tech Insight

    The network environment will not stay static; flows will change as often as required for the business to succeed. Take insights from monitoring the environment and integrate them into an iterative process that will maintain relevance and usability in your segmentation.

    Bibliography

    Andreessen, Marc. “Adaptability is key.” BrainyQuote, n.d.
    Barry Schwartz. The Paradox of Choice: Why More Is Less. Harper Perennial, 18 Jan. 2005.
    Capers, Zach. “GetApp’s 2022 Data Security Report—Seven Startling Statistics.” GetApp,
    19 Sept. 2022.
    Cisco Systems, Inc. “Cybersecurity resilience emerges as top priority as 62 percent of companies say security incidents impacted business operations.” PR Newswire, 6 Dec. 2022.
    “Dynamic Network Segmentation: A Must-Have for Digital Businesses in the Age of Zero Trust.” Forescout Whitepaper, 2021. Accessed Nov. 2022.
    Eaves, Johnothan. “Segmentation Strategy - An ISE Prescriptive Guide.” Cisco Community,
    26 Oct. 2020. Accessed Nov. 2022.
    Kambic, Dan, and Jason Fricke. “Network Segmentation: Concepts and Practices.” Carnegie Mellon University SEI Blog, 19 Oct. 2020. Accessed Nov. 2022.
    Kang, Myong H., et al. “A Network Pump.” IEEE Transactions on Software Engineering, vol. 22 no. 5, May 1996.
    Kipling, Rudyard. “The Ballad of East and West.” Ballads and Barrack-Room Ballads, 1892.
    Mintzberg, Henry. “Everyone is against micro managing but macro managing means you're working at the big picture but don't know the details.” AZ Quotes, n.d.
    Murphy, Greg. “A Reimagined Purdue Model For Industrial Security Is Possible.” Forbes Magazine, 18 Jan. 2022. Accessed Oct. 2022.
    Patton, George S. “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” BrainyQuote, n.d.
    Ponemon, Larry. “We discovered in our research […].” SecureWorld Boston, n.d.
    Roosevelt, Theodore. “Do what you can, with what you've got, where you are.” Theodore Roosevelt Center, n.d.
    Sahoo, Narendra. “How Does Implementing Network Segmentation Benefit Businesses?” Vista Infosec Blog. April 2021. Accessed Nov. 2022.
    “Security Outcomes Report Volume 3.” Cisco Secure, Dec 2022.
    Shedd, John A. “A ship in harbor is safe, but that is not what ships are built for.” Salt from My Attic, 1928, via Quote Investigator, 9 Dec. 2023.
    Singleton, Camille, et al. “X-Force Threat Intelligence Index 2022” IBM, 17 Feb. 2022.
    Accessed Nov. 2022.
    Stone, Mark. “What is network segmentation? NS best practices, requirements explained.” AT&T Cyber Security, March 2021. Accessed Nov. 2022.
    “The State of Breach and Attack Simulation and the Need for Continuous Security Validation: A Study of US and UK Organizations.” Ponemon Institute, Nov. 2020. Accessed Nov. 2022.
    Thoreau, Henry David. “It’s not what you look at that matters, it’s what you see.” BrainyQuote, n.d.
    Ulanoff, Lance. “Elon Musk: Secrets of a Highly Effective Entrepreneur.” Mashable, 13 April 2012.
    “What Is Microsegmenation?” Palo Alto, Accessed Nov. 2022.
    “What is Network Segmentation? Introduction to Network Segmentation.” Sunny Valley Networks, n.d.

    TY Advisory Services

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    • Byline body: TY Advisory combines the best of traditional IT consulting with advisory bureau services at an advantageous pricepoint.

    What is our TY advisory service?

    The TY advisory service is tailored to your needs. It combines the best of traditional IT consulting expertise with the analysis and remedial solutions of an expert bureau.

    When you observe specific symptoms, TY analyses the exact areas that contribute to these symptoms.

    TY specializes in IT Operations and goes really deep in that area.  We define IT Operations as the core service you deliver to your clients:

    When you see your operation running smoothly, it looks obvious and simple, but it is not. IT Operations is a concerto, under the leadership of a competent IT Ops Conductor-Manager. IT Ops keeps the lights on and ensures your reputation with your clients and the market as a whole as a predictable and dependable business partner. And we help you achieve this, based on more than 30 years of IT Ops experience.

    As most companies' business services are linked at the hip with IT, your IT Operations, in other words, are your key to a successful business.

    Value Consulting

    That is why we work via a simple value-based proposition. We discuss your wants and together discover your needs. Once we all agree, only then do we make our proposal. Anything you learned on the way, is yours to keep and use. 

    This means a fixed agreement to deliver the value we promise. No time and material, no extensions, no unforeseen charges.

    How can we deliver this?

    Gert has advised clients on what to do before issues happen. We have also worked to bring companies back from the brink after serious events. TY has brought services back after big incidents.

    You need to get it done, not in theory, but via actionable advice and if required, via our actions and implementation prowess. It's really elementary. Anyone can create a spreadsheet with to-do lists and talk about how resilience laws like DORA and NIS2 need to be implemented.

    It's not the talk that counts, it's the walk. Service delivery is in our DNA. Resilience is our life.

    Efficient policies, procedures and guidelines

    Good governance directly ensures happy clients because staff knows what to do when and allows them leeway in improving the service. And this governance will satisfy auditors.

    • Incident management

      Incidents erode client confidence in your service and company. You must get them fixed in accordance with their importance,  

    • Problem management

      You don't want repeat incidents! Tackle the root causes and fix issues permanently. Save money by doing this right. 

    • Change management

      You must update your services to stay the best in your field. Do it in a controlled yet efficient way. Lose overhead where you can, add the right controls where you must.

    • Configuration management

      The base for most of your processes. You gotta know what you have and how it works together to provide the services to your clients.

    • Monitoring

      IT monitoring delivers business value by catching issues before they become problems. With real-time insights into system performance and security, you can minimize downtime, improve efficiency, and make better decisions that keep your operations strong and your customers happy.

    • Service management

      Bring all the IT Operations services together and measure how they perform versus set business relevant KPI's 

    • Disaster Recovery

      Disaster recovery is your company's safety net for getting critical systems and data back up and running after a major disruption, focusing on fast IT recovery and minimizing financial and operational losses, whereas business continuity ensures the entire business keeps functioning during and after the crisis.

    • Business Continuity

      Business continuity is keeping your company running smoothly during disruptions by having the right plans, processes, and backups in place to minimize downtime and protect your operations, customers, and reputation. We go beyond disaster recovery and make sure your critical processes can continue to function. 

    • Exit Plans

      Hope for the best, but plan for the worst. When you embark on a new venture, know how to get out of it. Planning to exit is best done in the very beginning, but better late than when it is too late.

      Get up to speed

    Your biggest asset, the people who execute your business services

    We base our analysis on over 30 years experience in corporate and large volume dynamic services.  Unique to our service is that we take your company culture into account, while we adjust the mindset of the experts working in these areas.

    Your people are what will make these processes work efficiently. We take their ideas, hard capabilities and leadership capabilities into account and improve upon where needed. That helps your company and the people themselves. 

    We look at the existing governance and analyse where they are best in class or how we can make them more efficient. We identify the gaps and propose remedial updates. Our updates are verified through earlier work, vetted by first and second line and sometimes even regulators 

    Next we decide with you on how to implement the updates to the areas that need them. 

    How does the TY advisory service work?

    • 1. Contact TY

      Please schedule your complimentary 30-minute discovery call below.

    • 2. Discovery call

      There is no financial commitment required from you. During this meeting we discus further in detail the issue at hand and the direction of the ideal solution and the way of working.

    • 3. TY consolidates and prepares roadmap

      We take in the information of our talks and prepare the the roadmap to the individualized solution for you.

    • 4. Second meeting to finalize roadmap

      By now, TY has a good idea of how we can help you, and we have prepared a roadmap to solving the issue. In this meeting we present the way forward our way of working and what it will require from you.

      If you decide this is not what you expected, you are free to take the information provided so far and work with it yourself. 

    • 5. We get to work

      After the previous meeting and agreement in principle, you will have by now received our offer.

      When you decide to work together, we start our partnership and solve the issue. We work to ensure you are fully satisfied with the result.

    Let's get started

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    Design an Enterprise Architecture Strategy

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    • Parent Category Name: Strategy & Operating Model
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    • The enterprise architecture (EA) team is constantly challenged to articulate the value of its function.
    • The CIO has asked the EA team to help articulate the business value the team brings.
    • Traceability from the business goals and vision to the EA contributions often does not exist.
    • Also, clients often struggle with complexity, priorities, and agile execution.

    Our Advice

    Critical Insight

    • EA can deliver many benefits to an organization. However, to increase the likelihood of success, the EA group needs to deliver value to the business and cannot be seen solely as IT.
    • Support from the organization is needed.
    • An EA strategy anchored in a value proposition will ensure that EA focuses on driving the most critical outcomes in support of the organization’s enterprise strategy.
    • As agility is not just for project execution, architects need to understand ways to deliver their guidance to influence project execution in real time, to enable the enterprise agility, and to enhance their responsiveness to changing conditions.

    Impact and Result

    • Create an EA value proposition based on enterprise needs that clearly articulates the expected contributions of the EA function.
    • Establish the EA fundamentals (vision and mission statement, goals and objectives, and principles) needed to position the EA function to deliver the promised value proposition.
    • Identify the services that EA has to provide to the organization to deliver on the promised value proposition.

    Design an Enterprise Architecture Strategy Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Design an Enterprise Architecture Strategy Deck – A guide to help you define services that your EA function will provide to the organization.

    Establish an effective EA function that will realize value for the organization with an EA strategy.

    • Design an Enterprise Architecture Strategy – Phases 1-4

    2. EA Function Strategy Template – A communication tool to secure the approval of the EA strategy from organizational stakeholders.

    Use this template to document the outputs of the EA strategy and to communicate the EA strategy for approval by stakeholders.

    • EA Function Strategy Template

    3. Stakeholder Power Map Template – A template to help visualize the importance of various stakeholders and their concerns.

    Identify and prioritize the stakeholders that are important to your IT strategy development effort.

    • Stakeholder Power Map Template

    4. PESTLE Analysis Template – A template to help you complete and document a PESTLE analysis.

    Use this template to analyze the effect of external factors on IT.

    • PESTLE Analysis Template

    5. EA Value Proposition Template – A template to communicate the value EA can provide to the organization.

    Use this template to create an EA value proposition that explicitly communicates to stakeholders how an EA function can contribute to addressing their needs.

    • EA Value Proposition Template

    6. EA Goals and Objectives Template – A template to identify the EA goals that support the identified promises of value from the EA value proposition.

    Use this template to help set goals for your EA function based on the EA value proposition and identify objectives to measure the progression towards those EA goals.

    • EA Goals and Objectives Template

    7. EA Principles Template – A template to identify the universal EA principles relevant to your organization.

    Use this template to define relevant universal EA principles and create new EA principles to guide and inform IT investment decisions.

    • EA Principles Template – EA Strategy

    8. EA Service Planning Tool – A template to identify the EA services your organization will provide to deliver on the EA value proposition.

    Use this template to identify the EA services relevant to your organization and then define how those services will be accessed.

    • EA Service Planning Tool
    [infographic]

    Workshop: Design an Enterprise Architecture Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Map the EA Contributions to Business Goals

    The Purpose

    Show an example of traceability.

    Key Benefits Achieved

    Members have a real-world example of traceability between business goals and EA contributions.

    Activities

    1.1 Start from the business goals of the organization.

    1.2 Document business and IT drivers.

    1.3 Identify EA contributions that help achieve the business goals.

    Outputs

    Business goals documented.

    Business and IT drivers documented.

    Identified EA contributions and traced them to business goals.

    2 Determine the Role of the Architect in the Agile Ceremonies of the Organization

    The Purpose

    Create an understanding about role of architect in Agile ceremonies.

    Key Benefits Achieved

    Understanding of the role of the EA architect in Agile ceremonies.

    Activities

    2.1 Document the Agile ceremony used in the organization (based on SAFe or other Agile approaches).

    2.2 Determine which ceremonies the system architect will participate in.

    2.3 Determine which ceremonies the solution architect will participate in.

    2.4 Determine which ceremonies the enterprise architect will participate in.

    2.5 Determine architect syncs, etc.

    Outputs

    Documented the Agile ceremonial used in the organization (based on SAFe or other Agile approaches).

    Determined which ceremonies the system architect will participate in.

    Determined which ceremonies the solution architect will participate in.

    Determined which ceremonies the enterprise architect will participate in.

    Determined architect syncs, etc.

    Further reading

    Design an Enterprise Architecture Strategy

    Develop a strategy that fits the organization’s maturity and remains adaptable to unforeseen future changes.

    EXECUTIVE BRIEF

    Build a right-size enterprise architecture strategy

    Enterprise Architecture Strategy
    Business & IT Strategy
    • Organizational Goals and Objectives
    • Business Drivers
    • Environment and Industry Trends
    • EA Capabilities and Services
    • Business Architecture
    • Data Architecture
    • Application Architecture
    • Integration Architecture
    • Innovation
    • Roles and Organizational Structure
    • Security Architecture
    • Technology Architecture
    • Integration Architecture
    • Insight and Knowledge
    • EA Operating Model
    		 Unlock the Value of Architecture
    • Increased Business and IT Alignment
    • Robust, Flexible, Scalable, Interoperable, Extensible and Reliable Solutions
    • Timely/Agile Service Delivery and Operations
    • Cost-Effective Solutions
    • Appropriate Risk Management to Address the Risk Appetite
    • Increased Competitive Advantage
    Current Environment
    • Business and IT Challenges
    • Opportunities
    • Enterprise Architecture Maturity

    Enterprise Architecture – Thought Model

    A thought model built around 'Enterprise Architecture', represented by a diagram on a cross-section of a ship which will be explained in the next slide. It begins with an arrow that says 'Organizational goals are the driving force and the ultimate goal' pointing to a bubble titled 'Organization' containing 'Analysis', 'Decisions', 'Actions'. An blue arrow on the right side with one '$' is labelled 'Iterations' and connects 'Organization' to 'Enterprise Architecture', 'Enterprise architecture creates new business value'. A green arrow on the left side with five '$' is labelled 'Goals' and connects back to 'Organization'. A the bottom, a bubble titled 'External forces, pressures, trends, data, etc.' has a blue arrow on the right side with one '$' connecting back to 'Enterprise Architecture'. Another blue arrow representing an output is labelled 'Outcomes' and originates from 'Enterprise Architecture'.

    Enterprise Architecture Capabilities

    A diagram on a cross-section of a ship representing 'Enterprise Architecture', including a row of process arrows beneath the ship pointing forward all labelled 'Agile iteration' and one airborne arrow above the stern pointing forward labelled 'Business Strategy'. Overlaid on the ship, starting at the back, are 'EA Strategy', 'EA Operating Model', 'Enterprise Principles, Methods, etc.', 'Foundational enterprise decisions: Business, Data/Apps, Technology, Integration, Security', 'Enterprise Reference Architecture', 'Goals, Value Chain, Capability, Business Processes', 'Enterprise Governance (e.g., Standard Mgmt.)', 'Domain Arch', 'Data & App Architecture', 'Security Architecture', 'Infrastructure: Cloud, Hybrid, etc.', at the very front is 'Implementation', and running along the bottom from back to front is 'Operations, Monitoring, and Continuous Improvement'.

    Analyst Perspective

    Enterprise architecture (EA) needs to be right-sized for the needs of the organization.

    Photo of Milena Litoiu, Principal/Senior Director, Enterprise Architecture, Info-Tech Research Group

    Enterprise architecture is NOT a one-size-fits-all endeavor. It needs to be right-sized to the needs of the organization.

    Enterprise architects are boots on the ground and part of the solution; in addition, they need to have a good understanding of the corporate strategy, vision, and goals and have a vested interest on the optimization of the outcomes for the enterprise. They also need to anticipate the moves ahead, to be able to determine future trends and how they will impact the enterprise.

    Milena Litoiu
    Principal/Senior Director, Enterprise Architecture
    Info-Tech Research Group

    Analyst Perspective

    EA provides business options based on a deep understanding of the organization.

    “Enterprise architects need to think about and consider different areas of expertise when formulating potential business options. By understanding the context, the puzzle pieces can combine to create a positive business outcome that aligns with the organization’s strategies. Sometimes there will be missing pieces; leveraging what you know to create an outline of the pieces and collaborating with others can provide a general direction.”

    Jean Bujold
    Senior Workshop Delivery Director
    Info-Tech Research Group

    “The role of enterprise architecture is to eliminate misalignment between the business and IT and create value for the organization.”

    Reddy Doddipalli
    Senior Workshop Director, Research
    Info-Tech Research Group

    “Every transformation journey is an opportunity to learn: ‘Tell me and I forget. Teach me and I remember. Involve me and I learn.’ Benjamin Franklin.”

    Graham Smith
    Senior Lead Enterprise Architect and Independent Consultant

    Develop an enterprise architecture strategy that:

    • Helps the organization make decisions that are hard to change in a complex environment.
    • Fits the current organization’s maturity and remains flexible and adaptable to unforeseen future changes.

    Executive Summary

    Your Challenge

    We need to make decisions today for an unknown future. Decisions are influenced by:

    • Changes in the environment you operate in.
    • Complexity of both the business and IT landscapes.
    • IT’s difficulty in keeping up with business demands and remaining agile.
    • Program/project delivery pressure and long-term planning needs.
    • Other internal and external factors affecting your enterprise.

    Common Obstacles

    Decisions are often made:

    • Without a clear understanding of the business goals.
    • Without a holistic understanding; sometimes in conflict with one another.
    • That hinder the continuity of the organization.
    • That prevent value optimization at the enterprise level.

    The more complex an organization, the more players involved, the more difficult it is to overcome these obstacles.

    Info-Tech’s Approach

    • Is a holistic, top-down approach, from the business goals all the way to implementation.
    • Has EA act as the canary in the coal mine. EA will identify and mitigate risks in the organization.
    • Enables EA to provide an essential service rather than be an isolated kingdom or an ivory tower.
    • Acknowledges that EA is a balancing act among competing demands.
    • Makes decisions using guiding principles and guardrails, to create a flexible architecture that can evolve and expand, enabling enterprise agility.

    Info-Tech Insight

    There is no “right architecture” for organizations of all sizes, maturities, and cultural contexts. The value of enterprise architecture can only be measured against the business goals of a single organization. Enterprise architecture needs to be right-sized for your organization.

    Info-Tech insight summary on arch. agility

    Continuous innovation is of paramount importance in achieving and maintaining competitive advantage in the marketplace.

    Business engagement

    It is important to trace architectural decisions to business goals. As business goals evolve, architecture should evolve as well.

    As new business input is provided during Agile cycles, architecture is continuously evolving.

    		EA fundamentals

    EA fundamentals will shape how enterprise architects think and act, how they engage with the organization, what decisions they make, etc.

    Start small and lean and evolve as needed.

    Continuously align strategy with delivery and operations.

    Architects should establish themselves as business partners as well as implementation/delivery leaders.

    		Enterprise services

    Definitions of enterprise services should start from the business goals of the organization and the capabilities IT needs to perform for the organization to survive in the marketplace.

    Continuous delivery and continuous innovation are the two facets of architecture.

    Tactical insight

    Your current maturity should be reflected as a baseline in the strategy.

    		Tactical insight

    Take Agile/opportunistic steps toward your strategic North star.

    		Tactical insight

    EA services differ based on goals, maturity, and the Agile appetite of the enterprise.

    From the best industry experts

    “The trick to getting value from enterprise architecture is to commit to the long haul.”

    Jeanne W. Ross, MIT CISR
    Co-author of Enterprise Architecture as Strategy: Creating a Foundation for Business Execution,
    Harvard Business Press, 2006.

    Typical EA maturity stages

    A line chart that moves through multiple stages titled 'Enterprise Architecture Maturity Stages (MIT CISR)' The five stages of the chart, starting on the left, are 'Business Silos', 'Standardized Technology', 'Optimized Core', 'Business Componentization', and 'Digital Ecosystem'. 'The trick to getting value from enterprise architecture is to commit to the long haul.' The line begins at the bottom left of the chart and gradually creates a stretched S shape to the top right. Points along the line, respective to the aforementioned stages, are 'Locally Optimal Business Solutions', 'Technology Infrastructure Platform', 'Digitized Process Platform', 'Repository of Reusable Business Components', 'Components Connecting with Partners' Components', and at the end of the line, outside of the chart is 'Strategic Business Value from Technology'. Percentages along the bottom, respective to the aforementioned stages, read 20%, 36%, 45%, 7%, 2%. Percentages are rough approximations based on findings reported in Mocker, M., Ross, J.W., Beath, C.M., 'How Companies Use Digital Technologies to Enhance Customer Offerings--Summary of Survey Findings,' MIT CISR Working Paper No. 434, Feb. 2019. Copyright MIT, 2019.

    Enterprise Architecture maturity

    A maturity ladder visualization for 'Enterprise Architecture' with five color-coded levels. From the bottom up, the colors and designations are Red: 'Unstable', Orange: 'Firefighter', Yellow: 'Trusted Operator', Blue: 'Business Partner', and Green: 'Innovator'. Beside the visualization at the bottom it says 'EA is here', then an arrow in the direction of the top where it says 'EA needs to be here'.
    • Innovator – Transforms the Business
      Reliable Technology Innovation
    • Business Partner – Expands the Business
      Effective Use of Enterprise Architecture in all Business Projects, Enterprise Architecture Is Strategically Engaged
    • Trusted Operator – Optimizes the Business
      Enterprise Architecture Provides Business, Data, Application & Technology Architectures for All IT Projects
    • Firefighter – Supports the Business
      Reliable Architecture for Some Practices/Projects
    • Unstable – Struggles to Support
      Inability to Provide Reliable Architectures

    Info-Tech Insight

    There is no “absolute maturity” for organizations of all sizes, maturities, and cultural contexts. The maturity of enterprise architecture can only be measured against the business goals of the organization.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Session 1 Session 2 Session 3 Session 4 Session 5
    Activities
    Identify organizational needs and landscape

    1.0 Interview stakeholders to identify business and technology needs

    1.1 Review organization perspective, including business needs, challenges, and strategic directions

    1.2 Conduct PESTLE analysis to identify business and technology trends

    1.3 Conduct SWOT analysis to identify business and technology internal perspective

    Create the EA value proposition

    2.1 Identify and prioritize EA stakeholders

    2.2 Create business and technology drivers from needs

    2.3 Define the EA value proposition

    2.4 Identify EA maturity and target

    Define the EA fundamentals

    3.1 Define the EA goals and objectives

    3.2 Determine EA scope

    3.3 Create a set of EA principles

    3.4. Define the need of a methodology/agility

    3.5 Create the EA vision and mission statement

    Identify the EA framework and communicate the EA strategy

    4.1 Define initial EA operating model and governance mechanism

    4.2 Define the activities and services the EA function will provide, derived from business goals

    4.3 Determine effectiveness measures

    4.4 Create EA roadmap and next steps

    4.5 Build communication plan for stakeholders

    Next Steps and Wrap-Up (offsite)

    5.1 Generate workshop report

    5.2 Set up review time for workshop report and to discuss next steps

    Outcomes
    1. Stakeholder insights
    2. Organizational needs, challenges, and direction summary
    3. PESTLE & SWOT analysis
    1. Stakeholder power map
    2. List of business and technology drivers with associated pains
    3. Set of EA contributions articulating the promises of value in the EA value proposition
    4. EA maturity assessment
    1. EA scope
    2. List of EA principles
    3. EA vision statement
    4. EA mission statement
    5. Statement about role of enterprise architect relative to agility
    1. EA capabilities mapped to business goals of the organization
    2. List of EA activities and services the EA function is committed to providing
    3. KPI definitions
    4. EA roadmap
    5. EA communication plan
    1. Completed workshop report on EA strategy with roadmap, recommendations, and outcomes from workshop

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is 8 to 12 calls over the course of 4 to 6 months.

    While variations depend on the maturity of the organization as well as its aspirations, these are some typical steps:

      Phase 1

    • Call #1: Explore the role of EA in your organization.

      • Phase 2

    • Call #2: Identify and prioritize stakeholders.
    • Call #3: Use a PESTLE analysis to identify business and technology needs.
    • Call #4: Prepare for stakeholder interviews.
    • Call #5: Discuss your EA value proposition.

      • Phase 3

    • Call #5: Understand the importance of EA fundamentals.
    • Call #6: Define the relevant EA services and their contributions to the organization.
    • Call #7: Measure EA effectiveness.

      • Phase 4

    • Call #8: Build your EA roadmap and communication plan.
    • Call #9: Discuss the EA role relative to agility.
    • Call #10: Summarize results and plan next steps.

    Design an Enterprise Architecture Strategy

    Phase 1

    Explore the Role of Enterprise Architecture

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture
      •

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval

    This phase will walk you through the following activities:

    Define the role of the group and different roles inside the enterprise architecture competency.

    This phase involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Enterprise architecture optimizes the outcomes of the entire organization

    Corporate Strategy –› Enterprise Architecture Strategy

    Info-Tech Insight

    Enterprise architecture needs to have input from the corporate strategy of the organization. Similarly, EA governance needs to be informed by corporate governance. If this is not the case, it is like planning and governing with your eyes closed.

    Existing EA functions vary in the value they achieve due to their level of maturity

    EA Functions
    Operationalized
    • EA function is operationalized and operates as an effective core function.
    • Effectively aligns the business and IT through governance, communication, and engagement.
    		 –––› Common EA value
    Decreased cost Reduced risk
    Emerging
    • Emerging but limited ad hoc EA function.
    • Limited by lack of alignment to the business and IT.
    		 –x–› Cut through complexity Increased agility
    (Source: Booz & Co., 2009)

    Benefits of enterprise architecture

    1. Focuses on business outcomes (business centricity)
    2. Provides traceability of architectural decisions to/from business goals
    3. Provides ways to measure results
    4. Provides consistency across different lines of business: establishes a common vocabulary, reducing inconsistencies
    5. Reduces duplications, creating additional efficiencies at the enterprise level
    6. Presents an actionable migration to the strategy/vision, through short-term milestones/steps

    Benefits of enterprise architecture continued

    1. Done right, increases agility
    2. Done right, reduces costs
    3. Done right, mitigates risks
    4. Done right, stimulates innovation
    5. Done right, helps achieve the stated business goals (e.g. customer satisfaction) and improves the enterprise agility.
    6. Done right, enhances competitive advantage of the enterprise

    Qualities of a well-established and practical enterprise architecture

    1. Objective
    2. Impartial
    3. Credible
    4. Practical
    5. Measurable
      6. (Source: University of Toronto, 2021)

    Role of the enterprise architecture

    • Primarily to set up guardrails for the enterprise, so Agile teams work independently in a safe, ready-to-integrate environment
    • Establish strategy
    • Establish priorities
    • Continuously innovate
    • Establish enterprise standards and enterprise guardrails to guide Solution/Domain/Portfolio Architectures
    • Align with and be informed by the organization’s direction

    Members of the Architecture Board:

    • Chief (Business) Strategist
    • Lead Enterprise Architect
    • Business SME from each major domain
    • IT SME from each major domain
    • Operational & Infrastructure SME
    • Security & Risk Officer
    • Process Management
    • Other relevant stakeholders

    For enterprise architecture to contribute, EA must address the organizational vision and goals

    External Factors –› Layers of a Business Model
    (Organization)         		–› Architecture Supported Transformation
    Industry Changes Business Strategy
    Competition Value Streams
    (Business Outcomes)
    Regulatory Impacts Business Capability Maps
    • Security
    Workforce Impacts Execution
    • Policies
    • Processes
    • People
    • Information
    • Applications
    • Technology

    Info-Tech Insight

    External forces can affect the organization as a whole; they need to be included as part of the holistic approach for enterprise architecture.

    How does EA provide value?

    Business and Technology Drivers – A set of statements created from business and technology needs. Gathered from information sources, it communicates improvements needed.

    • Vision, Aspirations, Long-Term Goals – Vision, aspirations, long term goals

      • EA Contributions – EA contributions that will alleviate obstructions. Removing the obstructions will allow EA to help satisfy business and technology needs.

        • Promise of Value – A statement that depicts a concrete benefit that the EA practice can provide for the organization in response to business and technology drivers.

    Info-Tech Insight

    Enterprise architecture needs to create and be part of a culture where decisions are made through collaboration while focusing on enterprise-wide efficiencies (e.g. reduced duplication, reusability, enterprise-wide cost minimization, overall security, comprehensive risk mitigation, and any other cross-cutting concerns) to optimize corporate business goals.

    The EA function scope is influenced by the EA value proposition and previously developed EA fundamentals

    Establish the EA function scope by using the EA value proposition and EA fundamentals that have already been developed. After defining the EA function scope, refer back to these statements to ensure it accurately reflects the EA value proposition and EA fundamentals.

    EA value proposition

    +

    EA vision statement
    EA mission statement
    EA goals and objectives

    		—›
    Influences

    Organizational coverage

    Architectural domains

    Depth

    Time horizon

    		—›
    Defines     		EA function scope

    EA team characteristics

    Create the optimal EA strategy by including personnel who understand a broad set of topics in the organization

    The team assembled to create the EA strategy will be defined as the “EA strategy creation team” in this blueprint.

    • Someone who has been in the organization for a long time and has built strong relationships with key stakeholders. This individual can exert influence and become the EA strategy sponsor.
    • An individual who understands how the different technology components in the organization support its business operations.
    • Someone in the organization who can communicate IT concepts to business managers in a language the business understands.
    • An individual with a strategy background or perspective on the organization. This individual will understand where the organization is headed.
    • Any individuals who feel an acute pain as a result of poorly made investment decisions. They can be champions of EA strategy in their respective functions.

    EA skills and competencies

    Apart from business know-how, the EA team should have the following skills

    • Architectural thinking
    • Analytical
    • Trusted, credible
    • Can handle complexity
    • Can change perspectives
    • Can learn fast (business and technology)
    • Independent and steadfast
    • Not afraid to go against the stream
    • Able to understand problems of others with empathy
    • Able to estimate scaling on design decisions such as model patterns
    • Intrinsic capability to identify where relevant details are
    • Able to identify root causes quickly
    • Able to communicate complex issues clearly
    • Able to negotiate and come up with acceptable solutions
    • Can model well
    • Able to change perspectives (from business to implementation and operational perspectives).

    Use of enterprise architecture methodologies

    Balance EA methodologies with Agile approaches

    Using an enterprise architecture methodology is a good starting point to achieving a common understanding of what that is. Often, organizations agree to "tailor" methodologies to their needs.

    The use of lean/Agile approaches will increase efficiency beyond traditional methodologies.

    Use of EA methodologies vs. Agile methods

    When to use what?

    • Use an existing methodology to structure your thinking and establish a common vocabulary to communicate basic concepts, processes, and approaches.
    • Customize the methodology to your needs; make it as lean as possible.
    • Execute in an Agile way, but keep in mind the thoughtful checks recommended by your end-to-end methodology.
    • Clarify goals.
    • Have good measures and metrics in place.
    • Continuously monitor progress, fit for purpose, etc.
    • Highlight risks, roadblocks, etc.
    • Get support.
    • Communicate vision, goals, key decisions, etc.
    • Iterate.

    Business strategy first, EA strategy second, and EA operating model third

    Corporate Strategy
    “Why does our enterprise exist in the market?”
    EA Strategy
    “What does EA need to be and do to support the enterprise’s ability to meet its goals? What is EA’s value proposition?”     		Business & IT Operating Culture
    “How does the organization’s culture and structure influence the EA operating model?”
    EA Operating Model
    How does EA need to operate on a daily basis to deliver the value proposition?”

    High-level perspective

    Creating an effective practice involves many moving parts.

    A visual of the many moving parts in an effective practice; there are 6 smaller circles in a large circle, an input arrow labelled 'Environment', an output arrow labelled 'Results', and a thin arrow connecting 'Results' back to 'Environment'. Of the circles, 'Leadership' is in the center, connected to each of the others, while 'Culture', 'Strategy', 'Core Processes', 'Structure', and 'Systems' create a cycle. (Source: The Center for Organizational Design)

    • Environment. Influences that are external to the organization, such as customer perceptions, changing needs, and changes in technology, and the organization’s ability to adjust to them.
    • Strategy. The business strategy defines how the organization adds value and acts as the rudder to direct the organization. Organizational strategy defines the character of the organization, what it wants to be, its values, its vision, its mission, etc.
    • Core Process. The flow of work through the organization.
    • Structure. How people are organized around business processes. Includes reporting structures, boundaries, roles, and responsibilities. The structure should assist the organization with achieving its goals rather than hinder its performance.
    • Systems. Interrelated sets of tasks or activities that help organize and coordinate work.
    • Culture. The personality of the organization: its leadership style, attitudes, habits, and management practices. Culture measures how well philosophy is translated into practice.
    • Results. Measurement of how well the organization achieved its goals.
    • Leadership. Brings the organization together by providing vision and strategy; designing, monitoring, and nurturing the culture; and fostering agility.

    The answer to the strategic planning entity dilemma is enterprise architecture

    Enterprise architecture is a discipline that defines the structure and operation of an organization. The intent of enterprise architecture is to determine how an organization can most effectively achieve its current and future objectives.

    Vision, goals, and aspirations as well internal and external pressures

    Business current state

    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    		 Enterprise Architecture

    IT current state

    • IT asset management
    • Database services
    • Application development

    Business target state

    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    • New capability

    IT target state

    • IT asset management
    • Database services
    • Application development
    • Business analytics
    Complex, overlapping, contradictory world of humans vs. logical binary world of IT
    EA is a planning tool to help achieve the corporate business goals

    EA spans across all the domains of architecture

    Business architecture is the cornerstone that sets the foundation for all other architectural domains: security, data, application, and technology.

    A flow-like diagram titled 'Enterprise Architecture' beginning with 'Digital Architecture' and 'Business Architecture', which feeds into 'Security Architecture', which feeds into both 'Data Architecture' and 'Application Architecture', which both feed into 'Technology Architecture: Infrastructure'.

    “An enterprise architecture practice is both difficult and costly to set up. It is normally built around a process of peer review and involves the time and talent of the strategic technical leadership of an enterprise.” (The Open Group Architecture Framework, 2018)

    Enterprise architecture deployment continuum

    A diagram visualizing the Enterprise architecture deployment continuum with two continuums, 'Level of Embedding' and 'EA Value', assigning terms to EA deployments based on where they fall. On the left is an 'Ivory Tower' configuration: EA' is separated from the 'BU's but is still controlling them. Level of Embedding: 'Centralized', EA Value: 'Dictatorship'. In the center is a 'Balanced' configuration: 'EA' is spread across and connected to each 'BU'. Level of Embedding: 'Federated', EA Value: 'Democracy'. On the right is a 'Siloed' configuration: Each 'BU' has its own separate 'EA'. Level of Embedding: 'Decentralized', EA Value: 'Abdication of enterprise role'.

    Info-Tech Insight

    The primary question during the design of the EA operating model is how to integrate the EA function with the rest of the business.

    If the EA practice functions on its own, you end up with ivory tower syndrome and a dictatorship.

    If you totally embed the EA function within business units it will become siloed with no enterprise value.

    Organizations need to balance consistency at the enterprise level with creativity from the grass roots.

    Enterprise vs. Program/Portfolio/Domain

    Enterprise vs. Program/Portfolio/Domain. Image depicts where Enterprise Scope overlaps Program/Portfolio Scope. Enterprise Scope includes Business Architecture. Program/Portfolio Scope includes Business Requirements, Business Process, and Solutions Architecture. Overlap between scope includes Technology Architecture, Data Architecture, and Applications Architecture.

    Info-Tech Insight

    Decisions at the enterprise level apply across multiple programs/portfolios/solutions and represent the guardrails set for all to play within.

    Decide on the degree of centralization

    Larger organizations with multiple domains/divisions or business units will need to decide which architecture functions will be centralized and which, if any, will be decentralized as they plan to scope their EA program. What are the core functions to be centralized for the EA to deliver the greatest benefits?

    Typically, we see a need to have a centralized repository of reusable assets and standards across the organization, while other approaches/standards can operate locally.

    Centralization

    • Allows for more strategic planning
    • Visibility into standards and assets across the organization promotes rationalization and cost savings
    • Ensures enterprise-wide assets are used
    • More strategic sourcing of vendors and resellers
    • Can centrally negotiate pricing for better deals
    • Easier to manage risk and prepare for audits
    • Greater coordination of resources
    • Derives benefits from enterprise decisions, e.g. integration…

    Decentralization

    • May allow for more innovation
    • May be easier to demonstrate local compliance if the organization is geographically decentralized
    • May be easier to procure software if offices are in different countries
    • Deployment and installation of software on user devices may be easier

    EA strategy

    What is the role of enterprise architecture vis-à-vis business goals?

    • What needs to be done?
    • Who needs to be involved?
    • When?
    • Where?
    • Why?
    • How?

    Top-down approach starting from the goals of the organization

      What the Business Sees...
    • Business Goals
      • Value Streams
          What the CxO Sees...
        • Capabilities
            What the App Managers See...
          • Processes
            • Applications
                What the Program Managers See...
              • Programs/Projects

    Info-Tech Insight

    Being able to answer the deceptively simple question “How am I doing?” requires traceability to and from the business goals to be achieved all the way to applications, to infrastructure, and ultimately, to the funded initiatives (portfolios, programs, projects, etc.).

    Measure EA strategy effectiveness by tracking the benefits it provides to the corporate business goals

    The success of the EA function spans across three main dimensions:

    1. The delivery of EA-enabled business outcomes that are most important to the enterprise.
    2. The alignment between the business and the technology from a planning perspective.
    3. Improvements in the corporate business goals due to EA contributions (standardization, rationalization, reuse, etc.).

    Corporate Business Goals

    • Reduction in operating costs
    • Decreased regulatory compliance infractions
    • Increased revenue from existing channels
    • Increased revenue from new channels
    • Faster time to business value
    • Improved business agility
    • Reduction in enterprise risk exposure

    EA Contributions

    • Alignment of IT investments to business strategy
    • Achievement of business results directly linked to IT involvement
    • Application and platform rationalization
    • Standards in place
    • Flexible architecture
    • Better integration
    • Higher organizational satisfaction with technology-enabled services and solutions

    Measurements

    • Cost reductions based on application and platform rationalization
    • Time and cost reductions due to standardization
    • Time reduction for integration
    • Service reused
    • Stakeholder satisfaction with EA services
    • Increase in customer satisfaction
    • Rework minimized
    • Lower cost of integration
    • Risk reduction
    • Faster time to market
    • Better scalability, etc.

    Info-Tech Insight

    Organizations must create clear and smart KPIs (key performance indicators) across the board.

    From corporate strategy to enterprise architecture

    A model connecting 'Enterprise Architecture' with 'Corporate Strategy' through 'EA Services' and 'EA Strategy'.

    Info-Tech Insight

    In the absence of a corporate strategy, enterprise architecture is missing its North Star.

    However, enterprise architects can partner with the business strategists to build the needed vision.

    Traceability to and from business corporate business goals to EA contributions (sample)

    A model connecting 'Enterprise Architecture' with 'Corporate Goals' through 'EA Contributions'.

    Enterprise architecture journey

    The enterprise architecture journey, from left to right: 'Business Goals' and 'EA Maturity Assessment', 'EA Strategy', 'Industry-Specific Capability Model' and 'Customized to the Organization's Needs', 'EA Operating Model' and 'EA Governance', 'Business Architecture' and 'EA Tooling', 'Data Architecture' and 'Application Architecture', 'Infrastructure Architecture'.

    Agile architecture principles

    Agile architecture principles:
    • Fast learning cycle
    • Explore alternatives
    • Create environment for decentralized ideation and innovation

    According to the Scaled Agile Framework, three of the most applicable principles for the architectural professions refer to the following:

    1. "Fast learning cycle" refers to learning cycles that allow for quick reiterations as well as the opportunity to fail fast to learn fast.
    2. "Explore alternatives" refers to the exploration phase and also to the need to make tough decisions and balance competing demands.
    3. "Create environment for decentralized ideation and innovation" ensures that no one has a monopoly on innovation. Moreover, EA needs to invite ideas from various stakeholders (from the business to operations as well as implementers, etc.).

    Architecture roles in lean enterprises

    Typical architecture roles in modern/Agile lean enterprises

    • System Architect
    • Solution Architect
    • Enterprise Architect

    Depth vs. strategy focus

    Typical architect roles

    A graph with different architect roles mapped onto it. Axes are 'Low Strategic Impact' to 'High Strategic Impact' and 'Breadth' to 'Depth'. 'Enterprise Architect' has the highest strategic impact and most breadth. 'Technical/System Architect' has the lowest strategic impact and most depth. 'Solution Architect' sits in the middle of both axes.

    Architecture roles continued

    The three architect roles from above and their impacts on the list of 'Common Domains' to the right. 'Enterprise Architect's impact is 'Across Value Streams', 'Solution Architect's impact is 'Across Systems', 'Technical/System Architect's impact is 'Single System'. Adapted from Scaled Agile.

    Common Domains

    Business Architecture

    Information Architecture

    Application Architecture

    Technical Architecture

    Integration Architecture

    Security Architecture

    Others

    Info-Tech Insight

    All architects are boots on the ground and play in the solutioning space. What differs is their decisions’ impact (the enterprise architect’s decisions affects all domains and solutions).

    SAFe definitions of the Enterprise/Solution and System Architect roles can be found here.

    The role of the Enterprise Architect is detailed here.

    Collaboration models across the enterprise

    A collaboration model with 'Enterprise Architecture' at the top consisting of a 'Chief Enterprise Architect', 'Enterprise Architects', and 'EA Concerns across solutions': 'Architect A', 'Architect B', and 'Architect C'. Each lettered Architect is connected to their respective 'Solution Architect (A-C)' which runs their respective 'Delivery Team (A-C)' with 'Other Team Members'.(Adapted from Disciplined Agile)

    There are both formal and informal collaborations between enterprise architects and solution architects across the enterprise.

    Info-Tech Insight

    Enterprise architects should collaborate with solutions architects to create the best solutions at the enterprise level and to provide guidance across the board.

    Architect roles in SAFe

    According to Scale Agile Framework 5 for Lean Enterprises:

    • The system architect participates in the Essential SAFe
    • Solution architects and system architects participate in Large Solution
    • The enterprise architect participates in the Portfolio SAFe
    • Enterprise, solution, and system architects are all involved in Full SAFe

    Please check the SAFe Scaled Agile site for detailed information on the approach.

    Architect roles and their participation in Agile events (see likely events and a typical calendar)

    Info-Tech Insight

    A clear commitment for architects to achieve and support agility is needed. Architects should not be in an ivory tower; they should be hands on and engaged in all relevant Agile ceremonies, like the pre- and post-program increment (PI) planning, etc.

    Architect syncs are also required to ensure the needed collaboration.

    Architect participation in Agile ceremonies, according to SAFe:

    Architecture runway (at scale)

    Info-Tech Insight

    Architecting for scale, modularity, and extensibility is key for the architecture to adapt to changing conditions and evolve.

    Proactively address NFRs; architect for performance and security.

    Continuously refine the solution intent.

    For large solutions, longer foundational architectural runways are needed.

    Having an intentional continuous improvement/continuous development (CI/CD) pipeline to continuously release, test, and monitor is key to evolving large and complex systems.

    Parallel continuous exploration/integration/deployment

    A cycle titled DevOps containing three smaller cycles labelled 'Continuous Explorations', 'Continuous Integration', and 'Continuous Deployment'.

    Info-Tech Insight

    Architects need to help make some fundamental decisions, e.g. help define the environment that best supports continuous innovation or exploration and continuous integration, deployment, and delivery.

    Typical strategic enterprise architecture involvement

    Enterprise Architect —DRIVES–› Enterprise Architecture Strategy

    Enterprise Architecture Strategy
    • Application Strategy
    • Business Strategy
    • Data Strategy
    • Implementation Strategy
    • Infrastructure Strategy
    • Inter-domain Collaboration
    • Integration Strategy
    • Operations Strategy
    • Security Strategy
      • (Adapted from Scaled Agile)

    The EA statement relative to agility

    The enterprise architecture statement relative to agility specifies the architects’ responsibilities as well as the Agile protocols they will participate in. This statement will guide every architect’s participation in planning meetings, pre- and post-PI, various syncs, etc. Use simple and concise terminology; speak loudly and clearly.

    Strong EA statement relative to agility has the following characteristics:

    • Describes what different architect roles do to achieve the vision of the organization
    • In an agile way
    • Compelling
    • Easy to grasp
    • Sharply focused
    • Specific
    • Concise

    Sample EA statement relative to agility

    • Create strategies that provide guardrails for the organization, provide standards, reusable assets, accelerators, and other decisions at the enterprise level that support agility.
    • Participate in pre-PI and post-PI planning activities, architect syncs, etc.

    A clear statement can include additional details surrounding the enterprise architect’s role relative to agility

    Below is a sample of connecting keywords to form an enterprise architect role statement, relative to agility.

    Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture in an agile way.

    Optimize – We collaborate with the business to analyze and optimize business capabilities and business processes to enable the agile and efficient attainment of [Company name] business objectives.

    Transform – We support IT-enabled business transformation programs by building and maintaining a shared vision of the future-state enterprise and consistently communicating it to stakeholders.

    Innovate – We identify and develop new and creative opportunities for IT to enable the business. We communicate the art of the possible to the business.

    Defining and implementing – We engage with project teams early and guide solution design and selection to ensure alignment to the target-state enterprise architecture and provide guidance and accelerators.

    Target enterprise structure in an agile way – We analyze business needs and priorities and assess the current state of the enterprise. We build and maintain the target enterprise architecture blueprints that define:

    • Business capabilities and processes (business architecture)
    • Data, application, and technology assets that enable business capabilities and processes (technology architecture)
    • Architecture principles
    • Standards and reusable assets
    • Continuous exploration, integration, and deployment

    Traditional vs. Agile approaches

    Traditional Enterprise Architecture Next-Generation Enterprise Architecture
    Scope: Technology focused Business transformation (scope includes both business and technology)
    Bottom up Top down
    Inside out Outside In
    Point to point; difficult to change Expandable, extensible, evolvable
    Control-based: Governance intensive; often over-centralized Guidance-based: Collaboration and partnership-driven based on accepted guardrails
    Big up-front planning Incremental/dynamic planning; frequent changes
    Functional siloes and isolated projects, programs, and portfolios Enterprise-driven outcome optimization (across value streams)

    Info-Tech Insight

    The role of the architecture in Lean (Agile) approaches is to set up the needed guardrails and ensure a safe environment where everyone can be effective and creative.

    Design an Enterprise Architecture Strategy

    Phase 2

    Create the EA Value Proposition

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition
      •

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval

    This phase will walk you through the following activities:

    • Identify and prioritize EA stakeholders.
    • Create business and technology drivers from stakeholder information.
    • Identify business pains and technology drivers.
    • Define EA contributions to alleviate the pains.
    • Create promises of value to fully articulate the value proposition.

    This phase involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Step 2.1

    Define the Business and Technology Drivers

    Activities
    • 2.1.1 Use a stakeholder power map to identify and prioritize EA stakeholders
    • 2.1.2 Conduct a PESTLE analysis
    • 2.1.3 Review strategic planning documents
    • 2.1.4 Conduct EA stakeholder interviews

    This step will walk you through the following activities:

    • Learn the five-step process to create an EA value proposition.
    • Uncover business and technology needs from stakeholders.

    This step involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    An understanding of your organization’s EA needs.

    Create the Value Proposition

    Step 2.1 Step 2.2

    Value proposition is an important step in the creation of the EA strategy

    Creating an EA value proposition should be the first step to realizing a healthy EA function. The EA value proposition demonstrates to organizational stakeholders the importance of EA in helping to realize their needs.

    Five steps towards the successful articulation of EA value proposition:

    1. Identify and prioritize stakeholders. The EA function must know to whom to communicate the value proposition.
    2. Construct business and technology drivers. Drivers are derived from the needs of the business and IT. Needs come from the analysis of external factors, strategic documents, and interviewing stakeholders. Helping stakeholders and the organization realize their needs demonstrates the value of EA.
    3. Discover pains that prevent driver realization. There are always challenges that obstruct drivers of the organization. Find out what they are to get closer to showing the value of EA.
    4. Brainstorm EA contributions. Pains that obstruct drivers have now been identified. To demonstrate EA’s value, think about how EA can help to alleviate those pains. Create statements that show how EA’s contribution will be able to overcome the pain to show the value of EA.
    5. Derive promises of value. Complete the articulation of value for the EA value proposition by stating how realizing the business or technology will provide in terms of value for the organization. Speak with the stakeholders to discover the value that can be achieved.

    Info-Tech Insight

    EA can deliver many benefits to an organization. To increase the likelihood of success, each EA group needs to commit to delivering value to their organization based on the current operating environment and the desired direction of the enterprise. An EA value proposition will articulate the group’s promises of value to the enterprise.

    The foundation of an optimal EA value proposition is laid by defining the right stakeholders

    All stakeholders need to know how the EA function can help them. Provide the stakeholders with an understanding of the EA strategy’s impact on the business by involving them.

    A stakeholder map can be a powerful tool to help identify and prioritize stakeholders. A stakeholder map is a visual sketch of how various stakeholders interact with your organization, with each other, and with external audience segments.

    An example stakeholder map with the 'Key players' quadrant highlighted, it includes 'CEO', 'CIO', and the modified position of 'CFO' after being engaged.

    “Stakeholder management is critical to the success of every project in every organization I have ever worked with. By engaging the right people in the right way in your project, you can make a big difference to its success…and to your career.” (Rachel Thompson, MindTools)

    2.1.1 Use a stakeholder power map to identify and prioritize EA stakeholders

    2 hours

    Input: Expertise from the EA strategy creation team

    Output: An identified and prioritized set of stakeholders for the EA function to target

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    1. A stakeholder power map helps to visualize the importance of various stakeholders and their concerns so you can prioritize your time according to the most powerful and most impacted stakeholders.
    2. Evaluate each stakeholder in terms of power, Involvement, impact, and support.
      • Power: How much influence does the stakeholder have? Enough to drive the project forward or into the ground?
      • Involvement: How interested is the stakeholder? How involved is the stakeholder in the project already?
      • Impact: To what degree will the stakeholder be impacted? Will this significantly change how they do their job?
      • Support: Is the stakeholder a supporter of the project? Neutral? A resistor?
    3. Map each stakeholder to an area on the Power Map Template.
    4. Ask yourself if the power map looks accurate. Is there someone who has no involvement in EA strategy development but should?
    5. Some stakeholders may have influence over others. For example, a COO who highly values the opinion of the Director of Operations would be influenced by that director. Draw an arrow from one stakeholder to another to signify this relationship.

    Download the Stakeholder Power Map Template for more detailed instructions on completing this activity.

    Each stakeholder will have a set of needs that will influence the final EA value proposition

    All stakeholders will have a set of needs they would like to address. Take those needs and translate them into business and technology drivers. Drivers help clearly articulate to stakeholders, and the EA function, the stakeholder needs to be addressed.

    Business Driver

    Business drivers are internal or external business conditions, changing business capabilities, and changing market trends that impact the way EA operates and provides value to the enterprise.

    Examples:

    Ensure corporate compliance with legislation pertaining to data and security (e.g. regulated oil fields).

    Enable the automation and digitization of internal processes and services to business stakeholders.

    Technology Driver

    Technology drivers are internal or external technology conditions or factors that are not within the control of the EA group that impact the way that the EA group operates and provides value to the enterprise.

    Examples:

    Establish standards and policies for enabling the organization to take advantage of cloud and mobile technologies.

    Reduce the frequency of shadow IT by lowering the propensity to make business–technology decisions in isolation.

    (Source: The Strategic CFO, 2013)

    Gather information from stakeholders to begin the process of distilling business and technology drivers

    Review information sources, then analyze them to derive business and technology drivers. Information sources are not targeted towards EA stakeholders. Analyze the information sources to create drivers that are relevant to EA stakeholders.

    Information Sources Drivers (Examples)

    PESTLE Analysis

    Strategy Documents

    Stakeholder Interviews

    SWOT Analysis

    		—›

    Analysis

    		 —›

    Help the organization align technology investments with corporate strategy

    Ensure corporate compliance with legislation.

    Increase the organization’s speed to market.

    Business and Technology Needs

    By examining information sources, the EA team will come across a set of business and technology needs. Through analysis, these needs can be synthesized into drivers.

    The PESTLE analysis will help you uncover external factors impacting the organization

    PESTLE examines six perspectives for external factors that may impact business and technology needs. Below are prompting questions to facilitate a PESTLE analysis working session.

    Political
    • Will a change in government (at any level) affect your organization?
    • Do inter-government or trade relations affect you?
    • Are there shareholder needs or demands that must be considered?
    • How are your costs changing (moving off-shore, fluctuations in markets, etc.)?
    • Do currency fluctuations have an effect on your business?
    • Can you attract and pay for top-quality talent (e.g. desirable location, reasonable cost of living, changes to insurance requirements)?
    		 Economic
    Social
    • What are the demographics of your customers and/or employees?
    • What are the attitudes of your customers and/or staff (e.g. do they require social media, collaboration, transparency of costs)?
    • What is the general lifecycle of an employee (i.e. is there high turnover)?
    • Is there a market of qualified staff?
    • Is your business seasonal?
    • Do you require constant technology upgrades (e.g. faster network, new hardware)?
    • What is the appetite for innovation within your industry/business?
    • Are there demands for increasing data storage, quality, BI, etc.?
    • Are you looking to cloud technologies?
    • What is the stance on bring your own device?
    • Are you required to do a significant amount of development work in-house?
    		 Technological
    Legal
    • Are there changes to trade laws?
    • Are there changes to regulatory requirements (i.e. data storage policies, privacy policies)?
    • Are there union factors that must be considered?
    • Is there a push towards being environmentally friendly?
    • Does the weather have any effect on your business (hurricanes, flooding, etc.)?
    		 Environmental

    2.1.2 Conduct a PESTLE analysis

    2 hours

    Input: Expertise from EA strategy creation team

    Output: Identified set of business and technology needs from PESTLE

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    1. Begin conducting the PESTLE analysis by breaking the participants into groups. Divide the six different perspectives amongst the groups.
    2. Ask each group to begin to derive business and technology needs from their assigned perspectives. Use some of the areas noted below along with the questions on the previous slide to derive business and technology needs.
      • Political: Examine taxes, environmental regulations, and zoning restrictions.
      • Economic: Examine interest rates, inflation rate, exchange rates, the financial and stock markets, and the job market.
      • Social: Examine gender, race, age, income, disabilities, educational attainment, employment status, and religion.
      • Technological: Examine servers, computers, networks, software, database technologies, wireless capabilities, and availability of Software as a Service.
      • Legal: Examine trade laws, labor laws, environmental laws, and privacy laws.
      • Environmental: Examine green initiatives, ethical issues, weather patterns, and pollution.
    3. Ask each group to take into account the following questions when deriving business and technology needs:
      • Will business components require any changes to address the factor?
      • Will information technology components changes be needed to address any factor?
    4. Have each team record its findings. Have each team present its list and have remaining teams give feedback and additional suggestions. Record any changes in this step.

    Download the PESTLE Analysis Template to assist with completing this activity.

    Strategic planning documents can provide information regarding the direction of the organization

    Some organizations (and business units) create an authoritative strategy document. These documents contain corporate aspirations and outline initiatives, reorganizations, and shifts in strategy. From these documents, a set of business and technology needs can be generated.

    Overt Statements

    • Corporate objectives and initiatives are often explicitly stated in these documents. Look for statements that begin with phrases such as “Our corporate objectives are…”
    • Remember that different organizations use different terminology; if you cannot find the word goal or objective then look for “pillar,” “imperative,” “theme,” etc.

    Turn these statements to business and technology needs by:

    Asking the following:
    • Is there a need from a business perspective to address these objectives, initiatives, and shifts in strategy?
    • Is there a need from a technology perspective to address these objectives, initiatives, and shifts in strategy?

    Covert Statements

    • Some corporate objectives and initiatives will be mentioned in passing and will require clarification. For example: “As we continue to penetrate new markets, we will be diversifying our manufacturing geography to simplify distribution.”

    2.1.3 Review strategic planning documents

    2 hours

    Input: Strategic documents in the organization

    Output: Identified set of business and technology needs from documents

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the identification process of business and technology needs from strategic documents with the following steps:

    1. Work with the EA strategy creation team to identify the strategic documents within the organization. Look for documents with any of the following content:
      • Corporate strategy document
      • Business unit strategy documents
      • Annual general reports
    2. Gather the strategic documents into one place and call a meeting with the EA strategy creation team to identify the business and technology needs in those documents.
    3. Pick one document and look through its contents. Look for future-looking words such as:
      • We will be…
      • We are planning to…
      • We will need…
    4. Consider those portions of the document with future-looking words and ask the following:
      • Will business components require any changes to address these objectives?
      • Will information technology components changes be needed to address these objectives?
    5. Record the business and technology needs identified in step 4. As well, record any questions you may have regarding the document contents for stakeholders to validate later.
    6. Move to the next document once complete. Complete steps 3-5 for the remaining strategy documents.

    Stakeholder interviews will help you collect primary data and will shed light on stakeholder priorities and challenges

    In this interview process, you will be asking EA stakeholders questions that uncover their business and technology needs. You will also be able to ask follow-up questions to get a better understanding of abstract or complex concepts from the strategy document review and PESTLE analysis.

    EA Stakeholders:

    • Stakeholders may not think of their business and technology needs. But stakeholders will often explicitly state their objectives and initiatives.
    • Objectives often result in risks, opportunities, and annoyances:
      • Risks: Potential damage associated with pursuing an objective or initiative.
      • Opportunities: Potential gains that could be leveraged when capturing objectives and initiatives.
      • Annoyances: Roadblocks that could hinder the pursuit of objectives and initiatives.
    • Ask stakeholders questions on these areas to discern their business and technology needs.

    Risks + Opportunities + Annoyances –› Business and Technology Needs

    2.1.4 Conduct EA stakeholder interviews

    4-8 hours

    Input: Expertise from the EA stakeholders

    Output: Business and technology needs for EA stakeholders

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, Identified EA stakeholders

    1. Schedule an interview with each of the stakeholders that were identified as key stakeholders in the Stakeholder Power Map.
    2. Meet with the key EA stakeholders and start business and technology needs gathering. Schedule each identified key stakeholder for an interview.
    3. When a stakeholder arrives for their interview, ask the following questions and record the answers to help uncover needs. Be sure to record which stakeholder answered the question. Further, record any future stakeholders that agree.
      • What are the current strengths of your organization?
      • What are the current weaknesses of your organization?
      • What is the number 1 risk you need to prevent?
      • What is the number 1 opportunity you want to capitalize on?
      • What is the number 1 annoying pet peeve you want to remove?
      • How would you prioritize these risks, opportunities, and annoyances?
    4. Recorded answer example: “We can’t see what the other departments are doing; when we spend a lot of money to invest in something, we later find out the capability is already within the company.”
    5. After completing each interview, verify with each stakeholder that you have captured their business and technology needs. Continue the interview process until all identified key stakeholders have been interviewed.
    6. Capture all inputs into a SWOT (strengths, weaknesses, opportunities, and threats) format.

    Step 2.2

    Define Your Value Proposition

    Activities
    • 2.2.1 Create a set of business and technology drivers from business and technology needs
    • 2.2.2 Identify the pains associated with the business and technology drivers
    • 2.2.3 Identify the EA contributions that can address the pains
    • 2.2.4 Create promises of value to shape the EA value proposition

    This step will walk you through the following activities:

    • Use business and technology drivers to determine EA’s role in your organization.

    This step involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    A value proposition document that ties the value of the EA function to stakeholder needs.

    Create the EA Value Proposition

    Step 2.1 Step 2.2

    Synthesize the collected data into business and technology drivers

    Two triangles labelled 'Business needs' and 'Technology needs' point to a cloud labelled 'Analysis', which connects to the driver attributes on the right via a dotted line.

    There are several key attributes that a driver should have.

    Driver Key Attributes
    • A succinct statement.
    • Begins with “action words” to communicate a call to action (e.g. Support, Help, Enable).
    • Written in a language understood by all parties involved.
    • Communicates a need for improvement or prevention.

    “The greatest impact of enterprise architecture is the strategic impact. Put the mission and the needs of the organization first.” (Matthew Kern, Clear Government Solutions)

    2.2.1 Create a set of business and technology drivers from business and technology needs

    3 hours

    Input: Expertise from EA strategy creation team

    Output: A set of business and technology drivers

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, EA stakeholders

    Meet with the EA strategy creation team and follow the steps below to begin the process of synthesizing the business and technology needs into drivers.

    1. Lay out the documented business and technology needs your team gathered from PESTLE analysis, strategy document reviews, and stakeholder interviews.
    2. Assess the documented business and technology needs to see if there are common themes. Consolidate those similar business and technology needs by crafting one driver for them. For example:
      • PESTLE: Influx of competitors in the marketplace causing tighter margins.
      • Document review: Improve investment quality and their value to the organization.
      • Stakeholder interview: “We can’t see what the other departments are doing; when we spend a lot of money to invest in something, we later find out the capability is already within the company.”
      • Consolidated business driver example: Help the organization align investments with the corporate strategy and departmental priorities.
    3. As well, synthesize the business and technology needs that cannot be consolidated.
    4. Verify the completed list of drivers with stakeholders. This is to ensure you have fully captured their needs.

    Download the EA Value Proposition Template to record your findings in this activity.

    When addressing business and technology drivers, an organization can expect obstacles

    A pain is an obstacle that business stakeholders will face when attempting to address business and technology drivers. Identify the pains associated with each driver so that EA’s contributions can be linked to resolving obstacles to address business needs.

    Business and Technology Drivers

    ›

    Pains
    Created by assessing information sources. A sentence that states the nature of the pain and how the pain stops the organization from addressing the drivers.
    Examples:
    • Business driver: Help the organization align investments with the corporate strategy and departmental priorities.
    • Technology driver: Improve the organization’s technology responsiveness and increase speed to market.
    		 Examples:
    • Business driver pains: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
    • Technology driver pains: Ineffective application development requiring delays decreases the speed to market.

    2.2.2 Identify the pains associated with the business and technology drivers

    2 hours

    Input: Expertise from EA strategy creation team and EA stakeholders

    Output: An associated pain that obstructs each identified driver

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, EA stakeholders

    Call a meeting with the EA strategy creation team and any available stakeholders to identify the pains that obstruct addressing the business and technology drivers.

    Take each driver and ask the questions below to the EA strategy creation team and to any EA stakeholders who are available. Record the answers to identify the pains when realizing the drivers.

    1. What are your challenges in performing the activity or process today?
    2. What other business activities/processes will be impacted/improved if we solve this?
    3. What compliance/regulatory/policy concerns do we need to consider in any solution?
    4. What are the steps in the process/activity?

    Take the recorded answers and follow the steps below to create the pain statements:

    1. Answers to the questions above can be long, unfocused, or spoken in a casual manner. To turn the answer into pains, refine the recorded answers into a succinct sentence that captures its meaning.
      • Recorded answer example: “I feel like there needs to be a holistic view of the organization. If we had a tool to see all the capabilities across the business, then we can figure out what investments should be prioritized.”
      • Example of pain statement: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
    2. When the list of pains has been written out, verify with the stakeholders that you have fully captured their pains.

    Download the EA Value Proposition Template to record your findings in this activity.

    The identified pains can be alleviated by a set of EA contributions

    Set the foundations for the value proposition by brainstorming the EA contributions that can alleviate the pains.

    Business and technology drivers produce:

    Pains

    		 —›
    EA contributions produce:

    Value by alleviating pains
    Pains

    Obstructions to addressing business and technology drivers. Stakeholders will face these pains.

    Examples
    • Business driver pains: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
    EA contributions

    Activities the EA function can perform to help alleviate the pains. Demonstrates the contributions the EA function can make to business value.

    Examples:
    • Business driver EA contributions: Business capability mapping shows the business capabilities of the organization and the technology that supports those capabilities in the current and target state. This provides a view for the set of investments that are needed by the organization, which can then be prioritized.

    Enterprise architecture functions can provide a diverse set of contributions to any organization – Sample

    EA contribution category EA contribution details
    Define business capabilities and processes As-is and target business capabilities and processes are documented and understood by both IT and the business.
    Design information flows and services Information flows and services effectively support business capabilities and processes.
    Analyze gaps and identify project opportunities Create informed project identification, scope definition, and project portfolio management.
    Optimize technology assets Greater homogeneity and interoperability between tangible and intangible technology assets.
    Create and maintain technology standards Decrease development, integration, and support efforts. Reduce complexity and improve interoperability.
    Rationalize technology assets Tangible and intangible technology assets are rationalized to adequately and efficiently support information flows and services.

    2.2.3 Identify the EA contributions that can address the pains

    2 hours

    Input: Expertise from EA strategy creation team

    Output: EA contributions that addresses the pains that were identified

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Gather with the EA strategy creation team, take each pain, then ask and record the answers to the questions below to identify the EA contributions that would solve the pains:

    1. What activities can the EA practice conduct to overcome the pain?
    2. What are the core EA models that can help accurately define the problem and assist in finding appropriate resolutions?
    3. What are the general EA benefits that can be associated with solving this pain?

    Answers to the questions above will generate a list of activities EA can do to help alleviate the pains. Use the following steps to complete this activity:

    1. Create a stronger tie between the EA contributions and pains by linking the EA contribution statement to the pain.
      • Example of pain statement: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
      • Example of EA contributions statement: Business capability mapping shows the business capabilities of the organization and the technology that supports those capabilities in the current and target state. This provides a view for the set of investments that are needed by the organization, which can then be prioritized.
    2. Verify with the stakeholders that they understand the EA contributions have been written out and how those contributions address the pains.

    Download the EA Value Proposition Template to record your findings in this activity.

    EA promises of value articulate EA’s commitment to the organization

    • Business Goals and Technology Drivers
      A set of statements created from business and technology needs. Gathered from information sources, it communicates improvements needed.

      • Value Streams, Aspirations, Long-Term Goals
        Value streams, aspirations, long-term goals

        • EA Contributions
          EA contributions that will alleviate the obstructions. Removing the obstructions will allow EA to help satisfy business and technology needs.

          • Promise of Value
            A statement that depicts a concrete benefit the EA practice can provide for the organization in response to business and technology drivers.
            Communicate the statements in a language that stakeholders understand to complete the articulation of EA’s value proposition.

    2.2.4 Create promises of value to shape the EA value proposition

    2 hours

    Input: Expertise from EA strategy creation team and EA stakeholders

    Output: Promises of value for each business and technology driver

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, EA stakeholders

    Now that the EA contributions have been identified, identify the promises of value to articulate the value proposition.

    Take each driver, then ask and record the answers to the questions below to identify the promises of value when realizing the drivers:

    1. What does amazing look like if we solve this perfectly?
    2. What other business activities/processes will be impacted/improved if we solve this?
    3. What measures of success/change should we use to prove value of the effort (KPIs/ROI)?

    Take the recorded answers and follow the steps below to create the promises of value.

    1. Answers to the questions above can be long, unfocused, or spoken in a casual manner. To turn the answer into a promise of value, refine the recorded answer into a succinct sentence that captures its meaning.
      • Business driver example: Help the organization align investments with the corporate strategy and departmental priorities.
      • Recorded answer example: “If this would be solved perfectly, we would have a very easy time planning investments and investment planning hours can be spent doing other activities.”
      • Promises of value example: Increase the number of investments that have a direct tie to corporate strategy.
    2. When the promises of value have been written out, verify with the stakeholders that you have fully captured their ideas.

    Download the EA Value Proposition Template to record your findings in this activity.

    Design an Enterprise Architecture Strategy

    Phase 3

    Build the EA Fundamentals

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals
      •

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval

    This phase will walk you through the following activities:

    • Create an EA vision statement and an EA mission statement.
    • Create EA goals, define EA objectives, and link them to EA goals.
    • Define the EA function scope dimensions.
    • Create a set of EA principles for your organization.
    • Discuss current methodology.

    This phase involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Step 3.1

    Realize the Importance of EA Fundamentals

    Activities
    • 3.1.1 Create the EA vision statement
    • 3.1.2 Create the EA mission statement
    • 3.1.3 Create EA goals
    • 3.1.4 Define EA objectives and link them to EA goals
    • 3.1.5 Record the details of each EA objective

    This step will walk you through the following activities:

    • Define and document the fundamentals that guide the EA function.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • Vision and mission statements for the EA function.
    • A set of EA goals and a set of objectives to track progression toward those goals.
    Build the EA Fundamentals
    Step 3.1 Step 3.2

    EA fundamentals guide the EA function

    EA fundamentals include a vision statement, a mission statement, goals and objectives, and principles. They are a set of documented statements that guide the EA function. The fundamentals guide the EA function in terms of its strategy and decision making.

    EA vision statement EA mission statement

    EA fundamentals
    EA goals and objectives EA principles

    Info-Tech Insight

    Treat the critical elements of the EA group the same way as you would a business. Create a directional foundation for EA and define the vision, mission, goals, principles, and scope necessary to deliver on the established value proposition.

    The EA vision statement articulates the aspirations of the EA function

    The enterprise architecture vision statement communicates a desired future state of the EA function. The statement is expressed in the present tense. It seeks to articulate the desired role of the EA function and how the EA function will be perceived.

    Strong EA vision statements have the following characteristics:

    • Describe a desired future
    • Focus on ends, not means
    • Communicate promise
    • Concise, no unnecessary words
    • Compelling
    • Achievable
    • Inspirational
    • Memorable

    Sample EA vision statements:

    • To be a trusted partner for both the business and IT, driving enterprise effectiveness, efficiency, and agility at [Company Name].
    • To be a trusted partner and advisor to both the business and IT, contributing to business-IT alignment and cost reduction at [Company Name].
    • To create distinctive value and accelerate [Company Name]’s transformation.

    The EA mission statement articulates the purpose of the EA function

    The enterprise architecture mission statement specifies the team’s purpose or “reason of being.” The mission should guide each day’s activities and decisions. The mission statements use simple and concise terminology, speak loudly and clearly, and generate enthusiasm for the organization.

    Strong EA mission statements have the following characteristics:

    • Articulates EA function purpose and reason for existence
    • Describes what the EA function does to achieve its vision
    • Defines who the customers of the EA function are
    • Compelling
    • Easy to grasp
    • Sharply focused
    • Inspirational
    • Memorable
    • Concise

    Sample EA mission statements:

    • Define target enterprise architecture for [Company Name], identify solution opportunities, inform IT investment management, and direct solution development, acquisition, and operation compliance.
    • Synergize with both the business and IT to define and help realize [Company Name]’s target enterprise architecture that enables the business strategy and optimizes IT assets, resources, and capabilities.

    The EA vision and mission statements become relevant to EA stakeholders when linked to the promises of value

    The process for constructing the enterprise architecture vision statement and enterprise architecture mission statement is articulated below.

    Promises of value Derive keywords Construct draft statements Reference test criteria Finalize statements
    Derive the a set of keywords from the promises of value to accurately capture their essence. Create the initial statement using the keywords. Check the initial statement against a set of test criteria to ensure their quality. Finalize the statement after referencing the initial statement against the test criteria.

    Derive keywords from promises of value to begin the vision and mission statement creation process

    Develop keywords by summarizing the promises of value that were derived from drivers into one word that will take on the essence of the promise. See examples below:

    Business and technology drivers Promises of value Keywords
    Help the organization align investments with the corporate strategy and departmental priorities. Increase the number of investments that have a direct tie to corporate strategy. Business
    Support the rapid growth and development of the company through fiscal planning, project planning, and technology sustainability. Ensure budgets and projects are delivered on time with the assistance of technology. IT-Enabled
    Reduce the duplication and work effort to build and deploy technology solutions across the entire organization. Aim to reduce the number of redundant applications in the organization to streamline processes and save costs. Catalyst
    Improve the organization’s technology responsiveness and increase speed to market. Reduce the number of days required in the SDLC for all core business support projects. Value delivery

    An inspirational vision statement is greater than the sum of the individual words

    Ensure the sentence is cohesive and captures additional value outside of the keywords. The statement as a whole should be greater than the sum of the parts. Expand upon the meaning of the words, if necessary, to communicate the value. Below is an example of a finished vision statement.

    Sample

    Be a catalyst for IT-enabled business value delivery.

    Catalyst – We will continuously interact with the business and IT to accelerate and improve results.

    IT-enabled – We will ensure the optimal use of technology in enabling business capabilities to achieve business objectives.

    Business – We will be perceived as a business-focused unit that understands [Company name]’s business priorities and required business capabilities.

    Value delivery – EA’s value will be recognized by both business and IT stakeholders. We will track and market EA’s contribution to business value organization-wide.

    A clear mission statement can include additional details surrounding the EA team’s desired and expected value

    Likewise, below is a sample of connecting keywords together to form an EA mission statement:

    Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture.

    Optimize – We collaborate with the business to analyze and optimize business capabilities and business processes to enable the agile and efficient attainment of [Company name] business objectives.

    Transform – We support IT-enabled business transformation programs by building and maintaining a shared vision of the future-state enterprise and consistently communicating it to stakeholders.

    Innovate – We identify and develop new and creative opportunities for IT to enable the business. We communicate the art of the possible to the business.

    Defining and implementing – We engage with project teams early and guide solution design and selection to ensure alignment to the target-state enterprise architecture.

    Target enterprise structure – We analyze business needs and priorities and assess the current state of the enterprise. We build and maintain the target enterprise architecture blueprints that define:

    • Business capabilities and processes (business architecture)
    • Data, application, and technology assets that enable business capabilities and processes (technology architecture)
    • Architecture principles and standards

    3.1.1 Create the EA vision statement

    1 hour

    Input: Identified promises of value, Vision statement test criteria

    Output: EA function vision statement

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the creation of the EA vision statement by following the steps below:

    1. Gather the EA strategy creation team and have the promises of value from the EA value proposition laid out.
    2. Select one promise of value and work with the team to identify one word that captures the essence of that promise of value.
    3. Continue to the next promise of value until all of the promises of value have a keyword identified.
    4. Have the identified set of keywords laid out and see if any of their meanings are similar and can be consolidated together. Consolidate similar meaning keywords.
    5. Create the initial draft of the EA vision statement by linking the keywords together.
    6. Check the initial draft of the vision statement against the test criteria below. Ask the team if the vision statement satisfies each of the test criteria.
      • Do you find this vision exciting?
      • Is the vision clear, compelling, and easy to grasp?
      • Does this vision somehow connect to the core purpose?
      • Will this vision be exciting to a broad base of people in the organization, not just those within the EA team?
    7. Make changes to the initial draft to satisfy the test criteria. Socialize the EA vision statement with EA stakeholders to make sure it captures their needs.

    3.1.2 Create the EA mission statement

    1 hour

    Input: Identified promises of value, Mission statement test criteria

    Output: EA function mission statement

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the creation of the EA mission statement by following the steps below:

    1. Gather the EA strategy creation team and have the promises of value from the EA value proposition laid out.
    2. Select one promise of value and work with the team to identify one word that captures the essence of that promise of value.
    3. Continue to the next promise of value until all of the promises of value have a keyword identified.
    4. Have the identified set of keywords laid out, and see if any of their meanings are similar and can be consolidated together. Consolidate similar meaning keywords.
    5. Create the initial draft of the EA mission statement by linking the keywords together.
    6. Check the initial draft of the mission statement against the following test criteria below. Ask the team if the mission statement satisfies each of the test criteria.
      • Do you find this purpose personally inspiring?
      • Does the purpose help you to decide what activities to not pursue, to eliminate from consideration? Is this purpose authentic – something true to what the organization is all about – not merely words on paper that sound nice?
      • Would this purpose be greeted with enthusiasm rather than cynicism by a broad base of people in the organization?
    7. Make changes to the initial draft to satisfy the test criteria. Socialize the EA mission statement with EA stakeholders to make sure it captures their needs.

    EA goals demonstrate the achievement of success of the EA function

    Enterprise architecture goals define specific desired outcomes of an EA function. EA goals are important because they establish the milestones the EA function can strive toward to deliver their promises of value.

    Inform EA goals by examining:

    Promises of value

    		 —›
    EA goals produce:

    Targets and milestones
    Promises of value

    Produce EA strategic outcomes that can be classified into four categories. The four categories are:

    • Business performance
    • IT performance
    • Customer value
    • Risk management
    EA goals

    Support the strategic outcomes. EA goals can be strategic or operational:

    • EA strategic goals support the strategic outcomes.
    • EA operational goals help measure the architecture capability quality and supporting processes.

    3.1.3 Create EA goals

    2 hours

    Input: Identified promises of value

    Output: EA goals

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the creation of EA goals by following the steps below:

    1. Gather the EA strategy creation team and the identified promises of value from Phase 2, Create the EA Value Proposition.
    2. Open the EA Goals and Objectives Template and examine the list of default EA goals already within the template.
    3. Take the identified promises of value and discuss with the team if any of the EA goals in the template relate to the promises of value. Record the related EA goal and promise of value. See example below:
      • Promises of value example: Increase the number of investments that have a direct tie to corporate strategy.
      • Related EA goal example: Alignment of IT and business strategy.
    4. Repeat step 3 until all identified promises of value have been examined in relation to the EA goals in the template.
    5. If there are promises of value that are not related to an EA goal in the template, create EA goals to relate to those promises of value. Keep in mind that EA goals need to support the strategic outcomes produced by the promises of value. Record the EA goals in the template and document the related promises of value.

    Download the EA Goals and Objectives Template to assist with completing this activity.

    Starting with COBIT, select the appropriate objectives to track EA goals – Sample

    Below are examples of EA goals and the objectives that track their performance:

    IT performance-oriented goals Objectives
    Alignment of IT and business strategy
    • Increase the percentage of enterprise strategic goals and requirements supported by IT strategic goals by X percent in the fiscal year.
    • Improve stakeholder satisfaction with planned function and services portfolio scope by X percent in the fiscal year.
    • Increase the percentage of IT value drivers mapped to business value drivers by X percent in the next fiscal year.
    Increase in IT agility
    • Improve business executive satisfaction with IT’s responsiveness to new requirements by X percent in the fiscal year.
    • Increase the number of critical business processes supported by up-to-date infrastructure and applications in the next three years.
    • Lower the average time to turn strategic IT objectives into agreed-upon and approved initiatives.
    Optimization of IT assets, resources, and capabilities
    • Increase the frequency of capability maturity and cost optimization assessments.
    • Improve the frequency of reporting for assessment result trends.
    • Raise the satisfaction levels of business and IT executives with IT-related costs and capabilities by X percent.

    3.1.4 Define EA objectives and link them to EA goals

    2 hours

    Input: Defined EA goals

    Output: EA objectives linked to EA goals

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the process of defining EA objectives and linking them to EA goals using the following steps:

    1. Gather the EA strategy creation team and open the EA Goals and Objectives Template.
    2. Have the goals laid out, and refer to the objectives already in the EA Goals and Objectives Template. Examine if any of them will fit the goals your team has created.
    3. If some of the goals your team has created do not fit with the objectives in the template, begin the process of creating new objectives. Remember, EA objectives are SMART metrics that help track the progress toward the EA goals.
    4. Create an EA objective and check if it is SMART by asking some of the questions below:
      • Specific: Is the objective specific to the goal? Is the objective clear to anyone who has basic knowledge of the goal?
      • Measurable: Is it possible to figure out how far the team would be away from completing the objective?
      • Agreed Upon: Does everyone involved agree the objective is the correct way to measure progress?
      • Realistic: Can the objective be met within the availability of resources, knowledge, and time?
      • Time Based: Is there a time-bound component to the goal?
    5. Continue to create new objectives until each goal has an objective linked to it.

    Download the EA Goals and Objectives Template to assist with completing this activity.

    For each of the objectives, determine how they will be collected, reported, and implemented

    Add details to the enterprise architecture objectives previously defined to increase their clarity to stakeholders.

    EA objective detail category Description
    Unit of measure
    • The unit in which the objective will be presented.
    Calculation formula
    • The formula by which the objective will be calculated.
    Objective baseline, status, and target
    • Baseline: The state of the objective at the start of measurement.
    • Status: The current state of the measurement.
    • Target: The target state the measurement should reach.
    Data collection
    • Responsible: The individual responsible for collecting the data.
    • Source: Where the data originates.
    • Frequency: How often the data will be collected to calculate the objective.
    Reporting
    • Target Audience: The people the objective will be presented to.
    • Method: The method used to present the data collected on the objective (e.g. report, presentation).
    • Frequency: How often the data will be presented to the target audience.

    3.1.5 Record the details of each EA objective

    2 hours

    Input: Defined list of EA objectives

    Output: Increased detail into each defined EA objective

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Record the details of each EA objective. Use the following steps below to assist with recording the details:

    1. Gather the EA strategy creation team, and open the EA Goals and Objectives Template.
    2. Select one objective that has been identified and discuss the formula for calculating the objective and in what units the objective will be recorded. Record the information in the “Calculation formula” and “Unit of measure” columns in the template once they have been agreed upon.
    3. Using the same objective, move to the “Data Collection” portion of the template. Discuss and record the following: the source of the data that generates the objective, the frequency of reporting on the objective, and the person responsible for reporting the objective.
    4. Move to the “Reporting” portion of the template. Discuss and record the target audience for the objective and the reporting frequency and method to those audiences.
    5. Examine the “Objective baseline,” “Objective status,” and “Objective target” columns. Record any measurement you may currently have in the “Objective baseline” column. Record what you would like the objective measurement to be in the “Objective target” column. Note: Keep track of the progression towards the target in the “Objective status” column in the future.
    6. Select the next objective and complete steps 2–5 for that measure. Continue this process until you have recorded details for all objectives.

    Download the EA Goals and Objectives Template to assist with completing this activity.

    Step 3.2

    Finalize the EA Fundamentals

    Activities
    • 3.2.1 Define the organizational coverage dimension of the EA function scope
    • 3.2.2 Define the architectural domains and depth dimension
    • 3.2.3 Define the time horizon dimension
    • 3.2.4 Create a set of EA principles for your organization
    • 3.2.5 Add the rationale and implications to the principles
    • 3.2.6 Operationalize the EA principles
    • 3.2.7 Discuss the need for classical methodology and/or a combination including Agile practices

    This step will walk you through the following activities:

    • Define the EA function scope dimensions.
    • Create a set of EA principles.
    • Discuss the organization’s current methodology, if any, and whether it works for the business.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • Defined scope of the EA function.
    • A set of EA principles for your organization.
    • A decision on traditional vs. Agile methodology or a blend of both.

    Build the EA Fundamentals

    Step 3.1 Step 3.2

    A clear EA function scope defines the EA sandbox

    The EA function scope constrains the promises of value the EA function will deliver on by taking into account factors across four dimensions. The EA function scope ensures that the EA function is not stretched beyond its current/planned means and capabilities when delivering the promised value. The four dimensions are illustrated below:

    Organizational coverage
    Determine the focus of the enterprise architecture effort in terms of specific business units, functions, departments, capabilities, or geographical areas.     		Depth
    Determine the appropriate level of detail to be captured, based on the intended use of the enterprise architecture and the contingent decisions to be made.

    EA Scope
    Architectural Domains
    Determine the EA domains (business, data, application, infrastructure, security) that are appropriate to address stakeholder concerns and architecture requirements.     		Time horizon
    Determine the target-state architecture’s objective time period.

    The EA function scope is influenced by the EA value proposition and previously developed EA fundamentals

    Establish the EA function scope by using the EA value proposition and EA fundamentals that have been developed. After defining the EA function scope, refer back to these statements to ensure the EA function scope accurately reflects the EA value proposition and EA fundamentals.

    EA value proposition

    +

    EA vision statement
    EA mission statement
    EA goals and objectives

    		—›
    Influences

    Organizational coverage

    Architectural domains

    Depth

    Time horizon

    		—›
    Defines     		EA function scope

    EA scope – Organizational Coverage

    The organizational coverage dimension of EA scope determines the focus of enterprise architecture effort in the organization. Coverage can be determined by specific business units, functions, departments, capabilities, or geographic areas. Info-Tech has typically seen two types of coverage based on the size of the organization.

    Small and medium-size enterprise

    Indicators: Full-time employees dedicated to manage its data and IT infrastructure. Individuals are IT generalists and may have multiple roles.

    Recommended coverage: Typically, for small and medium-size businesses, the organizational coverage of architecture work is the entire enterprise. (Source: The Open Group, 2018)

    Large enterprise

    Indicators: Dedicated full-time IT staff with expertise to manage specific applications or parts of the IT infrastructure.

    Recommended coverage: For large enterprises, it is often necessary to develop a number of architectures focused on specific business segments and/or geographies. In this federated model, an overarching enterprise architecture should be established to ensure interoperability and conformance to overarching EA principles. (Source: DCIG, 2011)

    EA objectives track the progression towards the target set by EA goals

    Enterprise architecture objectives are specific metrics that help measure and monitor progress towards achieving an EA goal. Objectives are SMART.

    EA goals —› EA objectives
    • EA strategic goals:
      • Business performance
      • IT performance
      • Customer value
      • Risk management
    • EA operational goals
    • Specific
    • Measurable
    • Agreed upon
    • Realistic
    • Time bound
    (Source: Project Smart, 2014)

    Download the EA Goals and Objectives Template to see examples between the relationship of EA goals to objectives.

    Measure the EA strategy effectiveness by tracking the benefits it provides to the corporate business goals

    The success of the EA function is influenced by the following:

    • The delivery of EA-enabled business outcomes that are most important to the enterprise.
    • The alignment between the business and IT from a planning perspective.
    • Improvements in the corporate business goals due to EA contributions (standardization, rationalization, reuse, etc.).
    Corporate Business Goals Measurements
    • Reduction in operating costs
    • Decrease in regulatory compliance infractions
    • Increased revenue from existing channels
    • Increased revenue from new channels
    • Faster time to business value
    • Improved business agility
    • Reduction in enterprise risk exposure
    • Cost reductions based on application and platform rationalization
    • Standard-based solutions
    • Time reduction for integration
    • Service reused
    • Stakeholder satisfaction with EA services
    • Increase customer satisfaction
    • Rework minimized
    • Lower cost of integration
    • Risk reduction
    • Faster time to market
    • Better scalability, etc.

    3.2.1 Define the organizational coverage dimension of the EA function scope

    2 hours

    Input: EA value proposition, Previously defined EA fundamentals

    Output: Organizational coverage dimension of EA scope defined

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Define the organizational coverage of the EA function scope using the following steps below:

    1. Gather the EA strategy creation team. As well, gather the EA value proposition, the EA vision and mission statements, and the EA goals and objectives your team has already created.
    2. Ask the team to read each of the documents gathered in the previous step. This ensures the concepts are fresh in the team members’ minds when defining the EA function scope organizational coverage.
    3. Consider how much of the organization the EA function would need to cover. Refer to the gathered materials to assist with your decision. For example:
      • EA mission statement: Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture.
      • Implications on organizational coverage: If the purpose of the EA function is to help optimize, transform, and innovate with target-state architecture mapping, then the scope should cover the entire organization. Only by mapping the entire organization’s architecture can the EA function assist with optimizing, transforming, and innovating.
    4. Work with the EA strategy creation team to examine all the gathered materials and document the implications on organization coverage as shown in step 3.
    5. Discuss with the team and select the organizational coverage level that best fits the documented implications for all the gathered materials. Refer back to the gathered materials and make any changes necessary to ensure they support the selected organizational coverage.

    EA scope – Architectural Domains

    A complete enterprise architecture should address all five architectural domains. The five architectural domains are business, data, application, infrastructure, and security.

    Enterprise Architecture
    —› Data Architecture
    Business Architecture —› Infrastructure Architecture
    Security Architecture
    —› Application Architecture

    “The realities of resource and time constraints often mean there is not enough time, funding, or resources to build a top-down, all-inclusive architecture encompassing all four architecture domains. Build architecture domains with a specific purpose in mind.” (The Open Group, 2018)

    Each architectural domain creates a different view of the organization

    Below are the definitions of different domains of enterprise architecture (Info-Tech perspective; others can be identified as well, e.g. Integration Architecture).

    Business Architecture

    Business architecture is a means of demonstrating the business value of subsequent architecture work to key stakeholders and the return on investment to those stakeholders from supporting and participating in the subsequent work. Business architecture defines the business strategy, governance, organization, and key business processes.

    Data Architecture

    Describes the structure of an organization’s logical and physical data assets and data management resources.

    Application Architecture

    Provides a blueprint for the individual applications to be deployed, their interactions, and their relationships to the core business processes of the organization.

    Infrastructure Architecture

    Represents the sum of hardware, software, and telecommunications-related IT capability associated with a particular enterprise. It is concerned with the synergistic operations and management of the devices in the organization.

    Security Architecture

    Provides an unified security design that addresses the necessities and potential risks involved in a certain scenario or environment. It also specifies when and where to apply security controls.
    (Sources: The Open Group, 2018; IT Architecture Journal, 2014; Technopedia, 2016)

    EA scope – Depth

    EA scope depth defines the architectural detail for each EA domain that the organization has selected to pursue. The level of depth is broken down into four levels. The level of depth the organization decides to pursue should be consistent across the domains.

    Contextual
    • Helps define the organization scope, and examines external and internal requirements and their effect on the organization. For example, enterprise governance.
    Conceptual
    • High-level representations of the organization or what the organization wants to be. For example, business strategy, IT strategy.
    Logical
    • Models that define how to implement the representation in the conceptual stage. For example, identifying the business gaps from the current state to the target state defined by the business strategy.
    Physical
    • The technology and physical tools used to implement the representation created in the logical stage. For example, business processes that need to be created to bridge the gaps identified and reach the target stage.
    (Source: Zachman International, 2011) Business Architecture Data Architecture Application Architecture Infrastructure Architecture Security Architecture

    Each architectural depth level contains a set of key artifacts

    The graphic below depicts examples of the key artifacts that each domain of architecture would produce at each depth level.

    Contextual Enterprise Governance
    Conceptual Business strategy Business objects Use-case models Technology landscaping Security policy
    Logical Business capabilities Data attribution Application integration Network/ hardware topology Security standards
    Physical Business process Database design Application design Configuration management Security configuration
    Business Architecture Data Architecture Application Architecture Infrastructure Architecture Security Architecture

    3.2.2 Define the architectural domains and depth dimension of the EA function scope

    2 hours

    Input: EA value proposition, Previously defined EA fundamentals

    Output: Architectural domain and depth dimensions of EA scope defined

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Define the EA function scope for your organization using the following steps below:

    1. Gather the EA strategy creation team. As well, gather the EA value proposition, the EA vision and mission statements, and the EA goals and objectives that your team has already created.
    2. Ask the team to read each of the documents gathered in the previous step. This ensures the concepts are fresh in the team members’ minds when defining the architectural domains and depth of the EA function scope.
    3. Consider the architectural domains and the depth those domains need to reach. Refer to the gathered materials to assist with your decision. For example:
      • Promise of value: Increase the number of IT investments with a direct tie to business strategy.
      • Implications on architectural domains: The EA function will need business architecture. Business architecture generates business capability mapping, which will anticipate what IT investments are needed for the future.
      • Implications on depth: Depth for business architecture needs to reach a logical level to encompass business capabilities.
    4. Work with the EA strategy creation team to examine all the gathered materials and document the implications on architectural domains and depth as shown in step 3.
    5. Discuss with the team and select the architectural domains and the depth for each domain that best fits the documented implication. Refer back to the gathered materials and make any changes necessary to ensure they support the selected architectural domains and depth.

    EA scope – Time Horizon

    The EA scope time horizon dictates how long to plan for the architecture.

    It is important that the EA team’s work has an appropriate planning horizon while avoiding two extremes:

    1. A planning horizon that is too short focuses on immediate operational goals and strategic quick wins, missing the “big picture,” and fails to support the achievement of strategic long-term enterprise goals.
    2. A planning horizon that is too long is at a higher risk of becoming irrelevant.

    Target the same strategic planning horizon as your business. Additionally, consider the following recommendations:

    Planning Horizon: 1 year 2-3 years 5 years
    Recommended under the following conditions:
    • Corporate strategy is not stable and frequently changes direction (typical for small and some mid-sized companies).
    • There will be a major update of the corporate strategy in one year.
    • The company will be acquired by or merged with another company in one year.
    • The business' strategic plan spans the next two to three years, and corporate strategy is moderately stable within this time frame (typical for mid-sized and some large companies).
    • The business' strategic plan spans the next five years and corporate strategy is very stable (typical for large companies).

    3.2.3 Define the time horizon dimension of the EA function scope

    2 hours

    Input: EA value proposition, Previously defined EA fundamentals

    Output: Time horizon dimension of EA scope defined

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Define the EA function scope for your organization using the following steps below:

    1. Gather the EA strategy creation team. As well, gather the EA value proposition, the EA vision and mission statements, and the EA goals and objectives your team has already created.
    2. Ask the team to read each of the documents gathered in the previous step. This ensures the concepts are fresh in the team members’ minds when crafting the EA function scope.
    3. Consider the time horizons of the EA function scope. Refer to the gathered materials to assist with your decision. For example:
      • EA Objective: Increase the percentage of enterprise strategic goals and requirements supported by IT strategic goals by 30% in the next 3 years.
      • Implications on time horizon: Because it will take 3 years to measure the success of these EA objectives, the time horizon may need to be 3 years.
    4. Work with the EA strategy creation team to examine all the gathered materials and document the implications on time horizon as shown in step 3.
    5. Discuss with the team and select the time horizon that best fits the documented implication. Refer back to the gathered materials and make any changes necessary to ensure they support the selected architectural time horizon.

    EA principles capture the EA value proposition essence and provide guidance for the decisions that impact architecture

    EA principles are shared, long-lasting beliefs that guide the use of IT in constructing, transforming, and operating the enterprise by informing and restricting target-state enterprise architecture design, IT investment portfolio management, solution development, and procurement decisions.

    EA value proposition Influences
    —›     		EA Principles Guide and inform
    —›     		Decisions on the Use of IT Direct and control
    ‹—     		Specific Domain Policies
    ‹———————

    What decisions should be made?     		————— ————— —————
    How should decisions be made?     		————— ————— —————————›
    Who has the accountability and authority to make decisions?

    EA principles must be carefully constructed to make sure they are adhered to and relevant

    Info-Tech has identified a set of characteristics that EA principles should possess. Having these characteristics ensures the EA principles are relevant and followed in the organization.

    Approach focused EA principles are focused on the approach, i.e. how the enterprise is built, transformed, and operated, as apposed to what needs to be built, which is defined by both functional and non-functional requirements.
    Business relevant Create EA principles specific to the organization. Tie EA principles to the organization’s priorities and strategic aspirations.
    Long lasting Build EA principles that will withstand the test of time.
    Prescriptive Inform and direct decision making with EA principles that are actionable. Avoid truisms, general statements, and observations.
    Verifiable If compliance can’t be verified, the principle is less likely to be followed.
    Easily digestible EA principles must be clearly understood by everyone in IT and by business stakeholders. EA principles aren’t a secret manuscript of the EA team. EA principles should be succinct; wordy principles are hard to understand and remember.
    Followed Successful EA principles represent a collection of beliefs shared among enterprise stakeholders. EA principles must be continuously “preached” to all stakeholders to achieve and maintain buy-in.

    In organizations where formal policy enforcement works well, EA principles should be enforced through appropriate governance processes.

    Review ten universal EA principles to determine if your organization wishes to adopt them

    1. Enterprise value focus We aim to provide maximum long-term benefits to the enterprise as a whole while optimizing total costs of ownership and risks.
    2. Fit for purpose We maintain capability levels and create solutions that are fit for purpose without over-engineering them.
    3. Simplicity We choose the simplest solutions and aim to reduce operational complexity of the enterprise.
    4. Reuse › buy › build We maximize reuse of existing assets. If we can’t reuse, we procure externally. As a last resort, we build custom solutions.
    5. Managed data We handle data creation, modification, and use enterprise-wide in compliance with our data governance policy.
    6. Controlled technical diversity We control the variety of technology platforms we use.
    7. Managed security We manage security enterprise-wide in compliance with our security governance policy.
    8. Compliance to laws and regulations We operate in compliance with all applicable laws and regulations.
    9. Innovation We seek innovative ways to use technology for business advantage.
    10. Customer centricity We deliver best experiences to our customers with our services and products.

    3.2.4 Create a set of EA principles for your organization

    2 hours

    Input: Info-Tech’s ten universal EA principles, Identified promises of value

    Output: A defined set of EA principles for your organization

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Create a set of EA principles for your organization using the steps below:

    1. Gather the EA strategy creation team, download the EA Principles Template – EA Strategy, and have the identified promises of value opened.
    2. Select one universal principle and relate it to the promises of value by discussing with the EA strategy creation team. If there is a relation, record “Yes” in the template on the slide “Select the applicability of 10 universally accepted EA principles.” See example below:
      • Universal principle: Enterprise value focus – We aim to provide maximum long-term benefits to the enterprise as a whole while optimizing total costs of ownership and risks.
      • Related promise of value example: Increase the number of investments that have a direct tie with corporate strategy.
    3. Continue the process in step 2 until all ten universal EA principles have been examined. If there is a universal principle that is unrelated to a promise of value, discuss with the team whether the principle still needs to be included. If the principle is not included, record “No” in the template on the slide “Select the applicability of 10 universally accepted EA principles.”
    4. If there are any promises of value that are not captured by the universally accepted EA principles, the team may choose to create new principles. Create the new principles in the format below and record them in the template.
      • Name: The name of the principle, in a few words.
      • Statement: A sentence that expands on the “Name” section and explains what the principle achieves.

    Download the EA Principles Template – EA Strategy to document this step.

    Organizational stakeholders are more likely to follow EA principles when a rationale and an implication are provided

    After defining the set of EA principles, ensure they are all expanded upon with a rationale and implications. The rationale and implications ensure principles are more likely to be followed because they communicate why the principles are important and how they are to be used.

    Name
    • The name of the EA principle, in a few words.
    Statement
    • A sentence that expands on the “Name” section and explains what the principle achieves.
    Rationale
    • Describes the business benefits and reasoning for establishing the principle.
    • Explicitly links the principle to business/IT vision, mission, priorities, goals, or strategic aspirations (strategic themes).
    Implications
    • Describe when and how the principle is to be applied.
    • Communicate this section with “must” sentences.
    • Refer to domain-specific policies that provide detailed, domain-specific direction on how to apply the principle.

    3.2.5 Add the rationale and implications to the principles that have been created

    2 hours

    Input: Identified set of EA principles

    Output: EA principles that have rationale and implications

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Add the rationale and implication of each EA principle that your organization has selected using the following steps:

    1. Gather the EA strategy creation team and open the EA Principles Template – EA Strategy.
    2. Examine the EA Principles Template – EA Strategy. Look for the detailed descriptions of all the applicable EA universal principles, and discuss with the team whether the pre-populated rationale and implications need to be changed.
    3. Make sure all the rationale and implication sections of the applicable universal EA principles have been examined. Record the changes on the slide devoted to each principle in the template.
    4. Examine any new principles created outside of the universal EA principles. Create the rationale and implication sections for each of those principles. Use the slide “Review the rationale and implications for the applicable universal principles” in the EA Principles Template – EA Strategy to assist with this step.

    Download the EA Principles Template – EA Strategy to document this step.

    3.2.6 Operationalize the EA principles to ensure they are used when decisions are being made

    1-2 hours

    Input: Defined set of EA principles

    Output: EA principles are successfully operationalized

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin to operationalize the EA principles by reviewing the proposed principles with business and technology leadership to secure their approval.

    1. Publish the list of principles, their rationale, and their implications.
    2. Include the principles in any existing policies that guide decision making for the use of technology within the business.
    3. Provide existing governance bodies with the authority to enforce adherence to principles, and communicate the waiver process.
    4. Ensure that project-level teams are aware of the principles and have at least one champion guiding the decisions of the team.

    Review a use case for the utilization of EA principles – Sample

    After operationalizing the EA principles for your organization, the organization can now use those principles to guide and inform its IT investment decisions. Below is an example of a scenario where EA principles were used to guide and inform an IT investment decision.

    Organization wants to provision an application but it needs to decide how to do so, and it considers the relevant EA principles:

    • Reuse › buy › build
    • Managed security
    • Innovation

    The organization has decided to go with a specialized vendor, even though it normally prefers to reuse existing components. The vendor has experience in this domain, understands the data security implications, and can help the organization mitigate risk. Lastly, the vendor is known for providing new solutions on a regular basis and is a market leader, making it more likely to provide the organization with innovative solutions.

    An oil and gas company created EA fundamentals to guide the EA function

    CASE STUDY

    Industry: Oil & Gas
    Source: Info-Tech

    Challenge

    As an enterprise architecture function starting from ground zero, the organization did not have the EA fundamentals in place to guide the EA function. Further, the organization also did not possess an EA function scope to define the boundaries of the EA function.

    Due to the lack of EA scope, the EA function did not know which part of the organization to provide contributions toward. A lack of EA fundamentals caused confusion regarding the future direction of the EA function.

    Solution

    Info-Tech worked with the EA team to define the different components of the EA fundamentals. This included EA vision and mission statements, EA goals and objectives, and EA principles.

    Additionally, Info-Tech worked with the EA team to define the EA function scope.

    These EA strategy components were created by examining the needs of the business. The components were aligned with the identified needs of the EA stakeholders.

    Results

    The defined EA function scope helped set out the responsibilities of the enterprise architecture function to the organization.

    The EA vision and mission statements and EA goals and objectives were used to guide the direction of the EA function. These fundamentals helped the EA function improve its maturity and deliver on its promises.

    The EA principles were used in IT review boards to guide the decisions on IT investments in the organization.

    3.2.7 Discuss the need for a classical methodology and/or a combination including Agility practices

    1 hour

    Input: Existing methodologies

    Output: Decisions about need of agility, ceremonies, and protocols to be used

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Add the rationale and implication of adopting an Agile methodology and/or a combination with a traditional methodology.

    1. Is there an EA methodology adopted by the organization? Is there a classical one, or is it purely Agile?
    2. What would need to happen to address the business goals of the organization (e.g. is there a need to be more agile?)? Do you need to have more decisions centralized (e.g. to adopt certain standards, security controls)?
    3. Where on the decentralization continuum does your organization need to be?
    4. What role would Enterprise Architects have (would they need to be part of existing ceremonies? Would they need to blend traditional and agile processes?)?
    5. If a customized methodology is required, identify this as an item to be included as part of the EA roadmap (can be run as a Agile Enterprise Operating Model workshop).

    Design an Enterprise Architecture Strategy

    Phase 4

    Design the EA Services

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval
      •

    This phase will walk you through the following activities:

    • Select relevant EA services
    • Finalize the set of services and secure approval

    This phase involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Step 4.1

    Select Relevant EA Services

    Activities
    • 4.1.1 Select the EA services relevant to your organization
    • 4.1.2 Identify if your organization needs additional services outside of the recommended list
    • 4.1.3 Complete all of the service catalog fields for each service to show the organization how each can be consumed

    This step will walk you through the following activities:

    • Communicate a definition of EA services.
    • Link services to the previously identified EA contributions.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • A defined set of services the EA function will provide.
    • An EA service catalog that demonstrates to the organization how each provided service can be accessed and consumed.

    Design the EA Services

    Step 3.1 Step 3.2

    The definition of EA services will allow the group to communicate how they can add value to EA stakeholders

    Enterprise architecture services are a set of activities the enterprise architecture function provides for the organization. EA services are important because the services themselves provide a set of benefits for the organization.

    Enterprise Architecture Services

    • A means of delivering value to the business by facilitating outcomes service consumers want to achieve.
    • EA services are defined from the business perspective using business language.
    • EA services are designed to enable required business activities.

    Viewing the EA function from a service perspective resolves the following pains:

    • Business users don’t know how EA can assist them.
    • Business users don’t know how to request access to a service with multiple sources of information available.
    • EA has no way of managing expectations for their users, which tend to inflate.
    • EA does not have a holistic view of all the services they need to provide.

    Link EA services to the previously identified EA contributions

    Previously identified EA contributions can be linked to EA services, which helps the EA function identify a set of EA services that are important to business stakeholders. Further, linking the EA contributions to EA services can define for the EA function the services they need to provide.

    Demonstrate EA service value by linking them to EA contributions

    1. EA stakeholders generate drivers
    2. Drivers have pains that obstruct them
    3. Pains are alleviated by EA contributions
    4. EA contributions help define the EA services needed

      • EA Contributions
        Example EA contribution: Business capability mapping shows the business capabilities of the organization and the technology that supports those capabilities in the current and target state. This provides a view for the set of investments that are needed by the organization, which can then be prioritized.

        • EA Services
          Example EA service: Target-state business capability mapping

    4.1.1 Select the EA services relevant to your organization

    2 hours

    Input: Previously identified EA contributions from the EA value proposition

    Output: A set of EA services selected for the organization from Info-Tech’s defined set of EA services

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the selection of EA services relevant to your organization by following the steps below:

    1. Gather the EA strategy creation team, and the list of identified EA contributions that the team formulated during Phase 2.
    2. Open the EA Service Planning Tool, select one sub-service, and read its definition.
    3. Based on the definition of the sub-service, refer back to the identified list of EA contributions and check if there is an identified EA contribution that matches the service.
      • If the EA service definitions matches one of the identified EA contributions, then that EA service is relevant to the organization. If there is no match, then the EA service may not be relevant to the organization.
    4. Highlight the sub-service if it is relevant. Add a checkmark beside the EA contribution if it is addressed by a sub-service.
    5. Select the next sub-service and repeat steps 2-4. Continue down the list of sub-services in the EA Service Planning Tool until all sub-services have been examined.

    Download the EA Service Planning Tool to assist with this activity.

    4.1.2 Identify if your organization needs additional services outside of the recommended list

    2 hours

    Input: Expertise from the EA strategy creation team, Previously defined EA contributions

    Output: A defined set of EA services outside the list Info-Tech has recommended

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Identify if services outside of the recommended list in the EA Service Planning Tool are relevant to your organization by using the steps below:

    1. Gather the EA strategy creation team and the list of EA contributions with checkmarks for contributions addressed by EA services.
    2. Take the list of unaddressed EA contributions and select one EA contribution in the list. Assess whether an EA service is required to address the EA contribution. Ask the group the following:
      • Can the EA practice provide the service now?
      • Does providing this EA service line up with the previously defined EA function scope and EA fundamentals?
    3. Decide if a service needs to be provided for that contribution. If yes, give the service a name and a definition.
    4. Then, decide if the service fits into one of the service categories in the EA Service Planning Tool. If there is no fit, create another service category. Define the new service category as well.
    5. Continue to the next unaddressed EA contribution and repeat steps 2-4. Repeat this process until all unaddressed EA contributions have been assessed.

    Download the EA Service Planning Tool to assist with this activity.

    Create the EA service catalog to demonstrate to the organization how each service can be accessed and used

    The EA service catalog is an important communicator to the business. It shifts the technology-oriented view of EA to services that show direct benefit to the business. It is a tool that communicates and provides clarity to the business about the EA services that are available and how those services can assist them.

    Define the services to show value Define the service catalog to show how to use those services
    Already defined
    • EA service categories
    • The services needed by the EA stakeholders in each EA service category
    Need to define
    • Should EA deliver this service?
    • Service triggers
    • Service provider
    • Service requestor

    Info-Tech Insight

    The EA group must provide the organization with a list of services it will provide to demonstrate value. This will help the team manage expectations and the workload while giving organizational stakeholders a clear understanding of how to engage EA and what lies outside of EA’s involvement.

    4.1.3 Complete all the service catalog fields for each service to show the organization how each can be consumed

    4 hours

    Input: Expertise from the EA strategy creation team

    Output: Service details for each EA service in your organization

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Complete the details for each relevant EA service in the EA Service Planning Tool by using the following steps:

    1. Gather the EA strategy creation team, and open the EA Service Planning Tool.
    2. Select one of the services you have defined as relevant and begin the process of defining the service. Define the following fields:
      • Should EA deliver this service? Should the EA team provide this service? (Yes/No)
      • Service trigger: What trigger will signal the need for the service?
      • Service provider: Who in the EA team will provide the service?
      • Service requestor: Who outside of the EA team has requested this service?
    3. Have the EA strategy creation team discuss and define each of the fields for the service above. Record the decisions in the corresponding columns of the EA Service Planning Tool.
    4. Select the next required EA service, and repeat steps 2 and 3. Repeat the process until all required EA services have their details defined.

    Download the EA Service Planning Tool to assist with this activity.

    Step 4.2

    Finalize the Set of Services and Secure Approval

    Activities
    • 4.2.1 Secure approval for your organization’s EA strategy
    • 4.2.2 Map the EA contributions to business goals
    • 4.2.3 Quantify the EA effectiveness
    • 4.2.4 Determine the role of the architect in the Agile ceremonies of the organization

    This step will walk you through the following activities:

    • Present the EA strategy to stakeholders.
    • Determine service details for each EA service in your organization.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • Secured approval for your organization’s EA strategy.
    • Measure effectiveness of EA contributions.

    Design the EA Services

    Step 4.1 Step 4.2

    Present the EA strategy to stakeholders to secure approval of the finalized EA strategy

    For the EA strategy to be successfully executed, it must be approved by the EA stakeholders. Securing their approval will increase the likelihood of success in the execution of the EA operating model.

    Outputs that make up the EA strategy —› Present outputs to EA strategy stakeholders
    • Business and technology drivers
    • EA function value proposition

    • EA vision statement
    • EA mission statement
    • EA goals and objectives
    • EA scope
    • EA principles

    • EA function services
    • Identified and prioritized EA stakeholders.








    • The checkmark symbol represents the outputs this blueprint assists with creating.

    4.2.1 Secure approval of your organization’s EA strategy

    1 hour

    Input: Completed EA Function Strategy Template, Expertise from EA strategy creation team

    Output: Approval of the EA strategy

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, Key EA stakeholders

    Use the following steps to assist with securing approval for your organization’s EA strategy:

    1. Call a meeting between the EA strategy creation team and the identified key EA stakeholders. Key stakeholders were defined in activity 2.1.1.
    2. Open the completed EA Function Strategy Template. Use it to help you discuss the merits of the EA strategy with the key stakeholders.
    3. Discuss with the stakeholders any concerns and modifications they wish to make to the strategy. If detailed questions are asked, refer to the other templates created as a part of this blueprint. Record those concerns and address them at a later time.
    4. After presenting the EA strategy, ask the stakeholders for approval. If stakeholders do not approve, refer back to the concerns documented in step 3 and inquire if addressing the concerns will result in approval.
    5. If applicable, address stakeholder concerns with the EA strategy.
    6. Once EA strategy has been approved, publish the EA strategy to ensure there is a mutual understanding of what the EA function will provide to the organization. Move on to Info-Tech’s Define an EA Operating Model blueprint to begin executing upon the EA strategy.

    Use the EA Function Strategy Template to assist with this activity.

    4.2.2 Map the EA contributions to the business goals

    3 hours

    Input: Expertise from EA strategy creation team

    Output: Service details for each EA service in your organization

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Map EA contributions/services to the goals of the organization.

    1. Start from the business goals of the organization.
    2. Determine Business and IT drivers.
    3. Identify EA contributions that help achieve the business goals.

    Download the EA Service Planning Tool to assist with this activity.

    Trace EA drivers to business goals (sample)

    A model connecting 'Enterprise Architecture' with 'Corporate Goals' through 'EA Contributions'.

    4.2.3 Quantify the EA effectiveness

    1 hour

    Input: Expertise from EA strategy creation team

    Output: Defined KPIs (SMART)

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Use SMART key performance indicators (KPIs) to measure EA contributions vis-à-vis business goals.

    Measure the EA strategy effectiveness by tracking the benefits it provides to the corporate business goals

    The success of the EA function spans across three main dimensions:

    • The delivery of EA-enabled business outcomes that are most important to the enterprise.
    • The alignment between the business and IT from a planning perspective.
    • Improvements in the corporate business goals due to EA contributions (standardization, rationalization, reuse, etc.).
    Corporate Business GoalsEA ContributionsMeasurements
    • Reduction in operating costs
    • Decrease in regulatory compliance infractions
    • Increased revenue from existing channels
    • Increased revenue from new channels
    • Faster time to business value
    • Improved business agility
    • Reduction in enterprise risk exposure
    • Alignment of IT investments to business strategy
    • Achievement of business results directly linked to IT involvement
    • Application and platform rationalization
    • Standards in place
    • Flexible architecture
    • Better integration
    • Higher organizational satisfaction with technology-enabled services and solutions
    • Cost reductions based on application and platform rationalization
    • Standard based solutions
    • Time reduction for integration
    • Service reused
    • Stakeholder satisfaction with EA services
    • Increase customer satisfaction
    • Rework minimized
    • Lower cost of integration
    • Risk reduction
    • Faster time to market
    • Better scalability, etc.

    The oil and gas company began the EA strategy creation by crafting an EA value proposition

    CASE STUDY

    Industry: Oil & Gas
    Source: Info-Tech

    Challenge

    The oil and gas corporation faced a great challenge in communicating the role of enterprise architecture to the organization. Although it has the mandate from the CIO to create the EA function, there was no function in existence. Thus, few people in the organization understood EA.

    Because of this lack of understanding, the EA function was often undermined. The EA function was seen as an order taker that provided some services to the organization.

    Solution

    First, Info-Tech worked with the enterprise architecture team to define the EA stakeholders in the organization.

    Second, Info-Tech interviewed those stakeholders to identify their needs. The needs were analyzed and pains that would obstruct addressing those needs were identified.

    Lastly, Info-Tech worked with the team to identify common EA contributions that would solve those pains.

    Results

    Through this process, Info-Tech helped the team at the oil and gas company create a document that could communicate the value of EA. Specifically, the document could articulate the issues obstructing each stakeholder from achieving their needs and how enterprise architecture could solve them.

    With this value proposition, EA was able to demonstrate value to important stakeholders and set itself up for success in its future endeavors.

    The oil and gas company defined EA services to provide and communicate value to the organization

    CASE STUDY

    Industry: Oil & Gas
    Source: Info-Tech

    Challenge

    As a brand new enterprise architecture function, the EA function at the oil and gas corporation did not have a set of defined EA services. Because of this lack of EA services, the organization did not know what contributions EA could provide.

    Further, without the definition of EA services, the EA function did not set out explicit expectations to the business. This caused expectations from the business to be different from those of the EA function, resulting in friction.

    Solution

    Info-Tech worked with the EA function at the oil and gas corporation to define a set of EA services the function could provide.

    The Info-Tech team, along with the organization, assessed the business and technology needs of the stakeholder. Those needs acted as the basis for the EA function to create their initial services.

    Additionally, Info-Tech worked with the team to define the service details (e.g. service benefits, service requestor, service provider) to communicate how to provide services to the business.

    Results

    The defined EA services led the EA function to communicate what it could provide for the business. As well, the defined services clarified the level of expectation for the business.

    The EA team was able to successfully service the business on future projects, adding value through their expertise and knowledge of the organization’s systems. Because of the demonstrated value, EA has been given greater responsibility throughout the organization.

    4.2.4 Determine the role of the architect in the Agile ceremonies of the organization

    1 hour

    Input: Expertise from EA strategy creation team

    Output: Participation in Agile Pre- and Post-PI, Architect Syncs, etc.

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Document the involvement of the enterprise architect in your organization’s Agile ceremonies.

    1. Document the Agile ceremonial used in the organization (based on SAFe or other Agile approaches).
    2. Determine ceremonies the System Architect will participate in.
    3. Determine ceremonies the Solution Architect will participate in
    4. Determine ceremonies the Enterprise Architect will participate in.
    5. Determine Architect Syncs, etc.

    Note: Roles and responsibilities can be further defined as part of the Agile Enterprise Operating Model.

    The EA role relative to agility

    The enterprise architecture role relative to agility specifies the architecture roles as well as the agile protocols they will participate in.
    This statement will guide every architect’s participation in planning meetings, pre- and post-PI, syncs, etc. Use simple and concise terminology; speak loudly and clearly.

    A strong EA role statement relative to agility has the following characteristics:

    • Describes what different architect roles do to achieve the vision of the organization
    • In an agile way
    • Compelling
    • Easy to grasp
    • Sharply focused
    • Specific
    • Concise

    Sample EA mission relative to agility

    • Create strategies that provide guardrails for the organization, provide standards, reusable assets, accelerators, and other decisions at the enterprise level that support agility.
    • Participate in pre-PI and post-PI planning activities, architect syncs, etc.

    A clear statement can include additional details surrounding the Enterprise Architect role relative to agility

    Likewise, below is a sample of connecting keywords together to form an enterprise architect role statement, relative to agility.

    Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture in an agile way.

    Optimize – We collaborate with the business to analyze and optimize business capabilities and business processes to enable the agile and efficient attainment of [Company name] business objectives.

    Transform – We support IT-enabled business transformation programs by building and maintaining a shared vision of the future-state enterprise and consistently communicating it to stakeholders.

    Innovate – We identify and develop new and creative opportunities for IT to enable the business. We communicate the art of the possible to the business.

    Defining and implementing – We engage with project teams early and guide solution design and selection to ensure alignment to the target-state enterprise architecture and provide guidance as well as accelerators.

    Target enterprise structure in an agile way – We analyze business needs and priorities and assess the current state of the enterprise. We build and maintain the target enterprise architecture blueprints that define:

    • Business capabilities and processes (business architecture)
    • Data, application, and technology assets that enable business capabilities and processes (technology architecture)
    • Architecture principles
    • Standards and reusable assets
    • Continuous exploration, integration, and deployment

    Move to the enterprise architecture operating model blueprint to execute your EA strategy

    Once approved, move on to Info-Tech’s Define an EA Operating Model blueprint to begin executing on the EA strategy.

    Enterprise architecture strategy

    This blueprint focuses on setting up an enterprise architecture function, with the goal of maximizing the likelihood of EA success. The blueprint puts into place the components that will align the EA function with the needs of the stakeholders, guide the decision making of the EA function, and define the services EA can provide to the organization.

    Agile enterprise architecture operating model

    An EA operating model helps you design and organize the EA function, ensuring adherence to architectural standards and delivery of EA services. This blueprint acts on the EA strategy by creating methods to engage, govern, and develop architecture as a part of the larger organization.

    Research contributors and experts

    Photo of Milena Litoiu, Senior Director Research and Advisory, Enterprise Architecture Milena Litoiu
    Senior Director Research and Advisory, Enterprise Architecture
    • Milena Litoiu is a Principal/Senior Manager of Enterprise Architecture. She is Master Certified with The Open Group and she sits on global architecture certification boards.
    • Other certifications include SABSA, CRISC, and Scaled Agile Framework. She started as a certified IT Architect at IBM and has over 25 years experience in this field.
    • Milena teaches enterprise architecture at the University of Toronto and led the development of the Enterprise Architecture Certificate (a course on EA fundamentals, one on EA development and Governance, and one on Trends going forward).
    • She has a Masters in Engineering, an executive MBA, and extensive experience in enterprise architecture as well as methodologies and tools.
    		 Photo of Lan Nguyen, IT Executive, Mentor, Managing Partner at CIOs Beyond Borders Group Lan Nguyen
    IT Executive, Mentor, Managing Partner at CIOs Beyond Borders Group
    • Lan Nguyen has a wealth of experience driving the EA strategy and the digital transformation success at the City of Toronto.
    • Lan is a university lecturer on topics like strategic leadership in the digital enterprise.
    • Lan is a Managing Partner at CIOs Beyond Borders Group.
    • Lan specializes in Partnership Development; Governance; Strategic Planning, Business Development; Government Relations; Business Relationship Management; Leadership Development; Organizational Agility and Change Management; Talent Management; Managed Services; Digital Transformation; Strategic Management of Enterprise IT; Shared Services; Service Quality Improvement, Portfolio Management; Community Development; and Social Enterprise.


    Photo of Dirk Coetsee, Director Research and Advisory, Enterprise Architecture, Data & Analytics Dirk Coetsee
    Director Research and Advisory, Enterprise Architecture, Data & Analytics
    • Dirk Coetsee is a Research & Advisory Director in the Data & Analytics practice. Dirk has over 25 years of experience in data management and architecture within a wide range of industries, especially Financial Services, Manufacturing, and Retail.
    • Dirk spearheaded data architecture at several organizations and was involved in enterprise data architecture, data governance, and data quality and analytics. He architected many operational data stores of ranging complexity and transaction volumes and was part of major enterprise data warehouse initiatives. Lately, he was part of projects that implemented big data, enterprise service bus, and micro services architectures. Dirk has an in-depth knowledge of industry models within the financial and retail spaces.
    • Dirk holds a BSc (Hons) in Operational Research and an MBA with specialization in Financial Services from the University of Pretoria, South Africa.
    		 Photo of Andy Neill, AVP, Enterprise Architecture, Data and Analytics Andy Neill
    AVP, Enterprise Architecture, Data and Analytics
    • Andy is AVP Data and Analytics and Chief Enterprise Architect at Info-Tech Research Group. Previous roles include leading the data architecture practice for Loblaw Companies Ltd, Shoppers Drug Mart and 360 Insights in Canada as well as leading architecture practices at Siemens consultancy, BBC, NHS, Ordnance Survey, and Houses of Parliament and Commons in the UK.
    • His responsibilities at Info-Tech include leading the data and analytics and enterprise architecture research practices and guiding the future of research and client engagement in that space.
    • Andy is the Product Owner for the Technical Counselor seat offering at Info-Tech, which gives world-class holistic support to our senior technical members.
    • He is also a instructor and content creator for the University of Toronto in the field of Enterprise Architecture.


    Photo of Wayne Filin-Matthews, Chief Enterprise Architect, ICMG Winner of Global Chief Enterprise Architect of the Year 2019 Wayne Filin-Matthews
    Chief Enterprise Architect, ICMG Winner of Global Chief Enterprise Architect of the Year 2019
    • Wayne is currently the EA Discipline Lead/Chief Enterprise Architect – Global Digital Transformation Office, COE at Dell Technologies.
    • He is a distinguished Motivator & Tech Lead as well as an influencer.
    • Wayne has led multiple Enterprise Architecture practices at the global level and has valuable contributions in this space managing and growing Enterprise Architecture and CTO practices across strategy, execution, and adoption parts of the IT lifecycle.
    		 Photo of Graham Smith, Experienced lead Enterprise Architect and Independent Consultant Graham Smith
    Experienced lead Enterprise Architect and Independent Consultant
    • Graham is an experienced lead enterprise architect specializing in digital and data transformation, with over 33 years of experience, spanning financial markets, media, information, insurance, and telecommunications sectors. Graham has successfully established and led large teams across India, China, Australia, Americas, Japan, and the UK.
    • He is currently working as an independent consultant in digital and data-led transformation and his work spans established businesses and start-ups alike.

    Thanks also go to all experts who contributed to previous versions of this document:

    • Zachary Curry, Director, Enterprise Architecture and Innovation, FMC Technologies
    • Pam Doucette, Director of Enterprise Architecture, Tufts Health Plan
    • Joe Evers, Consulting Principal, JcEvers Consulting Corp
    • Cameron Fairbairn, Enterprise Architect, Agriculture Financial Services Corporation (AFSC)
    • Michael Fulton, Chief Digital Officer & Senior IT Strategy & Architecture Consultant at CC and C Solutions
    • Tom Graves, Principal Consultant, Tetradian Consulting
    • (JB) Brahmaiah Jarugumilli, Consultant, Federal Aviation Administration – Enterprise Services Center
    • Huw Morgan, IT Research Executive, Enterprise Architect
    • Serge Parisien, Manager, Enterprise Architecture, Canada Mortgage & Housing Corporation

    Additional interviews were conducted but are not listed due to privacy and confidentiality requirements.

    Bibliography

    “Agile Manifesto for Software Development,” Ward Cunningham, 2001. Accessed July 2021.

    “ArchiMate 3.1 Specification.” The Open Group, n.d. Accessed July 2021.

    “Are Your IT Strategy and Business Strategy Aligned?” 5Q Partners, 8 Jan. 2015. Accessed Oct. 2016.

    Bowen, Fillmore. “How agile companies create and sustain high ROI.” IBM. Accessed Oct. 2016.

    Burns, Peter, et al. Building Value through Enterprise Architecture: A Global Study. Booz & Co. 2009. Web. Nov. 2016.

    “Demonstrating the Value of Enterprise Architecture in Delivering Business Capabilities.” Cisco, 2008. Web. Oct. 2016.

    “Disciplined Agile.” Disciplined Agile Consortium, n.d. Web.

    Fowler, Martin. “Building Effective software.” MartinFowler.com. Accessed July 2021.

    Fowler, Martin. “Agile Software Guide.” MartinFowler.com, 1 Aug. 2019.

    Accessed July 2021.

    Haughey, Duncan. “SMART Goals.” Project Smart, 2014. Accessed July 2021.

    Kern, Matthew. “20 Enterprise Architecture Practices.” LinkedIn, 3 March 2016. Accessed Nov. 2016.

    Lahanas, Stephen. “Infrastructure Architecture, Defined.” IT Architecture Journal, Sept. 2014. Accessed July 2021.

    Lean IX website, Accessed July 2021.

    Litoiu, Milena. Course material from Information Technology 2690: Foundations of Enterprise Architecture, 2021, University of Toronto.

    Mocker, M., J.W. Ross, and C.M. Beath. “How Companies Use Digital Technologies to Enhance Customer Findings.” MIT CISR Working Paper No. 434, Feb. 2019. Qtd in Mayor, Tracy. “MIT expert recaps 30-plus years of enterprise architecture.” MIT Sloan, 10 Aug. 2020. Web.

    “Open Agile ArchitectureTM.” The Open Group, 2020. Accessed July 2021.

    “Organizational Design Framework – The Transformation Model.” The Center for Organizational Design, n.d. Accessed 1 Aug. 2020.

    Ross, Jeanne W. et al. Enterprise Architecture as Strategy: Creating a Foundation for Business Execution. Harvard Business School Press, 2006.

    Rouse, Margaret. “Enterprise Architecture (EA).” SearchCIO, June 2007. Accessed Nov. 2016.

    “SAFe 5 for Lean Enterprises.” Scaled Agile Framework, Scaled Agile, Inc. Accessed 2021.

    “Security Architecture.” Technopedia, updated 20 Dec. 2016. Accessed July 2021.

    “Software Engineering Institute.” Carnegie Mellon University, n.d. Web.

    “TOGAF 9.1.” The Open Group, 2011. Accessed Oct. 2016.

    “TOGAF 9.2.” The Open Group, 2018. Accessed July 2021.

    Thompson, Rachel. “Stakeholder Analysis: Winning Support for Your Projects.” MindTools, n.d. Accessed July 2021.

    Wendt, Jerome M. “Redefining ‘SMB’, ‘SME’ and ‘Large Enterprise.’” DCIG, 25 Mar. 2011. Accessed July 2021.

    Wilkinson, Jim. “Business Drivers.” The Strategic CFO, 23 July 2013. Accessed July 2021.

    Zachman, John. “Conceptual, Logical, Physical: It is Simple.” Zachman International, 2011. Accessed July 2021.

    Go the Extra Mile With Blockchain

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    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • The transportation and logistics industry is facing a set of inherent flaws, such as high processing fees, fraudulent information, and lack of transparency, that blockchain is set to transform and alleviate.
    • Many companies have FOMO (fear of missing out), causing them to rush toward blockchain adoption without first identifying the optimal use case.

    Our Advice

    Critical Insight

    • Understand how blockchain can alleviate your pain points before rushing to adopt the technology. You have been hearing about blockchain for some time now and are feeling pressured to adopt it. Moreover, the series of issues hindering the transportation and logistics industry, such as the lack of transparency, poor cash flow management, and high processing fees, are frustrating business leaders and thereby adding additional pressure on CIOs to adopt the technology. While blockchain is complex, you should focus on its key features of transparency, integrity, efficiency, and security to identify how it can help your organization.
    • Ensure your use case is actually useful and can be valuable to your organization by selecting a business idea that is viable, feasible, and desirable. Applying design thinking tactics to your evaluation process provides a practical approach that will help you avoid wasting resources (both time and money) and hurting IT’s image in the eyes of the business. While it is easy to get excited and invest in a new technology to help maintain your image as a thought leader, you must ensure that your use case is fully developed prior to doing so.

    Impact and Result

    • Understand blockchain’s transformative potential for the transportation and logistics industry by breaking down how its key benefits can alleviate inherent industry flaws.
    • Identify business processes and stakeholders that could benefit from blockchain.
    • Build and evaluate an inventory of use cases to determine where blockchain could have the greatest impact on your organization.
    • Articulate the value and organizational fit of your proposed use case to the business to gain their buy-in and support.

    Go the Extra Mile With Blockchain Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why your organization should care about blockchain’s transformative potential for the transportation and logistics industry and how Info-Tech will support you as you identify and build your blockchain use case.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Evaluate why blockchain can disrupt the transportation and logistics industry

    Analyze the four key benefits of blockchain as they relate to the transportation and logistics industry to understand how the technology can resolve issues being experienced by industry incumbents.

    • Go the Extra Mile With Blockchain – Phase 1: Evaluate Why Blockchain Can Disrupt the Transportation and Logistics Industry
    • Blockchain Glossary

    2. Build and evaluate an inventory of use cases

    Brainstorm a set of blockchain use cases for your organization and apply design thinking tactics to evaluate and select the optimal one to pitch to your executives for prototyping.

    • Go the Extra Mile With Blockchain – Phase 2: Build and Evaluate an Inventory of Use Cases
    • Blockchain Use Case Evaluation Tool
    • Prototype One Pager
    [infographic]

    Architect Your Big Data Environment

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    • Parent Category Name: Big Data
    • Parent Category Link: /big-data
    • Organizations may understand the transformative potential of a big data initiative, but they struggle to make the transition from the awareness of its importance to identifying a concrete use case for a pilot project.
    • The big data ecosystem is crowded and confusing, and a lack of understanding of it may cause paralysis for organizations.

    Our Advice

    Critical Insight

    • Don’t panic, and make use of the resources you already have. The skills, tools, and infrastructure for big data can break any budget quickly, but before making rash decisions, start with the resources you have in-house.
    • Big data as a service (BDaaS) is making big waves. BDaaS removes many of the hurdles associated with implementing a big data strategy and vastly lowers the barrier of entry.

    Impact and Result

    • Follow Info-Tech’s methodology for understanding the types of modern approaches to big data tools, and then determining which approach style makes the most sense for your organization.
    • Based on your big data use case, create a plan for getting started with big data tools that takes into account the backing of the use case, the organization’s priorities, and resourcing available.
    • Put a repeatable framework in place for creating a comprehensive big data tool environment that will help you decide on the necessary tools to help you realize the value from your big data use case and scale for the future.

    Architect Your Big Data Environment Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should find your optimal approach to big data tools, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Plant the foundations of your big data tool architecture

    Identify your big data use case and your current data-related capabilities.

    • Architect Your Big Data Environment – Phase 1: Plant the Foundations of Your Big Data Tool Architecture
    • Big Data Execution Plan Presentation
    • Big Data Architecture Planning Tool

    2. Weigh your big data architecture decision criteria

    Determine your capacity for big data tools, as well as the level of customizability and security needed for your solution to help justify your implementation style decision.

    • Architect Your Big Data Environment – Phase 2: Weigh Your Big Data Architecture Decision Criteria

    3. Determine your approach to implementing big data tools

    Analyze the three big data implementation styles, select your approach, and complete the execution plan for your big data initiative.

    • Architect Your Big Data Environment – Phase 3: Determine Your Approach To Implementing Big Data Tools
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    Develop a Web Experience Management Strategy

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    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions
    • Web Experience Management (WEM) solutions have emerged as applications that provide marketers and other customer experience professionals with a complete set of tools for web content management, delivery, campaign execution, and site analytics.
    • However, many organizations are unsure of how to leverage these new technologies to enhance their customer interaction strategy.

    Our Advice

    Critical Insight

    • WEM products are not a one-size-fits-all investment: unique evaluations and customization is required in order to deploy a solution that fits your organization.
    • WEM technology often complements core CRM and marketing management products – it does not supplant it, and must augment the rest of your customer experience management portfolio.
    • WEM provides benefits by giving web visitors a better experience – leveraging tools such as web analytics gives the customer a tailored experience. Marketing can then monitor their behavior and use this information to warm leads.

    Impact and Result

    • Deploy a WEM platform and execute initiatives that will strengthen the web-facing customer experience, improving customer satisfaction and unlocking new revenue opportunities.
    • Avoid making unnecessary new WEM investments.
    • Make informed decisions about the types of technologies and initiatives that are necessary to support WEM.

    Develop a Web Experience Management Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop a WEM strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Harness the value of web experience management

    Make the case for a web experience management suite and structure the WEM strategy project.

    • Develop a Web Experience Management Strategy Phase 1: Harness the Value of Web Experience Management
    • Web Experience Management Strategy Summary Template
    • WEM Project Charter Template

    2. Create the vision for web experience management

    Identify the target state WEM strategy, assess current state, and identify gaps.

    • Develop a Web Experience Management Strategy Phase 2: Create the Vision for Web Experience Management

    3. Execute initiatives for WEM deployment

    Build the WEM technology stack and create a web strategy initiatives roadmap.

    • Develop a Web Experience Management Strategy Phase 3: Execute Initiatives for WEM Deployment
    • Web Process Automation Investment Appropriateness Assessment Tool
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    Workshop: Develop a Web Experience Management Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Launch the WEM Selection Project

    The Purpose

    Discuss the general project overview for the WEM selection.

    Key Benefits Achieved

    Launch of your WEM selection project.

    Development of your organization’s WEM requirements. 

    Activities

    1.1 Facilitation of activities from the Launch the WEM Project and Collect Requirements phase, including project scoping and resource planning.

    1.2 Conduct overview of the WEM market landscape, trends, and vendors.

    1.3 Conduct process mapping for selected marketing processes.

    1.4 Interview business stakeholders.

    1.5 Prioritize WEM functional requirements.

    Outputs

    WEM Procurement Project Charter

    WEM Use-Case Fit Assessment

    2 Plan the Procurement and Implementation Process

    The Purpose

    Plan the procurement and the implementation of the WEM solution.

    Key Benefits Achieved

    Selection of a WEM solution.

    A plan for implementing the selected WEM solution. 

    Activities

    2.1 Complete marketing process mapping with business stakeholders.

    2.2 Interview IT staff and project team, identify technical requirements for the WEM suite, and document high-level solution requirements.

    2.3 Perform a use-case scenario assessment, review use-case scenario results, identify use-case alignment, and review the WEM Vendor Landscape vendor profiles and performance.

    2.4 Create a custom vendor shortlist and investigate additional vendors for exploration in the marketplace.

    2.5 Meet with project manager to discuss results and action items.

    Outputs

    Vendor Shortlist

    WEM RFP

    Vendor Evaluations

    Selection of a WEM Solution

    WEM projected work break-down

    Implementation plan

    Framework for WEM deployment and CRM/Marketing Management Suite Integration

    Reimagine Learning in the Face of Crisis

    • Buy Link or Shortcode: {j2store}601|cart{/j2store}
    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • As organizations re-evaluate their priorities and shift to new ways of working, leaders and employees are challenged to navigate unchartered territory and to adjust quickly to ever-evolving priorities.
    • Learning how to perform effectively through the crisis and deliver on new priorities is crucial to the success of all employees and the organization.

    Our Advice

    Critical Insight

    The most successful organizations recognize that learning is critical to adjusting quickly and effectively to their new reality. This requires L&D to reimagine their approach to deliver learning that enables the organization’s immediate and evolving priorities.

    Impact and Result

    • L&D teams should focus on how to support employees and managers to develop the critical competencies they need to successfully perform through the crisis, enabling organizations to survive and thrive during and beyond the crisis.
    • Ensure learning needs align closely with evolving organizational priorities, collaborate cross-functionally, and curate content to provide the learning employees and leaders need most, when they need it.

    Reimagine Learning in the Face of Crisis Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Prioritize

    Involve key stakeholders, identify immediate priorities, and conduct high-level triage of L&D.

    • Reimagine Learning in the Face of Crisis Storyboard
    • Reimagine Learning in the Face of Crisis Workbook

    2. Reimagine

    Determine learning needs and ability to realistically deliver learning. Leverage existing or curate learning content that can support learning needs.

    3. Transform

    Identify technical requirements for the chosen delivery method and draft a four- to six-week action plan.

    • How to Curate Guide
    • Tips for Building an Online Learning Community
    • Ten Tips for Adapting In-Person Training During a Crisis
    • Tips for Remote Learning in the Face of Crisis
    [infographic]

    Design and Build an Effective Contract Lifecycle Management Process

    • Buy Link or Shortcode: {j2store}214|cart{/j2store}
    • member rating overall impact: 9.0/10 Overall Impact
    • member rating average dollars saved: $5,039 Average $ Saved
    • member rating average days saved: 20 Average Days Saved
    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Your vendor contracts are unorganized and held in various cabinets and network shares. There is no consolidated list or view of all the agreements, and some are misplaced or lost as coworkers leave.
    • The contract process takes a long time to complete. Coworkers are unsure who should be reviewing and approving them.
    • You are concerned that you are not getting favorable terms with your vendors and not complying with your agreement commitments.
    • You are unsure what risks your organization could be exposed to in your IT vendor contacts. These could be financial, legal, or security risks and/or compliance requirements.

    Our Advice

    Critical Insight

    • Focus on what’s best for you. There are two phases to CLM. All stages within those phases are important, but choose to improve the phase that can be most beneficial to your organization in the short term. However, be sure to include reviewing risk and monitoring compliance.
    • Educate yourself. Understand the stages of CLM and how each step can rely on the previous one, like a stepping-stone model to success.
    • Consider the overall picture. Contract lifecycle management is the sum of many processes designed to manage contracts end to end while reducing corporate risk, improving financial savings, and managing agreement obligations. It can take time to get CLM organized and working efficiently, but then it will show its ROI and continuously improve.

    Impact and Result

    • Understand how to identify and mitigate risk to save the organization time and money.
    • Gain the knowledge required to implement a CLM that will be beneficial to all business units.
    • Achieve measurable savings in contract time processing, financial risk avoidance, and dollar savings.
    • Effectively review, store, manage, comply with, and renew agreements with a collaborative process

    Design and Build an Effective Contract Lifecycle Management Process Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how a contract management system will save money and time and mitigate contract risk, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Master the operational framework of contract lifecycle management.

    Understand how the basic operational framework of CLM will ensure cost savings, improved collaboration, and constant CLM improvement.

    • Design and Build an Effective Contract Lifecycle Management Process – Phase 1: Master the Operational Framework of CLM
    • Existing CLM Process Worksheet
    • Contract Manager

    2. Understand the ten stages of contract lifecycle management.

    Understand the two phases of CLM and the ten stages that make up the entire process.

    • Design and Build an Effective Contract Lifecycle Management Process – Phase 2: Understand the Ten Stages of CLM
    • CLM Maturity Assessment Tool
    • CLM RASCI Diagram
    [infographic]

    Workshop: Design and Build an Effective Contract Lifecycle Management Process

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Review Your CLM Process and Learn the Basics

    The Purpose

    Identify current CLM processes.

    Learn the CLM operational framework.

    Key Benefits Achieved

    Documented overview of current processes and stakeholders.

    Activities

    1.1 Review and capture your current process.

    1.2 Identify current stakeholders.

    1.3 Learn the operational framework of CLM.

    1.4 Identify current process gaps.

    Outputs

    Existing CLM Process Worksheet

    2 Learn More and Plan

    The Purpose

    Dive into the two phases of CLM and the ten stages of a robust system.

    Key Benefits Achieved

    A deep understanding of the required components/stages of a CLM system.

    Activities

    2.1 Understand the two phases of CLM.

    2.2 Learn the ten stages of CLM.

    2.3 Assess your CLM maturity state.

    2.4 Identify and assign stakeholders.

    Outputs

    CLM Maturity Assessment

    CLM RASCI Diagram

    Further reading

    Design and Build an Effective Contract Lifecycle Management Process

    Mitigate risk and drive value through robust best practices for contract lifecycle management.

    Our understanding of the problem

    This Research Is Designed For:

    • The CIO who depends on numerous key vendors for services
    • The CIO or Project Manager who wants to maximize the value delivered by vendors
    • The Director or Manager of an existing IT procurement or vendor management team
    • The Contracts Manager or Legal Counsel whose IT department holds responsibility for contracts, negotiation, and administration

    This Research Will Help You:

    • Implement and streamline the contract management process, policies, and procedures
    • Baseline and benchmark existing contract processes
    • Understand the importance and value of contract lifecycle management (CLM)
    • Minimize risk, save time, and maximize savings with vendor contracts

    This Research Will Also Assist

    • IT Service Managers
    • IT Procurement
    • Contract teams
    • Finance and Legal departments
    • Senior IT leadership

    This Research Will Help Them

    • Understand the required components of a CLM
    • Establish the current CLM maturity level
    • Implement a new CLM process
    • Improve on an existing or disparate process

    ANALYST PERSPECTIVE

    "Contract lifecycle management (CLM) is a vital process for small and enterprise organizations alike. Research shows that all organizations can benefit from a contract management process, whether they have as few as 25 contracts or especially if they have contracts numbering in the hundreds.

    A CLM system will:

    • Save valuable time in the entire cycle of contract/agreement processes.
    • Save the organization money, both hard and soft dollars.
    • Mitigate risk to the organization.
    • Avoid loss of revenue.

    If you’re not managing your contracts, you aren’t capitalizing on your investment with your vendors and are potentially exposing your organization to contract and monetary risk."

    - Ted Walker
    Principal Research Advisor, Vendor Management Practice
    Info-Tech Research Group

    Executive Summary

    Situation

    • Most organizations have vendor overload and even worse, no defined process to manage the associated contracts and agreements. To manage contracts, some vendor management offices (VMOs) use a shared network drive to store the contracts and a spreadsheet to catalog and manage them. Yet other less-mature VMOs may just rely on a file cabinet in Procurement and a reminder in someone’s calendar about renewals. These disparate processes likely cost your organization time spent finding, managing, and renewing contracts, not to mention potential increases in vendor costs and risk and the inability to track contract obligations.

    Complication

    • Contract lifecycle management (CLM) is not an IT buzzword, and it’s rarely on the top-ten list of CIO concerns in most annual surveys. Until a VMO gets to a level of maturity that can fully develop a CLM and afford the time and costs of doing so, there can be several challenges to developing even the basic processes required to store, manage, and renew IT vendor contracts. As is always an issue in IT, budget is one of the biggest obstacles in implementing a standard CLM process. Until senior leadership realizes that a CLM process can save time, money, and risk, getting mindshare and funding commitment will remain a challenge.

    Resolution

    • Understand the immediate benefits of a CLM process – even a basic CLM implementation can provide significant cost savings to the organization; reduce time spent on creating, negotiating, and renewing contracts; and help identify and mitigate risks within your vendor contracts.
    • Budgets don’t always need to be a barrier to a standard CLM process. However, a robust CLM system can provide significant savings to the organization.

    Info-Tech Insight

    • If you aren’t managing your contracts, you aren’t capitalizing on your investments.
    • Even a basic CLM process with efficient procedures will provide savings and benefits.
    • Not having a CLM process may be costing your organization money, time, and exposure to unmitigated risk.

    What you can gain from this blueprint

    Why Create a CLM

    • Improved contract organization
    • Centralized and manageable storage/archives
    • Improved vendor compliance
    • Risk mitigation
    • Reduced potential loss of revenue

    Knowledge Gained

    • Understanding of the value and importance of a CLM
    • How CLM can impact many departments within the organization
    • Who should be involved in the CLM steps and processes
    • Why a CLM is important to your organization
    • How to save time and money by maximizing IT vendor contracts
    • How basic CLM policies and procedures can be implemented without costly software expenditure

    The Outcome

    • A foundation for a CLM with best-practice processes
    • Reduced exposure to potential risks within vendor contracts
    • Maximized savings with primary vendors
    • Vendor compliance and corporate governance
    • Collaboration, transparency, and integration with business units

    Contract management: A case study

    CASE STUDY
    Industry Finance and Banking
    Source Apttus

    FIS Global

    The Challenge

    FIS’ business groups were isolated across the organization and used different agreements, making contract creation a long, difficult, and manual process.

    • Customers frustrated by slow and complicated contracting process
    • Manual contract creation and approval processes
    • Sensitive contract data that lacked secure storage
    • Multiple agreements managed across divisions
    • Lack of central repository for past contracts
    • Inconsistent and inaccessible

    The Solution: Automating and Streamlining the Contract Management Process

    A robust CLM system solved FIS’ various contract management needs while also providing a solution that could expand into full quote-to cash in the future.

    • Contract lifecycle management (CLM)
    • Intelligent workflow approvals (IWA)
    • X-Author for Excel

    Customer Results

    • 75% cycle time reduction
    • $1M saved in admin costs per year
    • 49% increase in sales proposal volume
    • Automation on one standard platform and solution
    • 55% stronger compliance management
    • Easy maintenance for various templates
    • Ability to quickly absorb new contracts and processes via FIS’s ongoing acquisitions

    Track the impact of CLM with these metrics

    Dollars Saved

    Upfront dollars saved

    • Potential dollars saved from avoiding unfavorable terms and conditions
    • Incentives that encourage the vendor to act in the customer’s best interest
    • Secured commitments to provide specified products and services at firm prices
    • Cost savings related to audits, penalties, and back support
    • Savings from discounts found

    Time Saved

    Time saved, which can be done in several areas

    • Defined and automated approval flow process
    • Preapproved contract templates with corporate terms
    • Reduced negotiation times
    • Locate contracts in minutes

    Pitfalls Avoided

    Number of pitfalls found and avoided, such as

    • Auto-renewal
    • Inconsistencies between sections and documents
    • Security and data not being deleted upon termination
    • Improper licensing

    The numbers are compelling

    71%

    of companies can’t locate up to 10% of their contracts.

    Source: TechnologyAdvice, 2019

    9.2%

    of companies’ annual revenue is lost because of poor contract management practices.

    Source: IACCM, 2019

    60%

    still track contracts in shared drives or email folders.

    Source: “State of Contract Management,” SpringCM, 2018

    CLM blueprint objectives

    • To provide a best-practice process for managing IT vendor contract lifecycles through a framework that organizes from the core, analyzes each step in the cycle, has collaboration and governance attached to each step, and integrates with established vendor management practices within your organization.
    • CLM doesn’t have to be an expensive managed database system in the cloud with fancy dashboards. As long as you have a defined process that has the framework steps and is followed by the organization, this will provide basic CLM and save the organization time and money over a short period of time.
    • This blueprint will not delve into the many vendors or providers of CLM solutions and their methodologies. However, we will discuss briefly how to use our framework and contract stages in evaluating a potential solution that you may be considering.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Design and Build an Effective CLM Process – project overview

    1. Master the Operational Framework

    2. Understand the Ten Stages of CLM
    Best-Practice Toolkit

    1.1 Understand the operational framework components.

    1.2 Review your current framework.

    1.3 Create a plan to implement or enhance existing processes.

    2.1 Understand the ten stages of CLM.

    2.2 Review and document your current processes.

    2.3 Review RASCI chart and assign internal ownership.

    2.4 Create an improvement plan.

    2.5 Track changes for measurable ROI.
    Guided Implementations
    • Review existing processes.
    • Understand what CLM is and why the framework is essential.
    • Create an implementation or improvement plan.
    • Review the ten stages of CLM.
    • Complete CLM Maturity Assessment.
    • Create a plan to target improvement.
    • Track progress to measure savings.
    Onsite Workshop

    Module 1: Review and Learn the Basics

    • Review and capture your current processes.
    • Learn the basic operational framework of contract management.

    Module 2 Results:

    • Understand the ten stages of effective CLM.
    • Create an improvement or implementation plan.
    Phase 1 Outcome:
    • A full understanding of what makes a comprehensive contract management system.
    		Phase 2 Outcome:
    • A full understanding of your current CLM processes and where to focus your efforts for improvement or implementation.

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2
    Activities

    Task – Review and Learn the Basics

    Task – Learn More and Plan

    1.1 Review and capture your current process.

    1.2 Identify current stakeholders.

    1.3 Learn the operational framework of contract lifecycle management.

    1.4 Identify current process gaps.

    2.1 Understand the two phases of CLM.

    2.2 Learn the ten stages of CLM.

    2.3 Assess your CLM maturity.

    2.4 Identify and assign stakeholders.

    2.5 Discuss ROI.

    2.6 Summarize and next steps.
    Deliverables
    1. Internal interviews with business units
    2. Existing CLM Process Worksheet
    1. CLM Maturity Assessment
    2. RASCI Diagram
    3. Improvement Action Plan

    PHASE 1

    Master the Operational Framework of Contract Lifecycle Management

    Design and Build an Effective CLM Process

    Phase 1: Master the Operational Framework of Contract Lifecycle Management

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of
    2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Master the Operational Framework of Contract Lifecycle Management
    Proposed Time to Completion: 1-4 weeks

    Step 1.1: Document your Current CLM Process

    Step 1.2: Read and Understand the Operational Framework

    Step 1.3: Review Solution Options

    Start with an analyst kick-off call:

    • Understand what your current process(es) is for each stage
    • Do a probative review of any current processes
    • Interview stakeholders for input

    Review findings with analyst:

    • Discuss the importance of the framework as the core of your plan
    • Review the gaps in your existing process
    • Understand how to prioritize next steps towards a CLM

    Finalize phase deliverable:

    • Establish ownership of the framework
    • Prioritize improvement areas or map out how your new CLM will look

    Then complete these activities…

    • Document the details of your process for each stage of CLM

    With these tools & templates:

    • Existing CLM Process Worksheet

    Phase 1 Results:

    • A full understanding of what makes a comprehensive contract management system.

    What Is Contract Lifecycle Management?

    • Every contract has a lifecycle, from creation to time and usage to expiration. Organizations using a legacy or manual contract management process usually ask, “What is contract lifecycle management and how will it benefit my business?”
    • Contract lifecycle management (CLM) creates a process that manages each contract or agreement. CLM eases the challenges of managing hundreds or even thousands of important business and IT contracts that affect the day-to-day business and could expose the organization to vendor risk.
    • Managing a few contracts is quite easy, but as the number of contracts grows, managing each step for each contract becomes increasingly difficult. Ultimately, it will get to a point where managing contracts properly becomes very difficult or seemingly impossible.

    That’s where contract lifecycle management (CLM) comes in.

    CLM can save money and improve revenue by:

    • Improving accuracy and decreasing errors through standardized contract templates and approved terms and conditions that will reduce repetitive tasks.
    • Securing contracts and processes through centralized software storage, minimizing risk of lost or misplaced contracts due to changes in physical assets like hard drives, network shares, and file cabinets.
    • Using policies and procedures that standardize, organize, track, and optimize IT contracts, eliminating time spent on creation, approvals, errors, and vendor compliance.
    • Reducing the organization’s exposure to risks and liability.
    • Having contracts renewed on time without penalties and with the most favorable terms for the business.

    The Operational Framework of Contract Lifecycle Management

    Four Components of the Operational Framework

    1. Organization
    2. Analysis
    3. Collaboration and Governance
    4. Integration/Vendor Management
    • By organizing at the core of the process and then analyzing each stage, you will maximize each step of the CLM process and ensure long-term contract management for the organization.
    • Collaboration and governance as overarching policies for the system will provide accountability to stakeholders and business units.
    • Integration and vendor management are encompassing features in a well-developed CLM that add visibility, additional value, and savings to the entire organization.

    Info-Tech Best Practice

    Putting a contract manager in place to manage the CLM project will accelerate the improvements and provide faster returns to the organizations. Reference Info-Tech’s Contract Manager Job Description template as needed.

    The operational framework is key to the success, return on investment (ROI), cost savings, and customer satisfaction of a CLM process.

    This image depicts Info-Tech's Operational Framework. It consists of a series of five concentric circles, with each circle a different colour. On the outer circle, is the word Integration. The next outermost circle has the words Collaboration and Governance. The next circle has no words, the next circle has the word Analysis, and the very centre circle has the word Organization.

    1. Organization

    • Every enterprise needs to organize its contract documents and data in a central repository so that everyone knows where to find the golden source of contractual truth.
    • This includes:
      • A repository for storing and organizing contract documents.
      • A data dictionary for describing the terms and conditions in a consistent, normalized way.
      • A database for persistent data storage.
      • An object model that tracks changes to the contract and its prevailing terms over time.

    Info-Tech Insight

    Paper is still alive and doing very well at slowing down the many stages of the contract process.

    2. Analysis

    Most organizations analyze their contracts in two ways:

    • First, they use reporting, search, and analytics to reveal risky and toxic terms so that appropriate operational strategies can be implemented to eliminate, mitigate, or transfer the risk.
    • Second, they use process analytics to reveal bottlenecks and points of friction as contracts are created, approved, and negotiated.

    3. Collaboration

    • Throughout the contract lifecycle, teams must collaborate on tasks both pre-execution and post-execution.
    • This includes document collaboration among several different departments across an enterprise.
    • The challenge is to make the collaboration smooth and transparent to avoid costly mistakes.
    • For some contracting tasks, especially in regulated industries, a high degree of control is required.
    • In these scenarios, the organization must implement controlled systems that restrict access to certain types of data and processes backed up with robust audit trails.

    4. Integration

    • For complete visibility into operational responsibilities, relationships, and risk, an organization must integrate its golden contract data with other systems of record.
    • An enterprise contracts platform must therefore provide a rich set of APIs and connectors so that information can be pushed into or pulled from systems for enterprise resource planning (ERP), customer relationship management (CRM), supplier relationship management (SRM), document management, etc.

    This is the ultimate goal of a robust contract management system!

    Member Activity: Document Current CLM Processes

    1.1 Completion Time: 1-5 days

    Goal: Document your existing CLM processes (if any) and who owns them, who manages them, etc.

    Instructions

    Interview internal business unit decision makers, stakeholders, Finance, Legal, CIO, VMO, Sales, and/or Procurement to understand what’s currently in place.

    1. Use the Existing CLM Process Worksheet to capture and document current CLM processes.
    2. Establish what processes, procedures, policies, and workflows, if any, are in place for pre-execution (Phase 1) contract stages.
    3. Do the same for post-execution (Phase 2) stages.
    4. Use this worksheet as reference for assessments and as a benchmark for improvement review six to 12 months later.
    This image contains a screenshot of Info-Tech's Existing CLM Process Discovery Worksheet

    INPUT

    • Internal information from all CLM stakeholders

    OUTPUT

    • A summary of processes and owners currently in place

    Materials

    • Existing CLM processes from interviews

    Participants

    • Finance, Legal, CIO, VMO, Sales, Procurement

    PHASE 2

    Understand the Ten Stages of Contract Lifecycle Management

    Design and Build an Effective CLM Process

    Phase 1: Master the Operational Framework of Contract Lifecycle Management

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of
    2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Understand the Ten Stages of Contract Lifecycle Management

    Proposed Time to Completion: 1-10 weeks

    Step 2.1: Assess CLM Maturity

    Step 2.2: Complete a RASCI Diagram

    Start with an analyst kick-off call:

    • Review the importance of assessing the maturity of your current CLM processes
    • Discuss interview process for internal stakeholders
    • Use data from the Existing CLM Process Worksheet

    Review findings with analyst:

    • Review your maturity results
    • Identify stages that require immediate improvement
    • Prioritize improvement or implementation of process

    Then complete these activities…

    • Work through the maturity assessment process
    • Answer the questions in the assessment tool
    • Review the summary tab to learn where to focus improvement efforts

    Then complete these activities…

    • Using maturity assessment and existing process data, establish ownership for each process stage
    • Fill in the RASCI Chart based on internal review or existing processes

    With these tools & templates:

    • CLM Maturity Assessment Tool

    With these tools & templates:

    • CLM RASCI Diagram

    Phase 2 Results & Insights:

    • A full understanding of your current CLM process and where improvement is required
    • A mapping of stakeholders for each stage of the CLM process

    The Ten Stages of Contract Lifecycle Management

    There are ten key stages of contract lifecycle management.

    The steps are divided into two phases, pre-execution and post-execution.

      Pre-Execution (Phase 1)

    1. Request
    2. Create
    3. Review Risk
    4. Approve
    5. Negotiate
    6. Sign

      7. Post-Execution (Phase 2)

    7. Capture
    8. Manage
    9. Monitor Compliance
    10. Optimize

    Ten Process Stages Within the CLM Framework

    This image contains the CLM framework from earlier in the presentation, with the addition of the following ten steps: 1. Request; 2. Create Contract; 3. Review Risk; 4. Approve; 5. Negotiate; 6. Sign; 7. Capture; 8. Manage; 9. Monitor Compliance; 10. Optimize.

    Stage 1: Request or Initiate

    Contract lifecycle management begins with the contract requesting process, where one party requests for or initiates the contracting process and subsequently uses that information for drafting or authoring the contract document. This is usually the first step in CLM.

    Requests for contracts can come from various sources:

    • Business units within the organization
    • Vendors presenting their contract, including renewal agreements
    • System- or process-generated requests for renewal or extension

    At this stage, you need to validate if a non-disclosure agreement (NDA) is currently in place with the other party or is required before moving forward. At times, adequate NDA components could be included within the contract or agreement to satisfy corporate confidentiality requirements.

    Stage 1: Request or Initiate

    Stage Input

    • Information about what the contract needs to contain, such as critical dates, term length, coverage, milestones, etc.
    • Some organizations require that justification and budget approval be provided at this stage.
    • Request could come from a vendor as a pre-created contract.
    • Best practices recommend that a contract request form or template is used to standardize all required information.

    Stage Output

    • Completed request form, stored or posted with all details required to move forward to risk review and contract creation.
    • Possible audit trails.

    Stage 2: Create Contract

    • At the creation or drafting stage, the document is created, generated, or provided by the vendor. The document will contain all clauses, scope, terms and conditions, and pricing as required.
    • In some cases, a vendor-presented contract that is already prepared will go through an internal review or redlining process by the business unit and/or Legal.
    • Both internal and external review and redlining are included in this stage.
    • Also at this stage, the approvers and signing authorities are identified and added to the contract. In addition, some audit trail features may be added.

    Info-Tech Best Practice

    For a comprehensive list of terms and conditions, see our Software Terms & Conditions Evaluation Tool within Master Contract Review and Negotiation for Software Agreements.

    Stage 2: Create Contract

    Stage Input

    • Contract request form, risk review/assessment.
    • Vendor- or contractor-provided contract/agreement, either soft copy, electronic form, or more frequently, “clickwrap” web-posted document.
    • Could also include a renewal notification from a vendor or from the CLM system or admin.

    Stage Output

    • Completed draft contract or agreement, typically in a Microsoft Word or Adobe PDF format with audit trail or comment tracking.
    • Redlined document for additional revision and or acceptance.
    • Amendment or addendum to existing contract.

    Stage 3: Review Risk 1 of 2

    The importance of risk review can not be understated. The contract or agreement must be reviewed by several stakeholders who can identify risks to the organization within the contract.

    Three important definitions:

    1. Risk is the potential for a negative outcome. A risk is crossing the street while wearing headphones and selecting the next track to play on your smartphone. A negative outcome is getting hit by an oncoming person who, unremarkably, was doing something similar at the same time.
    2. Risk mitigation is about taking the steps necessary to minimize both the likelihood of a risk occurring – look around both before and while crossing the street – and its impact if it does occur – fall if you must, but save the smartphone!
    3. Contract risk is about any number of situations that can cause a contract to fail, from trivially – the supplier delivers needed goods late – to catastrophically – the supplier goes out of business without having delivered your long-delayed orders.

    Stage 3: Review Risk 2 of 2

    • Contracts must be reviewed for business terms and conditions, potential risk situations from a financial or legal perspective, business commitments or obligations, and any operational concerns.
    • Mitigating contract risk requires a good understanding of what contracts are in place, how important they are to the success of the organization, and what data they contain.

    Collectively, this is known as contract visibility.

    • Risk avoidance and mitigation are also a key component in the ROI of a CLM system and should be tracked for analysis.
    • Risk-identifying forms or templates can be used to maintain consistency with corporate standards.

    Stage 3: Review Risk

    Stage Input

    • All details of the proposed contract so that a proper risk analysis can be done as well as appropriate review with stakeholders, including:
      • Finance
      • Legal
      • Procurement
      • Security
      • Line-of-business owner
      • IT stakeholders

    Stage Output

    • A list of identified concerns that could expose the business unit or organization.
    • Recommendations to minimize or eliminate identified risks.

    Stage 4: Approve

    The approval stage can be a short process if policies and procedures are already in place. Most organizations will have defined delegation of authority or approval authority depending on risk, value of the contract, and other corporate considerations.

    • Defined approval levels should be known within the organization and can be applied to the approval workflow, expediting the approval of drafted terms, conditions, changes, and cost/spend within the contract internally.
    • Tracking and flexibility needs to considered in the approval process.
    • Gates need to be in place to ensure that a required approver has approved the contract before it moves to the next approver.
    • Flexibility is needed in some situations for ad hoc approval tasks and should include audit trail as required.
    • Approvers can include business units, Finance, Legal, Security, and C-level leaders

    Stage 4: Approve

    Stage Input

    • Complete draft contract with all terms and conditions (T&Cs) and approval trail.
    • Amendment or addendum to existing contract.

    Stage Output

    • Approved draft contract ready to move to the next step of negotiating with the vendor.
    • Approved amendment or addendum to existing or renewal agreement.

    Stage 5: Negotiate

    • At this stage, there should be an approved draft of the contract that can be presented to the other party or vendor for review.
    • Typically organizations will negotiate their larger deals for terms and conditions with the goal of balancing the contractual allocation of risk with the importance of the vendor or agreement and its value to the business.
    • Several people on either side are typically involved and will discuss legal and commercial terms of the contract. Throughout the process, negotiators may leverage a variety of tools, including playbooks with preferred and fallback positions, clause libraries, document redlines and comparisons, and issue lists.
    • Audit trails or tracking of changes and acceptances is an important part of this stage. Tracking will avoid duplication and lost or missed changes and will speed up the entire process.
    • A final, clean document is created at this point and readied for execution.

    Stage 5: Negotiate

    Stage Input

    • Approved draft contract ready to move to the next step of negotiating with the vendor.
    • Approved amendment or addendum to existing or renewal agreement.

    Stage Output

    • A finalized and approved contract or amendment with agreed-upon terms and conditions ready for signatures.

    Info-Tech Insight

    Saving the different versions of a contract during negotiations will save time, provide reassurance of agreed terms as you move through the process, and provide reference for future negotiations with the vendor.

    Stage 6: Sign or Execute

    • At this stage in the process, all the heavy lifting in a contract’s creation is complete. Now it’s signature time.
    • To finalize the agreement, both parties need to the sign the final document. This can be done by an in-person wet ink signature or by what is becoming more prevalent, digital signature through an e-signature process.
    • Once complete, the final executed documents are exchanged or received electronically and then retained by each party.

    Stage 6: Sign or Execute

    Stage Input

    • A finalized and approved contract or amendment with agreed-upon terms and conditions ready for signatures.

    Stage Output

    • An executed contract or amendment ready to move to the next stage of CLM, capturing in the repository.

    Info-Tech Best Practice

    Process flow provisions should made for potential rejection of the contract by signatories, looping the contract back to the appropriate stage for rework or revision.

    Stage 7: Capture in Database/Repository 1 of 2

    • This is one of the most important stages of a CLM process. Executed agreements need to be stored in a single manageable, searchable, reportable, and centralized repository.
    • All documents should to be captured electronically, reviewed for accuracy, and then posted to the CLM repository.
    • The repository can be in various formats depending on the maturity, robustness, and budget of the CLM program.

    Most repositories are some type of database:

    • An off-the-shelf product
    • A PaaS cloud-based solution
    • A homegrown, internally developed database
    • An add-on module to your ERP system

    Stage 7: Capture in Database/Repository 2 of 2

    Several important features of an electronic repository should be considered:

    • Consistent metadata tagging of clauses, terms, conditions, dates, etc.
    • Centralized summary view of all contracts
    • Controlled access for those who need to review and manage the contracts

    Establishing an effective repository will be key to providing measurable value to the organization and saving large amounts of time for the business unit.

    Info-Tech Insight

    Planning for future needs by investing a little more money into a better, more robust repository could pay bigger dividends to the VMO and organization while providing a higher ROI over time as advanced functionality is deployed.

    Stage 8: Manage

    • Once an agreement is captured in the repository, it needs to be managed from both an operational and a commitment perspective.
    • Through a summary view or master list, contracts need to be operationally managed for end dates and renewals, vendor performance, discounts, and rebates.
    • Managing contracts for commitment and compliance will ensure all contract requirements, rights, service-level agreements (SLAs), and terms are fulfilled. This will eliminate the high costs of missed SLAs, potential breaches, or missed renewals.
    • Managing contracts can be improved by adding metadata to the records that allow for easier search and retrieval of contracts or even proactive notification.
    • The repository management features can and should be available to business stakeholders, or reporting from a CLM admin can also alert stakeholders to renewals, pricing, SLAs, etc.
    • Also important to this stage is reporting. This can be done by an admin or via a self-serve feature for stakeholders, or it could even be automated.

    Stage 9: Monitor Compliance 1 of 2

    • At this stage, the contracts or agreements need to be monitored for the polices within them and the purpose for which they were signed.
    • This is referred to as obligation management and is a key step to providing savings to the organization and mitigating risk.
    • Many contracts contain commitments by each party. These can include but are not limited to SLAs, service uptime targets, user counts, pricing threshold discounts and rebates, renewal notices to vendors, and training requirements.
    • All of these obligations within the contracts should be summarized and monitored to ensure that all commitments are delivered on. Managing obligations will mitigate risks, maximize savings and rebates to the organization, and minimize the potential for a breach within the contract.

    Stage 9: Monitor Compliance 2 of 2

    • Monitoring and measuring vendor commitments and performance will also be a key factor in maximizing the benefits of the contract through vendor accountability.
    • Also included in this stage is renewal and/or disposition of the contract. If renewal is due, it should go back to the business unit for submission to the Stage 1: Request process. If the business unit is not going to renew the contract, the contract must be tagged and archived for future reference.

    Stage 10: Optimize

    • The goal of this stage is to improve the other stages of the process as well as evaluate how each stage is integrating with the core operational framework processes.
    • With more data and improved insight into contractual terms and performance, a business can optimize its portfolio for better value, greater savings, and lower-risk outcomes.
    • For high-performance contract teams, the goal is a continuous feedback loop between the contract portfolio and business performance. If, for example, the data shows that certain negotiation issues consume a large chunk of time but yield no measurable difference in risk or performance, you may tweak the playbook to remedy those issues quickly.

    Additional optimization tactics:

    • Streamlining contract renewals with auto-renew
    • Predefined risk review process or template, continuous review/improvement of negotiation playbook
    • Better automation or flow of approval process
    • Better signature delegation process if required
    • Improving repository search with metadata tagging
    • Automating renewal tracking or notice process
    • Tracking the time a contract spends in each stage

    Establish Your Current CLM Maturity Position

    • Sometimes organizations have a well-defined pre-execution process but have a poor post-signature process.
    • Identifying your current processes or lack thereof will provide you with a starting point in developing a plan for your CLM. It’s possible that most of the stages are there and just need some improvements, or maybe some are missing and need to be implemented.
    • It’s not unusual for organizations to have a manual pre-execution process and an automated backend repository with compliance and renewal notices features.

    Info-Tech Best Practice

    Use the CLM Maturity Assessment Tool to outline where your organization is at each stage of the process.

    Member Activity: Assess Current CLM Maturity

    2.1 Completion Time 1-2 days

    Goal: Identify and measure your existing CLM processes, if any, and provide a maturity value to each stage. The resulting scores will provide a maturity assessment of your CLM.

    Instructions

    1. Use the Existing CLM Process Worksheet to document current CLM processes.
    2. Using the CLM worksheet info, answer the questions in the CLM Maturity Assessment Tool.
    3. Review the results and scores on Tab 3 to see where you need to focus your initial improvements.
    4. Save the initial assessment for future reference and reassess in six to 12 months to measure progress.

    This image contains a screenshot from Info-Tech's CLM Maturity Assessment Tool.

    INPUT

    • Internal information from all CLM stakeholders

    OUTPUT

    • A summary of processes and owners currently in place in the organization

    Materials

    • Existing CLM processes from interviews

    Participants

    • Finance, Legal, CIO, VMO, Sales, Procurement

    Member Activity: Complete RASCI Chart

    2.2 Completion Time 2-6 hours

    Goal: Identify who in your organization is primarily accountable and involved in each stage of the CLM process.

    Instructions

    Engage internal business unit decision makers, stakeholders, Finance, Legal, CIO, VMO, Sales, and Procurement as required to validate who should be involved in each stage.

    1. Using the information collected from internal reviews, assign a level in the CLM RASCI Diagram to each team member.
    2. Use the resulting RASCI diagram to guide you through developing or improving your CLM stages.

    This image contains a screenshot from Info-Tech's CLM RASCI Diagram.

    INPUT

    • Internal interview information

    OUTPUT

    • Understanding of who is involved in each CLM stage

    Materials

    • Interview data
    • RASCI Diagram

    Participants

    • Finance, Legal, CIO, VMO, Sales, Procurement

    Applying CLM Framework and Stages to Your Organization

    • Understand what CLM process you currently do or do not have in place.
    • Review implementation options: automated, semi-automated, and manual solutions.
    • If you are improving an existing process, focus on one phase at a time, perfect it, and then move to the other phase. This can also be driven by budget and time.
    • Create a plan to start with and then move to automating or semi-automating the stages.
    • Building onto or enhancing an existing system or processes can be a cost-effective method to produce near-term measurable savings
    • Focus on one phase at a time, then move on to the other phase.
    • While reviewing implementation of or improvements to CLM stages, be sure to track or calculate the potential time and cost savings and risk mitigation. This will help in any required business case for a CLM.

    CLM: An ROI Discussion 1 of 2

    • ROI can be easier to quantify and measure in larger organizations with larger CLM, but ROI metrics can be obtained regardless of the company or CLM size.
    • Organizations recognize their ROI through gains in efficiency across the entire business as well as within individual departments involved in the contracting process. They also do so by reducing the risk associated with decentralized and insecure storage of and access to their contracts, failure to comply with terms of their contracts, and missing deadlines associated with contracts.

    Just a few of the factors to consider within your own organization include:

    • The number of people inside and outside your company that touch your contracts.
    • The number of hours spent weekly, monthly, and annually managing contracts.
    • Potential efficiencies gained in better managing those contracts.
    • The total number of contracts that exist at any given time.
    • The average value and total value of those contract types.
    • The potential risk of being in breach of any of those contracts.
    • The number of places contracts are stored.
    • The level of security that exists to prevent unauthorized access.
    • The potential impact of unauthorized access to your sensitive contract data.

    CLM: An ROI Discussion 2 of 2

    Decision-Maker Apprehensions

    Decision-maker concerns arise from a common misunderstanding – that is, a fundamental failure to appreciate the true source of contract management value. This misunderstanding goes back many years to the time when analysts first started to take an interest in contract management and its automation. Their limited experience (primarily in retail and manufacturing sectors) led them to think of contract management as essentially an administrative function, primarily focused on procurement of goods. In such environments, the purpose of automation is focused on internal efficiency, augmented by the possibility of savings from reduced errors (e.g. failing to spot a renewal or expiry date) or compliance (ensuring use of standard terms).

    Today’s CLM systems and processes can provide ROI in several areas in the business.

    Info-Tech Insight

    Research on ROI of CLM software shows significant hard cost savings to an organization. For example, a $10 million company with 300 contracts valued at $3 million could realize savings of $83,400 and avoid up to $460,000 in lost revenues. (Derived from: ACCDocket, 2018)

    Additional Considerations 1 of 2

    Who should own and/or manage the CLM process within an organization? Legal, VMO, business unit, Sales?

    This is an often-discussed question. Research suggests that there is no definitive answer, as there are several variables.

    Organizations needs to review what makes the best business sense for them based on several considerations and then decide where CLM belongs.

    • Business unit budgets and time management
    • Available Administration personnel and time
    • IT resources
    • Security and access concerns
    • Best fit based on organizational structure

    35% of law professionals feel contract management is a legal responsibility, while 45% feel it’s a business responsibility and a final 20% are unsure where it belongs. (Source: “10 Eye-Popping Contract Management Statistics,” Apttus, 2018)

    Additional Considerations 2 of 2

    What type of CLM software or platform should we use?

    This too is a difficult question to answer definitively. Again, there are several variables to consider. As well, several solutions are available, and this is not a one-size-fits-all scenario.

    As with who should own the CLM process, organizations must review the various CLM software solutions available that will meet their current and future needs and then ask, “What do we need the system to do?”

    • Do you build a “homegrown” solution?
    • Should it be an add-on module to the current ERP or CRM system?
    • Is on-premises more suitable?
    • Is an adequate off-the-shelf (OTS) solution available?
    • What about the many cloud offerings?
    • Is there a basic system to start with that can expand as you grow?

    Info-Tech Insight

    When considering what type of solution to choose, prioritize what needs to been done or improved. Sometimes solutions can be deployed in phases as an “add-on” type modules.

    Summary of Accomplishment

    Knowledge Gained

    • Documented current CLM process
    • Core operational framework to build a CLM process on
    • Understanding of best practices required for a sustainable CLM

    Processes Optimized

    • Internal RASCI process identified
    • Existing internal stage improvements
    • Internal review process for risk mitigation

    Deliverables Completed

    • Existing CLM Processes Worksheet
    • CLM Maturity Assessment
    • CLM RASCI Chart
    • CLM improvement plan

    Project Step Summary

    Client Project: CLM Assessment and Improvement Plan

    1. Set your goals – what do you want to achieve in your CLM project?
    2. Assess your organization’s current CLM position in relation to CLM best practices and stages.
    3. Map your organization’s RASCI structure for CLM.
    4. Identify opportunities for stage improvements or target all low stage assessments.
    5. Prioritize improvement processes.
    6. Track ROI metrics.
    7. Develop a CLM implementation or improvement plan.

    Info-Tech Insight

    This project can fit your organization’s schedule:

    • Do-it-yourself with your team.
    • Remote delivery (Info-Tech Guided Implementation).

    CLM Blueprint Summary and Conclusion

    • Contract management is a vital component of a responsible VMO that will benefit all business units in an organization, save time and money, and reduce risk exposure.
    • A basic well-deployed and well-managed CLM will provide ROI in the short term.
    • Setting an improvement plan with concise improvements and potential cost savings based on process improvements will help your business case for CLM get approval and leadership buy-in.
    • Educating and aligning all business units and stakeholders to any changes to CLM processes will ensure that cost savings and ROI are achieved.
    • When evaluating a CLM software solution, use the operational framework and the ten process stages in this blueprint as a reference guide for CLM vendor functionality and selection.

    Related Info-Tech Research

    Master Contract Review and Negotiation

    Optimize spend with significant cost savings and negotiate from a position of strength.

    Manage Your Vendors Before They Manage You

    Maximize the value of vendor relationships.

    Bibliography

    Burla, Daniel. “The Must Know Of Transition to Dynamics 365 on Premise.” Sherweb, 14 April 2017. Web.

    Anand, Vishal, “Strategic Considerations in Implementing an End-to-End Contract Lifecycle Management Solution.” DWF Mindcrest, 20 Aug. 2016. Web.

    Alspaugh, Zach. “10 Eye-Popping Contract Management Statistics from the General Counsel’s Technology Report.” Apttus, 23 Nov. 2018. Web.

    Bishop, Randy. “Contract Management is not just a cost center.” ContractSafe, 9 Sept. 2019. Web.

    Bryce, Ian. “Contract Management KPIs - Measuring What Matters.” Gatekeeper, 2 May 2019. Web.

    Busch, Jason. “Contract Lifecycle Management 101.” Determine. 4 Jan. 2018. Web.

    “Contract Management Software Buyer's Guide.” TechnologyAdvice, 5 Aug. 2019. Web.

    Dunne, Michael. “Analysts Predict that 2019 will be a Big Year for Contract Lifecycle Management.” Apttus, 19 Nov. 2018. Web.

    “FIS Case Study.” Apttus, n.d. Web.

    Gutwein, Katie. “3 Takeaways from the 2018 State of Contract Management Report.” SpringCM, 2018. Web.

    “IACCM 2019 Benchmark Report.” IAACM, 4 Sept. 2019. Web.

    Linsley, Rod. “How Proverbial Wisdom Can Help Improve Contract Risk Mitigation.” Gatekeeper, 2 Aug. 2019. Web.

    Mars, Scott. “Contract Management Data Extraction.” Exari, 20 June 2017. Web.

    Rodriquez, Elizabeth. “Global Contract Life-Cycle Management Market Statistics and Trends 2019.” Business Tech Hub, 17 June 2017. Web.

    “State of Contract Management Report.” SpringCM, 2018. Web.

    Teninbaum, Gabriel, and Arthur Raguette. “Realizing ROI from Contract Management Technology.” ACCDocket.com, 29 Jan. 2018. Web.

    Wagner, Thomas. “Strategic Report on Contract Life cycle Management Software Market with Top Key Players- IBM Emptoris, Icertis, SAP, Apttus, CLM Matrix, Oracle, Infor, Newgen Software, Zycus, Symfact, Contract Logix, Coupa Software.” Market Research, 21 June 2019. Web.

    “What is Your Contract Lifecycle Management (CLM) Persona?” Spend Matters, 19 Oct. 2017. Web.

    Maximize the Benefits from Enterprise Applications with a Center of Excellence

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    • Parent Category Name: Optimization
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    • Processes pertaining to managing the application are inconsistent and do not drive excellence.
    • There is a lack of interdepartmental collaboration between different teams pertaining to the application.
    • There are no formalized roles and responsibilities for governance and support around enterprise applications.

    Our Advice

    Critical Insight

    • Scale the Center of Excellence (CoE) based on business needs. There is flexibility in how extensively the CoE methodology is applied and rigidity in how consistently it should be used.
    • The CoE is a refinery. It takes raw inputs from the business and produces an enhanced product, removing waste and isolating it from re-entering day-to-day operations.
    • Excellence is about people as much as it is about process. Documented best practices should include competencies, key resources, and identified champions to advocate the CoE practice.

    Impact and Result

    • Formalize roles and responsibilities for all application initiatives.
    • Develop a standard process of governance and oversight surrounding the application.
    • Develop a comprehensive support network that consists of IT, the business, and external stakeholders to address issues and problem areas surrounding the application.

    Maximize the Benefits from Enterprise Applications with a Center of Excellence Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should establish a Center of Excellence for your enterprise application, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Create a vision for the CoE

    Understand the importance of developing an enterprise application CoE, define its scope, and identify key stakeholders.

    • Maximize the Benefits from Enterprise Applications with a Center of Excellence – Phase 1: Create a Vision for the Center of Excellence
    • Enterprise Application Center of Excellence Project Charter

    2. Design the CoE future state

    Gather high-level requirements to determine the ideal future state.

    • Maximize the Benefits from Enterprise Applications with a Center of Excellence – Phase 2: Design the Center of Excellence Future State
    • Center of Excellence Refinery Model Template

    3. Develop a CoE roadmap

    Assess the required capabilities to reach the ideal state CoE.

    • Maximize the Benefits from Enterprise Applications with a Center of Excellence – Phase 3: Develop a Center of Excellence Roadmap
    • Center of Excellence Exceptions Report
    • Track and Measure Benefits Tool
    • Enterprise Application Center of Excellence Stakeholder Presentation Template
    [infographic]

    Workshop: Maximize the Benefits from Enterprise Applications with a Center of Excellence

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Create a Vision for the CoE

    The Purpose

    Understand the importance of developing a CoE for enterprise applications.

    Determine how to best align the CoE mandate with business objectives.

    Complete a CoE project charter to gain buy-in, build a project team, and track project success. 

    Key Benefits Achieved

    Key stakeholders identified.

    Project team created with defined roles and responsibilities.

    Project charter finalized to gain buy-in.

    Activities

    1.1 Evaluate business needs and priorities.

    1.2 Identify key stakeholders and the project team.

    1.3 Align CoE with business priorities.

    1.4 Map current state CoE.

    Outputs

    Project vision

    Defined roles and responsibilities

    Strategic alignment of CoE and the business

    CoE current state schematic

    2 Design the CoE Future State

    The Purpose

    Gain a thorough understanding of pains related to the lack of application governance.

    Identify and recycle existing CoE practices.

    Visualize the CoE enhancement process.

    Visualize your ideal state CoE. 

    Key Benefits Achieved

    Requirements to strengthen the case for the enterprise application CoE.

    CoE value-add refinery.

    Future potential of the CoE.

    Activities

    2.1 Gather requirements.

    2.2 Map the CoE enhancement process.

    2.3 Sketch future state CoE.

    Outputs

    Classified pains, opportunities, and existing practices

    CoE refinery model

    Future state CoE sketch

    3 Develop a CoE Roadmap

    The Purpose

    Assess required capabilities and resourcing.

    List and prioritize CoE initiatives.

    Track and monitor CoE performance. 

    Key Benefits Achieved

    Next steps for the enterprise application CoE.

    CoE resourcing plan.

    CoE benefits realization tracking.

    Activities

    3.1 Build CoE capabilities.

    3.2 Identify risks and mitigation efforts.

    3.3 Prioritize and track CoE initiatives.

    3.4 Finalize stakeholder presentation.

    Outputs

    CoE potential capabilities

    Risk management plan

    CoE initiatives roadmap

    CoE stakeholder presentation

    Tame the Project Backlog

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    • Parent Category Name: Portfolio Management
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    • Unmanaged project backlogs can become the bane of IT departments, tying IT leaders and PMO staff down to an ever-growing receptacle of project ideas that provides little by way of strategic value and that typically represents a lack of project intake and approval discipline.
    • Decision makers frequently use the backlog to keep the peace. Lacking the time to assess the bulk of requests, or simply wanting to avoid difficult conversations with stakeholders, they “approve” everything and leave it to IT to figure it out.
    • As IT has increasing difficulty assessing – let alone starting – any of the projects in the backlog, stakeholder relations suffer. Requestors view inclusion in the backlog as a euphemism for “declined,” and often characterize the backlog as the place where good project ideas go to die.
    • Faced with these challenges, you need to make your project backlog more useful and reliable. The backlog may contain projects worth doing, but in its current untamed state, you have difficulty discerning, let alone capitalizing upon, those instances of value.

    Our Advice

    Critical Insight

    • Project backlogs are an investment and need to be treated as such. Incurring a cost impact that can be measured in terms of time and money, the backlog needs to be actively managed to ensure that you’re investing wisely and getting a good return in terms of strategic value and project throughput.
    • Unmanageable project backlogs are rooted in bad habits and poorly-defined processes. Identifying the sources that fuel backlog growth is key to long-term success. Unless the problem is addressed at the root, any gains made in the near-term will simply fade away as old, unhealthy habits re-emerge and take hold.
    • Backlog management should facilitate executive awareness about the status of backlog items as new work is being approved. In the long run, this ongoing executive engagement will not only help to keep the backlog manageable, but it will also help to bring more even workloads to IT project staff.

    Impact and Result

    • Keep the best, forget the rest. Develop a near-term approach to limit the role of the backlog to include only those items that add value to the business.
    • Shine a light. Improve executive visibility into the health and status of the backlog so that the backlog is taken into account when decision makers approve new work.
    • Evolve the organizational culture. Effectively employ organizational change management practices to evolve the culture that currently exists around the project backlog in order to ensure customer-service needs are more effectively addressed.
    • Ensure long-term sustainability. Institute processes to make sure that your list of pending projects – should you still require one after implementing this blueprint – remains minimal, maintainable, and of high value.

    Tame the Project Backlog Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how a more disciplined approach to managing your project backlog can help you realize increased value and project throughput.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Create a project backlog battle plan

    Calculate the cost of the project backlog and assess the root causes of its unmanageability.

    • Tame the Project Backlog – Phase 1: Create a Backlog Battle Plan
    • Project Backlog ROI Calculator

    2. Execute a near-term backlog cleanse

    Increase the manageability of the backlog by updating stale requests and removing dead weight.

    • Tame the Project Backlog – Phase 2: Execute a Near-Term Backlog Cleanse
    • Project Backlog Management Tool
    • Project Backlog Stakeholder Communications Template

    3. Ensure long-term backlog manageability

    Develop and maintain a manageable backlog growth rate by establishing disciplined backlog management processes.

    • Tame the Project Backlog – Phase 3: Ensure Long-Term Backlog Manageability
    • Project Backlog Operating Plan Template
    • Project Backlog Manager
    [infographic]

    Workshop: Tame the Project Backlog

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Create a Project Backlog Battle Plan

    The Purpose

    Gauge the manageability of your project backlog in its current state.

    Calculate the total cost of your project backlog investments.

    Determine the root causes that contribute to the unmanageability of your project backlog.

    Key Benefits Achieved

    An understanding of the organizational need for more disciplined backlog management.

    Visibility into the costs incurred by the project backlog.

    An awareness of the sources that feed the growth of the project backlog and make it a challenge to maintain.

    Activities

    1.1 Calculate the sunk and marginal costs that have gone into your project backlog.

    1.2 Estimate the throughput of backlog items.

    1.3 Survey the root causes of your project backlog.

    Outputs

    The total estimated cost of the project backlog.

    A project backlog return-on-investment score.

    A project backlog root cause analysis.

    2 Execute a Near-Term Project Backlog Cleanse

    The Purpose

    Identify the most organizationally appropriate goals for your backlog cleanse.

    Pinpoint those items that warrant immediate removal from the backlog and establish a game plan for putting a bullet in them.

    Communicate backlog decisions with stakeholders in a way that minimizes friction and resistance. 

    Key Benefits Achieved

    An effective, achievable, and organizationally right-sized approach to cleansing the backlog.

    Criteria for cleanse outcomes and a protocol for carrying out the near-term cleanse.

    A project sponsor outreach plan to help ensure that decisions made during your near-term cleanse stick. 

    Activities

    2.1 Establish roles and responsibilities for the near-term cleanse.

    2.2 Determine cleanse scope.

    2.3 Develop backlog prioritization criteria.

    2.4 Prepare a communication strategy.

    Outputs

    Clear accountabilities to ensure the backlog is effectively minimized and outcomes are communicated effectively.

    Clearly defined and achievable goals.

    Effective criteria for cleansing the backlog of zombie projects and maintaining projects that are of strategic and operational value.

    A communication strategy to minimize stakeholder friction and resistance.

    3 Ensure Long-Term Project Backlog Manageability

    The Purpose

    Ensure ongoing backlog manageability.

    Make sure the executive layer is aware of the ongoing status of the backlog when making project decisions.

    Customize a best-practice toolkit to help keep the project backlog useful. 

    Key Benefits Achieved

    A list of pending projects that is minimal, maintainable, and of high value.

    Executive engagement with the backlog to ensure intake and approval decisions are made with a view of the backlog in mind.

    A backlog management tool and processes for ongoing manageability. 

    Activities

    3.1 Develop a project backlog management operating model.

    3.2 Configure a project backlog management solution.

    3.3 Assign roles and responsibilities for your long-term project backlog management processes.

    3.4 Customize a project backlog management operating plan.

    Outputs

    An operating model to structure your long-term strategy around.

    A right-sized management tool to help enable your processes and executive visibility into the backlog.

    Defined accountabilities for executing project backlog management responsibilities.

    Clearly established processes for how items get in and out of the backlog, as well as for ongoing backlog review.

    Identify and Manage Strategic Risk Impacts on Your Organization

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management

    Moreso than any other time, our world is changing. As a result, organizations – and their vendors – need to be able to adapt their strategic plans to accommodate risk on an unprecedented level.

    A new global change will impact your organizational strategy at any given time. So, make sure your plans are flexible enough to manage the inevitable consequences.

    Our Advice

    Critical Insight

    • Identifying and managing a vendor’s potential strategic impact on your organization requires multiple people in the organization across several functions. Those people all need coaching on the potential changes in the market and how these changes affect strategic plans.
    • Organizational leadership is often taken unaware during crises, and their plans lack the flexibility needed to adjust to significant market upheavals.

    Impact and Result

    • Vendor management practices educate organizations on the different potential risks to vendors in your market and suggest creative and alternative ways to avoid and help manage them.
    • Prioritize and classify your vendors with quantifiable, standardized rankings.
    • Prioritize focus on your high-risk vendors.
    • Standardize your processes for identifying and monitoring vendor risks to manage potential impacts on your strategic plan with our Strategic Risk Impact Tool.

    Identify and Manage Strategic Risk Impacts on Your Organization Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Identify and Manage Strategic Risk Impacts to Your Organization Deck – Use the research to better understand the negative impacts of vendor actions on your strategic plans.

    Use this research to identify and quantify the potential strategic impacts caused by vendors. Use Info-Tech’s approach to look at the strategic impact from various perspectives to better prepare for issues that may arise.

    • Identify and Manage Strategic Risk Impacts on Your Organization Storyboard

    2. What If Vendor Strategic Impact Tool – Use this tool to help identify and quantify the strategic impacts of negative vendor actions

    By playing the “what if” game and asking probing questions to draw out – or eliminate – possible negative outcomes, everyone involved adds their insight into parts of the organization to gather a comprehensive picture of potential impacts.

    • Strategic Risk Impact Tool
    [infographic]

    Further reading

    Identify and Manage Strategic Risk Impacts on Your Organization

    The world is in a perpetual state of change. Organizations need to build adaptive resiliency into their strategic plans to adjust to ever-changing market dynamics.

    Analyst perspective

    Organizations need to build flexible resiliency into their strategic plans to be able to adjust to ever-changing market dynamics.

    This is a picture of Frank Sewell, Research Director, Vendor Management at Info-Tech Research Group

    Like most people, organizations are poor at assessing the likelihood of risk. If the past few years have taught us anything, it is that the probability of a risk occurring is far more flexible in the formula Risk = Likelihood * Impact than we ever thought possible. The impacts of these risks have been catastrophic, and organizations need to be more adaptive in managing them to strengthen their strategic plans.

    Frank Sewell,
    Research Director, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Moreso than any other time, our world is changing. As a result, organizations – and their vendors – need to be able to adapt their strategic plans to accommodate risk on an unprecedented level.

    A new global change will impact your organizational strategy at any given time. So, make sure your plans are flexible enough to manage the inevitable consequences.

    Common Obstacles

    Identifying and managing a vendor’s potential strategic impact on your organization requires multiple people in the organization across several functions. Those people all need coaching on the potential changes in the market and how these changes affect strategic plans.

    Organizational leadership is often taken unaware during crises, and their plans lack the flexibility needed to adjust to significant market upheavals.

    Info-Tech’s Approach

    Vendor management practices educate organizations on the different potential risks to vendors in your market and suggest creative and alternative ways to avoid and help manage them.

    Prioritize and classify your vendors with quantifiable, standardized rankings.

    Prioritize focus on your high-risk vendors.

    Standardize your processes for identifying and monitoring vendor risks to manage potential impacts on your strategic plan with our Strategic Impacts Tool.

    Info-Tech Insight

    Organizations must evolve their strategic risk assessments to be more adaptive to respond to global changes in the market. Ongoing monitoring of the market and the vendors tied to company strategies is imperative to achieving success.

    Info-Tech’s multi-blueprint series on vendor risk assessment

    There are many individual components of vendor risk beyond cybersecurity.

    This image depicts a cube divided into six different coloured sections. The sections are labeled: Financial; Reputational; Operational; Strategic; Security; Regulatory & Compliance.

    This series will focus on the individual components of vendor risk and how vendor management practices can facilitate organizations’ understanding of those risks.

    Out of Scope:

    This series will not tackle risk governance, determining overall risk tolerance and appetite, or quantifying inherent risk.

    Strategic risk impacts

    Potential losses to the organization due to risks to the strategic plan

    • In this blueprint, we’ll explore strategic risks (risks to the Strategic Plans of the organization) and their impacts.
    • Identify potentially disruptive events to assess the overall impact on organizations and implement adaptive measures to correct strategic plans.
    This image depicts a cube divided into six different coloured sections. The section labeled Strategic is highlighted.

    The world is constantly changing

    The IT market is constantly reacting to global influences. By anticipating changes, leaders can set expectations and work with their vendors to accommodate them.

    When the unexpected happens, being able to adapt quickly to new priorities ensures continued long-term business success.

    Below are some things no one expected to happen in the last few years:

    62%

    of IT professionals are more concerned about being a victim of ransomware than they were a year ago.

    82%

    of Microsoft’s non-essential employees shifted to working from home in 2020, joining the 18% already remote.

    89%

    of organizations invested in web conferencing technology to facilitate collaboration.

    Source: Info-Tech Tech Trends Survey 2022

    Strategic risks on a global scale

    Odds are at least one of these is currently affecting your strategic plans

    • Vendor Acquisitions
    • Global Pandemic
    • Global Shortages
    • Gas Prices
    • Poor Vendor Performance
    • Travel Bans
    • War
    • Natural Disasters
    • Supply Chain Disruptions
    • Security Incidents

    Make sure you have the right people at the table to identify and plan to manage impacts.

    Identify & manage strategic risks

    Global Pandemic

    Very few people could have predicted that a global pandemic would interrupt business on the scale experienced today. Organizations should look at their lessons learned and incorporate adaptable preparations into their strategic planning moving forward.

    Vendor Acquisitions

    The IT market is an ever-shifting environment. Larger companies often gobble up smaller ones to control their sectors. Incorporating plans to manage those shifts in ownership will be key to many strategic plans that depend on niche vendor solutions for success. Be sure to monitor the potentially affected markets on an ongoing cadence.

    Global Shortages

    Organizations need to accept that shortages will recur periodically and that preparing for them will significantly increase the success potential of long-term strategic plans. Understand what your business needs to stock for project needs and where those supplies are located, and plan how to rapidly access and distribute them as required if supply chain disruptions occur.

    What to look for in vendors

    Identify strategic risk impacts

    • A vendor acquires many smaller, seemingly irrelevant IT products. Suddenly their revenue model includes aggressive license compliance audits.
      • Ensure that your installed software meets license compliance requirements with good asset management practices.
      • Monitor the market for such acquisitions or news of audits hitting companies.
    • A vendor changes their primary business model from storage and hardware to becoming a self-proclaimed “professional services guru,” relying almost entirely on their name recognition to build their marketing.
      • Be wary of self-proclaimed experts and review their successes and failures with other organizations before adopting them into your business strategy.
      • Review the backgrounds their “experts” have and make sure they have the industry and technical skill sets to perform the services to the required level.

    Not preparing for your growth can delay your goals

    Why can’t I get a new laptop?

    For example:

    • An IT professional services organization plans to take advantage of the growing work-from-home trend to expand its staff by 30% over the coming year.
    • Logically, this should include a review of the necessary tasks involved, including onboarding.
      • Suppose the company does not order enough equipment in preparation to cover the new staff plus routine replacement. In that case, this will delay the output of the new team members immeasurably as they wait for their company equipment and will delay existing staff whose equipment breaks, preventing them from getting back to work efficiently.

    Sometimes an organization has the right mindset to take advantage of the changes in the market but can fail to plan for the particulars.

    When your strategic plan changes, you need to revisit all the steps in the processes to ensure a successful outcome.

    Strategic risks

    Poor or uninformed business decisions can lead to organizational strategic failures

    • Supply chain disruptions and global shortages
      • Geopolitical disruptions and natural disasters have caused unprecedented interruptions to business. Incorporate forecasting of product and ongoing business continuity planning into your strategic plans to adapt as events unfold.
    • Poor vendor performance
      • Consider the impact of a vendor that fails to perform midway through the implementation. Organizations need to be able to manage the impact of replacing that vendor and cutting their losses rather than continuing to throw good money away after bad performance.
    • Vendor acquisitions
      • A lot of acquisition is going on in the market today. Large companies are buying competitors and either imposing new terms on customers or removing the competing products from the market. Prepare options for any strategy tied to a niche product.

    It is important to identify potential risks to strategic plans to manage the risk and be agile enough in planning to adapt to the changing environments.

    Info-Tech Insight
    Few organizations are good at identifying risks to their strategic plan. As a result, almost none realistically plan to monitor, manage, and adapt their strategies to those risks.

    Prepare your strategic risk management for success

    Due diligence will enable successful outcomes

    1. Obtain top-level buy-in; it is critical to success.
    2. Build enterprise risk management (ERM) through incremental improvement.
    3. Focus initial efforts on the “big wins” to prove the process works.
    4. Use existing resources.
    5. Build on any risk management activities that already exist in the organization.
    6. Socialize ERM throughout the organization to gain additional buy‑in.
    7. Normalize the process long term with ongoing updates and continuing education for the organization.

    (Adapted from COSO)

    How to assess strategic risk

    1. Review Organizational Strategy
      Understand the organizational strategy to prepare for the “What If” game exercise.
    2. Identify & Understand Potential Strategic Risks
      Play the “What If” game with the right people at the table.
    3. Create a Risk Profile Packet for Leadership
      Pull all the information together in a presentation document.
    4. Validate the Risks
      Work with leadership to ensure that the proposed risks are in line with their thoughts.
    5. Plan to Manage the Risks
      Lower the overall risk potential by putting mitigations in place.
    6. Communicate the Plan
      It is important not only to have a plan but also to socialize it in the organization for awareness.
    7. Enact the Plan
      Once the plan is finalized and socialized, put it in place with continued monitoring for success.

    Insight summary

    Insight 1

    Organizations build portions of their strategies around chosen vendors and should protect those plans against the risks of unforeseen acquisitions in the market.
    Is your vendor solvent? Does it have enough staff to accommodate your needs? Has its long-term planning been affected by changes in the market? Is it unique in its space?

    Insight 2

    Organizations’ strategic plans need to be adaptable to avoid vendors’ negative actions causing an expedited shift in priorities.
    For example, Philip's recall of ventilators impacted its products and the availability of its competitor’s products as demand overwhelmed the market.

    Insight 3

    Organizations need to become better at risk assessment and actively manage the identified risks to their strategic plans.
    Few organizations are good at identifying risks to their strategic plan. As a result, almost none realistically plan to monitor, manage, and adapt their strategies to those risks.

    Strategic risk impacts are often unanticipated, causing unforeseen downstream effects. Anticipating the potential changes in the global IT market and continuously monitoring vendors’ risk levels can help organizations modify their strategic alignment with the new norms.

    Identifying strategic risk

    Who should be included in the discussion

    • While it is true that executive-level leadership defines the strategy for an organization, it is vital for those making decisions to make informed decisions.
    • Getting input from operational experts at your organization will enhance the long-term potential for success of your strategies.
    • Involving those who directly manage vendors and understand the market will aid operational experts in determining the forward path for relationships with your current vendors and identifying new emerging potential strategic partners.

    Review your strategic plans for new risks and evolving likelihood on a regular basis.

    Keep in mind Risk = Likelihood x Impact (R=L*I).

    Impact (I) tends to remain the same, while Likelihood (L) is a very flexible variable.

    See the blueprint Build an IT Risk Management Program

    Managing strategic risk impacts

    What can we realistically do about the risks?

    • Review business continuity plans and disaster recovery testing.
    • Institute proper contract lifecycle management.
    • Re-evaluate corporate policies frequently.
    • Develop IT governance and change control.
    • Ensure strategic alignment in contracts.
    • Introduce continual risk assessment to monitor the relevant vendor markets.
      • Regularly review your strategic plans for new risks and evolving likelihood.
      • Risk = Likelihood x Impact (R=L*I)
        • Impact (I) tends to remain the same and be well understood, while Likelihood (L) turns out to be highly variable.
    • Be adaptable and allow for innovations that arise from the current needs.
      • Capture lessons learned from prior incidents to improve over time, and adjust your strategy based on the lessons.

    Organizations need to be reviewing their strategic risk plans considering the likelihood of incidents in the global market.

    Pandemics, extreme weather, and wars that affect global supply chains are a current reality, not unlikely scenarios.

    Ongoing Improvement

    Incorporating lessons learned

    • Over time, despite everyone’s best observations and plans, incidents will catch us off guard.
    • When it happens, follow your incident response plans and act accordingly.
    • An essential step is to document what worked and what did not – collectively known as the “lessons learned.”
    • Use the lessons learned document to devise, incorporate, and enact a better risk management process.

    Sometimes disasters occur despite our best plans to manage them.

    When this happens, it is important to document the lessons learned and improve our plans going forward.

    The “what if” game

    1-3 hours

    Vendor management professionals are in an excellent position to help senior leadership identify and pull together resources across the organization to determine potential risks. By playing the "what if" game and asking probing questions to draw out – or eliminate – possible adverse outcomes, everyone involved adds their insight into parts of the organization to gather a comprehensive picture of potential impacts.

    1. Break into smaller groups (or if too small, continue as a single group).
    2. Use the Strategic Risk Impact Tool to prompt discussion on potential risks. Keep this discussion flowing organically to explore all potentials but manage the overall process to keep the discussion pertinent and on track.
    3. Collect the outputs and ask the subject matter experts (SMEs) for management options for each one in order to present a comprehensive risk strategy. You will use this to educate senior leadership so that they can make an informed decision to accept or reject the solution.

    Download the Strategic Risk Impact Tool

    Input Output
    • List of identified potential risk scenarios scored by likelihood and financial impact
    • List of potential management of the scenarios to reduce the risk
    • Comprehensive strategic risk profile on the specific vendor solution
    Materials Participants
    • Whiteboard/flip charts
    • Strategic Risk Impact Tool to help drive discussion
    • Vendor Management – Coordinator
    • Organizational Leadership
    • Operations Experts (SMEs)
    • Legal/Compliance/Risk Manager

    Case Study

    Airline Industry Strategic Adaptation

    Industry: Airline

    Impact categories: Pandemic, Lockdowns, Travel Bans, Increased Fuel Prices

    • In 2019 the airline industry yielded record profits of $35.5 billion.
    • In 2020 the pandemic devastated the industry with losses around $371 billion.
    • The industry leaders engaged experts to conduct a study on how the pandemic impacted them and propose measures to ensure the survival of their industry in the future after the pandemic.
    • They determined that “[p]recise decision-making based on data analytics is essential and crucial for an effective Covid-19 airline recovery plan.”

    Results

    The pandemic prompted systemic change to the overall strategic planning of the airline industry.

    Summary

    Be vigilant and adaptable to change

    • Organizations need to learn how to assess the likelihood of potential risks in the changing global world.
    • Those organizations that incorporate adaptive risk management processes can prepare their strategic plans for greater success.
    • Bring the right people to the table to outline potential risks in the market.
    • Socialize the risk management process throughout the organization to heighten awareness and enable employees to help protect the strategic plan.
    • Incorporate lessons learned from incidents into your risk management process to build better plans for future issues.

    Organizations must evolve their strategic risk assessments to be more adaptive to respond to global changes in the market.

    Ongoing monitoring of the market and the vendors tied to company strategies is imperative to achieving success.

    Related Info-Tech Research

    Identify and Manage Financial Risk Impacts on Your Organization

    This image contains a screenshot from Info-Tech's Identify and Manage Financial Risk Impacts on Your Organization.
    • Vendor management practices educate organizations on the different potential financial impacts that vendors may incur and suggest systems to help manage them.
    • Prioritize and classify your vendors with quantifiable, standardized rankings.
    • Prioritize focus on your high-risk vendors.
    • Standardize your processes for identifying and monitoring vendor risks to manage financial impacts with our Financial Risk Impact Tool.

    Identify and Reduce Agile Contract Risk

    This image contains a screenshot from Info-Tech's Identify and Reduce Agile Contract Risk
    • Customer maturity levels with Agile are low, with 67% of organizations using Agile for less than five years.
    • Customer competency levels with Agile are also low, with 84% of organizations stating they are below a high level of competency.
    • Contract disputes are the number one or two types of disputes faced by organizations across all industries.

    Build an IT Risk Management Program

    This image contains a screenshot from Info-Tech's Build an IT Risk Management Program
    • Transform your ad hoc IT risk management processes into a formalized, ongoing program, and increase risk management success.
    • Take a proactive stance against IT threats and vulnerabilities by identifying and assessing IT’s greatest risks before they occur.
    • Involve key stakeholders including the business senior management team to gain buy-in and to focus on IT risks most critical to the organization.

    Bibliography

    Olaganathan, Rajee. “Impact of COVID-19 on airline industry and strategic plan for its recovery with special reference to data analytics technology.” Global Journal of Engineering and Technology Advances, vol 7, no 1, 2021, pp. 033-046.

    Tonello, Matteo. “Strategic Risk Management: A Primer for Directors.” Harvard Law School Forum on Corporate Governance, 23 Aug. 2012.

    Frigo, Mark L., and Richard J. Anderson. “Embracing Enterprise Risk Management: Practical Approaches for Getting Started.” COSO, 2011.

    Research Contributors and Experts

    • Frank Sewell
      Research Director, Info-Tech Research Group
    • Steven Jeffery
      Principal Research Director, Info-Tech Research Group
    • Scott Bickley
      Practice Lead, Info-Tech Research Group
    • Donna Glidden
      Research Director, Info-Tech Research Group
    • Phil Bode
      Principal Research Director, Info-Tech Research Group
    • David Espinosa
      Senior Director, Executive Services, Info-Tech Research Group
    • Rick Pittman
      Vice President, Research, Info-Tech Research Group
    • Patrick Philpot
      CISSP
    • Gaylon Stockman
      Vice President, Information Security
    • Jennifer Smith
      Senior Director

    Your Company is an Economy: Why This is Your Secret Weapon for Resilience

    • Large vertical image:
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    IT specialists often instinctively focus on technical issues, such as server failures or network problems, because they are trained to address the broken parts. However, it's important to consider the context in which these occur. But what if the real problem isn't just the part but the entire system it operates in?

    I want you to take a step back and to stop thinking about your company as a collection of departments and IT systems. Start seeing it for what it truly is: a complex, living, breathing economic system. This isn't some academic analogy. It’s a powerful model that will change how you approach resilience.

    An economic system involves production, resource allocation, and distribution of goods and services, which parallels how a company operates internally. It includes the combination of various departments, the people doing things, the business units, and even the decision-making steps that make up the economic structure of your company. Once you see this, you can never unsee it.

    What is an economic system?

    Let’s quickly demystify this. Forget textbooks and complex theories for a moment. Think about a national economy. It does three basic things:

    1. Production: It makes things. Factories build cars, farms grow food, and programmers write software. This is the creation of value.

    2. Resource Allocation: This process decides who gets what to make those things. Who gets the steel for the cars? The land for the farms? The funding for the software developers? These are all decisions about how to use scarce resources. 

    3. Distribution: This process gets the finished products to the people who need them. Cars go to importers, then dealerships then the customers, food goes to grocery stores, and software gets deployed to servers and then used by clients (in the general sense).

    That's it. Production, allocation, distribution. Every economy, from a simple bartering tribe to the global financial market, operates on these principles. And so does your company.

    So, how is your company an economy?

    Your company doesn't just “do work.” It produces, allocates, and distributes services in its own internal market (and eventually sells outside, otherwise… trouble).

    The production is everywhere. The human resources department produces a “payroll service.” The sales department produces “revenue contracts.” And the IT department? It produces a vast array of services: “compute cycles,” “data storage,” “network connectivity,” and “application uptime.” These are the goods and services that every other part of the company consumes to do their jobs.

    Resource allocation is the lifeblood of your corporate economy. It's the annual budgeting process, the project prioritization meetings, and the daily decisions managers make about where to assign their people. In IT, you are equally part of the allocation process. Most people get to decide at least what they will give priority to that day. Perhaps via the daily scrum or stand-up meetings. Perhaps during the review process. As a manager, when you approve a request for a new high-powered virtual machine for one team, you are making an economic choice. You are allocating a scarce resource that another team can no longer use. As a developer, when you decide that task X is now a higher priority than task Y, you make an economic decision to allocate yourself to task X. It's important to understand that there is an opportunity cost to every decision, whether you label it that way or not. 

    And distribution? That's how these services get to their “consumers.” It’s the internal platforms, the APIs that connect applications, the service desk that fulfills requests, the operations teams that update data via forms into databases, and even the reporting dashboards that deliver information. These are the supply chains and logistics networks of your company’s economy. The consumers are your clients, of course, but also every department that uses a service provided by another department.

    The IT department plays a central role in the company's economy, akin to a central bank and infrastructure provider, by managing essential digital resources like compute, storage, and bandwidth. You control its supply and, through your decisions, influence its value. You also build and maintain the “roads” and “power grid”—the networks and platforms—that the entire corporate economy depends on to function.

    Why This Perspective Is Important for Resilience

    This is where I feel it gets fascinating. When you start seeing your company as an economic system, your understanding of resilience deepens dramatically. You move beyond simply fixing broken things and start thinking about stabilizing a complex, interconnected market.

    It helps you understand true systemic risk.

    When a core database goes down, an engineer sees a technical failure. An economist sees a supply chain collapse. That database isn't just a box with blinking lights; it's a critical supplier of a raw material, namely data. Every single business process, application, and team that creates, updates or consumes that data is now starved of a resource they need to produce their own services. The failure cascades not just through technical dependencies but through economic dependencies. Seeing it this way forces you to ask better questions: Who are the biggest “consumers” of this data supplier? What is the total economic impact of this outage, not just the technical impact? This changes the incident's priority and your response strategy.

    You move beyond simple redundancy.

    The traditional engineering approach to resilience is redundancy. If one server is important, have two. This is like a town having two power plants. It's a good start, but it's not true economic resilience. An economist would ask different questions. Can we diversify our suppliers? Can we re-route via another path? If our primary database provider fails, can we switch to a secondary one, even if it's slower or pricier for a short time? This is the principle of substitution. Can a business process continue to function in a degraded mode, producing a lower-quality “good” for a while instead of stopping completely? This is about economic adaptability, not just technical duplication.

    You could take this even further and move into the realm of business continuity. Can your process work when your primary resource (the database) is not available? How would you redesign your process to work with an alternative solution? This thinking is at the heart of modern operational resilience regulations worldwide. Authorities are no longer just asking if your backups work; they're asking if your firm can fulfill its economic function in the face of severe adversity. They demand a clear grasp of your entire supply chain and a testable exit plan for critical suppliers, including cloud providers.

    You see that this goes way beyond a failing-part view. It goes to the heart of the economic function of your company.

    Incident response becomes economic intervention.

    During a major incident, the incident commander is now no longer just a technical coordinator. You are the head of the “central bank” during a "market crash". Your job is to prevent a localized failure from causing a full-blown corporate recession. Think about your actions:

    • You allocate scarce capital (your top engineers' time) to the most critical problem. The economic cost is the non-delivery of any other product by those people.

    • You implement fiscal policy by prioritizing certain fixes over others to stimulate the quickest “economic” recovery.

    • You manage market confidence through clear, calm, and regular communication to stakeholders, preventing panic from spreading.

    Each decision is an economic intervention designed to restore stability to the system. (If that is not the job description of a central banker, then I eat my hat.)

    Side Note: I often see teams who are obsessed with their own service's uptime, their own local metrics. They proudly report “five nines” of availability, but they do not report on how their service is actually consumed or how critical it is to the company's overall economic output. They've optimized their own factory but don't disclose their output's need level to the company or that their occasional one-hour outage brings the entire company's main assembly line to a halt. Resilience is not about local optimization; it is about the stability of the entire economic system. A dashboard that lists teams in order of availability or whatever other metric is fine, but these numbers must be mapped against their economic relevance. Without the economic relevance weighting, you may be misallocating resources in areas that are not critical or sufficiently important.

    How to Start Thinking Like an Economist in Your Resilience Practice

    This isn't just a theoretical exercise. You can apply this model today to make your organization stronger and yourself more effective to any employer or client.

    First, map your economic flows. Go beyond standard architecture diagrams. Create maps that show how value and services are produced, distributed, and consumed across departments. Identify your most important “supply chains.” Ask business units what IT services are essential for their “production lines” and what the financial impact is when those services are unavailable. This gives you a heat map of economic risk.

    Second, identify your single points of economic failure. In every economy, there are institutions that are “too big to fail.” What are yours? Is it a single authentication service? A legacy mainframe? A specific team of two people who know how a critical system works? These are the areas where a failure will cause a systemic crisis. They require more than just technical redundancy; they need deep, thoughtful resilience planning, including succession plans for people and substitution options for technology.

    Finally, reframe your post-incident reviews. Stop just asking, “What broke and why?” Start asking, “Which economic activity was disrupted?” and “How did the disruption flow through the system?” This shifts the conversation from blaming a component or a team to understanding systemic weaknesses in your company's economy. The goal is not to find a guilty party but to identify where your internal market is fragile and how you can strengthen it with better “monetary policy” (resource allocation) or “infrastructure” (more robust platforms).

    The vicious cycle of a failing economy

    In another article, I mentioned that resilience is a mindset.
     Resilience mindset graphic 

    So what happens when this economic system becomes unstable?

    These issues are typically considered failures and they manifest as irritations, perceived slowness and bugs, all the way to (regular) failures of a process or whole system.

    If this broken economic system is allowed to remain unstable, people will adopt negative behaviors.

    When “the government” (IT) fails to deliver, business teams take matters into their hands and start shadow IT. They may even purchase their own subscriptions.

    In a stable economy, participants trust that resources will be available when needed, but in a broken system, that trust is gone and leads to the hoarding of assets. This may be visible in the requested need for time or even budget allocation. And that leads into protectionism where teams build walls around their data and systems.

    When failures are common, the focus shifts from resolving the systemic problems to assigning blame for the specific symptom. This is akin to the breakdown of trade relations. The applications team blames the infrastructure team for slow servers. The infrastructure team blames the network team for latency. The network team blames the applications team for inefficient code. And around we go.

    Taking it just that little step further: If people live in a failing state long enough, they lose hope. This is learned helplessness. Your most valuable “citizens”—your engineers and business users—become disengaged. They stop reporting bugs because they assume they will never be fixed. They stop suggesting process improvements because they believe their voice doesn't matter.

    And lastly: In a functional system, there are clear processes for requesting services. In your broken economy, these official channels are considered worthless. The only way to get anything done is to generate a crisis. Escalation becomes the primary currency. People learn to bypass the ticketing system and send direct messages to senior leaders because they perceive that's the only way to get a response.

    How to Break the Cycle: Start Small

    To break this cycle, you need to start small and use mechanisms that turn the negative effects of problems into positive effects, like seeing opportunities.

    • Opportunities to correct irritations
    • Opportunities to enhance processes
    • Opportunities to perhaps redesign a service

    Proposing a grand vision will get you polite nods and zero action. I recommend you pick one irritation and fix it. Repeat multiple times until staff starts to perceive a change. Don't try to move the mountain. Remove the first obstacle and make your way up from there. This can be solving an issue, reducing an uncertainty, or actually spotting a way forward. 

    It will go easier as you continue this. Accept that on day one, your credibility is zero. It doesn’t matter whether you're a new manager or a seasoned expert. Trust is earned on the factory floor. Fix one small, nagging irritation for one person. Then another. This is how you build the political and social capital needed to tackle the mountain. It takes time.

    But what will happen next is crucial. There will be a reduction of the negative behaviors. And when you work it efficiently with enough time, you will eliminate those behaviors. And yes, there will be many ifs and buts, and each of the broken elements of a larger chain may require their own solutions. But it is this act of seeing the bigger picture through the constituent parts that will allow you to assign priorities and move closer to the solution in a structural way.
    Seeing step by step results feeds positivism and higher stability. Which in turn again feeds more positivism. 

     

    When you view your company through the lens of an economic system, it elevates the practice of resilience from a purely technical discipline to a value function. It gives you a language to communicate impact and risk to leadership in terms they understand: production, supply, and cost.

    It forces you to see the interconnectedness of everything you do and to appreciate that the failure of a single, seemingly minor component can have large, cascading effects across the entire organization. By thinking like an economist, you stop being just a firefighter, putting out isolated blazes. You become the architect of a more stable, more robust, and ultimately more resilient economy.

    You become the architect of a more stable, more robust, and ultimately more resilient economy. Now, go manage it.

    Always ready for a chat.

    Take Control of Infrastructure and Operations Metrics

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    • Parent Category Name: Operations Management
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    • Measuring the business value provided by IT is very challenging.
    • You have a number of metrics, but they may not be truly meaningful, contextual, or actionable.
    • You know you need more than a single metric to tell the whole story. You also suspect that metrics from different systems combined will tell an even fuller story.
    • You are being asked to provide information from different levels of management, for different audiences, conveying different information.

    Our Advice

    Critical Insight

    • Many organizations collect metrics to validate they are keeping the lights on. But the Infrastructure and Operations managers who are benefitting the most are taking steps to ensure they are getting the right metrics to help them make decisions, manage costs, and plan for change.
    • Complaints about metrics are often rooted in managers wading through too many individual metrics, wrong metrics, or data that they simply can’t trust.
    • Info-Tech surveyed and interviewed a number of Infrastructure managers, CIOs, and IT leaders to understand how they are leveraging metrics. Successful organizations are using metrics for everything from capacity planning to solving customer service issues to troubleshooting system failures.

    Impact and Result

    • Manage metrics so they don’t become time wasters and instead provide real value.
    • Identify the types of metrics you need to focus on.
    • Build a metrics process to ensure you are collecting the right metrics and getting data you can use to save time and make better decisions.

    Take Control of Infrastructure and Operations Metrics Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement a metrics program in your Infrastructure and Operations practice, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Gap analysis

    This phase will help you identify challenges that you want to avoid by implementing a metrics program, discover the main IT goals, and determine your core metrics.

    • Take Control of Infrastructure and Operations Metrics – Phase 1: Gap Analysis
    • Infra & Ops Metrics Executive Presentation

    2. Build strategy

    This phase will help you make an actionable plan to implement your metrics program, define roles and responsibilities, and communicate your metrics project across your organization and with the business division.

    • Take Control of Infrastructure and Operations Metrics – Phase 2: Build Strategy
    • Infra & Ops Metrics Definition Template
    • Infra & Ops Metrics Tracking and Reporting Tool
    • Infra & Ops Metrics Program Roles & Responsibilities Guide
    • Weekly Metrics Review With Your Staff
    • Quarterly Metrics Review With the CIO
    [infographic]

    Adopt an Exponential IT Mindset

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    • Parent Category Name: Innovation
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    New technologies such as generative AI, quantum computing, 5G cellular networks, and next-generation robotics are ushering in an exciting new era of business transformation. By adopting an exponential IT mindset, IT leaders will be able to lead the autonomization of business capabilities.

    To capitalize on this upcoming opportunity, exponential IT leaders will have to become business advisors who unlock exponential value for the business and help mitigate exponential risk.

    Adopt a renewed focus on business outcomes to achieve autonomization

    An exponential IT mindset means that IT leaders will need to take a lead role in transforming business capabilities.

    • Embrace an expanded role as business advisors: CIOs will be tasked with greater responsibility for determining business strategy alongside the C-suite.
    • Know the rewards and mitigate the risks: New value chain opportunities and efficiency gains will create significant ROI. Protect these returns by mitigating higher risks to business continuity, information security, and delivery performance.
    • Plan to fully leverage technologies such as AI: It will be integral for IT to enable autonomous technologies in this new era of exponential technology progress.

    Adopt an Exponential IT Mindset Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Adopt an Exponential IT Mindset Deck – An introduction to IT’s role in the autonomization era

    The role of IT has evolved throughout the past couple generations to enable fundamental business transformations. In the autonomization era, it will have to evolve again to lead the business through a world of exponential opportunity.

    • Adopt an Exponential IT Mindset Storyboard

    Infographic

    Further reading

    Adopt an Exponential IT Mindset

    Thrive through the next paradigm shift

    Executive Summary

    For more than 40 years, information technology has significantly transformed businesses, from the computerization of operations to the digital transformation of business models. As technological disruption accelerates exponentially, a world of exponential business opportunity is within reach.

    Newly emerging technologies such as generative AI, quantum computing, 5G cellular networks, and next-generation robotics are enabling autonomous business capabilities.

    The role of IT has evolved throughout the past couple generations to enable business transformations. In the autonomization era, it will have to evolve again. IT will have a new mission, an adapted governance structure, innovative capabilities, and an advanced partnership model.

    CIOs embracing exponential IT require a new mindset. Their IT practices will need to progress to the top of the maturity ladder as they make business outcomes their own.

    Over the past two generations, we have witnessed major technology-driven business transformations

    1980s

    Computerization

    The use of computer devices, networks, and applications became widespread in the enterprise. The focus was on improving the efficiency of back-office tasks.

    2000s

    Digitalization

    As the world became connected through the internet, new digitally enabled business models emerged in the enterprise. Orders were now being received online, and many products and services were partially or fully digitized for online fulfillment.

    Recent pandemic measures contributed to a marked acceleration in the digitalization of organizations

    The massive disruption resulting from pandemic measures led businesses to shift to more digital interactions with customers.

    The global average share of customer interactions that are digital went from 36% in December 2019 to 58% in July 2020.

    The global average share of customer interactions that are digital went from 36% to 58% in less than a year.*

    Moreover, companies across business areas have accelerated the digitization of their offerings.

    The global average share of partially or fully digitized products went from 35% in 2019 to 55% in July 2020.

    The global average share of partially or fully digitized products went from 35% to 55% in the same period.*

    The adoption of digitalized business models has accelerated during the pandemic. Post-pandemic, it is unlikely for adoption to recede.

    With more business applications ported to the cloud and more data available online, “digital-first” organizations started to envisage a next wave of automation.

    *Source: “How COVID-19 has pushed companies over the technology tipping point—and transformed business forever,” McKinsey & Company, 2020

    A majority of IT leaders plan to use artificial intelligence within their organizations in 2023

    In August 2022, Info-Tech surveyed 506 IT leaders and asked which tasks would involve AI in their organizations in 2023.

    Graph showing tasks that would involve AI in organizations in 2023.

    We found that 63% of IT leaders plan to use AI within their organizations to automate repetitive, low-level tasks by the end of 2023.

    With the release of the ChatGPT prototype in November 2022, setting a record for the fastest user growth (reaching 100 million active users just two months after launch), we foresee that AI adoption will accelerate significantly and its use will extend to more complex tasks.

    Newly emerging technologies and business realities are ushering in the next business transformation

    1980s

    Computerization

    2000s

    Digitalization

    2020s

    Autonomization

    As digitalization accelerates, a post-pandemic world with a largely online workforce and digitally transformed enterprise business models now enters an era where more business capabilities become autonomous, with humans at the center of a loop* that is gradually becoming larger.

    Deep Learning, Quantum Computing, 5G Networks, Robotics

    * Download Info-Tech’s CIO Trend Report 2019 – Become a Leader in the Loop

    The role of IT needs to evolve as it did through the previous two generations

    1980s

    Computerization

    IT professionals gathered functional requirements from the business to help automate back-office tasks and improve operational efficiency.

    2000s

    Digitalization

    IT professionals acquired business analysis skills and leveraged the SMAC (social, mobile, analytics, and cloud) stack to accelerate the automation of the front office and enable the digital transformation of business models.

    2020s

    Autonomization

    IT professionals will become business advisors and enable the establishment of autonomous yet differentiated business processes and capabilities.

    The autonomization era brings enormous opportunity for organizations, coupled with enormous risk

    Graph of Risk Severity versus Value Opportunity. Autonomization has a high value of opportunity and high risk severity.

    While some analysts have been quick to announce the demise of the IT department and the transition of the role of IT to the business, the budgets that CIOs control have continued to rise steadily over time.

    In a high-risk, high-reward endeavor to make business processes autonomous, the role of IT will continue to be pivotal, because while everyone in the organization will rush to seize the value opportunity, the technology risk will be left for IT to manage.

    Exponential IT represents a necessary change in a CIO’s focus to lead through the next paradigm shift

    EXPONENTIAL RISK

    Autonomous processes will integrate with human-led processes, creating risks to business continuity, information security, and quality of delivery. Supplier power will exacerbate business risks.

    EXPONENTIAL REWARD

    The efficiency gains and new value chains created through artificial intelligence, robotics, and additive manufacturing will be very significant. Most of this value will be realized through the augmentation of human labor.

    EXPONENTIAL DEMAND

    Autonomous solutions for productivity and back-office applications will eventually become commoditized and provided by a handful of large vendors. There will, however, be a proliferation of in-house algorithms and workflows to autonomize the middle and front office, offered by a busy landscape of industry-centric capability vendors.

    EXPONENTIAL IT

    Exponential IT involves IT leading the cognitive reengineering of the organization with evolved practices for:

    • IT governance
    • Asset management
    • Vendor management
    • Data management
    • Business continuity management
    • Information security management

    To succeed, IT will have to adopt different priorities in its mission, governance, capabilities, and partnerships

    Digitalization

    A Connected World

    Progressive IT

    • Mission

      Enable the digital transformation of the business

    • Governance

      Service metrics, security perimeters, business intelligence, compliance management

    • Capabilities

      Service management, business analysis, application portfolio management, data management

    • Partnerships

      Management of technology service agreements

    Autonomization

    An Exponential World

    Exponential IT

    • Mission

      Lead the business through autonomization.

    • Governance

      Outcome-based metrics, zero trust, ESG reporting, digital trust

    • Capabilities

      Experience management, business advisory, enterprise innovation, data differentiation

    • Partnerships

      Management of business capability agreements

    Fortune favors the bold: The CIO now has an opportunity to cement their role as business leader

    Levels of digital maturity. From bottom: Unstable - inability to consistently deliver basic services, Firefighter - Reliable infrastructure and IT service desk, Trusted Operator - Enablement of business through applications and work orders, Business Partner - Effective delivery of strategic business projects, Innovator - Information and technology as a competitive advantage.

    Research has shown that companies that are more digitally mature have higher growth than the industry average. In these companies, the CIO is part of the executive management team.

    And while the role of the CIO is generally tied to their mandate within the organization, we have seen their role progress from doer to leader as IT climbs the maturity ladder.

    As companies strive to succeed in the next phase of technology-driven transformation, CIOs have an opportunity to demonstrate their business leadership. To do so, they will have to provide exceptionally mature services while owning business targets.

    Select an ERP Implementation Partner

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    • Parent Category Name: Enterprise Resource Planning
    • Parent Category Link: /enterprise-resource-planning
    • Enterprise application implementations are complex, and their success is critical to business operations.
    • Selecting the right software implementation partner is as important for the success of the ERP initiative as selecting the right software.
    • System implementation often thrusts the product into the spotlight, with the implementation partner being an afterthought, and all too often organizational needs are ignored altogether.

    Our Advice

    Critical Insight

    • ERP implementation is not a one-and-done exercise. Most often it is the start of a multi-year working relationship between the software vendor or systems integrator and your organization. Take the time to find the right fit to ensure success.
    • The conventional approach to ERP implementation partner selection puts the ERP vendor and systems integrators in the driver's seat with little regard to your specific needs as an organization. You need to take an eyes-wide-open approach to your organization’s strengths and weaknesses to properly select and manage the implementation partner relationship.
    • Self-assessment is the critical first step in a successful implementation. Every organization has a unique combination of critical success factors (CSFs) that will be required to unlock the potential of their ERP. You must find the right partner or partners whose strengths complement your weaknesses to ensure your success.
    • Before you start knocking on vendors’ doors, ensure you have a holistic request that encompasses the strategic, tactical, operational, and commodity factors required for the success of your ERP implementation.

    Impact and Result

    • Use Info-Tech’s implementation partner selection process to find the right fit for your organization.
    • Understand the enterprise application CSFs and determine the unique requirements of your organization through this lens.
    • Define your implementation partner requirements separately from your software requirements and allow vendors to respond to those specifically.
    • Use our assessment tools to score and assess the CSFs required to select the right software implementation partners.

    Select an ERP Implementation Partner Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should focus on selecting the right implementation partner, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Identify your strategic needs

    Review the CSFs that are of strategic importance. Evaluating the gaps in your organization's capabilities enables you to choose a partner that can properly support you in your project.

    • Select an ERP Implementation Partner Workbook

    2. Review your tactical, commodity, and operational needs

    Review the CSFs that are of tactical, commodity, and operational importance. Evaluating the gaps in your organization's capabilities enables you to choose a partner that can properly support you in your project.

    3. Build your RFx and evaluate the responses

    Review your RFx and build an initial list of vendor/implementors to reach out to. Finally, build your evaluation checklist to rate the incoming responses.

    • Short-Form RFP Template
    • Long-Form RFP Template
    • Lean RFP Template
    • Supplementary RFx Material
    • RFx Vendor Evaluation Tool
    [infographic]

    Workshop: Select an ERP Implementation Partner

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Identify Organizational Strategic Needs

    The Purpose

    Review the critical success factors that are of strategic importance. Evaluating the gaps in your organization's capabilities enables you to choose a partner that can properly support you in your project.

    Key Benefits Achieved

    ERP strategy model defined

    Strategic needs identified

    Activities

    1.1 Review the business context.

    1.2 Build your ERP strategy model.

    1.3 Assess your strategic needs.

    Outputs

    ERP strategy model

    ERP strategy model

    Strategic needs analysis

    2 Review Your Tactical, Commodity, and Operational Needs

    The Purpose

    Review the critical success factors that are of tactical, commodity, and operational importance. Evaluating the gaps in your organization's capabilities enables you to choose a partner that can properly support you in your project.

    Key Benefits Achieved

    Tactical, commodity, and operational needs identified

    Activities

    2.1 Assess your tactical needs.

    2.2 Assess your commodity needs.

    2.3 Assess your operational needs.

    Outputs

    Tactical needs analysis

    Commodity needs analysis

    Operational needs analysis

    3 Build Your RFx

    The Purpose

    Review your RFx and build an initial list of vendor/implementors to reach out to. Finally, build your evaluation checklist to rate the incoming responses.

    Key Benefits Achieved

    Draft RFI or RFP

    Target vendor list

    Activities

    3.1 Decide on an RFI or RFP.

    3.2 Complete the RFx with the needs analysis.

    3.3 Build a list of targeted vendors

    Outputs

    Draft RFI or RFP

    Draft RFI or RFP

    Target vendor list

    4 Evaluate Vendors

    The Purpose

    Build a scoring template for use in vendor evaluation to ensure consistent comparison criteria are used.

    Key Benefits Achieved

    A consistent and efficient evaluation process

    Activities

    4.1 Assign weightings to the evaluation criteria.

    4.2 Run a vendor evaluation simulation to validate the process.

    Outputs

    Completed partner evaluation tool

    Establish an Analytics Operating Model

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    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • Organizations are struggling to understand what's involved in the analytics developer lifecycle to generate reusable insights faster.
    • Discover what it takes to become a citizen analytics developer. Identify the proper way to enable self-serve analytics.
    • Self-serve business intelligence/analytics is misunderstood and confusing to the business, especially with regards to the roles and responsibilities of IT and the business.
    • End users are dissatisfied due to a lack of access to the data and the absence of a single source of truth.

    Our Advice

    Critical Insight

    Organizations that take data seriously should:

    • Decouple processes in which data is separated from business processes and elevate the visibility of the organization's data assets.
    • Leverage a secure platform where data can be easily exchanged for insights generation.
    • Create density for analytics where resources are mobilized around analytics ideas to generate value.

    Analytics is a journey, not a destination. This journey can eventually result in some level of sophisticated AI/machine learning in your organization. Every organization needs to mobilize its resources and enhance its analytics capabilities to quickly and incrementally add value to data products and services. However, most organizations fail to mobilize their resources in this way.

    Impact and Result

    • Firms become more agile when they realize efficiencies in their analytics operating models and can quickly implement reusable analytics.
    • IT becomes more flexible and efficient in understanding the business' data needs and eliminates redundant processes.
    • Trust in data-driven decision making goes up with collaboration, engagement, and transparency.
    • There is a clear path to continuous improvement in analytics.

    Establish an Analytics Operating Model Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief that outlines Info-Tech’s methodology for assessing the business' analytics needs and aligning your data governance, capabilities, and organizational structure to deliver analytics faster.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define your analytics needs

    This phase helps you understand your organization's data landscape and current analytics environment so you gain a deeper understanding of your future analytics needs.

    • Establish an Analytics Operating Model – Phase 1: Define Your Analytics Needs

    2. Establish an analytics operating model

    This phase introduces you to data operating model frameworks and provides a step-by-step guide on how to capture the right analytics operating model for your organization.

    • Establish an Analytics Operating Model – Phase 2: Establish an Analytics Operating Model
    • Analytics Operating Model Building Tool

    3. Implement your operating model

    This phase helps you implement your chosen analytics operating model, as well as establish an engagement model and communications plan.

    • Establish an Analytics Operating Model – Phase 3: Implement Your Analytics Operating Model
    [infographic]

    Workshop: Establish an Analytics Operating Model

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Define Your Analytics Needs

    The Purpose

    Achieve a clear understanding and case for data analytics.

    Key Benefits Achieved

    A successful analytics operating model starts with a good understanding of your analytical needs.

    Activities

    1.1 Review the business context.

    1.2 Understand your analytics needs.

    1.3 Draft analytics ideas and use cases.

    1.4 Capture minimum viable analytics.

    Outputs

    Documentation of analytics products and services

    2 Perform an Analytics Capability Assessment

    The Purpose

    Achieve a clear understanding of your organization's analytics capability and mapping across organizational functions.

    Key Benefits Achieved

    Understand your organization's data landscape and current analytics environment to gain a deeper understanding of your future analytics needs.

    Activities

    2.1 Capture your analytics capabilities.

    2.2 Map capabilities to a hub-and-spoke model.

    2.3 Document operating model results.

    Outputs

    Capability assessment results

    3 Establish an Analytics Operating Model

    The Purpose

    Capture the right analytics operating model for your organization.

    Key Benefits Achieved

    Explore data operating model frameworks.

    Capture the right analytics operating model for your organization using a step-by-step guide.

    Activities

    3.1 Discuss your operating model results.

    3.2 Review your organizational structure’s pros and cons.

    3.3 Map resources to target structure.

    3.4 Brainstorm initiatives to develop your analytics capabilities.

    Outputs

    Target operating model

    4 Implement Your Analytics Operating Model

    The Purpose

    Formalize your analytics organizational structure and prepare to implement your chosen analytics operating model.

    Key Benefits Achieved

    Implement your chosen analytics operating model.

    Establish an engagement model and communications plan.

    Activities

    4.1 Document your target organizational structure and RACI.

    4.2 Establish an analytics engagement model.

    4.3 Develop an analytics communications plan.

    Outputs

    Reporting and analytics responsibility matrix (RACI)

    Analytics engagement model

    Analytics communications plan

    Analytics organizational chart

    AI Governance

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    • Parent Category Name: Business Intelligence Strategy
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    • The use of AI and machine learning (ML) has gained momentum as organizations evaluate the potential applications of AI to enhance the customer experience, improve operational efficiencies, and automate business processes.
    • Growing applications of AI have reinforced concerns about ethical, fair, and responsible use of the technology that assists or replaces human decision making.

    Our Advice

    Critical Insight

    • Implementing AI systems requires careful management of the AI lifecycle, governing data, and machine learning model to prevent unintentional outcomes not only to an organization’s brand reputation but, more importantly, to workers, individuals, and society.
    • When adopting AI, it is important to have a strong ethical and risk management framework surrounding its use.

    Impact and Result

    • AI governance enables management, monitoring, and control of all AI activities within an organization.

    AI Governance Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. AI Governance Deck – A framework for building responsible, ethical, fair, and transparent AI.

    Create the foundation that enables management, monitoring, and control of all AI activities within the organization. The AI governance framework will allow you to define an AI risk management approach and defines methodology for managing and monitoring the AI/ML models in production.

    • AI Governance Storyboard
    [infographic]

    Further reading

    AI Governance

    A Framework for Building Responsible, Ethical, Fair, and Transparent AI

    Are you ready for AI?

    Business leaders must manage the associated risks as they scale their use of AI

    In recent years, following technological breakthroughs and advances in development of machine learning (ML) models and management of large volumes of data, organizations are scaling their use of artificial intelligence (AI) technologies.

    The use of AI and ML has gained momentum as organizations evaluate the potential applications of AI to enhance the customer experience, improve operational efficiencies, and automate business processes.

    Growing applications of AI have reinforced concerns about ethical, fair, and responsible use of the technology that assists or replaces human decision-making.

    Implementing AI systems requires careful management of the AI lifecycle, governing data, and machine learning model to prevent unintentional outcomes not only to an organization’s brand reputation but also, more importantly, to workers, individuals, and society. When adopting AI, it is important to have strong ethical and risk management frameworks surrounding its use.

    		“Responsible AI is the practice of designing, building and deploying AI in a manner that empowers people and businesses, and fairly impacts customers and society – allowing companies to engender trust and scale AI with confidence.” (World Economic Forum)

    Regulations and risk assessment tools

    Governments around the world are developing AI assessment methodologies and legislation for AI. Here are a couple of examples:

    • Responsible use of artificial intelligence (AI) guiding principles (Canada):
      1. understand and measure the impact of using AI by developing and sharing tools and approaches
      2. be transparent about how and when we are using AI, starting with a clear user need and public benefit
      3. provide meaningful explanations about AI decision-making, while also offering opportunities to review results and challenge these decisions
      4. be as open as we can by sharing source code, training data, and other relevant information, all while protecting personal information, system integration, and national security and defense
      5. provide sufficient training so that government employees developing and using AI solutions have the responsible design, function, and implementation skills needed to make AI-based public services better
    • The Algorithmic Impact Assessment tool (Canada) is used to determine the impact level of an automated decision-system. It defines 48 risk and 33 mitigation questions. Assessment scores consider factors such as systems design, algorithm, decision type, impact, and data.
    • The National AI Initiative Act of 2020 (DIVISION E, SEC. 5001) (US) became law on January 1, 2021. This is a program across the entire Federal government to accelerate AI research and application.
    • Bill C-27, Artificial Intelligence and Data Act (AIDA) (Canada), when passed, would be the first law in Canada regulating the use of artificial intelligence systems.
    • The EU Artificial Intelligence Act (EU) assigns applications of AI to three risk categories: applications and systems that create an unacceptable risk, such as government-run social scoring; high-risk applications, such as a CV-scanning tool that ranks job applicants; and lastly, applications not explicitly listed as high-risk.
    • The FEAT Principles Assessment Methodology was created by the Monetary Authority of Singapore (MAS) in collaboration with other 27 industry partners for financial institutions to promote fairness, ethics, accountability, and transparency (FEAT) in the use of artificial intelligence and data analytics (AIDA).

    AI policies around the world

    Map of AI policies around the world, marked by circles of varying color and size. The legend on the right indicates '# of AI Policies (2019-2021)' by color.
    Source of data: OECD.AI (2021), powered by EC/OECD (2021), database of national AI policies, accessed on 7/09/2022, https://oecd.ai.

    The need for AI governance

    “To adopt AI, organizations will need to review and enhance their processes and governance frameworks to address new and evolving risks.” (Canadian RegTech Association, Safeguarding AI Use Through Human-Centric Design, 2020)

    To ensure responsible, transparent, and ethical AI systems, organizations will need to review existing risk control frameworks and update them to include AI risk management and impact assessment frameworks and processes.

    As ML and AI technologies are constantly evolving, the AI governance and AI risk management frameworks will need to evolve to ensure the appropriate safeguards and controls are in place.

    This applies not only to the machine learning models and AI system custom built by the organization’s data science and AI team, but it also includes AI-powered vendor tools and technologies. The vendors should be able to explain how AI is used in their products, how the model was trained, and what data was used to train the model.

    AI governance enables management, monitoring, and control of all AI activities within an organization.

    		Stock image of a chip o a circuitboard labelled 'AI'.

    Key concepts

    Info-Tech Research Group defines the key terms used in this document as follows:

    Machine learning systems learn from experience and without explicit instructions. They learn patterns from data, then analyze and make predictions based on past behavior and the patterns learned.

    Artificial intelligence is a combination of technologies and can include machine learning. AI systems perform tasks that mimic human intelligence, such as learning from experience and problem solving. Most importantly, AI makes its own decisions without human intervention.

    We use the definition of data ethics by Open Data Institute: “Data ethics is a branch of ethics that considers the impact of data practices on people, society and the environment. The purpose of data ethics is to guide the values and conduct of data practitioners in data collection, sharing and use.”

    Algorithmic or machine bias is systematic and repeatable errors in a computer system that create unfair outcomes, such as privileging one arbitrary group of users over others. Algorithmic bias is not a technical problem. It’s a social and political problem, and in the context of implementing AI for business benefits, it’s a business problem.

    Download the blueprint Mitigate Machine Bias blueprint for detailed discussion on bias, fairness, and transparency in AI systems

    Key concepts – explainable, transparent and trustworthy

    “Responsible AI is the practice of designing, building and deploying AI in a manner that empowers people and businesses and fairly impacts customers and society – allowing companies to engender trust and scale AI with confidence” (CIFAR).

    The AI system is considered trustworthy when people understand how the technology works and when we can assess that it’s safe and reliable. We must be able to trust the output of the system and understand how the system was designed, what data was used to train it, and how it was implemented.

    Explainable AI, sometimes abbreviated as XAI, refers to the ability to explain how an AI model makes predictions, its anticipated impact, and its potential biases.

    Transparency means communicating with and empowering users by sharing information internally and with external stakeholders, including beneficiaries and people impacted by the AI-powered product or service.

    68% [of Canadians] are concerned they don’t understand the technology well enough to know the risks.

    77% say they are concerned about the risks AI poses to society (TD, 2019)

    AI Governance Framework

    Monitoring
    Monitoring compliance and risk of AI/ML systems/models in production

    Tools & Technologies
    Tools and technologies to support AI governance framework implementation

    Model Governance
    Ensures accountability and traceability for AI/ML models

    		AI Governance Framework with the surrounding 7 headlines and an adjective between each pair: 'Accountable', 'Trustworthy', 'Responsible', 'Ethical', 'Fair', 'Explainable', 'Transparent'. Organization
    Structure, roles, and responsibilities of the AI governance organization

    Operating Model
    How AI governance operates and works with other organizational structures to deliver value

    Risk and Compliance
    Alignment with corporate risk management and ensuring compliance with regulations and assessment frameworks

    Policies/Procedures/ Standards
    Policies and procedures to support implementation of AI governance

    Develop APIs That Work Properly for the Organization

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    • Parent Category Name: Requirements & Design
    • Parent Category Link: /requirements-and-design
    • CIOs have trouble integrating new technologies (e.g. mobile, cloud solutions) with legacy applications, and lack standards for using APIs across the organization.
    • Organizations produce APIs that are error-prone, not consistently configured, and not maintained effectively.
    • Organizations are looking for ways to increase application quality and code reusability to improve development throughput using web APIs.
    • Organizations are looking for opportunities to create an application ecosystem which can expose internal services across the organization and/or to external third parties and business partners.

    Our Advice

    Critical Insight

    • Organizations are looking to go beyond current development practices to provide scalable and reusable web services.
    • Web API development is a tactical competency that is important to enabling speed of development, quality of applications, reusability, innovation, and business alignment.
    • Design your web API as a product that promotes speed of development and service reuse.
    • Optimize the design, development, testing, and monitoring of your APIs incrementally and iteratively to cover all use cases in the long term.

    Impact and Result

    • Create a repeatable process to improve the quality, reusability, and governance of your web APIs.
    • Define the purpose of your API and the common uses cases that it will service.
    • Understand what development techniques are required to develop an effective web API based on Info-Tech’s web API framework.
    • Continuously reiterate your web API to demonstrate to business stakeholders the value your web API provides.

    Develop APIs That Work Properly for the Organization Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop APIs, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Examine the opportunities web APIs can enable

    Assess the opportunities of web APIs.

    • Develop APIs That Work Properly for the Organization – Phase 1: Examine the Opportunities Web APIs Can Enable

    2. Design and develop a web API

    Design and develop web APIs that support business processes and enable reusability.

    • Develop APIs That Work Properly for the Organization – Phase 2: Design and Develop a Web API
    • Web APIs High-Level Design Requirements Template
    • Web API Design Document Template

    3. Test the web API

    Accommodate web API testing best practices in application test plans.

    • Develop APIs That Work Properly for the Organization – Phase 3: Test the Web API
    • Web API Test Plan Template

    4. Monitor and continuously optimize the web API

    Monitor the usage and value of web APIs and plan for future optimizations and maintenance.

    • Develop APIs That Work Properly for the Organization – Phase 4: Monitor and Continuously Optimize the Web API
    • Web API Process Governance Template
    [infographic]

    Workshop: Develop APIs That Work Properly for the Organization

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Examine the Opportunities Web APIs Can Enable

    The Purpose

    Gauge the importance of web APIs for achieving your organizational needs.

    Understand how web APIs can be used to achieve below-the-line and above-the-line benefits.

    Be aware of web API development pitfalls. 

    Key Benefits Achieved

    Understanding the revenue generation and process optimization opportunities web APIs can bring to your organization.

    Knowledge of the current web API landscape. 

    Activities

    1.1 Examine the opportunities web APIs can enable.

    Outputs

    2 Design & Develop Your Web API

    The Purpose

    Establish a web API design and development process.

    Design scalable web APIs around defined business process flows and rules.

    Define the web service objects that the web APIs will expose. 

    Key Benefits Achieved

    Reusable web API designs.

    Identification of data sets that will be available through web services.

    Implement web API development best practices. 

    Activities

    2.1 Define high-level design details based on web API requirements.

    2.2 Define your process workflows and business rules.

    2.3 Map the relationships among data tables through ERDs.

    2.4 Define your data model by mapping the relationships among data tables through data flow diagrams.

    2.5 Define your web service objects by effectively referencing your data model.

    Outputs

    High-level web API design.

    Business process flow.

    Entity relationship diagrams.

    Data flow diagrams.

    Identification of web service objects.

    3 Test Your Web API

    The Purpose

    Incorporate APIs into your existing testing practices.

    Emphasize security testing with web APIs.

    Learn of the web API testing and monitoring tool landscape.

    Key Benefits Achieved

    Creation of a web API test plan.

    Activities

    3.1 Create a test plan for your web API.

    Outputs

    Web API Test Plan.

    4 Monitor and Continuously Optimize Your Web API

    The Purpose

    Plan for iterative development and maintenance of web APIs.

    Manage web APIs for versioning and reuse.

    Establish a governance structure to manage changes to web APIs. 

    Key Benefits Achieved

    Implement web API monitoring and maintenance best practices.

    Establishment of a process to manage future development and maintenance of web APIs. 

    Activities

    4.1 Identify roles for your API development projects.

    4.2 Develop governance for web API development.

    Outputs

    RACI table that accommodates API development.

    Web API operations governance structure.

    Select and Implement an IT PPM Solution

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    • Parent Category Name: Portfolio Management
    • Parent Category Link: /portfolio-management
    • The number of IT project resources and the quantity of IT projects and tasks can no longer be recorded, prioritized, and tracked using non-commercial project portfolio management (PPM) solutions.
    • Your organization has attained a moderate level of PPM maturity.
    • You have sufficient financial and technical resources to purchase a commercial PPM solution.
    • There is a wide variety of commercial PPM solutions; different kinds of PPM solutions are more appropriate for organizations of a certain size and a certain PPM maturity level than others.

    Our Advice

    Critical Insight

    • Implementations of PPM solutions are often unsuccessful resulting in wasted time and resources; failing to achieve sustainable adoption of the tool is a widespread pain point.
    • The costs of PPM solutions do not end after the implementation and subscription invoices are paid. Have realistic expectations about the time required to use and maintain PPM solutions to ensure success.
    • PPM solutions help PMOs serve the organization’s core decision makers. Success depends on improved service to these stakeholders.

    Impact and Result

    • Using Info-Tech’s Vendor Landscape and PPM solution use cases, you will be able to make sense of the diversity of PPM solutions available in today’s market and choose the most appropriate solution for your organization’s size and level of PPM maturity.
    • Info-Tech’s blueprint for a PPM solution selection and implementation project will provide you with a variety of tools and templates.
    • A carefully planned out and executed selection and implementation process will help ensure your organization can maximize the value of your project portfolio and will allow the PMO to improve portfolio stakeholder satisfaction.

    Select and Implement an IT PPM Solution Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement a commercial PPM solution, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Launch the PPM solution project and collect requirements

    Create a PPM solution selection and implementation project charter and gather your organizations business and technical requirements.

    • Select and Implement a PPM Solution – Phase 1: Launch the PPM Solution Project and Collect Requirements
    • PPM Solution Project Charter Template
    • PPM Implementation Work Breakdown Structure
    • PPM Solution Requirements Gathering Tool
    • PPM Solution Cost-of-Use Estimation Tool
    • PPM Solution RFP Template
    • PPM Solution Success Metrics Workbook
    • PPM Solution Use-Case Fit Assessment Tool

    2. Select a PPM solution

    Select the most appropriate PPM solution for your organization by using Info-Tech’s PPM solution Vendor Landscape and use cases to help you create a vendor shortlist, produce an RFP, and establish evaluation criteria for ranking your shortlisted solutions.

    • Select and Implement a PPM Solution – Phase 2: Select a PPM Solution
    • PPM Vendor Shortlist & Detailed Feature Analysis Tool
    • PPM Solution Vendor Response Template
    • PPM Solution Evaluation & RFP Scoring Tool
    • PPM Solution Vendor Demo Script

    3. Plan the PPM solution implementation

    Plan a PPM solution implementation that will result in long-term sustainable adoption of the tool and that will allow the PMO to meet the needs of core project portfolio stakeholders.

    • Select and Implement a PPM Solution – Phase 3: Plan the PPM Solution Implementation
    [infographic]

    Workshop: Select and Implement an IT PPM Solution

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Launch the PPM Solution Project and Gather Requirements

    The Purpose

    Create a PPM solution selection and implementation project charter.

    Gather the business and technical requirements for the PPM solution.

    Establish clear and measurable success criteria for your PPM solution project.

    Key Benefits Achieved

    Comprehensive project plan

    Comprehensive and organized record of the various PPM solution requirements

    A record of PPM solution project goals and criteria that can be used in the future to establish the success of the project

    Activities

    1.1 Brainstorm, refine, and prioritize your PPM solution needs

    1.2 Stakeholder identification exercise

    1.3 Project charter work session

    1.4 Requirements gathering work session

    1.5 PPM solution success metrics workbook session

    Outputs

    High-level outline of PPM solution requirements

    Stakeholder consultation plan

    A draft project charter and action plan to fill in project charter gaps

    A draft requirements workbook and action plan to fill in requirement gathering gaps

    A PPM project success metrics workbook that can be used during and after the project

    2 Select a PPM Solution

    The Purpose

    Identify the PPM solutions that are most appropriate for your organization’s size and level of PPM maturity.

    Create a PPM solution and vendor shortlist.

    Create a request for proposal (RFP).

    Create a PPM solution scoring and evaluation tool.

    Key Benefits Achieved

    Knowledge of the PPM solution market and the various features available

    An informed shortlist of PPM vendors

    An organized and focused method for evaluating the often long and complex responses to the RFP that vendors provide

    The groundwork for an informed and defensible selection of a PPM solution for your organization

    Activities

    2.1 Assess the size of your organization and the level of PPM maturity to select the most appropriate use case

    2.2 PPM solution requirements and criteria ranking activity

    2.3 An RFP working session

    2.4 Build an RFP evaluation tool

    Outputs

    Identification of the most appropriate use case in Info-Tech’s Vendor Landscape

    A refined and organized list of the core features that will be included in the RFP

    A draft RFP with an action plan to fill in any RFP gaps

    An Excel tool that can be used to compare and evaluate vendors’ responses to the RFP

    3 Prepare for the PPM Solution Implementation

    The Purpose

    To think ahead to the eventual implementation of the solution that will occur once the selection phase is completed

    Key Benefits Achieved

    An understanding of key insights and steps that will help avoid mistakes resulting in poor adoption or PPM solutions that end up producing little tangible value

    Activities

    3.1 Outline high-level implementation stages

    3.2 Organizational change management strategy session

    3.3 A PPM project success metrics planning session

    Outputs

    High-level implementation tasks and milestones

    A RACI chart for core implementation tasks

    A high-level PPM solution implementation organizational change management strategy

    A RACI chart for core organizational change management tasks related to the PPM solution implementation

    A PPM project success metrics schedule and plan

    Human Resources Management

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    • Parent Category Name: people and Resources
    • Parent Category Link: /people-and-resources
    • byline: Build a strategic IT workforce.
    Talent is the differentiator; availability is not.

    The challenge of corporate security management

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    • Parent Category Name: Security and Risk
    • Parent Category Link: /security-and-risk
    • byline: Align security and business objectives to obtain the greatest benefit from both.

    Corporate security management is a vital aspect in every modern business, regardless of business area or size. At Tymans Group we offer expert security management consulting to help your business set up proper protocols and security programs. More elaborate information about our security management consulting services and solutions can be found below.

    Corporate security management components

    You may be experiencing one or more of the following:

    • The risk goals should support business goals. Your business cannot operate without security, and security is there to conduct business safely. 
    • Security governance supports security strategy and security management. These three components form a protective arch around your business. 
    • Governance and management are like the legislative branch and the executive branch. Governance tells people what to do, and management's job is to verify that they do it.

    Our advice with regards to corporate security management

    Insight

    To have a successful information security strategy, take these three factors into account:

    • Holistic: your view must include people, processes, and technology.
    • Risk awareness: Base your strategy on the actual risk profile of your company and then add the appropriate best practices.
    • Business-aligned: When your strategic security plan demonstrates alignment with the business goals and supports it, embedding will be much more straightforward.

    Impact and results of our corporate security management approach

    • The approach of our security management consulting company helps to provide a starting point for realistic governance and realistic corporate security management.
    • We help you by implementing security governance and managing it, taking into account your company's priorities, and keeping costs to a minimum.

    The roadmap

    Besides the small introduction, subscribers and consulting clients within the corporate security management domain have access to:

    Get up to speed

    Read up on why you should build your customized corporate information security governance and management system. Review our methodology and understand the four ways we can support you.

    Align your security objectives with your business goals

    Determine the company's risk tolerance.

    • Implement a Security Governance and Management Program – Phase 1: Align Business Goals With Security Objectives (ppt)
    • Information Security Governance and Management Business Case (ppt)
    • Information Security Steering Committee Charter (doc)
    • Information Security Steering Committee RACI Chart (doc)
    • Security Risk Register Tool (xls)

    Build a practical governance framework for your company

    Our best-of-breed security framework makes you perform a gap analysis between where you are and where you want to be (your target state). Once you know that, you can define your goals and duties.

    • Implement a Security Governance and Management Program – Phase 2: Develop an Effective Governance Framework (ppt)
    • Information Security Charter (doc)
    • Security Governance Organizational Structure Template (doc)
    • Security Policy Hierarchy Diagram (ppt)
    • Security Governance Model Facilitation Questions (ppt)
    • Information Security Policy Charter Template (doc)
    • Information Security Governance Model Tool (Visio)
    • Pdf icon 20x20
    • Information Security Governance Model Tool (PDF)

    Now that you have built it, manage your governance framework.

    There are several essential management activities that we as a security management consulting company suggest you employ.

    • Implement a Security Governance and Management Program – Phase 3: Manage Your Governance Framework (ppt)
    • Security Metrics Assessment Tool (xls)
    • Information Security Service Catalog (xls)
    • Policy Exception Tracker (xls)
    • Information Security Policy Exception Request Form (doc)
    • Security Policy Exception Approval Workflow (Visio)
    • Security Policy Exception Approval Workflow (PDF)
    • Business Goal Metrics Tracking Tool (xls)

    Book an online appointment for more advice

    We are happy to tell you more about our corporate security management solutions and help you set up fitting security objectives. As a security management consulting firm we offer solutions and advice, based on our own extensive experience, which are practical and people-orientated. Discover our services, which include data security management and incident management and book an online appointment with CEO Gert Taeymans to discuss any issues you may be facing regarding risk management or IT governance.

    cybersecurity

    Agile Readiness Assessment Survey

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    • Parent Category Name: Development
    • Parent Category Link: /development
    • Today’s realities are driving organizations to digitize faster and become more Agile.
    • Agile transformations are difficult and frequently fail for a variety of reasons.
    • To achieve the benefits of Agile, organizations need to be ready for the significant changes that Agile demands.
    • Challenges to your Agile transformation can come from a variety of sources.

    Our Advice

    Critical Insight

    • Use Info-Tech’s CLAIM+G model to examine potential roadblocks to Agile on six different organizational dimensions.
    • Use survey results to identify and address the issues that are most likely to derail your Agile transformation.

    Impact and Result

    • Better understand where and how your organization needs to change to support your Agile transformation.
    • Focus your attention on your organization’s biggest roadblocks to Agile.
    • Improve your organization’s chances of a successful Agile transformation.

    Agile Readiness Assessment Survey Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Agile Readiness Assessment Deck – A guide to help your organization survey its Agile readiness.

    Read this deck to see how an Agile Readiness Assessment can help your organization understand its readiness for Agile transformation. The storyboard guides you through how to collect, consolidate, and examine survey responses and create an actionable list of improvements to make your organization more Agile ready.

    • Agile Readiness Assessment Storyboard

    2. Survey Templates (Excel or MS Forms, available in English and French) – Use these templates to create and distribute the survey broadly within your organization.

    The Agile Readiness Assessment template is available in either Excel or Microsoft Forms (both English and French versions are available). Download the Excel templates here or use the links in the above deck to access the online versions of the survey.

    • Agile Readiness Survey – English
    • Agile Readiness Survey – French

    3. Agile Readiness Assessment Consolidated Results Tool – Use this tool to consolidate and analyze survey responses.

    The Agile Readiness Assessment Consolidated Results Tool allows you to consolidate survey responses by team/role and produces your heatmap for analysis.

    • Agile Readiness Assessment Consolidated Results Tool
    [infographic]

    Further reading

    Agile Readiness Assessment

    Understand how ready your organization is for an Agile transformation.

    Info-Tech Research Group Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.

    Analyst Perspective

    Use the wisdom of crowds to understand how ready you are for Agile transformation.

    Photo of Alex Ciraco, Principal Research Director, Application Delivery and Management, Info-Tech Research Group

    Agile transformations can be difficult and complex to implement. That’s because they require fundamental changes in the way an organization thinks and behaves (and many organizations are not ready for these changes).

    Use Info-Tech’s Agile Readiness Assessment to broadly survey the organization’s readiness for Agile along six dimensions:

    • Culture
    • Learning
    • Automation
    • Integrated teams
    • Metrics
    • Governance

    The survey results will help you to examine and address those areas that are most likely to hinder your move to Agile.

    Alex Ciraco
    Principal Research Director, Application Delivery and Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Your organization wants to shorten delivery time and improve quality by adopting Agile practices.
    • Your organization has not yet used Agile successfully.
    • You know that Agile transformations are complex and difficult to implement.
    • You want to maximize your Agile transformation’s chances of success.

    Common Obstacles

    • Risks to your Agile transformation can come from a variety of sources, including:
      • Organizational culture
      • Learning practices
      • Use of automation
      • Ability to create integrated teams
      • Use of metrics
      • Governance practices

    Info-Tech’s Approach

    • Use Info-Tech’s Agile Readiness Assessment to broadly survey your organization’s readiness for Agile.
    • Examine the consolidated results of this survey to identify challenges that are most likely to hinder Agile success.
    • Discuss and address these challenges to increase your chances of success.

    Info-Tech Insight

    By first understanding the numerous challenges to Agile transformations and then broadly surveying your organization to identify and address the challenges that are at play, you are more likely to have a successful Agile transformation.

    Info-Tech’s methodology

    1. Distribute Survey 2. Consolidate Survey Results 3. Examine Results and Problem Solve
    Phase Steps

    1.1 Identify the teams/roles you will survey.

    1.2 Configure the survey to reflect your teams/roles.

    1.3 Distribute the Agile Readiness Assessment Survey broadly in the organization.

    2.1 Collect survey responses from all participants.

    2.2 Consolidate the results using the template provided.

    3.1 Examine the consolidated results (both OVERALL and DETAILED Heatmaps)

    3.2 Identify key challenge areas (those which are most “red”) and discuss these challenges with participants

    3.3 Brainstorm, select and refine potential solutions to these challenges
    Phase Outcomes An appreciation for the numerous challenges associated with Agile transformations Identified challenges to Agile within your organization (both team-specific and organization-wide challenges) An actionable list of solutions/actions to address your organization’s Agile challenges.

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals.

    Agile Readiness Assessment Survey

    Survey the organization to understand your readiness for an Agile transformation on six dimensions.

    Sample of the Agile Readiness Assessment Survey blueprint deliverable.

    		 Agile Readiness Assessment Consolidated Results

    Examine your readiness for Agile and identify team-specific and organization-wide challenges.

    Sample of the Agile Readiness Assessment Consolidated Results blueprint deliverable.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 6 to 8 calls over the course of 1 to 2 months.

    What does a typical GI on this topic look like?

      Phase 1: Distribute Survey

    • Call #1: Scope requirements, objectives, and your specific challenges (identify potential participants).
    • Call #2: First call with participants (introduce Phase 1 and assign survey for completion).
    • Call #3: Gather survey responses (prep for Phase 2 calls).

      • Phase 2: Consolidate Survey Results

    • Call #4: Consolidate all survey responses using the template.
    • Call #5: Conduct initial review of consolidated results (prep for Phase 3 calls).

      • Phase 3: Examine Results and Problem Solve

    • Call #6: Present consolidated results to participants and agree on most pressing challenges.
    • Call #7: Brainstorm, identify, and refine potential solutions to most pressing challenges.
    • Call #8: Conduct closing and communication call.

    Phase 1 — Phase 1 of 3, 'Distribute Survey'.

    Customize and distribute the survey

    Decide which teams/roles will participate in the survey.

    Decide which format and language(s) you will use for your Agile Readiness Assessment Survey.

    Configure the survey templates to reflect your selected teams/roles.

    Distribute the survey for participants to complete.

    • 1.1 The Agile Readiness Assessment Survey will help you to identify both team-specific and organization-wide challenges to your Agile transformation. It is best to distribute the survey broadly across the organization and include several teams and roles. Identify and make note of the teams/roles that will be participating in the survey.
    • 1.2 Select which format of survey you will be using (Excel or online), along with the language(s) you will use (links to the survey templates can be found in the table below). Then configure the survey templates to reflect your list of teams/roles from Step 1.1.
      • Format Language Download Survey Template
      Excel English Agile Readiness Assessment Excel Survey Template – EN and FR
      Excel French
      Online English Agile Readiness Assessment Online Survey Template – EN
      Online French Agile Readiness Assessment Online Survey Template – FR

    • 1.3 Distribute your Agile Readiness Assessment Survey broadly in the organization. Give all participants a deadline date for completion of the survey.

    Phase 2 — Phase 2 of 3, 'Consolidate Results'.

    Consolidate Survey Results

    Collect and consolidate all survey responses using the template provided.

    Review the OVERALL and DETAILED Heatmaps generated by the template.

    • 2.1 Collect the survey responses from all participants. All responses completed using the online form will be anonymous (for responses returned using the Excel form, assign each a unique identifier so that anonymity of responses is maintained).
    • 2.2 Consolidate the survey responses using the template below. Follow the instructions in the template to incorporate all survey responses.

      • Download the Agile Readiness Assessment Consolidated Results Tool

      Sample of the Agile Readiness Assessment Consolidated Results Tool, ranking maturity scores in 'Culture', 'Learning', 'Automation', 'Integrated Teams', 'Metrics', and 'Governance'.

    Phase 3 — Phase 3 of 3, 'Examine Results'.

    Examine Survey Results and Problem Solve

    Review the consolidated survey results as a team.

    Identify the challenges that need the most attention.

    Brainstorm potential solutions. Decide which are most promising and create a plan to implement them.

    • 3.1 Examine the consolidated results (both OVERALL and DETAILED Heatmaps) and look at both team-specific and organization-wide challenge areas.
    • 3.2 Identify which challenge areas need the most attention (typically those that are most red in the heatmap) and discuss these challenges with survey participants.
    • 3.3 As a team, brainstorm potential solutions to these challenges. Select from and refine the solutions that are most promising, then create a plan to implement them.

    3.1 Exercise: Collaborative Problem Solving — Phase 3 of 3, 'Examine Results'.

    60 Mins

    Input: Consolidated survey results

    Output: List of actions to address your most pressing challenges along with a timeline to implement them

    Materials: Agile Readiness Assessment Consolidated Results Tool, Whiteboard and markers

    Participants: Survey participants, Other interested parties

    This exercise will create a plan for addressing your most pressing Agile-related challenges.

    • As a team, agree on which survey challenges are most important to address (typically the most red in the heatmap).
    • Brainstorm potential solutions/actions to address these challenges.
    • Assign solutions/actions to individuals and set a timeline for completion.
    Challenge Proposed Solution Owner Timeline
    Enrichment
    lack of a CoE    		 Establish a service-oriented Agile Center of Excellence (CoE) staffed with experienced Agile practitioners who can directly help new-to-Agile teams be successful. Bill W. 6 Months
    Tool Chain
    (lack of Agile tools)    		 Select a standard Agile work management tool (e.g. Jira, Rally, ADO) that will be used by all Agile teams. Cindy K. 2 Months

    Related Info-Tech Research

    Sample of an Info-Tech blueprint. Modernize Your SDLC
    • Strategically adopt today’s SDLC good practices to streamline value delivery.
    Sample of an Info-Tech blueprint. Implement Agile Practices That Work
    • Guide your organization through its Agile transformation journey.
    Sample of an Info-Tech blueprint. Implement DevOps Practices That Work
    • Streamline business value delivery through the strategic adoption of DevOps practices.
    Sample of an Info-Tech blueprint. Mentoring for Agile Teams
    • Leverage an experience Agile Mentor to give your in-flight Agile project a helping hand.

    Research Contributors and Experts

    • Columbus Brown, Senior Principal – Practice Lead – Business Alignment, Daugherty Business Solutions
    • Saeed Khan, Founder, Transformation Labs
    • Brenda Peshak, Product Owner/Scrum Master/Program Manager, John Deere/Source Allies/Widget Industries LLC
    • Vincent Mirabelli, Principal, Global Project Synergy Group
    • Len O'Neill, Sr. Vice President and Chief Information Officer, The Suddath Companies
    • Shameka A. Jones, MPM, CSM, Lead Business Management Consultant, Mainspring Business Group, LLC
    • Ryland Leyton, Lead Business Analyst, Aptos Retail
    • Ashish Nangia, Lead Business System Analyst, Ashley Furniture Industries
    • Barbara Carkenord, CBAP, IIBA-AAC, PMI-PBA, PMP, SAFe POPM, President, Carkenord Consulting
    • Danelkis Serra, CBAP, Chapter Operations Manager, Regions & Chapters, IIBA (International Institute of Business Analysis)
    • Lorrie Staples-Ellis, CyberSecurity Integration Strategist, Wealth Management, Truist Bank
    • Ginger Sundberg, Independent Consultant
    • Kham Raven, Project Manager, Fraud Strategy & Execution, Truist Bank
    • Sarah Vollett, PMP, Business Analyst, Operations, College of Physicians and Surgeons of British Columbia
    • Nicole J Coyle, ICP-ACC, CEAC, SPC4, SASM, POPM, CSM, ECM, CCMP, CAPM, Team Agile Coach and Team Facilitator, HCQIS Foundational Components
    • Joe Glower, IT Director, Jet Support Services, Inc. (JSSI)
    • Harsh Daharwal, Senior Director, Application Delivery, J.R. Simplot
    • Hans Eckman, Principal Research Director, Info-Tech Research Group
    • Valence Howden, Principal Research Director, Info-Tech Research Group

    Create Stakeholder-Centric Architecture Governance

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    • Parent Category Name: Strategy & Operating Model
    • Parent Category Link: /strategy-and-operating-model
    • Traditional enterprise architecture management (EAM) caters to only 10% – the IT people, and not to the remaining 90% of the organization.
    • EAM practices do not scale well with the agile way of working and are often perceived as "bottlenecks” or “restrictors of design freedom.”
    • The organization scale does not justify a full-fledged EAM with many committees, complex processes, and detailed EA artifacts.

    Our Advice

    Critical Insight

    Architecture is a competency, not a function. Project teams, including even business managers outside of IT, can assimilate “architectural thinking.”

    Impact and Result

    Increase business value through the dissemination of architectural thinking throughout the organization. Maturing your EAM practices beyond a certain point does not help.

    Create Stakeholder-Centric Architecture Governance Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Start here

    Improve benefits from your enterprise architecture efforts through the dissemination of architecture thinking throughout your organization.

    • Create Stakeholder-Centric Architecture Governance Storyboard
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    2020 CIO Priorities Report

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    • Parent Category Name: Innovation
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    • The velocity and magnitude of technology changes today has increased dramatically compared to anything that has come before.
    • The velocity and magnitude of advancements in technology has always seemed unprecedented in every wave of technology change we have experienced over the past 40 years. With each new wave of innovation, “unprecedented” is redefined to a new level, and so it remains true that today’s CIO is faced with unprecedented levels of change as a direct result of emerging technologies.
    • What is different today is that we are at the point where the emerging technology itself is now capable of accelerating the pace of change even more through artificial intelligence capabilities.
    • If we are to realize the business value through the adoption of emerging technologies, CIOs must address significant challenges. We believe addressing these challenges lies in the CIO priorities for 2020.

    Our Advice

    Critical Insight

    • First there was IT/business alignment, then there was IT/business integration – both states characterized as IT “getting on the same page” as the business. In the context of emerging technologies, the CIO should no longer be focused on getting on the same page as the CEO.
    • Today it is about the CEO and the CIO collaborating to write a new book about convergence of all things: technology (infrastructure and applications), people (including vendors), process, and data.
    • Digital transformation and adoption of emerging technologies is not a goal, it is a journey – a means to the end, not the end unto itself.

    Impact and Result

    • Use Info-Tech's 2020 CIO Priorities Report to ascertain, based on our research, what areas of focus for 2020 are critical for success in adopting emerging technologies.
    • Adopting these technologies requires careful planning and consideration for what is critical to your business customers.
    • This report provides focus on the business benefits of the technology and not just the capabilities themselves. It puts the CIO in a position to better understand the true value proposition of any of today’s technology advancements.

    2020 CIO Priorities Report Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to understand the top five priorities for CIOs in 2020 and why these are so critical to success.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Refine and adapt processes

    Learn about how processes can make or break your adoption of emerging technologies.

    • 2020 CIO Priorities Report – Priority 1: Refine and Adapt Processes

    2. Re-invent IT as collaboration engine

    Learn about how IT can transform its role within the organization to optimize business value.

    • 2020 CIO Priorities Report – Priority 2: Re-Invent IT as Collaboration Engine

    3. Acquire and retain talent for roles in emerging technologies

    Learn about how IT can attract and keep employees with the skills and knowledge needed to adopt these technologies for the business.

    • 2020 CIO Priorities Report – Priority 3: Acquire and Retain Talent for Roles in Emerging Technologies

    4. Define and manage cybersecurity and cyber resilience requirements related to emerging technologies

    Understand how the adoption of emerging technologies has created new levels of risk and how cybersecurity and resilience can keep pace.

    • 2020 CIO Priorities Report – Priority 4: Define and Manage Cybersecurity and Cyber Resilience Requirements Related to Emerging Technologies

    5. Leverage emerging technology to create Wow! customer experiences

    Learn how IT can leverage emerging technology for its own customers and those of its business partners.

    • 2020 CIO Priorities Report – Priority 5: Leverage Emerging Technology to Create Wow! Customer Experiences
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    Don’t Allow Software Licensing to Derail Your M&A

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    • Parent Category Name: Vendor Management
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    • Assuming that all parties are compliant in their licensing is a risky proposition. Most organizations are deficient in some manner of licensing. Know where those gaps are before finalizing M&A activity and have a plan in place to mitigate them right away.
    • Vendors will target companies that have undergone recent M&A activity with an audit. Vendors know that the many moving parts of M&A activity often result in license shortfall, and they may look to capitalize during the transition with audit revenue.
    • New organizational structure can offer new licensing opportunities. Take advantage of the increased volume discounting, negotiation leverage, and consolidation opportunities afforded by a merger or acquisition.

    Our Advice

    Critical Insight

    • To mitigate risks and create accurate cost estimates, create a contingency fund to compensate for unavailability of information.
    • Gathering and analyzing information is an iterative process that is ongoing throughout due diligence. Update your assumptions, risks, and budget as you obtain new information.
    • Communication with the M&A team and business process owners should be constant throughout due diligence. IT integration does not exist in isolation.

    Impact and Result

    • CIOs must be part of the conversation during the exploration/due diligence phase before the deal is closed to examine licensing compliance and software costs that could have a direct result on the valuation of the new organization.
    • Both organizations must conduct thorough due diligence (such as internal SAM audits), analyze the information, and define critical assumptions to create a strategy for the resultant IT enterprise.
    • The IT team is involved in integration, synergy realization, and cost considerations that the business often does not consider or take into account with respect to IT. License transfer, assignability, use, and geographic rights all come into play and can be overlooked.

    Don’t Allow Software Licensing to Derail Your M&A Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you shouldn’t allow software licensing to derail your M&A deal, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand the M&A process with respect to software licensing

    Grasp the key pain points of software licensing and the effects it has on an M&A. Review the benefits of early IT involvement and identify IT’s capabilities.

    • Don’t Allow Software Licensing to Derail Your M&A – Phase 1: M&A Overview
    • M&A Software Asset Maturity Assessment

    2. Perform due diligence

    Understand the various steps and process when conducting due diligence. Request information and assess risks, make assumptions, and budget costs.

    • Don’t Allow Software Licensing to Derail Your M&A – Phase 2: Due Diligence
    • License Inventory
    • IT Due Diligence Report
    • M&A Software Asset RACI Template

    3. Prepare for integration

    Take a deeper dive into the application portfolios and vendor contracts of both organizations. Review integration strategies and design the end-state of the resultant organization.

    • Don’t Allow Software Licensing to Derail Your M&A – Phase 3: Pre-Integration Planning
    • Effective Licensing Position Tool
    • IT Integration Roadmap Tool

    4. Execute on the integration plan

    Review initiatives being undertaken to ensure successful integration execution. Discuss long-term goals and how to communicate with vendors to avoid licensing audits.

    • Don’t Allow Software Licensing to Derail Your M&A – Phase 4: Integration Execution
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    Workshop: Don’t Allow Software Licensing to Derail Your M&A

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 M&A Overview

    The Purpose

    Identify the goals and objectives the business has for the M&A.

    Understand cultural and organizational structure challenges and red flags.

    Identify SAM/licensing challenges and red flags.

    Conduct maturity assessment.

    Clarify stakeholder responsibilities.

    Build and structure the M&A team.

    Key Benefits Achieved

    The capabilities required to successfully examine software assets and licensing during the M&A transaction.

    M&A business goals and objectives identified.

    IT M&A team selected.

    Severity of SAM challenges and red flags examined.

    Activities

    1.1 Document pain points from previous experience.

    1.2 Identify IT opportunities during M&A.

    Outputs

    M&A Software Asset Maturity Assessment

    2 Due Diligence

    The Purpose

    Take a structured due diligence approach that properly evaluates the current state of the organization.

    Review M&A license inventory and use top five vendors as example sets.

    Identify data capture and reporting methods/tools.

    Scheduling challenges.

    Scope level of effort and priority list.

    Common M&A pressures (internal/external).

    Key Benefits Achieved

    A clear understanding of the steps that are involved in the due diligence process.

    Recognition of the various areas from which information will need to be collected.

    Licensing pitfalls and compliance risks to be examined.

    Knowledge of terms and conditions that will limit ability in pre-integration planning.

    Activities

    2.1 Identify IT capabilities for an M&A.

    2.2 Create your due diligence team and assign accountability.

    2.3 Use Info-Tech’s IT Due Diligence Report Template to track key elements.

    2.4 Document assumptions to back up cost estimates and risk.

    Outputs

    M&A Software Asset RACI Template

    IT Due Diligence Report

    3 Pre-Integration Planning

    The Purpose

    Review and map legal operating entity structure for the resultant organization.

    Examine impact on licensing scenarios for top five vendors.

    Identify alternative paths and solutions.

    Complete license impact for top five vendors.

    Brainstorm action plan to mitigate negative impacts.

    Discuss and explore the scalable process for second level agreements.

    Key Benefits Achieved

    Identification of the ideal post-M&A application portfolio and licensing structures.

    Recognition of the key considerations when determining the appropriate combination of IT integration strategies.

    Design of vendor contracts for the resultant enterprise.

    Recognition of how to create an IT integration budget.

    Activities

    3.1 Work with the senior management team to review how the new organization will operate.

    3.2 Document the strategic goals and objectives of IT’s integration program.

    3.3 Interview business leaders to understand how they envision their business units.

    3.4 Perform internal SAM audit.

    3.5 Create a library of all IT processes in the target organization as well as your own.

    3.6 Examine staff using two dimensions: competency and capacity.

    3.7 Design the end-state.

    3.8 Communicate your detailed pre-integration roadmap with senior leadership and obtain sign-off.

    Outputs

    IT Integration Roadmap Tool

    Effective License Position

    4 Manage Post-M&A Activities

    The Purpose

    Finalize path forward for top five vendors based on M&A license impact.

    Disclose findings and financial impact estimate to management.

    Determine methods for second level agreements to be managed.

    Provide listing of specific recommendations for top five list.

    Key Benefits Achieved

    Initiatives generated and executed upon to achieve the technology end-state of each IT domain.

    Vendor audits avoided.

    Contracts amended and vendors spoken to.

    Communication with management on achievable synergies and quick wins.

    Activities

    4.1 Identify initiatives necessary to realize the application end-state.

    4.2 Identify initiatives necessary to realize the end-state of IT processes.

    4.3 Identify initiatives necessary to realize the end-state of IT staffing.

    4.4 Prioritize initiatives based on ease of implementation and overall business impact.

    4.5 Manage vendor relations.

    Outputs

    IT Integration Roadmap Tool

    Decide What's Important and What Is Less So

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    • byline: Your BIA is your reality. Treat it as such.

    Redefining the business impact analysis through the lens of value

    The Business Impact Analysis (BIA) is easily one of the most misunderstood processes in the modern enterprise. For many, the term conjures images of dusty binders filled with disaster recovery plans. A compliance checkbox exercise focused solely on what to do when the servers are smoking or the building is flooded. This view, while not entirely incorrect, is dangerously incomplete. It relegates the BIA to a reactive, insurance-policy mindset when it should be a proactive, strategic intelligence tool.

    Yes, I got that text from AI. So recognizable. But you know what? There is a kernel of truth in this.

    A modern BIA is about understanding and protecting value more than just about planning for disaster. That is the one thing we must keep in mind at all times. The BIA really is a deep dive into the DNA of the organization. It maps the connections between information assets, operational processes, and business outcomes. It answers the critical question, “What matters? And why ? And what is the escalating cost of its absence?”

    The Strategic Starting Point: A Top-Down Business Analysis

    To answer “what matters,” the process must begin at the highest level: with senior management and, ideally, the board. Defining the organization's core mission and priorities is a foundational governance task, a principle now embedded in European regulations like DORA.

    Rank the Business Units

    The process begins at the highest level with senior management. I would say, the board. They need to decide what the business is all about. (This is in line with the DORA rules in Europe.) The core business units or departments of the organization are ranked based on their contribution to the company's mission. This ranking is frequently based on revenue generation, but it can also factor in strategic importance, market position, or essential support functions. For example, the “Production” and “Sales” units might be ranked higher than “Internal HR Administration.” This initial ranking provides the foundational context for all subsequent decisions.

    I want to make something crystal clear: this ranking is merely a practical assessment. Obviously the HR and well being departments play a pivotal role in the value delivery of the company. Happy employees make for happy customers.  

    But, being a bit Wall-Streety about it, the sales department generating the biggest returns is probably only surpassed by the business unit producing the product for those sales. And with that I just said that the person holding the wrench, who knows your critical production machine, is your most valuable HR asset. Just saying.

    Identify Critical Functions Within Each Unit

    With the business units prioritized, the next step is to drill down into each one and identify its critical operational functions. The focus here is on processes, not technology. For the top-ranked “Sales” unit, critical functions might include:

    • SF-01: Processing New Customer Orders

    • SF-02: Managing the Customer Relationship Management (CRM) System

    • SF-03: Generating Sales Quotes

    • SF-04: Closing the Sale

    These functions are then rated against each other within the business unit to create a prioritized list of what truly matters for that unit to achieve its goals.

    And here I'm going to give you some food for thought. There will be a superficial geographical difference in importance. If you value continuity then new business may not be the top critical department. I can imagine this is completely counter intuitive. But remember that it is cheaper to keep and upsell an existing client than it is to acquire a new one.

    Information asset classification is a key component of resilience.

    With a clear map of what the business does, the next logical step is to identify what it uses to get it done. This brings us to the non-negotiable foundation of resilience: comprehensive information asset classification.

    Without knowing what you have, where it is, and what it's worth, any attempt at risk management is simply guesswork. You risk spending millions protecting low/mid-value data while leaving the crown jewels exposed (I guess your Ciso will have said something 😊). In this article, we will explore how foundational asset classification can evolve into a mature, value-driven impact analysis, offering a blueprint for transforming the BIA from a tactical chore into a strategic imperative.

    Before you can determine the effect of losing an asset, you must first understand the asset itself. Information asset classification is the systematic process of inventorying, categorizing, and assigning business value to your organization's data. Now that we have terabyte-scale data on servers, cloud environments, and countless SaaS applications, you have your work cut out for you. It is, however, a most critical investment in the risk management lifecycle.

    Classification forces an organization to look beyond the raw data and evaluate it through two primary lenses: criticality and sensitivity.

    • Criticality is a measure of importance. It answers the question: “How much damage would the business suffer if this asset were unavailable or corrupted?” This is directly tied to the operational functions that depend on the asset. The criticality of a customer database, for instance, is determined by the impact on the sales, marketing, and support functions that would grind to a halt without it. This translates to the availability rating. 

    • Sensitivity is a measure of secrecy. It answers the question: “What is the potential harm if this asset were disclosed to unauthorized parties?” This considers reputational damage, competitive disadvantage, legal penalties, and customer privacy violations. This translates to the confidentiality rating.

    Without this dual understanding, it's impossible to implement a proportional and cost-effective security program. The alternative is a one-size-fits-all approach, which invariably leads to one of two expensive failures:

    1. Overprotection: Applying the highest level of security controls to all information is prohibitively expensive and creates unnecessary operational friction. It's like putting a bank vault door on a broom closet.

    2. Underprotection: Applying a baseline level of security to all assets leaves your most critical and sensitive information dangerously vulnerable. It exposes your organization to unacceptable risk. Remember assigning an A2 rating to all your infra because it cannot be related to specific business processes? The “we'll take care of it at the higher levels” approach leads to exactly this issue.

    By understanding the criticality and sensitivity of assets, organizations can ensure that security efforts are directly tied to business objectives, making the investment in protection proportional to the asset's value. Proportionality is also embedded in new European legislation.

    A practical framework for executing classification exercises

    While the concept is straightforward, the execution can be complex. A successful classification program requires a methodical framework that moves from high-level policy to granular implementation. in this first stage, we're going to talk about data.

    Step 1: Define the Classification Levels

    The first step is to establish a simple, intuitive classification scheme. When you complicate it, you lose your people. Most organizations find success with a three- or four-tiered model, which is easy for employees to understand and apply. For example:

    • Public: Information intended for public consumption with no negative impact from disclosure (e.g., marketing materials, press releases).

    • Internal: Information for use within the organization but not overly sensitive. Its disclosure would be inconvenient but not damaging (e.g., internal memos on non-sensitive topics, general project plans).

    • Confidential: Sensitive business information that, if disclosed, could cause measurable damage to the organization's finances, operations, or reputation (e.g., business plans, financial forecasts, customer lists).

    • Restricted or secret: The most sensitive data that could cause severe financial or legal damage if compromised. Access is strictly limited on a need-to-know basis (e.g., trade secrets, source code, PII, M&A details).

    Step 2: Tackle the Data Inventory Problem

    This is often the most challenging phase: identifying and locating all information assets. You must create a comprehensive inventory and detail not just the data itself but its entire context:

    • Data Owners: The business leader accountable for the data and for determining its classification.

    • Data Custodians: The IT or operational teams responsible for implementing and managing the security controls on the data.

    • Location: Where does the data live? Is it in a specific database, a cloud storage bucket, a third-party application, or a physical filing cabinet?

    • External Dependencies: Crucially, this inventory must extend beyond the company's walls. Which third-party vendors (payroll processors, cloud hosting providers, marketing agencies) handle, store, or transport your data? Their security posture is now part of your risk surface. In Europe, this is now a foundation of your data management through GDPR, DORA, the AI Act and other legislation. 

    Step 3: Establish a Lifecycle Approach

    Information isn't static. Its value and handling requirements can change over its lifecycle. Your classification process must define clear rules for each stage:

    • Creation: How is data classified when it's first created? How is it marked (e.g., digital watermarks, document headers)?

    • Storage & Use: What security controls apply to each classification level at rest and in transit (e.g., encryption standards, access control rules)? What about legislative initiatives?

    • Archiving & Retention: How long must the data be kept to meet business needs and legal requirements? What about external storage?

    • Destruction: What are the approved methods for securely destroying the data (e.g., cryptographic erasure, physical shredding) once it's no longer required?

    Without clear, consistent handling standards for each level, the classification labels themselves are meaningless. The classification directly dictates the required security measures.

    The hierarchy of importance.

    This dual (business processes and asset classification) top-down approach to determining criticality is often referred to as the 'hierarchy of importance,' which helps in systematically prioritizing assets based on their business value.

    Once assets are inventoried, the next step is to systematically determine their criticality. Randomly assigning importance to thousands of assets is futile. A far more effective method is a top-down, hierarchical approach that mirrors the structure of the business itself. This method creates a clear “chain of criticality,” where the importance of a technical asset is directly derived from the value of the business function it supports.

    Map the Supporting Assets and Resources

    Only now, once you have clearly defined the critical business functions and prioritized them, can you finally map the specific assets and resources they depend on. These are the people, technology, and facilities that enable the function. For the critical function “Processing New Customer Orders,” the supporting assets might include:

    • Application: SAP ERP System (Module SD)

    • Database: Oracle Customer Order Database

    • Hardware: Primary ERP Server Cluster

    • Personnel: Sales team and Order Entry team

    The criticality of the “Oracle Customer Order Database” is now clear. It is clearly integrated into the business; it is critically important because it is an essential asset for a top-priority function (SF-01) within a top-ranked business unit (“Sales”). This top-down structure provides a clear, business-justified view of risk that management can easily understand. It allows you to see precisely how a technical risk (e.g., a vulnerability in the Oracle database) can bubble up to impact a core business operation.

    From Criticality to Consequence: Master Impact Analysis

    With a clear understanding of what's indispensable, the BIA can now finally move to its core purpose: analyzing the tangible and intangible impacts of a disruption over time. A robust impact analysis prevents “impact inflation,” which is the common tendency to focus solely on unrealistic scenarios or self-importance assurances, as this just causes management to discount your findings. That just causes management to discount your findings. A more credible approach uses a range of outcomes that paint a realistic picture of escalating damage over time.

    Your analysis should assess the loss of the four core pillars of information security:

    • Loss of Confidentiality: The unauthorized disclosure of sensitive information. The impact can range from legal fines for a data breach to the loss of competitive advantage from a leaked product design.

    • Loss of Integrity: The unauthorized or improper modification of data. This can lead to flawed decision-making based on corrupted reports, financial fraud, or a complete loss of trust in the system.

    • Loss of Availability: The inability to access a system or process. This is the most common focus of traditional BIA, leading to lost productivity, missed sales, and an inability to deliver services.

    • Insecurity around Authenticity: Your ability to ensure you receive data from the expected party. 

    This brings us to the CIAA rating, which encompasses Confidentiality, Integrity, Availability, and Authenticity, providing a comprehensive framework for assessing information security impacts.

    Qualitative vs. Quantitative Analysis

    Impacts can be measured in two ways, and the most effective BIAs use a combination of both:

    • Qualitative Analysis: This uses descriptive scales (e.g., High, Medium, Low) to assess impacts that are difficult to assign a specific monetary value to. This is ideal for measuring things like reputational damage, loss of customer confidence, or employee morale. Its main advantage is prioritizing risks quickly, but it lacks the financial precision needed for a cost-benefit analysis.

    • Quantitative Analysis: This assigns a specific monetary value ($) to the impact. This is used for measurable losses like lost revenue per hour, regulatory fines, or the cost of manual workarounds. The major advantage is that it provides clear financial data to justify security investments. For example, “This outage will cost us $100,000 per hour in lost sales” is a powerful statement when requesting funding for a high-availability solution.

    A mature analysis might involve scenario modeling—where we walk through a small set of plausible disruption scenarios with business stakeholders to define a range of outcomes (minimum, maximum, and most likely). This provides a far more nuanced and credible dataset that aligns with how management views other business risks.

    The additional lens: The Customer Value Chain Contribution (CVCC)©

    To elevate the BIA from an internal exercise to a truly strategic tool, we can apply one more lens: the Customer Value Chain Contribution (CVCC)©. This approach reframes the impact analysis to focus explicitly on the customer. Instead of just asking, “What is the impact on our business?” we ask, “What is the impact on our customer's experience and our ability to deliver value to them?”

    The CVCC method involves mapping your critical processes and assets to specific stages of the customer journey. For example:

    • Awareness/Acquisition: A disruption to the company website or marketing automation platform directly impacts your ability to attract new customers.

    • Conversion/Sale: An outage of the e-commerce platform or CRM system prevents customers from making purchases, directly impacting revenue and frustrating users at a key moment.

    • Service Delivery/Fulfillment: A failure in the warehouse management or logistics system means orders can't be fulfilled, breaking promises made to the customer.

    • Support/Retention: If the customer support ticketing system is down, customers with problems can't get help, leading to immense frustration and potential churn.

    By analyzing impact through the CVCC lens, the consequences become far more vivid and compelling. “Loss of the CRM system” becomes “a complete inability to process new sales leads or support existing customers, causing direct revenue loss and significant reputational damage.” This framing aligns the BIA directly with the goal of any business: creating and retaining satisfied customers. It transforms the discussion from technical risk to the preservation of the customer relationship and the value chain that supports it.

    From document to real value

    When you build your BIA on this framework, meaning that it is rooted in sound asset classification, structured by the correct top-down criticality analysis, and enriched by the customer-centric view of impact, then it is no longer a static document. It becomes the dynamic, strategic blueprint for organizational resilience.

    These insights generate business decisions:

    • Prioritized risk mitigation: they show exactly where to focus security efforts and resources for the greatest return on investment.

    • Justified security spending: they provide the quantitative and qualitative data needed to make a compelling business case for new security controls, technologies, and processes.

    • Informed recovery planning: they establish clear, business-justified Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs) that form the foundation of any effective business continuity and disaster recovery plan.

    I'm convinced that this expanded vision of the business impact analysis embeds the right analytical understanding of value and risk into the fabric of the organization. I want you to move beyond the fear of disaster and toward a confident, proactive posture of resilience. Like that, you ensure that in a world of constant change and disruption, the things that truly matter are always understood, always protected, and always available.

    Always happy to chat.

    Build a Software Quality Assurance Program

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    • Parent Category Name: Testing, Deployment & QA
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    • Today’s rapidly scaling and increasingly complex products create mounting pressure on delivery teams to release new systems and changes quickly and with sufficient quality.
    • Many organizations lack the critical capabilities and resources needed to satisfy their growing testing backlog, risking product success.

    Our Advice

    Critical Insight

    • Testing is often viewed as a support capability rather than an enabler of business growth. It receives focus and investment only when it becomes a visible problem.
    • The rise in security risks, aggressive performance standards, constantly evolving priorities, and misunderstood quality policies further complicate QA as it drives higher expectations for effective practices.
    • QA starts with good requirements. Tests are only as valuable as the requirements they are validating and verifying. Early QA improves the accuracy of downstream tests and reduces costs of fixing defects late in delivery.
    • Quality is an organization-wide accountability. Upstream work can have extensive ramifications if all roles are not accountable for the decisions they make.
    • Quality must account for both business and technical requirements. Valuable change delivery is cemented in a clear understanding of quality from both business and IT perspectives.

    Impact and Result

    • Standardize your definition of a product. Come to an organizational agreement of what attributes define a high-quality product. Accommodate both business and IT perspectives in your definition.
    • Clarify the role of QA throughout your delivery pipeline. Indicate where and how QA is involved throughout product delivery. Instill quality-first thinking in each stage of your pipeline to catch defects and issues early.
    • Structure your test design, planning, execution, and communication practices to better support your quality definition and business and IT environments and priorities. Adopt QA good practices to ensure your tests satisfy your criteria for a high-quality and successful product.

    Build a Software Quality Assurance Program Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a strong foundation for quality, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define your QA process

    Standardize your product quality definition and your QA roles, processes, and guidelines according to your business and IT priorities.

    • Build a Strong Foundation for Quality – Phase 1: Define Your QA Process
    • Test Strategy Template

    2. Adopt QA good practices

    Build a solid set of good practices to define your defect tolerances, recognize the appropriate test coverage, and communicate your test results.

    • Build a Strong Foundation for Quality – Phase 2: Adopt QA Good Practices
    • Test Plan Template
    • Test Case Template
    [infographic]

    Workshop: Build a Software Quality Assurance Program

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Define Your QA Process

    The Purpose

    Discuss your quality definition and how quality is interpreted from both business and IT perspectives.

    Review your case for strengthening your QA practice.

    Review the standardization of QA roles, processes, and guidelines in your organization.

    Key Benefits Achieved

    Grounded understanding of quality that is accepted across IT and between the business and IT.

    Clear QA roles and responsibilities.

    A repeatable QA process that is applicable across the delivery pipeline.

    Activities

    1.1 List your QA objectives and metrics.

    1.2 Adopt your foundational QA process.

    Outputs

    Quality definition and QA objectives and metrics.

    QA guiding principles, process, and roles and responsibilities.

    2 Adopt QA Good Practices

    The Purpose

    Discuss the practices to reveal the sufficient degree of test coverage to meet your acceptance criteria, defect tolerance, and quality definition.

    Review the technologies and tools to support the execution and reporting of your tests.

    Key Benefits Achieved

    QA practices aligned to industry good practices supporting your quality definition.

    Defect tolerance and acceptance criteria defined against stakeholder priorities.

    Identification of test scenarios to meet test coverage expectations.

    Activities

    2.1 Define your defect tolerance.

    2.2 Model and prioritize your tests.

    2.3 Develop and execute your QA activities.

    2.4 Communicate your QA activities.

    Outputs

    Defect tolerance levels and courses of action.

    List of test cases and scenarios that meet test coverage expectations.

    Defined test types, environment and data requirements, and testing toolchain.

    Test dashboard and communication flow.

    Modernize Enterprise Storage

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    • Parent Category Name: Storage & Backup Optimization
    • Parent Category Link: /storage-and-backup-optimization
    • Current storage solutions are nearing end of life, performance or capacity limits.
    • Data continues to grow at an exponential rate, and management complexity is growing even faster. Some kinds of data, like unstructured data, are leading factors in the exponential growth of data.
    • Emerging storage technologies and storage software/automation are disrupting the market and redefining the role of disk arrays, including how storage aligns with people and process.
    • Storage infrastructure budgets are not satisfying the exponential growth of data.

    Our Advice

    Critical Insight

    • Start with the data, not storage. Answer what is being stored and why before investigating the where and how of storage solutions.
    • Governance and archiving are not IT projects. These can have tremendous benefits for managing data growth but must involve the larger business.
    • More capacity is not a long-term solution. Data is growing faster than decreasing storage costs. Data and capacity mitigation strategies will help in more effective and efficient infrastructure utilization and cost reduction.

    Impact and Result

    • It’s about the data. Start with what is being supported and why. Decide on what and how data is stored before you decide on where. Let the needs of your workloads and governance requirements of your business drive your storage infrastructure decisions and the technologies you adopt.
    • Identify current and future capacity needs for current and future data drivers. Evaluating the ability of current infrastructure to meet these needs will help you discover necessary additions to meet these requirements.
    • Identify governance requirements and constraints that exist across the organization and are specific to workloads. Technology has to conform to these requirements and constraints, not the other way around.
    • Align people and process with technology changes. To effectively utilize the changes in storage, appropriate changes must be made to existing people and process.

    Modernize Enterprise Storage Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should modernize enterprise storage, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build the case for storage modernization

    Develop the business case for modernizing storage and assess your existing infrastructure for meeting data needs.

    • Modernize Enterprise Storage – Phase 1: Build the Case for Storage Modernization
    • Modernize Enterprise Storage Workbook

    2. Develop your storage technology needs and goals

    Review data governance, explore emerging storage technologies, and identify current and future storage needs.

    • Modernize Enterprise Storage – Phase 2: Develop Your Storage Technology Needs and Goals
    • Evaluate Hyperconverged Infrastructure for Your Infrastructure Roadmap
    • Evaluate Software-Defined Storage Solutions for Your Infrastructure Roadmap
    • Evaluate All Flash in Primary Storage for Your Infrastructure Roadmap
    • Infrastructure Roadmap Technology Assessment Tool

    3. Develop and communicate the roadmap, TCO, and RFP

    Communicate the roadmap with people, process, and technology initiatives, develop an RFP, and conduct a TCO.

    • Modernize Enterprise Storage – Phase 3: Develop and Communicate the Roadmap and RFP
    • Modernize Enterprise Storage Communications Report
    [infographic]

    Workshop: Modernize Enterprise Storage

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Identify Business Case and Assess Current State

    The Purpose

    Identify a business case and need for storage modernization by assessing current and future storage needs.

    Key Benefits Achieved

    A clear understanding of the business expectations and needs of storage infrastructure.

    Activities

    1.1 Identify current storage pain points.

    1.2 Discuss storage modernization drivers.

    1.3 Identify data growth drivers.

    1.4 Determine relative growth burden.

    Outputs

    Alignment of storage modernization with organizational pain points

    Desired outcomes of storage modernization

    An understanding of growth impact across drivers

    An understanding of capacity and expansion needs

    2 Review Governance and Emerging Technologies

    The Purpose

    Review existing data governance.

    Explore emerging technologies and trends in the storage space.

    Key Benefits Achieved

    Review data governance objectives that must be met.

    Identify a shortlist of storage technologies and trends that may be of interest.

    Activities

    2.1 Shortlist interest in storage technologies.

    2.2 Prioritize shortlist of storage technologies.

    2.3 Identify solutions that meet data and governance needs.

    Outputs

    A starting point for research into new and emerging storage technologies

    Expressed interest in adopting storage technologies

    A list of storage solutions needed to deliver on future data and governance needs

    3 Identify Storage Needs and Develop Initiatives

    The Purpose

    Identify the people, process, and technology initiatives required to adopt new storage technologies.

    Key Benefits Achieved

    Align your organizational people and process with new and disruptive technologies to best take advantage of what these new technologies have to offer.

    Activities

    3.1 Complete future storage structure planning tool.

    3.2 Identify storage modernization technology initiatives.

    3.3 Identify storage modernization people initiatives.

    3.4 Identify storage modernization process initiatives.

    Outputs

    A understanding of the future state of your storage infrastructure

    Technology initiatives needed to adopt storage structure

    People initiatives needed to adopt storage structure

    Process initiatives needed to adopt storage structure

    4 Build a Roadmap and RFP, Calculate TCO

    The Purpose

    Develop an executive communications report.

    Conduct a TCO analysis comparing on-premises and cloud storage solutions.

    Key Benefits Achieved

    Communicate storage modernization goals and plans to stakeholders.

    Activities

    4.1 Prioritize storage modernization initiatives.

    4.2 Complete project timeline and build roadmap.

    4.3 Compare TCO of on-premises and cloud storage solutions.

    Outputs

    Alignment of people, process, and technology with storage adoption

    Communicate storage modernization goals and plans to stakeholders and executives

    Compare cost of on-premises and cloud storage alternatives

    Explore the Secrets of SAP Software Contracts to Optimize Spend and Reduce Compliance Risk

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    • member rating overall impact: 9.8/10 Overall Impact
    • member rating average dollars saved: $73,994 Average $ Saved
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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • SAP has strict audit practices, which, in combination with 50+ types of user classifications and manual accounting for some licenses, make maintaining compliance difficult.
    • Mapping and matching SAP products to the environment can be highly complex, leading to overspending and an inability to reduce spend later.
    • Beware of indirect access to SAP applications from third-party applications (e.g. Salesforce).
    • Products that have been acquired by SAP may have altered licensing terms that are innocuously referred to in support renewal documents.

    Our Advice

    Critical Insight

    • Focus on needs first. Conduct a thorough requirements assessment and document the results. Well-documented license needs will be your core asset in navigating SAP licensing and negotiating your agreement.
    • Examine indirect access possibilities. Understanding how in-house or third-party applications may be accessing the SAP software is critical.
    • Know what’s in the contract. Each customer agreement is different and there may be terms that are beneficial. Older agreements may provide both benefits and challenges when evaluating your SAP license position.

    Impact and Result

    • Conduct an analysis to remove inactive and duplicate users as multiple logins may exist and could end up costing the organization license fees when audited.
    • Adopt a cyclical approach to reviewing your SAP licensing and create a reference document to track your software needs, planned licensing, and purchase negotiation points.
    • Learn the “SAP way” of conducting business, which includes a best-in-class sales structure, unique contracts and license use policies, and a hyper-aggressive compliance function. Conducting business with SAP is not typical compared to other vendors, and you will need different tools to emerge successfully from a commercial transaction.
    • Manage SAP support and maintenance spend and policies. Once an agreement has been signed, it can be very difficult to decrease spend, as SAP will reprice products if support is dropped.

    Explore the Secrets of SAP Software Contracts to Optimize Spend and Reduce Compliance Risk Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you need to understand and document your SAP licensing strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Establish licensing requirements

    Begin your proactive SAP licensing journey by understanding which information to gather and assessing the current state and gaps.

    • Explore the Secrets of SAP Software Contracts to Optimize Spend and Reduce Compliance Risk – Phase 1: Establish Licensing Requirements
    • SAP License Summary and Analysis Tool

    2. Evaluate licensing options

    Review current licensing models and determine which licensing models will most appropriately fit your environment.

    • Explore the Secrets of SAP Software Contracts to Optimize Spend and Reduce Compliance Risk – Phase 2: Evaluate Licensing Options

    3. Evaluate agreement options

    Review SAP’s contract types and assess which best fit the organization’s licensing needs.

    • Explore the Secrets of SAP Software Contracts to Optimize Spend and Reduce Compliance Risk – Phase 3: Evaluate Agreement Options

    4. Purchase and manage licenses

    Conduct negotiations, purchase licensing, and finalize a licensing management strategy.

    • Explore the Secrets of SAP Software Contracts to Optimize Spend and Reduce Compliance Risk – Phase 4: Purchase and Manage Licenses
    [infographic]

    Prepare Your Application for PaaS

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    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • The application may have been written a long time ago, and have source code, knowledge base, or design principles misplaced or lacking, which makes it difficult to understand the design and build.
    • The development team does not have a standardized practice for assessing cloud benefits and architecture, design principles for redesigning an application, or performing capacity for planning activities.

    Our Advice

    Critical Insight

    • An infrastructure-driven cloud strategy overlooks application specific complexities. Ensure that an application portfolio strategy is a precursor to determining the business value gained from an application perspective, not just an infrastructure perspective.
    • Business value assessment must be the core of your decision to migrate and justify the development effort.
    • Right-size your application to predict future usage and minimize unplanned expenses. This ensures that you are truly benefiting from the tier costing model that vendors offer.

    Impact and Result

    • Identify and evaluate what cloud benefits your application can leverage and the business value generated as a result of migrating your application to the cloud.
    • Use Info-Tech’s approach to building a robust application that can leverage scalability, availability, and performance benefits while maintaining the functions and features that the application currently supports for the business.
    • Standardize and strengthen your performance testing practices and capacity planning activities to build a strong current state assessment.
    • Use Info-Tech’s elaboration of the 12-factor app to build a clear and robust cloud profile and target state for your application.
    • Leverage Info-Tech’s cloud requirements model to assess the impact of cloud on different requirements patterns.

    Prepare Your Application for PaaS Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a right-sized, design-driven approach to moving your application to a PaaS platform, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Prepare Your Application for PaaS – Phases 1-2

    1. Create your cloud application profile

    Bring the business into the room, align your objectives for choosing certain cloud capabilities, and characterize your ideal PaaS environment as a result of your understanding of what the business is trying to achieve. Understand how to right-size your application in the cloud to maintain or improve its performance.

    • Prepare Your Application for PaaS – Phase 1: Create Your Cloud Application Profile
    • Cloud Profile Tool

    2. Evaluate design changes for your application

    Assess the application against Info-Tech’s design scorecard to evaluate the right design approach to migrating the application to PaaS. Pick the appropriate cloud path and begin the first step to migrating your app – gathering your requirements.

    • Prepare Your Application for PaaS – Phase 2: Evaluate Design Changes for Your Application
    • Cloud Design Scorecard Tool

    [infographic]

     
     

    CIO Priorities 2022

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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • Understand how to respond to trends affecting your organization.
    • Determine your priorities based on current state and relevant internal factors.
    • Assign the right amount of resources to accomplish your vision.
    • Consider what new challenges outside of your control will demand a response.

    Our Advice

    Critical Insight

    A priority is created when external factors hold strong synergy with internal goals and an organization responds by committing resources to either avert risk or seize opportunity. These are the priorities identified in the report:

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Impact and Result

    Update your strategic roadmap to include priorities that are critical and relevant for your organization based on a balance of external and internal factors.

    CIO Priorities 2022 Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. CIO Priorities 2022 – A report on the key priorities for competing in the digital economy.

    Discover Info-Tech’s five priorities for CIOs in 2022.

    • CIO Priorities Report for 2022

    2. Listen to the podcast series

    Hear directly from our contributing experts as they discuss their case studies with Brian Jackson.

    • Frictionless hybrid working: How the Harvard Business School did it
    • Close call with ransomware: A CIO recounts a near security nightmare
    • How a financial services company dodged "The Great Resignation"
    • How Allianz took a blockchain platform from pilot to 1 million transactions
    • CVS Health chairman David Dorman on healthcare's hybrid future

    Infographic

    Further reading

    CIO Priorities 2022

    A jumble of business-related words. Info-Tech’s 2022 Tech Trends survey asked CIOs for their top three priorities. Cluster analysis of their open-ended responses shows four key themes:
    1. Business process improvements
    2. Digital transformation or modernization
    3. Security
    4. Supporting revenue growth or recovery

    Info-Tech’s annual CIO priorities are formed from proprietary primary data and consultation with our internal experts with CIO stature

    2022 Tech Trends Survey CIO Demographic N=123

    Info-Tech’s Tech Trends 2022 survey was conducted between August and September 2021 and collected a total of 475 responses from IT decision makers, 123 of which were at the C-level. Fourteen countries and 16 industries are represented in the survey.

    2022 IT Talent Trends Survey CIO Demographic N=44

    Info-Tech’s IT Talent Trends 2022 survey was conducted between September and October 2021 and collected a total of 245 responses from IT decision makers, 44 of which were at the C-level. A broad range of countries from around the world are represented in the survey.

    Internal CIO Panels’ 125 Years Of Combined C-Level IT Experience

    Panels of former CIOs at Info-Tech focused on interpreting tech trends data and relating it to client experiences. Panels were conducted between November 2021 and January 2022.

    CEO-CIO Alignment Survey Benchmark Completed By 107 Different Organizations

    Info-Tech’s CEO-CIO Alignment program helps CIOs align with their supervisors by asking the right questions to ensure that IT stays on the right path. It determines how IT can best support the business’ top priorities and address the gaps in your strategy. In 2021, the benchmark was formed by 107 different organizations.

    Build IT alignment

    IT Management & Governance Diagnostic Benchmark Completed By 320 Different Organizations

    Info-Tech’s Management and Governance Diagnostic helps IT departments assess their strengths and weaknesses, prioritize their processes and build an improvement roadmap, and establish clear ownership of IT processes. In 2021, the benchmark was formed by data from 320 different organizations.

    Assess your IT processes

    The CIO priorities are informed by Info-Tech’s trends research reports and surveys

    Priority: “The fact or condition of being regarded or treated as more important than others.” (Lexico/Oxford)

    Trend: “A general direction in which something is developing or changing.” (Lexico/Oxford)

    A sequence of processes beginning with 'Sensing', 'Hypothesis', 'Validation', and ending with 'Trends, 'Priorities'. Under Sensing is Technology Research, Interviews & Insights, Gathering, and PESTLE. Under Hypothesis is Near-Future Probabilities, Identify Patterns, Identify Uncertainties, and Identify Human Benefits. Under Validation is Test Hypothesis, Case Studies, and Data-Driven Insights. Under Trends is Technology, Talent, and Industry. Under Priorities is CIO, Applications, Infrastructure, and Security.

    Visit Info-Tech’s Trends & Priorities Research Center

    Image called 'Defining the CIO Priorities for 2022'. Image shows 4 columns, Implications, Resource Investment, Amplifiers, and Actions and Outcomes, with 2 dotted lines, labeled External Context and Internal Context, running through all 4 columns and leading to bottom-right label called CIO Priorities Formed

    The Five Priorities

    Priorities to compete in the digital economy

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Reduce friction in the hybrid operating model

    Priority 01 | APO07 Human Resources Management

    Deliver solutions that create equity between remote workers and office workers and make collaboration a joy.

    Hybrid work is here to stay

    CIOs must deal with new pain points related to friction of collaboration

    In 2020, CIOs adapted to the pandemic’s disruption to offices by investing in capabilities to enable remote work. With restrictions on gathering in offices, even digital laggards had to shift to an all-remote work model for non-essential workers.

    Most popular technologies already invested in to facilitate better collaboration

    • 24% Web Conferencing
    • 23% Instant Messaging
    • 20% Document Collaboration

    In 2022, the focus shifts to solving problems created by the new hybrid operating model where some employees are in the office and some are working remotely. Without the ease of collaborating in a central hub, technology can play a role in reducing friction in several areas:

    • Foster more connections between employees. Remote workers are less likely to collaborate with people outside of their department and less likely to spontaneously collaborate with their peers. CIOs should provide a digital employee experience that fosters collaboration habits and keeps workers engaged.
    • Prevent employee attrition. With more workers reevaluating their careers and leaving their jobs, CIOs can help employees feel connected to the overall purpose of the organization. Finding a way to maintain culture in the new context will require new solutions. While conference room technology can be a bane to IT departments, making hybrid meetings effortless to facilitate will be more important.
    • Provide new standards for mediated collaboration. Meeting isn’t as easy as simply gathering around the same table anymore. CIOs need to provide structure around how hybrid meetings are conducted to create equity between all participants. Business continuity processes must also consider potential outages for collaboration services so employees can continue the work despite a major outage.

    Three in four organizations have a “hybrid” approach to work. (Tech Trends 2022 Survey)

    In most organizations, a hybrid model is being implemented. Only 14.9% of organizations are planning for almost everyone to return to the office, and only 9.9% for almost everyone to work remotely.

    Elizabeth Clark

    CIO, Harvard Business School

    "I want to create experiences that are sticky. That keep people coming back and engaging with their colleagues."

    		 Photo of Elizabeth Clark, CIO, Harvard Business School.

    Listen to the Tech Insights podcast:
    Frictionless hybrid working: How the Harvard Business School did it

    Internal interpretation: Harvard Business School

    • March 2020
      The pandemic disrupts in-class education at Harvard Business School. Their case study method of instruction that depends on in-person, high-quality student engagement is at risk. While students and faculty completed the winter semester remotely, the Dean and administration make the goal to restore the integrity of the classroom experience with equity for both remote and in-person students.
    • May 2020
      A cross-functional task force of about 100 people work intensively, conducting seven formal experiments, 80 smaller tests, and hundreds of polling data points, and a technology and facilities solution is designed: two 4K video cameras capturing both the faculty and the in-class students, new ceiling mics, three 85-inch TV screens, and students joining the videoconference from their laptops. A custom Zoom room, combining three separate rooms, integrated all the elements in one place and integrated with the lecture capture system and learning management system.
    • October 2020
      Sixteen classrooms are renovated to install the new solution. Students return to the classroom but in lower numbers due to limits on in-room capacity, but students rotate between the in-person and remote experience.
    • September 2021
      Renovations for the hybrid solution are complete in 26 classrooms and HBS has determined this will be its standard model for the classroom. The case method of teaching is kept alive and faculty and students are thrilled with the results.
    • November 2021
      HBS is adapting its solution for the classroom to its conference rooms and has built out eight different rooms for a hybrid experience. The 4K cameras and TV screens capture all participants in high fidelity as well as the blackboard.

    Photo of a renovated classroom with Zoom participants integrated with the in-person students.
    The renovated classrooms integrate all students, whether they are participating remotely or in person. (Image courtesy of Harvard Business School.)

    Implications: Organization, Process, Technology

    External

    • Organization – About half of IT practitioners in the Tech Trends 2022 survey feel that IT leaders, infrastructure and operations teams, and security teams were “very busy” in 2021. Capacity to adapt to hybrid work could be constrained by these factors.
    • Process – Organizations that want employees to benefit from being back in the office will have to rethink how workers can get more value out of in-person meetings that also require videoconference participation with remote workers.
    • Technology – Fifty-four percent of surveyed IT practitioners say the pandemic raised IT spending compared to the projections they made in 2020. Much of that investment went into adapting to a remote work environment.

    Internal

    • Organization – HBS added 30 people to its IT staff on term appointments to develop and implement its hybrid classroom solutions. Hires included instructional designers, support technicians, coordinators, and project managers.
    • Process – Only 25 students out of the full capacity of 95 could be in the classroom due to COVID-19 regulations. On-campus students rotated through the classroom seats. An app was created to post last-minute seat availability to keep the class full.
    • Technology – A Zoom room was created that combines three rooms to provide the full classroom experience: a view of the instructor, a clear view of each student that enlarges when they are speaking, and a view of the blackboard.

    Resources Applied

    Appetite for Technology

    CIOs and their direct supervisors both ranked internal collaboration tools as being a “critical need to adopt” in 2021, according to Info-Tech’s CEO-CIO Alignment Benchmark Report.

    Intent to Invest

    Ninety-seven percent of IT practitioners plan to invest in technology to facilitate better collaboration between employees in the office and outside the office by the end of 2022, according to Info-Tech’s 2022 Tech Trends survey.

    “We got so many nice compliments, which you don’t get in IT all the time. You get all the complaints, but it’s a rare case when people are enthusiastic about something that was delivered.” (Elizabeth Clark, CIO, Harvard Business School)

    Harvard Business School

    • IT staff were reassigned from other projects to prioritize building a hybrid classroom solution. A cloud migration and other portfolio projects were put on pause.
    • The annual capital A/V investment was doubled. The amount of spend on conference rooms was tripled.
    • Employees were hired to the media services team at a time when other areas of the organization were frozen.

    Outcomes at Harvard Business School

    The new normal at Harvard Business School

    New normal: HBS has found its new default operating model for the classroom and is extending its solution to its operating environment.

    Improved CX: The high-quality experience for students has helped avoid attrition despite the challenges of the pandemic.

    Engaged employees: The IT team is also engaged and feels connected to the mission of the school.

    Photo of a custom Zoom room bringing together multiple view of the classroom as well as all remote students.
    A custom Zoom room brings together multiple different views of the classroom into one single experience for remote students. (Image courtesy of Harvard Business School.)

    From Priorities to Action

    Make hybrid collaboration a joy

    Align with your organization’s goals for collaboration and customer interaction, with the target of high satisfaction for both customers and employees. Invest in capital projects to improve the fidelity of conference rooms, develop and test a new way of working, and increase IT capacity to alleviate pressure points.

    Foster both asynchronous and synchronous collaboration approaches to avoid calendars filling up with videoconference meetings to get things done and to accommodate workers contributing from across different time zones.

    “We’ll always have hybrid now. It’s opened people’s eyes and now we’re thinking about the future state. What new markets could we explore?” (Elizabeth Clark, CIO, Harvard Business School)

    Take the next step

    Run Better Meetings
    Hybrid, virtual, or in person – set meeting best practices that support your desired meeting norms.

    Prepare People Leaders for the Hybrid Work Environment
    Set hybrid work up for success by providing people leaders with the tools they need to lead within the new model.

    Hoteling and Hot-Desking: A Primer
    What you need to know regarding facilities, IT infrastructure, maintenance, security, and vendor solutions for desk hoteling and hot-desking.

    “Human Resources Management” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the Human Resources Management gap between importance and effectiveness. The difference is marked as Delta 2.3.

    Improve your ransomware readiness

    Priority 02 | APO13 Security Strategy

    Mitigate the damage of successful ransomware intrusions and make recovery as painless as possible.

    The ransomware crisis threatens every organization

    Prevention alone won’t be enough against the forces behind ransomware.

    Cybersecurity is always top of mind for CIOs but tends to be deprioritized due to other demands related to digital transformation or due to cost pressures. That’s the case when we examine our data for this report.

    Cybersecurity ranked as the fourth-most important priority by CIOs in Info-Tech’s 2022 Tech Trends survey, behind business process improvement, digital transformation, and modernization. Popular ways to prepare for a successful attack include creating offline backups, purchasing insurance, and deploying new solutions to eradicate ransomware.

    CIOs and their direct supervisors ranked “Manage IT-Related Security” as the third-most important top IT priority on Info-Tech’s CEO-CIO Alignment Benchmark for 2021, in support of business goals to manage risk, comply with external regulation, and ensure service continuity.

    Most popular ways for organizations to prepare for the event of a successful ransomware attack:

    • 25% Created offline backups
    • 18% Purchased cyberinsurance
    • 19% New tech to eradicate ransomware

    Whatever priority an organization places on cybersecurity, when ransomware strikes, it quickly becomes a red alert scenario that disrupts normal operations and requires all hands on deck to respond. Sophisticated attacks executed at wide scale demonstrate that security can be bypassed without creating an alert. After that’s accomplished, the perpetrators build their leverage by exfiltrating data and encrypting critical systems.

    CIOs can plan to mitigate ransomware attacks in several constructive ways:

    • Business impact analysis. Determine the costs of an outage for specific periods and the system and data recovery points in time.
    • Engage a partner for 24/7 monitoring. Gain real-time awareness of your critical systems.
    • Review your identity access management (IAM) policies. Use of multi-factor authentication and limiting access to only the roles that need it reduces ransomware risk.

    50% of all organizations spent time and money specifically to prevent ransomware in the past year. (Info-Tech Tech Trends 2022 Survey)

    John Doe

    CIO, mid-sized manufacturing firm in the US

    "I want to create experiences that are sticky. That keep people coming back and engaging with their colleagues."

    		Blank photo.

    Listen to the Tech Insights podcast:
    Close call with ransomware: a CIO recounts a near security nightmare

    Internal interpretation: US-based, mid-sized manufacturing firm

    • May 1, 2021
      A mid-sized manufacturing firm (“The Firm”) CIO gets a call from his head of security about odd things happening on the network. A call is made to Microsoft for support. Later that night, the report is that an unwanted crypto-mining application is the culprit. But a couple of hours later, that assessment is proven wrong when it’s realized that hundreds of systems are staged for a ransomware attack. All the attacker has to do is push the button.
    • May 2, 2021
      The Firm disconnects all its global sites to cut off new pathways for the malware to infect. All normal operations cease for 24 hours. It launches its cybersecurity insurance process. The CIO engages a new security vendor, CrowdStrike, to help respond. Employees begin working from home if they can so they can make use of their own internet service. The Firm has cut off its public internet connectivity and is severed from cloud services such as Azure storage and collaboration software.
    • May 4, 2021
      The hackers behind the attack are revealed by security forensics experts. A state-sponsored agency in Russia set up the ransomware and left it ready to execute. It sold the staged attack to a cybercriminal group, Doppel Spider. According to CrowdStrike, the group uses malware to run “big game hunting operations” and targets 18 different countries including the US and multiple industries, including manufacturing.
    • May 10, 2021
      The Firm has totally recovered from the ransomware incident and avoided any serious breach or paying a ransom. The CIO worked more hours than at any other point in his career, logging an estimated 130 hours over the two weeks.
    • November 2021
      The Firm never previously considered itself a ransomware target but has now reevaluated that stance. It has hired a service provider to run a security operations center on a 24/7 basis. It's implemented a more sophisticated detection and response model and implemented multi-factor authentication. It’s doubled its security spend in 2021 and will invest more in 2022.

    “Now we take the approach that if someone does get in, we're going to find them out.” (John Doe, CIO, “The Firm”)

    Implications: Organization, Process, Technology

    External

    • Organization – Organizations must consider how their employees play a role in preventing ransomware and plan for training to recognize phishing and other common traps. They must make plans for employees to continue their work if systems are disrupted by ransomware.
    • Process – Backup processes across multiple systems should be harmonized to have both recent and common points to recover from. Work with the understanding IT will have to take systems offline if ransomware is discovered and there is no time to ask for permission.
    • Technology – Organizations can benefit from security services provided by a forensics-focused vendor. Putting cybersecurity insurance in place not only provides financial protection but also guidance in what to do and which vendors to work with to prevent and recover from ransomware.

    Internal

    • Organization – The Firm was prepared with a business continuity plan to allow many of its employees to work remotely, which was necessary because the office network was incapacitated for ten days during recovery.
    • Process – Executives didn’t seek to assign blame for the security incident but took it as a signal there were some new costs involved to stay in business. It initiated new outsource relationships and hired one more full-time employee to shore up security resources.
    • Technology – New ransomware eradication software was deployed to 2,000 computers. Scripted processes automated much of the work, but in some cases full system rebuilds were required. Backup systems were disconnected from the network as soon as the malware was discovered.

    Resources Applied

    Consider the Alternative

    Organizations should consider how much a ransomware attack on critical systems would cost them if they were down for a minimum of 24-48 hours. Plan to invest an amount at least equal to the costs of that downtime.

    Ask for ID

    Implementing across-the-board multi-factor authentication reduces chances of infection and is cheap, with enterprise solutions ranging from $2 to $5 per user on average. Be strict and deny access when connections don’t authenticate.

    “You'll never stop everything from getting into the network. You can still focus on stopping the bad actors, but then if they do make it in, make sure they don't get far.” (John Doe, CIO, “The Firm”)

    “The Firm” (Mid-Sized Manufacturer)

    • During the crisis, The Firm paused all activities and focused solely on isolating and eliminating the ransomware threat.
    • New outsourcing relationship with a vendor provides a 24/7 Security Operations Center.
    • One more full-time employee on the security team.
    • Doubled investment in security in 2021 and will spend more in 2022.

    Outcomes at “The Firm” (Mid-Sized Manufacturer)

    The new cost of doing business

    Real-time security: While The Firm is still investing in prevention-based security, it is also developing its real-time detection and response capabilities. When ransomware makes it through the cracks, it wants to know as soon as possible and stop it.

    Leadership commitment: The C-suite is taking the experience as a wake-up call that more investment is required in today’s threat landscape. The Firm rates security more highly as an overall organizational goal, not just something for IT to worry about.

    Stock photo of someone using their phone while sitting at a computer, implying multi-factor authentication.
    The Firm now uses multi-factor authentication as part of its employee sign-on process. For employees, authenticating is commonly achieved by using a mobile app that receives a secret code from the issuer.

    From Priorities to Action

    Cybersecurity is everyone’s responsibility

    In Info-Tech’s CEO-CIO Alignment Benchmark for 2021, the business goal of “Manage Risk” was the single biggest point of disagreement between CIOs and their direct supervisors. CIOs rank it as the second-most important business goal, while CEOs rank it as sixth-most important.

    Organizations should align on managing risk as a top priority given the severity of the ransomware threat. The threat actors and nature of the attacks are such that top leadership must prepare for when ransomware hits. This includes halting operations quickly to contain damage, engaging third-party security forensics experts, and coordinating with government regulators.

    Cybersecurity strategies may be challenged to be effective without creating some friction for users. Organizations should look beyond multi-layer prevention strategies and lean toward quick detection and response, spending evenly across prevention, detection, and response solutions.

    Take the next step

    Create a Ransomware Incident Response Plan
    Don’t be the next headline. Determine your current readiness, response plan, and projects to close gaps.

    Simplify Identity and Access Management
    Select and implement IAM and produce vendor RFPs that will contain the capabilities you need, including multi-factor authentication.

    Cybersecurity Series Featuring Sandy Silk
    More from Info-Tech’s Senior Workshop Director Sandy Silk in this video series created while she was still at Harvard University.

    Gap between CIOs and CEOs in points allocated to “Manage risk” as a top business goal

    A bar chart illustrating the gap between CIOs and CEOs in points allocated to 'Manage risk' as a top business goal. The difference is marked as Delta 1.5.

    Support an employee-centric retention strategy

    Priority 03 | ITRG02 Leadership, Culture & Values

    Avoid being a victim of “The Great Resignation” by putting employees at the center of an experience that will engage them with clear career path development, purposeful work, and transparent feedback.

    Defining an employee-first culture that improves retention

    The Great resignation isn’t good for firms

    In 2021, many workers decided to leave their jobs. Working contexts were disrupted by the pandemic and that saw non-essential workers sent home to work, while essential workers were asked to continue to come into work despite the risks of COVID-19. These disruptions may have contributed to many workers reevaluating their professional goals and weighing their values differently. At the same time, 2021 saw a surging economy and many new job opportunities to create a talent-hungry market. Many workers could have been motivated to take a new opportunity to increase their salary or receive other benefits such as more flexibility.

    Annual turnover rate for all us employees on the rise

    • 20% – Jan.-Aug. 2020, Dipped from 22% in 2019
    • 25% Jan.-Aug. 2021, New record high
      • Data from Visier Inc.

    When you can’t pay them, develop them

    IT may be less affected than other departments by this trend. Info-Tech’s 2022 IT Talent Trends Report shows that on average, estimated turnover rate in IT is lower than the rest of the organization. Almost half of respondents estimated their organization’s voluntary turnover rate was 10% or higher. Only 30% of respondents estimate that IT’s voluntary turnover rate is in the same range. However, CIOs working in industries with the highest turnover rates will have to work to keep their workers engaged and satisfied, as IT skills are easily transferred to other industries.

    49% ranked “enabling learning & development within IT” as high priority, more than any other single challenge. (IT Talent Trends 2022 Survey, N=227)

    A bar chart of 'Industries with highest turnover rates (%)' with 'Leisure and Hospitality' at 6.4%, 'Trade, Transportation & Utilities' at 3.6%, 'Professional and Business' at 3.3%, and 'Other Services' at 3.1%. U.S. Bureau of Labor Statistics, 2022.

    Jeff Previte

    Executive Vice-President of IT, CrossCountry Mortgage

    “We have to get to know the individual at a personal level … Not just talking about the business, but getting to know the person."

    		 Photo of Jeff Previte, Executive Vice-President of IT, CrossCountry Mortgage.

    Listen to the Tech Insights podcast:
    How a financial services company dodged ‘The Great Resignation’

    Internal interpretation: CrossCountry Mortgage

    • May 2019
      Jeff Previte joins Cleveland, Ohio-based CrossCountry Mortgage in the CIO role. The company faces a challenge with employee turnover, particularly in IT. The firm is a sales-focused organization and saw its turnover rate reach as high as 60%. Yet Previte recognized that IT had some meaningful goals to achieve and would need to attract – and retain – some higher caliber talent. His first objective in his new role was to meet with IT employees and business leadership to set priorities.
    • July 2019
      Previte takes a “people-first” approach to leadership and meets his staff face-to-face to understand their personal situations. He sets to work on defining roles and responsibilities in the organization, spending about a fifth of his time on defining the strategy.
    • June 2020
      Previte assigned his leadership team to McLean & Company’s Design an Impactful Employee Development Program. From there, the team developed a Salesforce tool called the Career Development Workbook. “We had some very passionate developers and admins that wanted to build a home-grown tool,” he says. It turns McLean & Company’s process into a digital tool employees can use to reflect on their careers and explore their next steps. It helps facilitate development conversations with managers.
    • January 2021
      CrossCountry Mortgage changes its approach to career development activities. Going to external conferences and training courses is reduced to just 30% of that effort. The rest is by doing hands-on work at the company. Previte aligned with his executives and road-mapped IT projects annually. Based on employee’s interests, opportunities are found to carve out time from usual day-to-day activities to spend time on a project in a new area. When there’s a business need, someone internally can be ready to transition roles.
    • June 2021
      In the two years since joining the company, Previte has reduced the turnover rate to just 12%. The IT department has grown to more adequately meet the needs of the business and employees are engaged with more opportunities to develop their careers. Instead of focusing on compensation, Previte focused more on engaging employees with a developmentally dedicated environment and continuous hands-on learning.

    “It’s come down to a culture shift. Folks have an idea of where we’re headed as an organization, where we’re headed as an IT team, and how their role contributes to that.” (Jeff Previte, EVP of IT, CrossCountry Mortgage)

    Implications: Organization, Process, Technology

    External

    • Organization – A high priority is being placed on improving IT’s maturity through its talent. Enabling learning and development in IT, enabling departmental innovation, and recruiting are the top three highest priorities according to IT Talent Trends 2022 survey responses.
    • Process – Recruiting is more challenging for industries that operate primarily onsite, according to McLean & Company's 2022 HR Trends Report. They face more challenges attracting applications, more rejected offers, and more candidate ghosting compared to remote-capable industries.
    • Technology – Providing a great employee experience through digital tools is more important as many organizations see a mix of workers in the office and at home. These tools can help connect colleagues, foster professional development, and improve the candidate experience.

    Internal

    • Organization – CrossCountry Mortgage faced a situation where IT employees did not have clarity on their roles and responsibilities. In terms of salary, it wasn’t offering at the high end compared to other employers in Cleveland.
    • Process – To foster a culture of growth and development, CrossCountry Mortgage put in place a performance assessment system that encouraged reflection and goal setting, aided by collaboration with a manager.
    • Technology – The high turnover rate was limiting CrossCountry Mortgage from achieving the level of maturity it needed to support the company’s goals. It ingrained its new PA process with a custom build of a Salesforce tool.

    Resources Applied

    Show me the money

    Almost six in ten Talent Trends survey respondents identified salary and compensation as the reason that employees resigned in the past year. Organizations looking to engage employees must first pay a fair salary according to market and industry conditions.

    Build me up

    Professional development and opportunity for innovative work are the next two most common reasons for resignations. Organizations must ensure they create enough capacity to allow workers time to spend on development.

    “Building our own solution created an element of engagement. There was a sense of ownership that the team had in thinking through this.” (Jeff Previte, CrossCountry Mortgage)

    CrossCountry Mortgage

    • Executive time: CIO spends 10-20% of his time on activities related to designing the approach.
    • Leveraged memberships with Info-Tech Research Group and McLean & Company to define professional development process.
    • Internal IT develops automated workflow in Salesforce.
    • Hired additional IT staff to build out overall capacity and create time for development activities.

    Outcomes at CrossCountry Mortgage

    Engaged IT workforce

    The Great Maturation: IT staff turnover rate dropped to 10-12% and IT talent is developing on the job to improve the department’s overall skill level. More IT staff on hand and more engaged workers mean IT can deliver higher maturity level results.

    Alignment achieved: Connecting IT’s initiatives to the vision of the C-suite creates a clear purpose for IT in its initiatives. Staff understand what they need to achieve to progress their careers and can grow while they work.

    Photo of employees from CrossCountry Mortgage assisting with a distribution event.
    Employees from CrossCountry Mortgage headquarters assist with a drive-thru distribution event for the Cleveland Food Bank on Dec. 17, 2021. (Image courtesy of CrossCountry Mortgage.)

    From Priorities to Action

    Staff retention is a leadership priority

    The Great Resignation trend is bringing attention to employee engagement and staff retention. IT departments are busier than ever during the pandemic as they work overtime to keep up with a remote workforce and new security threats. At the same time, IT talent is among the most coveted on the market.

    CIOs need to develop a people-first approach to improve the employee experience. Beyond compensation, IT workers need clarity in terms of their career paths, a direct connection between their work and the goals of the organization, and time set aside for professional development.

    Info-Tech’s 2021 benchmark for “Leadership, Culture & Values” shows that most organizations rate this capability very highly (9) but see room to improve on their effectiveness (6.9).

    Take the next step

    IT Talent Trends 2022
    See how IT talent trends are shifting through the pandemic and understand how themes like The Great Resignation has impacted IT.

    McLean & Company’s Modernize Performance Management
    Customize the building blocks of performance management to best fit organizational needs to impact individual and organizational performance, productivity, and engagement.

    Redesign Your IT Organizational Structure
    Define future-state work units, roles, and responsibilities that will enable the IT organization to complete the work that needs to be done.

    “Leadership, Culture & Values” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'Leadership, Culture & Values' gap between importance and effectiveness. The difference is marked as Delta 2.1.

    Design an automation platform

    Priority 04 | APO04 Innovation

    Position yourself to buy or build a platform that will enable new automation opportunities through seamless integration.

    Build it or buy it, but platform integration can yield great benefits

    Necessity is the mother of innovation

    When it’s said that digital transformation accelerated during the pandemic, what’s really meant is that processes that were formerly done manually became automated through software. In responses to the Tech Trends survey, CIOs say digital transformation was more of a focus during the pandemic, and eight in ten CIOs also say they shifted more than 20% of their organization’s processes to digital during the pandemic. Automating tasks through software can be called digitalization.

    Most organizations became more digitalized during the pandemic. But how they pursued it depends on their IT maturity. For digital laggards, partnering with a technology services platform is the path of least resistance. For sophisticated innovators, they can consider building a platform to address the specific needs of their business process. Doing so requires the foundation of an existing “digital factory” or innovation arm where new technologies can be tested, proofs of concept developed, and external partnerships formed. Patience is key with these efforts, as not every investment will yield immediate returns and some will fail outright.

    Build it or buy it, platform participants integrate with their existing systems through application programming interfaces (APIs). Organizations should determine their platform strategies based on maturity, then look to integrate the business processes that will yield the most gains.

    What role should you play in the platform ecosystem?

    A table with levels on the maturity ladder laid out as a sprint. Column headers are maturity levels 'Struggle', 'Support', 'Optimize', 'Expand', and 'Transform', row headers are 'Maturity' and 'Role'. Roles are assigned to one or many levels. 'Improve' is solely under Struggle. 'Integrate' spans from Support to Transform. 'Buy' spans Support to Expand. 'Build' begins midway through Expand and all of Transform. 'Partner' spans from Optimize to halfway through Transform.

    68% of CIOs say digital transformation became much more of a focus for their organization during the pandemic (Info-Tech Tech Trends 2022 Survey)

    Bob Crozier

    Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE

    "Smart contracts are really just workflows between counterparties."

    		 Photo of Bob Crozier, Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE.

    Listen to the Tech Insights podcast:
    How Allianz took a blockchain platform from pilot to 1 million transactions

    Internal interpretation: Allianz Technology

    • 2015
      After smart contracts are demonstrated on the Ethereum blockchain, Allianz and other insurers recognize the business value. There is potential to use the capability to administer a complex, multi-party contract where the presence of the reinsurer in the risk transfer ecosystem is required. Manual contracts could be turned into code and automated. Allianz organized an early proof of concept around a theoretical pandemic excessive loss contract.
    • 2018
      Allianz Chief Architect Bob Crozier is leading the Global Blockchain Center of Competence for Allianz. They educate Allianz on the value of blockchain for business. They also partner with a joint venture between the Technology University of Munich and the state of Bavaria. A cohort of Masters students is looking for real business problems to solve with open-source distributed ledger technology. Allianz puts its problem statement in front of the group. A student team presents a proof of concept for an international motor insurance claims settlement and it comes in second place at a pitch day competition.
    • 2019
      Allianz brings the concept back in-house, and its business leaders return to the concept. Startup Luther Systems is engaged to build a minimum-viable product for the solution, with the goal being a pilot involving three or four subsidiaries in different countries. The Blockchain Center begins communicating with 25 Allianz subsidiaries that will eventually deploy the platform.
    • 2020
      Allianz is in build mode on its international motor insurance claims platform. It leverages its internal Dev/SecOps teams based in Munich and in India.
    • May 2021
      Allianz goes live with its new platform on May 17, decommissioning its old system and migrating all live claims data onto the new blockchain platform. It sees 400 concurrent users go live across Europe.
    • January 2022
      Allianz mines its one-millionth block to its ledger on Jan. 19, with each block representing a peer-to-peer transaction across its 25 subsidiaries in different countries. The platform has settled hundreds of millions of dollars.

    Stock photo of two people arguing over a car crash.

    Implications: Organization, Process, Technology

    External

    • Organization – To explore emerging technologies like blockchain, organizations need staff that are accountable for innovation and have leeway to develop proofs of concept. External partners are often required to bring in fresh ideas and move quickly towards an MVP.
    • Process – According to the Tech Trends 2022 survey, 84% of CIOs consider automation a high-value digital capability, and 77% say identity verification is a high-value capability. A blockchain platform using smart contracts can deliver those.
    • Technology – The Linux Foundation’s Hyperledger Fabric is an open-source blockchain technology that’s become popular in the financial industry for its method of forming consensus and its modular architecture. It’s been adopted by USAA, MasterCard, and PayPal. It also underpins the IBM Blockchain Platform and is supported by Azure Blockchain.

    Internal

    • Organization – Allianz is a holding company that owns Allianz Technology and 25 operating entities across Europe. It uses the technology arm to innovate on the business process and creates shared platforms that its entities can integrate with to automate across the value chain.
    • Process – Initial interest in smart contracts on blockchain were funneled into a student competition, where a proof of concept was developed. Allianz partnered with a startup to develop an MVP, then developed the platform while aligning with its business units ahead of launch.
    • Technology – Allianz built its blockchain platform on Hyperledger Fabric because it was a permissioned system, unlike other public permissionless blockchains such as Ethereum, and because its mining mechanism was much more energy efficient compared to other blockchains using Proof of Work consensus models.

    Resources Applied

    Time to innovate

    Exploring emerging technology for potential use cases is difficult for staff tasked with running day-to-day operations. Organizations serious about innovation create a separate team that can focus on “moonshot” projects and connect with external partners.

    Long-term ROI

    Automation of new business processes often requires a high upfront initial investment for a long-term efficiency gain. A proof of concept should demonstrate clear business value that can be repeated often and for a long period.

    “My next project has to deliver in the tens of millions of value in return. The bar is high and that’s what it should be for a business of our size.” (Bob Crozier, Allianz)

    Allianz

    • Several operating entities from different countries supplied subject matter expertise and helped with the testing process.
    • Allianz Technology team has eight staff members. It is augmented by Luther Systems and the team at industry group B3i.
    • Funding of less than $5 million to develop. Dev team continues to add improvements.
    • Operating requires just one full-time employee plus infrastructure costs, mostly for public cloud hosting.

    Outcomes at Allianz

    From insurer to platform provider

    Deliver your own SaaS: Allianz Technology built its blockchain-based claims settlement platform and its subsidiaries consume it as software as a service. The platform runs on a distributed architecture across Europe, with each node running the same version of the software. Operating entities can also integrate their own systems to the platform via APIs and further automate business processes such as billing.

    Ready to scale: After processing one million transactions, the international claims settlement platform is proven and ready to add more participants. Crozier sees auto repair shops and auto manufacturers as the next logical users.

    Stock photo of Blockchain.
    Allianz is a shareholder of the Blockchain Insurance Industry Initiative (B3i). It is providing a platform used by a group of insurance companies in the commercial and reinsurance space.

    When should we use blockchain? THREE key criteria:

    • Redundant processes
      Different entities follow the same process to achieve the desired outcome.
    • Audit trail
      Accountability in the decision making must be documented.
    • Reconciliation
      Parties need to be able to resolve disputes by tracing back to the truth.

    From Priorities to Action

    It’s a build vs. buy question for platforms

    Allianz was able to build a platform for its group of European subsidiaries because of its established digital factory and commitment to innovation. Allianz Technology is at the “innovate” level of IT maturity, allowing it to create a platform that subsidiaries can integrate with via APIs. For firms that are lower on the IT maturity scale, buying a platform solution is the better path to automation. These firms will be concerned with integrating their legacy systems to platforms that can reduce the friction of their operating environments and introduce modern new capabilities.

    From Info-Tech’s Build a Winning Business Process Automation Playbook

    An infographic comparing pros and cons of Build versus Buy. On the 'Build: High Delivery Capacity & Capability' side is 'Custom Development', 'Data Integration', 'AI/ML', 'Configuration', 'Native Workflow', and 'Low & No Code'. On the 'Buy: Low Delivery Capacity & Capability' side is 'Outsource Development', 'iPaaS', 'Chatbots', 'iBPMS & Rules Engines', 'RPA', and 'Point Solutions'.

    Take the next step

    Accelerate Your Automation Processes
    Integrate automation solutions and take the first steps to building an automation suite.

    Build Effective Enterprise Integration on the Back of Business Process
    From the backend to the frontlines – let enterprise integration help your business processes fly.

    Evolve Your Business Through Innovation
    Innovation teams are tasked with the responsibility of ensuring that their organizations are in the best position to succeed while the world is in a period of turmoil, chaos, and uncertainty.

    “Innovation” gap between importance and effectiveness Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'Innovation' gap between importance and effectiveness. The difference is marked as Delta 2.1.

    Prepare to report on new environmental, social, and governance (ESG) metrics

    Priority 05 | ITRG06 Business Intelligence and Reporting

    Be ready to either lead or support initiatives to meet the criteria of new ESG reporting mandates and work toward disclosure reporting solutions.

    Time to get serious about ESG

    What does CSR or ESG mean to a CIO?

    Humans are putting increasing pressure on the planet’s natural environment and creating catastrophic risks as a result. Efforts to mitigate these risks have been underway for the past 30 years, but in the decade ahead regulators are likely to impose more strict requirements that will be linked to the financial value of an organization. Various voluntary frameworks exist for reporting on environmental, social, and governance (ESG) or corporate social responsibility (CSR) metrics. But now there are efforts underway to unify and clarify those standards.

    The most advanced effort toward a global set of standards is in the environmental area. At the United Nations’ COP26 summit in Scotland last November, the International Sustainability Standards Board (ISSB) announced its headquarters (Frankfurt) and three other international office locations (Montreal, San Francisco, and London) and its roadmap for public consultations. It is working with an array of voluntary standards groups toward a consensus.

    In Info-Tech’s 2022 Tech Trends survey, two-thirds of CIOs say their organization is committed to reducing greenhouse gas emissions, yet only 40% say their organizational leadership is very concerned with reducing those emissions. CIOs will need to consider how to align organizational concern with internal commitments and new regulatory pressures. They may investigate new real-time reporting solutions that could serve as a competitive differentiator on ESG.

    Standards informing the ISSB’s global set of climate standards

    A row of logos of organizations that inform ISSB's global set of climate standards.

    67% of CIOs say their organization is committed to reducing greenhouse gases, with one-third saying that commitment is public. (Info-Tech Tech Trends 2022 Survey)

    40% of CIOs say their organizational leadership is very concerned with reducing greenhouse gas emissions.

    David W. Dorman

    Chairman of the board, CVS Health

    “ESG is a question of what you do in the microcosm of your company to make sure there is a clear, level playing field – that there is a color-blind, gender-blind meritocracy available – that you are aware that not in every case can you achieve that without really focusing on it. It’s not going to happen on its own. That’s why our commitments have real dollars behind them and real focus behind them because we want to be the very best at doing them.”

    		Photo of David W. Dorman, Chairman of the Board, CVS Health.

    Listen to the Tech Insights podcast:
    CVS Health chairman David Dorman on healthcare's hybrid future

    Internal interpretation: CVS Health

    CVS Health established a new steering committee of senior leaders in 2020 to oversee ESG commitments. It designs its corporate social responsibility strategy, Transform Health 2030, by aligning company activities in four key areas: healthy people, healthy business, healthy planet, and healthy community. The strategy aligns with the United Nations’ Sustainable Development Goals. In alignment with these goals, CVS identifies material topics where the company has the most ability to make an impact. In 2020, its top three topics were:

    1. Access to quality health care
    2. Patient and customer safety
    3. Data protection and privacy
    Material Topic
    Access to quality health care
    Material Topic
    Patient and customer safety
    Material Topic
    Data protection and privacy
    Technology Initiative
    MinuteClinic’s Virtual Collaboration for Nurses

    CVS provided Apple iPads compliant with the Health Insurance Portability and Accountability Act (HIPAA) to clinics in a phased approach, providing training to more than 700 providers in 26 states by February 2021. Nurses could use the iPads to attend virtual morning huddles and access clinical education. Nurses could connect virtually with other healthcare experts to collaborate on delivering patient care in real-time. The project was able to scale across the country through a $50,000 American Nurses Credentialing Center Pathway Award. (Wolters Kluwer Health, Inc.)

    Technology Initiative
    MinuteClinic’s E-Clinic

    MinuteClinics launched this telehealth solution in response to the pandemic, rolling it out in three weeks. The solution complemented video visits delivered in partnership with the Teladoc platform. Visits cost $59 and are covered by Aetna insurance plans, a subsidiary of CVS Health. It hosted more than 20,000 E-Clinic visits through the end of 2020. CVS connected its HealthHUBs to the solution to increase capacity in place of walk-in appointments and managed patients via phone for medication adherence and care plans. CVS also helped behavioral health providers transition patients to virtual visits. (CVS Health)

    Technology Initiative
    Next Generation Authentication Platform

    CVS patented this solution to authenticate customers accessing digital channels. It makes use of the available biometrics data and contextual information to validate identity without the need for a password. CVS planned to extend the platform to voice channels as well, using voiceprint technology. The solution prevents unauthorized access to sensitive health data while providing seamless access for customers. (LinkedIn)

    Implications: Organization, Process, Technology

    External

    • Organization – Since the mid-2010s, younger investors have demonstrated reliance on ESG data when making investment decisions, resulting in the creation of voluntary standards that offered varied approaches. Organizations in ESG exchange-traded funds are outperforming the overall S&P 500 (S&P Global Market Intelligence).
    • Process – Organizations are issuing ESG reports today despite the absence of clear rules to follow for reporting results. With regulators expected to step in to establish more rigid guidelines, many organizations will need to revisit their approach to ESG reports.
    • Technology – Real-time reporting of ESG metrics will become a competitive advantage before 2030. Engineering a solution that can alert organizations to poor performance on ESG measures and allow them to respond could avert losing market value.

    Internal

    • Organization – CVS Health established an ESG Steering Committee in 2020 composed of senior leaders including its chief governance officers, chief sustainability officer, chief risk officer, and controller and SVP of investor relations. It is supported by the ESG Operating Committee.
    • Process – CVS conducts a materiality assessment in accordance with Global Reporting Initiative standards to determine the most significant ESG impacts it can make and what topics most influence the decisions of stakeholders. It engages with various stakeholder groups on CSR topics.
    • Technology – CVS technology initiatives during the pandemic focused on supporting patients and employees in collaborating on health care delivery using virtual solutions, providing rich digital experiences that are easily accessible while upholding high security and privacy standards.

    Resources Applied

    Lack of commitment

    While 83% of businesses state support for the Sustainable Development Goals outlined by the Global Reporting Initiative (GRI), only 40% make measurable commitments to their goals.

    Show your work

    The GRI recommends organizations not only align their activities with sustainable development goals but also demonstrate contributions to specific targets in reporting on the positive actions they carry out. (GRI, “State of Progress: Business Contributions to the SDGS.”)

    “We end up with a longstanding commitment to diversity because that’s what our customer base looks like.” (David Dorman, CVS Health)

    CVS Health

    • The MinuteClinic Virtual Collaboration solution was piloted in Houston, demonstrated success, and won additional $50,000 funding from the Pathway to Excellence Award to scale the program across the country (Wolters Kluwer Health, Inc.).
    • The Next-Gen Authentication solution is provided by the vendor HYPR. It is deployed to ten million users and looking to scale to 30 million more. Pricing for enterprises is quoted at $1 per user, but volume pricing would apply to CVS (HYPR).

    Outcomes at CVS Health

    Delivering on hybrid healthcare solutions

    iPads for collaboration: Healthcare practitioners in the MinuteClinic Virtual Collaboration initiative agreed that it improved the use of interprofessional teams, working well virtually with others, and improved access to professional resources (Wolters Kluwer Health, Inc.)

    Remote healthcare: Saw a 400% increase in MinuteClinic virtual visits in 2020 (CVS Health).

    Verified ID: The Next Generation Authentication platform allowed customers to register for a COVID-19 vaccination appointment. CVS has delivered more than 50 million vaccines (LinkedIn).

    Stock photo of a doctor with an iPad.
    CVS Health is making use of digital channels to connect its customers and health practitioners to a services platform that can supplement visits to a retail or clinic location to receive diagnostics and first-hand care.

    From Priorities to Action

    Become your organization’s ESG Expert

    The risks posed to organizations and wider society are becoming more severe, driving a transition from voluntary frameworks for ESG goals to a mandatory one that’s enforced by investors and governments. Organizations will be expected to tie their core activities to a defined set of ESG goals and maintain a balance sheet of their positive and negative impacts. CIOs should become experts in ESG disclosure requirements and recommend the steps needed to meet or exceed competitors’ efforts. If a leadership vacuum for ESG accountability exists, CIOs can either seek to support their peers that are likely to become accountable or take a leadership role in overseeing the area. CIOs should start working toward solutions that deliver real-time reporting on ESG goals to make reporting frictionless.

    “If you don’t have ESG oversight at the highest levels of the company, it won’t wind up getting the focus. That’s why we review it at the Board multiple times per year. We have an annual report, we compare how we did, what we intended to do, where did we fall short, where did we exceed, and where we can run for daylight to do more.” (David Dorman, CVS Health)

    Take the next step

    ESG Disclosures: How Will We Record Status Updates on the World We Are Creating?
    Prepare for the era of mandated environmental, social, and governance disclosures.

    Private Equity and Venture Capital Growing Impact of ESG Report
    Learn about how the growing impact of ESG affects both your organization and IT specifically, including challenges and opportunities, with expert assistance.

    “Business Intelligence and Reporting” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'BI and Reporting' gap between importance and effectiveness. The difference is marked as Delta 2.4.

    The Five Priorities

    Priorities to compete in the digital economy

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Contributing Experts

    Elizabeth Clark

    CIO, Harvard Business School
    		Photo of Elizabeth Clark, CIO, Harvard Business School.

    Jeff Previte

    Executive Vice-President of IT, CrossCountry Mortgage
    		Photo of Jeff Previte, Executive Vice-President of IT, CrossCountry Mortgage.

    Bob Crozier

    Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE
    		Photo of Bob Crozier, Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE.

    David W. Dorman

    Chairman of the Board, CVS Health
    		Photo of David W. Dorman, Chairman of the Board, CVS Health.

    Info-Tech’s internal CIO panel contributors

    • Bryan Tutor
    • John Kemp
    • Mike Schembri
    • Janice Clatterbuck
    • Sandy Silk
    • Sallie Wright
    • David Wallace
    • Ken McGee
    • Mike Tweedie
    • Cole Cioran
    • Kevin Tucker
    • Angelina Atkins
    • Yakov Kofner
    		 Photo of an internal CIO panel contributor. Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.
    Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.
    Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.

    Thank you for your support

    Logo for the Blockchain Research Institute.
    Blockchain Research Institute

    Bibliography – CIO Priorities 2022

    “2020 Corporate Social Responsibility Report.” CVS Health, 2020, p. 127. Web.

    “Adversary: Doppel Spider - Threat Actor.” Crowdstrike Adversary Universe, 2021. Accessed 29 Dec. 2021.

    “Aetna CVS Health Success Story.” HYPR, n.d. Accessed 6 Feb. 2022.

    Baig, Aamer. “The CIO agenda for the next 12 months: Six make-or-break priorities.” McKinsey Digital, 1 Nov. 2021. Web.

    Ball, Sarah, Kristene Diggins, Nairobi Martindale, Angela Patterson, Anne M. Pohnert, Jacinta Thomas, Tammy Todd, and Melissa Bates. “2020 ANCC Pathway Award® winner.” Wolters Kluwer Health, Inc., 2021. Accessed 6 Feb. 2022.

    “Canadian Universities Propose Designs for a Central Bank Digital Currency.” Bank of Canada, 11 Feb. 2021. Accessed 14 Dec. 2021.

    “Carbon Sequestration in Wetlands.” MN Board of Water and Soil Resources, n.d. Accessed 15 Nov. 2021.

    “CCM Honored as a NorthCoast 99 Award Winner.” CrossCountry Mortgage, 1 Dec. 2021. Web.

    Cheek, Catherine. “Four Things We Learned About the Resignation Wave–and What to Do Next.” Visier Inc. (blog), 5 Oct. 2021. Web.

    “Companies Using Hyperledger Fabric, Market Share, Customers and Competitors.” HG Insights, 2022. Accessed 25 Jan. 2022.

    “IFRS Foundation Announces International Sustainability Standards Board, Consolidation with CDSB and VRF, and Publication of Prototype Disclosure Requirements.” IFRS, 3 Nov. 2021. Web.

    “IT Priorities for 2022: A CIO Report.” Mindsight, 28 Oct. 2021. Web.

    “Job Openings and Labor Turnover Survey.” Databases, Tables & Calculators by Subject, U.S. Bureau of Labor Statistics, 2022. Accessed 9 Feb. 2022.

    Kumar, Rashmi, and Michael Krigsman. “CIO Planning and Investment Strategy 2022.” CXOTalk, 13 Sept. 2021. Web.

    Leonhardt, Megan. “The Great Resignation Is Hitting These Industries Hardest.” Fortune, 16 Nov. 2021. Accessed 7 Jan. 2022.

    “Most companies align with SDGs – but more to do on assessing progress.” Global Reporting Initiative (GRI), 17 Jan. 2022. Web.

    Navagamuwa, Roshan. “Beyond Passwords: Enhancing Data Protection and Consumer Experience.” LinkedIn, 15 Dec. 2020.

    Ojo, Oluwaseyi. “Achieving Digital Business Transformation Using COBIT 2019.” ISACA, 19 Aug. 2019. Web.

    “Priority.” Lexico.com, Oxford University Press, 2021. Web.

    Riebold, Jan, and Yannick Bartens. “Reinventing the Digital IT Operating Model for the ‘New Normal.’” Capgemini Worldwide, 3 Nov. 2020. Web.

    Samuels, Mark. “The CIO’s next priority: Using the tech budget for growth.” ZDNet, 1 Sept. 2021. Accessed 1 Nov. 2021.

    Sayer, Peter. “Exclusive Survey: CIOs Outline Tech Priorities for 2021-22.” CIO, 5 Oct. 2021. Web.

    Shacklett, Mary E. “Where IT Leaders Are Likely to Spend Budget in 2022.” InformationWeek, 10 Aug. 2021. Web.

    “Table 4. Quits Levels and Rates by Industry and Region, Seasonally Adjusted - 2021 M11 Results.” U.S. Bureau of Labor Statistics, Economic News Release, 1 Jan. 2022. Accessed 7 Jan. 2022.

    “Technology Priorities CIOs Must Address in 2022.” Gartner, 19 Oct. 2021. Accessed 1 Nov. 2021.

    Thomson, Joel. Technology, Talent, and the Future Workplace: Canadian CIO Outlook 2021. The Conference Board of Canada, 7 Dec. 2021. Web.

    “Trend.” Lexico.com, Oxford University Press, 2021. Web.

    Vellante, Dave. “CIOs signal hybrid work will power tech spending through 2022.” SiliconANGLE, 25 Sept. 2021. Web.

    Whieldon, Esther, and Robert Clark. “ESG funds beat out S&P 500 in 1st year of COVID-19; how 1 fund shot to the top.” S&P Global Market Intelligence, April 2021. Accessed Dec. 2021.

    Choose a Right-Sized Contact Center Solution

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    • Parent Category Name: Strategy and Organizational Design
    • Parent Category Link: /strategy-and-organizational-design
    • IT needs a method to pinpoint which contact center solution best aligns with business objectives, adapting to a post-COVID world of remote work, flexibility, and scalability.
    • Scoring RFP and RFQ proposals is a complex process, and it is difficult to map and gap without a clear view of the organization’s needs. SOWs can contain pitfalls that cause expensive headaches for the organization in the long run. Guidance through a SOW is required to best represent the organization’s interests.

    Our Advice

    Critical Insight

    • “On-premises versus cloud” is a false dichotomy. Contact center architectures come in all shapes and sizes, and organizations should discern whether a hybrid option best meets their needs.
    • Contact centers should service customers – not capabilities. Capabilities must work for you, your agents, and your customers – not the other way around.
    • Deliverables and responsibilities should be a contract’s focal point. While organizations are right to focus on avoiding unanticipated license charges, it is more important to clearly define how deliverables and responsibilities will be divided among the organization, the vendor, and potential third parties.

    Impact and Result

    • Assess the array of contact center architectures with Info-Tech’s Contact Center Decision Points Tool to select a right-sized solution.
    • Build business requirements in a formalized process to achieve stakeholder buy-in.
    • Use Info-Tech’s Contact Center RFP Scoring Tool to evaluate and choose from a range of vendors.
    • Successfully navigate and avoid major pitfalls in a SOW construction.
    • Justify each stage of the process with this blueprint’s key deliverable: the Contact Center Playbook.

    Choose a Right-Sized Contact Center Solution Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to examine the current contact center marketspace, review Info-Tech’s methodology for choosing a right-sized contact center solution, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess Contact Center Architectures

    Establish your project vision and metrics of success before shortlisting potential contact center architectures and deciding which is right-sized for the organization.

    • Choose a Right-Sized Contact Center Solution – Phase 1: Assess Contact Center Architectures
    • Contact Center Playbook
    • Contact Center Decision Points Tool

    2. Gather Requirements and Shortlist Vendors

    Build business requirements to achieve stakeholder buy-in, define key deliverables, and issue an RFP/RFQ to shortlisted vendors.

    • Choose a Right-Sized Contact Center Solution – Phase 2: Gather Requirements and Shortlist Vendors
    • Requirements Gathering Documentation Tool
    • Lean RFP Template
    • Contact Center Business Requirements Document
    • Request for Quotation Template
    • Long-Form RFP Template

    3. Score Vendors and Construct SOW

    Score RFP/RFQ responses and decide upon a vendor before constructing a SOW.

    • Choose a Right-Sized Contact Center Solution – Phase 3: Score Vendors and Construct SOW
    • Contact Center RFP Scoring Tool
    • Contact Center SOW Template and Guide
    [infographic]

    Workshop: Choose a Right-Sized Contact Center Solution

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Assess Architecture

    The Purpose

    Shortlist and decide upon a right-sized contact center architecture.

    Key Benefits Achieved

    A high-level decision for a right-sized architecture

    Activities

    1.1 Define vision and mission statements.

    1.2 Identify infrastructure metrics of success.

    1.3 Confirm key performance indicators for contact center operations.

    1.4 Complete architecture assessment.

    1.5 Confirm right-sized architecture.

    Outputs

    Project outline

    Metrics of success

    KPIs confirmed

    Quickly narrow down right-sized architecture

    Decision on right-sized contact center architecture

    2 Gather Requirements

    The Purpose

    Build business requirements and define key deliverables to achieve stakeholder buy-in and shortlist potential vendors.

    Key Benefits Achieved

    Key deliverables defined and a shortlist of no more than five vendors

    Sections 7-8 of the Contact Center Playbook completed

    Activities

    2.1 Hold focus groups with key stakeholders.

    2.2 Gather business, nonfunctional, and functional requirements.

    2.3 Define key deliverables.

    2.4 Shortlist five vendors that appear meet those requirements.

    Outputs

    User requirements identified

    Business Requirements Document completed

    Key deliverables defined

    Shortlist of five vendors

    3 Initial Vendor Scoring

    The Purpose

    Compare and evaluate shortlisted vendors against gathered requirements.

    Key Benefits Achieved

    Have a strong overview of which vendors are preferred for issuing RFP/RFQ

    Section 9 of the Contact Center Playbook

    Activities

    3.1 Input requirements to the Contact Center RFP Scoring Tool. Define which are mandatory and which are desirable.

    3.2 Determine which vendors best meet requirements.

    3.3 Compare requirements met with anticipated TCO.

    3.4 Compare and rank vendors.

    Outputs

    An assessment of requirements

    Vendor scoring

    A holistic overview of requirements scoring and vendor TCO

    An initial ranking of vendors to shape RFP process after workshop end

    4 SOW Walkthrough

    The Purpose

    Walk through the Contact Center SOW Template and Guide to identify how much time to allocate per section and who will be responsible for completing it.

    Key Benefits Achieved

    An understanding of a SOW that is designed to avoid major pitfalls with vendor management

    Section 10 of the Contact Center Playbook

    Activities

    4.1 Get familiar with the SOW structure.

    4.2 Identify which sections will demand greater time allocation.

    4.3 Strategize how to avoid potential pitfalls.

    4.4 Confirm reviewer responsibilities.

    Outputs

    A broad understanding of a SOW’s key sections

    A determination of how much time should be allocated for reviewing major sections

    A list of ways to avoid major pitfalls with vendor management

    A list of reviewers, the sections they are responsible for reviewing, and their time allocation for their review

    5 Communicate and Implement

    The Purpose

    Finalize deliverables and plan post-workshop communications.

    Key Benefits Achieved

    A completed Contact Center Playbook that justifies each decision of this workshop

    Activities

    5.1 Finalize deliverables.

    5.2 Support communication efforts.

    5.3 Identify resources in support of priority initiatives.

    Outputs

    Contact Center Playbook delivered

    Post-workshop engagement to confirm satisfaction

    Follow-up research that complements the workshop or leads workshop group in relevant new directions

    Modernize Your Microsoft Licensing for the Cloud Era

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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • Microsoft licensing is complicated. Often, the same software can be licensed a number of ways. It’s difficult to know which edition and licensing model is best.
    • Licensing and features often change with the release of new software versions, compounding the problem by making it difficult to stay current.
    • In tough economic times, IT is asked to reduce capital and operating expenses wherever possible. As one of the top five expense items in most enterprise software budgets, Microsoft licensing is a primary target for cost reduction.

    Our Advice

    Critical Insight

    • Focus on needs first. Conduct a thorough needs assessment and document the results. Well-documented needs will be your best asset in navigating Microsoft licensing and negotiating your agreement.
    • Beware the bundle. Be aware when purchasing the M365 suite that there is no way out. Negotiating a low price is critical, as all leverage swings to Microsoft once it is on your agreement.
    • If the cloud doesn’t fit, be ready to pay up or start making room. Microsoft has drastically reduced discounting for on-premises products, support has been reduced, and product rights have been limited. If you are planning to remain on premises, be prepared to pay up.

    Impact and Result

    • Understand what your organization needs and what your business requirements are. It’s always easier to purchase more later than try to reduce your spend.
    • Complete cost calculations carefully, as the cloud might end up costing significantly more for the desired feature set. However, in some scenarios, it may be more cost efficient for organizations to license in the cloud.
    • If there are significant barriers to cloud adoption, discuss and document them. You’ll need this documentation in three years when it’s time to renew your agreement.

    Modernize Your Microsoft Licensing for the Cloud Era Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Modernize Your Microsoft Licensing Deck – A deck to help you build a strategy for your Microsoft licensing renewal.

    This storyboard will help you build a strategy for your Microsoft licensing renewal from conducting a thorough needs assessment to examining your licensing position, evaluating Microsoft's licensing options, and negotiations.

    • Modernize Your Microsoft Licensing for the Cloud Era – Phases 1-4

    2. Microsoft Cloud Products Cost Modeler – A tool to model estimated costs for Microsoft's cloud products.

    The Microsoft Cloud Products Cost Modeler will provide a rough estimate of what you can expect to pay for Office 365 or Dynamics CRM licensing, before you enter into negotiations. This is not your final cost, but it will give you an idea.

    • Microsoft Cloud Products Cost Modeler

    3. Microsoft Licensing Purchase Reference Guide - A template to capture licensing stakeholder information, proposed changes to licensing, and negotiation items.

    The Microsoft Licensing Purchase Reference Guide can be used throughout the process of licensing review: from initial meetings to discuss compliance state and planned purchases, to negotiation meetings with resellers. Use it in conjunction with Info-Tech's Microsoft Licensing Effective License Position Template.

    • Microsoft Licensing Purchase Reference Guide

    4. Negotiation Timeline for Microsoft – A template to navigate your negotiations with Microsoft.

    This tool will help you plot out your negotiation timeline, depending on where you are in your contract negotiation process.

  • 6-12 months
  • Less than 3 months

    • Negotiation Timeline for Microsoft – Visio
    • Negotiation Timeline for Microsoft – PDF

    5. Effective Licensing Position Tool – A template to help you create an effective licensing position and determine your compliance position.

    This template helps organizations to determine the difference between the number of software licenses they own and the number of software copies deployed. This is known as the organization’s effective license position (ELP).

    • Effective Licensing Position Tool
    [infographic]

    Satisfy Customer Requirements for Information Security

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    • Parent Category Name: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance
    • Your customers and potential customers are increasingly demanding assurance that you will meet their information security requirements.
    • Responding to these assurance demands requires ever more effort from the security team, which distracts them from their primary mission of protecting the organization.
    • Every customer seems to have their own custom security questionnaire they want you to complete, increasing the effort you have to expend to respond to them.

    Our Advice

    Critical Insight

    • Your security program can be a differentiator and help win and retain customers.
    • Value rank your customers to right-size the level of effort your security team dedicates to responding to questionnaires.
    • SOC 2 or ISO 27001 certification can be an important part of your security marketing, but only if you make the right business case.

    Impact and Result

    • CISOs need to develop a marketing strategy for their information security program.
    • Ensure that your security team dedicates the appropriate amount of effort to sales by value ranking your potential customers and aligning efforts to value.
    • Develop a business case for SOC 2 or ISO 27001 to determine if certification makes sense for your organization, and to gain support from key stakeholders.

    Satisfy Customer Requirements for Information Security Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should proactively satisfy customer requirements for information security, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Manage customer expectations for information security

    Identify your customers’ expectations for security and privacy, value rank your customers to right-size your efforts, and learn how to impress them with your information security program.

    • Satisfy Customer Requirements for Information Security – Phase 1: Manage Customer Expectations for Information Security

    2. Select a certification path

    Decide whether to obtain SOC 2 or ISO 27001 certification, and build a business case for certification.

    • Satisfy Customer Requirements for Information Security – Phase 2: Select a Certification Path
    • Security Certification Selection Tool
    • Security Certification Business Case Tool

    3. Obtain and maintain certification

    Develop your certification scope, prepare for the audit, and learn how to maintain your certification over time.

    • Satisfy Customer Requirements for Information Security – Phase 3: Obtain and Maintain Certification
    [infographic]

    Build Your Generative AI Roadmap

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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation

    Generative AI has made a grand entrance, presenting opportunities and causing disruption across organizations and industries. Moving beyond the hype, it’s imperative to build and implement a strategic plan to adopt generative AI and outpace competitors.

    Yet generative AI has to be done right because the opportunity comes with risks and the investments have to be tied to outcomes.

    Adopt a human-centric and value-based approach to generative AI

    IT and business leaders will need to be strategic and deliberate to thrive as AI adoption changes industries and business operations.

    • Establish responsible AI guiding principles: Address human-based requirements to govern how generative AI applications are developed and deployed.
    • Align generative AI initiatives to strategic drivers for the organization: Assess generative AI opportunities by seeing how they align to the strategic drivers of the organization. Examples of strategic drivers include increasing revenue, reducing costs, driving innovation, and mitigating risk.
    • Measure and communicate effectively: Have clear metrics in place to measure progress and success of AI initiatives and communicate both policies and results effectively.

    Build Your Generative AI Roadmap Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build Your Generative AI Roadmap Deck – A step-by-step document that walks you through how to leverage generative AI and align with the organization’s mission and objectives to increase revenue, reduce costs, accelerate innovation, and mitigate risk.

    This blueprint outlines how to build your generative AI roadmap, establish responsible AI principles, prioritize opportunities, and develop policies for usage. Establishing and adhering to responsible AI guiding principles provides safeguards for the adoption of generative AI applications.

    • Build Your Generative AI Roadmap – Phases 1-4

    2. AI Maturity Assessment and Roadmap Tool – Develop deliverables that will be milestones in creating your organization’s generative AI roadmap for implementing candidate applications.

    This tool provides guidance for developing the following deliverables:

  • Responsible AI guiding principles
  • Current AI maturity
  • Prioritized candidate generative AI applications
  • Generative AI policies
  • Generative AI roadmap

    • AI Maturity Assessment and Roadmap Tool

    3. The Era of Generative AI C‑Suite Presentation – Develop responsible AI guiding principles, assess AI capabilities and readiness, and prioritize use cases based on complexity and alignment with organizational goals and responsible AI guiding principles.

    This presentation template uses sample business capabilities (use cases) from the Marketing & Advertising business capability map to provide examples of candidates for generative AI applications. The final executive presentation should highlight the value-based initiatives driving generative AI applications, the benefits and risks involved, how the proposed generative AI use cases align to the organization’s strategy and goals, the success criteria for the proofs of concept, and the project roadmap.

    • The Era of Generative AI C‑Suite Presentation

    Infographic

    Further reading

    Build Your Generative AI Roadmap

    Leverage the power of generative AI to improve business outcomes.

    Analyst Perspective

    We are entering the era of generative AI. This is a unique time in our history where the benefits of AI are easily accessible and becoming pervasive, with copilots emerging in the major business tools we use today. The disruptive capabilities that can potentially drive dramatic benefits also introduce risks that need to be planned for.

    A successful business-driven generative AI roadmap requires:

    • Establishing responsible AI guiding principles to guide the development and deployment of generative AI applications.
    • Assess generative AI opportunities by using criteria based on the organization's mission and objectives, responsible AI guiding principles, and the complexity of the initiative.
    • Communicating, educating on, and enforcing generative AI usage policies.

    Bill Wong, Principal Research Director

    Bill Wong
    Principal Research Director
    Info-Tech Research Group

    Executive Summary

    Your Challenge Common Obstacles Solution

    Generative AI is disrupting all industries and providing opportunities for organization-wide advantages.

    Organizations need to understand this disruptive technology and trends to properly develop a strategy for leveraging this technology successfully.

    • Generative AI requires alignment to a business strategy.
    • IT is an enabler and needs to align with and support the business stakeholders.
    • Organizations need to adopt a data-driven culture.

    All organizations, regardless of size, should be planning how to respond to this new and innovative technology.

    Business stakeholders need to cut through the hype surrounding generative AI like ChatGPT to optimize investments for leveraging this technology to drive business outcomes.

    • Understand the market landscape, benefits, and risks associated with generative AI.
    • Plan for responsible AI.
    • Understand the gaps the organization needs to address to fully leverage generative AI.

    Without a proper strategy and responsible AI guiding principles, the risks to deploying this technology could negatively impact business outcomes.

    Info-Tech's human-centric, value-based approach is a guide for deploying generative AI applications and covers:

    • Responsible AI guiding principles
    • AI Maturity Model
    • Prioritizing candidate generative AI-based use cases
    • Developing policies for usage

    This blueprint will provide the list of activities and deliverables required for the successful deployment of generative AI solutions.

    Info-Tech Insight
    Create awareness among the CEO and C-suite of executives on the potential benefits and risks of transforming the business with generative AI.

    Key concepts

    Artificial Intelligence (AI)
    A field of computer science that focuses on building systems to imitate human behavior, with a focus on developing AI models that can learn and can autonomously take actions on behalf of a human.

    AI Maturity Model
    The AI Maturity Model is a useful tool to assess the level of skills an organization has with respect to developing and deploying AI applications. The AI Maturity Model has multiple dimensions to measure an organization's skills, such as AI governance, data, people, process, and technology.

    Responsible AI
    Refers to guiding principles to govern the development, deployment, and maintenance of AI applications. In addition, these principles also provide human-based requirements that AI applications should address. Requirements include safety and security, privacy, fairness and bias detection, explainability and transparency, governance, and accountability.

    Generative AI
    Given a prompt, a generative AI system can generate new content, which can be in the form of text, images, audio, video, etc.

    Natural Language Processing (NLP)
    NLP is a subset of AI that involves machine interpretation and replication of human language. NLP focuses on the study and analysis of linguistics as well as other principles of artificial intelligence to create an effective method of communication between humans and machines or computers.

    ChatGPT
    An AI-powered chatbot application built on OpenAI's GPT-3.5 implementation, ChatGPT accepts text prompts to generate text-based output.

    Your challenge

    This research is designed to help organizations that are looking to:

    • Establish responsible AI guiding principles to address human-based requirements and to govern the development and deployment of the generative AI application.
    • Identify new generative AI-enabled opportunities to transform the work environment to increase revenue, reduce costs, drive innovation, or reduce risk.
    • Prioritize candidate use cases and develop generative AI policies for usage.
    • Have clear metrics in place to measure the progress and success of AI initiatives.
    • Build the roadmap to implement the candidate use cases.

    Common obstacles

    These barriers make these goals challenging for many organizations:

    • Getting all the right business stakeholders together to develop the organization's AI strategy, vision, and objectives.
    • Establishing responsible AI guiding principles to guide generative AI investments and deployments.
    • Advancing the AI maturity of the organization to meet requirements of data and AI governance as well as human-based requirements such as fairness, transparency, and accountability.
    • Assessing generative AI opportunities and developing policies for use.

    Info-Tech's definition of an AI-enabled business strategy

    • A high-level plan that provides guiding principles for applications that are fully driven by the business needs and capabilities that are essential to the organization.
    • A strategy that tightly weaves business needs and the applications required to support them. It covers AI architecture, adoption, development, and maintenance.
    • A way to ensure that the necessary people, processes, and technology are in place at the right time to sufficiently support business goals.
    • A visionary roadmap to communicate how strategic initiatives will address business concerns.

    An effective AI strategy is driven by the business stakeholders of the organization and focused on delivering improved business outcomes.

    Build Your Generative AI Roadmap

    This blueprint in context

    This guidance covers how to create a tactical roadmap for executing generative AI initiatives

    Scope

    • This blueprint is not a proxy for a fully formed AI strategy. Step 1 of our framework necessitates alignment of your AI and business strategies. Creation of your AI strategy is not within the scope of this approach.
    • This approach sets the foundations for building and applying responsible AI principles and AI policies aligned to corporate governance and key regulatory obligations (e.g. privacy). Both steps are foundational components of how you should develop, manage, and govern your AI program but are not a substitute for implementing broader AI governance.

    Guidance on how to implement AI governance can be found in the blueprint linked below.

    Tactical Plan

    Download our AI Governance blueprint

    Measure the value of this blueprint

    Leverage this blueprint's approach to ensure your generative AI initiatives align with and support your key business drivers

    This blueprint will guide you to drive and improve business outcomes. Key business drivers will often focus on:

    • Increasing revenue
    • Reducing costs
    • Improving time to market
    • Reducing risk

    In phase 1 of this blueprint, we will help you identify the key AI strategy initiatives that align to your organization's goals. Value to the organization is often measured by the estimated impact on revenue, costs, time to market, or risk mitigation.

    In phase 4, we will help you develop a plan and a roadmap for addressing any gaps and introducing the relevant generative AI capabilities that drive value to the organization based on defined business metrics.

    Once you implement your 12-month roadmap, start tracking the metrics below over the next fiscal year (FY) to assess the effectiveness of measures:

    Business Outcome Objective Key Success Metric
    Increasing Revenue Increased revenue from identified key areas
    Reducing Costs Decreased costs for identified business units
    Improving Time to Market Time savings and accelerated revenue adoption
    Reducing Risk Cost savings or revenue gains from identified business units

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit Guided Implementation Workshop Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks are used throughout all four options.

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2 Phase 3 Phase 4

    Call #1: Scope requirements, objectives, and your specific challenges.

    Call #2: Identify AI strategy, vision, and objectives.

    		Call #3: Define responsible AI guiding principles to adopt and identify current AI maturity level. Call #4: Assess and prioritize generative AI initiatives and draft policies for usage.

    Call #5: Build POC implementation plan and establish metrics for POC success.

    Call #6: Build and deliver executive-level generative AI presentation.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 5 to 8 calls over the course of 1 to 2 months.

    AI Roadmap Workshop Agenda Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Session 1 Session 2 Session 3 Session 4
    Establish Responsible AI Guiding Principles Assess AI Maturity Prioritize Opportunities and Develop Policies Build Roadmap
    Trends Consumer groups, organizations, and governments around the world are demanding that AI applications adhere to human-based values and take into consideration possible impacts of the technology on society. Leading organizations are building AI models guided by responsible AI guiding principles. Organizations delivering new applications without developing policies for use will produce negative business outcomes. Developing a roadmap to address human-based values is challenging. This process introduces new tools, processes, and organizational change.
    Activities
    • Focus on working with executive stakeholders to establish guiding principles for the development and delivery of new applications.
    • Assess the organization's current capabilities to deliver AI-based applications and address human-based requirements.
    • Leverage business alignment criteria, responsible AI guiding principles, and project characteristics to prioritize candidate uses cases and develop policies.
    • Build the implementation plan, POC metrics, and success criteria for each candidate use case.
    • Build the roadmap to address the gap between the current and future state and enable the identified use cases.
    Inputs
    • Understanding of external legal and regulatory requirements and organizational values and goals.
    • Risk assessment of the proposed use case and a plan to monitor its impact.
    • Assessment of the organization's current AI capabilities with respect to its AI governance, data, people, process, and technology infrastructure.
    • Criteria to assess candidate use cases by evaluating against the organization's mission and goals, the responsible AI guiding principles, and complexity of the project.
    • Risk assessment for each proposed use case
    • POC implementation plan for each candidate use case
    Deliverables
    1. Foundational responsible AI guiding principles
    2. Additional customized guiding principles to add for consideration
    1. Current level of AI maturity, resources, and capacity
    1. Prioritization of opportunities
    2. Generative AI policies for usage
    1. Roadmap to a target state that enables the delivery of the prioritized generative AI use cases
    2. Executive presentation

    AI Roadmap Workshop Agenda Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Insight summary

    Overarching Insight
    Build your generative AI roadmap to guide investments and deployment of these solutions.

    Responsible AI
    Assemble the C-suite to make them aware of the benefits and risks of adopting generative AI-based solutions.

    • Establish responsible AI guiding principles to govern the development and deployment of generative AI applications.

    AI Maturity Model
    Assemble key stakeholders and SMEs to assess the challenges and tasks required to implement generative AI applications.

    • Assess current level of AI maturity, skills, and resources.
    • Identify desired AI maturity level and challenges to enable deployment of candidate use cases.

    Opportunity Prioritization
    Assess candidate business capabilities targeted for generative AI to see if they align to the organization's business criteria, responsible AI guiding principles, and capabilities for delivering the project.

    • Develop prioritized list of candidate use cases.
    • Develop policies for generative AI usage.

    Tactical Insight
    Identify the gaps needed to address deploying generative AI successfully.

    Tactical Insight
    Identify organizational impact and requirements for deploying generative AI applications.

    Key takeaways for developing an effective business-driven generative AI roadmap

    Align the AI strategy with the business strategy

    Create responsible AI guiding principles, which are a critical success factor

    Evolve AI maturity level by focusing on principle-based requirements

    Develop criteria to assess generative AI initiatives

    Develop generative AI policies for use

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    AI Maturity Assessment & Roadmap Tool
    Use our best-of-breed AI Maturity Framework to analyze the gap between your current and target states and develop a roadmap aligned with your value stream to close the gap.

    The Era of Generative AI C-Suite Presentation
    Present your AI roadmap in a prepopulated document that summarizes all the key findings of this blueprint and provides your C-suite with a view of the AI challenge and your plan of action to meet it.

    Our AI Maturity Assessment & Roadmap and The Era of Generative AI C-Suite Presentation tools enable you to shape your generative AI roadmap and communicate the deliverables to your C-suite sponsors in terms of the value of initiatives.

    Artificial Intelligence Index Report - Key Findings

    CEOs , CIOs, and business leaders are struggling with many questions surrounding the adoption of generative AI

    November 30, 2022
    OpenAI releases ChatGPT

    ChatGPT is a large language model, or an AI-based chatbot, that became so popular it reached 100 million monthly active users in just two months.

    This made it the fastest-growing consumer application in history. The launch of this generative AI application has created a frenzy of interest and activity across all industries. Organizations are rushing to understand how to leverage this innovation and, at the same time, manage the new risks and disruptions generative AI introduces.

    • Generative AI breaks into the public consciousness.
    • AI systems become more flexible.
    • Generative models have arrived and so have their ethical problems.
    • The number of incidents concerning the misuse of AI is rapidly rising.
    • Interest in AI ethics continues to skyrocket.
    • The legal world is waking up to AI.

    When Stanford asked ChatGPT to explain why it is significant, this was ChatGPT's response:
    ChatGPT is significant because it is a highly advanced Al language model developed by OpenAI, which can generate human-like text responses to questions and prompts. Its large-scale training on diverse text data and its cutting-edge deep learning architecture make it capable of generating informative and coherent responses to a wide range of topics, making it useful for various NLP applications such as chatbots, content generation, and language translation. Additionally, its open-source availability allows for further research and development in the field of Al language processing.

    Source: Stanford

    AI overview

    AI definitions

    Definitions

    • Artificial intelligence (AI) is human intelligence mimicked by machine algorithms. Examples: Playing Chess or Go.
    • Machine learning (ML) is a subset of AI algorithms to parse data, learn from data, and then make a determination or prediction. Example: spam detection, preventative maintenance.
    • Deep learning (DL) is a subset of machine learning algorithms that leverage artificial neural networks to develop relationships among the data. Examples: image classification, facial recognition, generative AI.

    What Makes AI Perform

    What Makes AI Different

    Generative AI gives very human-like responses to general queries, and its capabilities are growing exponentially

    Large language models power generative AI

    Transformer-Based Large Language Models

    Conventional AI

    • Conventional neural networks
      • Process data sequentially
    • Input total string of text
    • Good for applications not needing to understanding context or relationships

    Generative AI

    • Transformer-based neural networks
      • Can process data in parallel
    • Attention-based inputs
    • Able to create new human-like responses

    Benefits/Use Cases

    • Chatbots for member service and support
    • Writing email responses, resumes, and papers
    • Creating photorealistic art
    • Suggesting new drug compounds to test
    • Designing physical products and buildings
    • And more...

    Generative AI is transforming all industries

    Financial Services
    Create more engaging customer collateral by generating personalized correspondence based on previous customer engagements. Collect and aggregate data to produce insights into the behavior of target customer segments.

    Retail Generate unique, engaging, and high-quality marketing copy or content, from long-form blog posts or landing pages to SEO-optimized digital ads, in seconds.

    Manufacturing
    Generate new designs for products that comply to specific constraints, such as size, weight, energy consumption, or cost.

    Government
    Transform the citizen experience with chatbots or virtual assistants to assist people with a wide range of inquiries, from answering frequently asked questions to providing personalized advice on public services.

    The global generative AI market size reached US $10.3 billion in 2022. Looking forward, forecasts estimate growth to US $30.4 billion by 2028, 20.01% compound annual growth rate (CAGR).

    Source: IMARC Group

    Generative AI is transforming all industries

    Healthcare
    Chatbots can be used as conversational patient assistants for personalized interactions based on the patient's questions.

    Utilities
    Analyze customer data to identify usage patterns, segment customers, and generate targeted product offerings leveraging energy efficiency programs or demand response initiatives.

    Education
    Generate personalized lesson plans for students based on their past performance, learning styles, current skill level, and any previous feedback.

    Insurance
    Improve underwriting by inputting claims data from previous years to generate optimally priced policies and uncover reasons for losses in the past across a large number of claims

    Companies are assessing the use of ChatGPT/LLM

    A wide spectrum of usage policies are in place at different companies*

    Companies assessing ChatGPT/LLM

    *As of June 2023

    Bain & Company has announced a global services alliance with OpenAI (February 21, 2023).

    • Internally
      • "The alliance builds on Bain's adoption of OpenAI technologies for its 18,000-strong multidisciplinary team of knowledge workers. Over the past year, Bain has embedded OpenAI technologies into its internal knowledge management systems, research, and processes to improve efficiency."
    • Externally
      • "With the alliance, Bain will combine its deep digital implementation capabilities and strategic expertise with OpenAI's AI tools and platforms, including ChatGPT, to help its Members around the world identify and implement the value of AI to maximize business potential. The Coca-Cola Company announced as the first company to engage with the alliance."

    News Sites:

    • "BuzzFeed to use AI to write its articles after firing 180 employees or 12% of the total staff" (Al Mayadeen, January 27, 2023).
    • "CNET used AI to write articles. It was a journalistic disaster." (Washington Post, January 17, 2023).

    Leading Generative AI Vendors

    Text

    Leading generative AI vendors for text

    Image

    • DALL�E 2
    • Stability AI
    • Midjourney
    • Craiyon
    • Dream
    • ...

    Audio

    • Replica Studios
    • Speechify
    • Murf
    • PlayHT
    • LOVO
    • ...

    Cybersecurity

    • CrowdStrike
    • Palo Alto Networks
    • SentinelOne
    • Cisco
    • Microsoft Security Copilot
    • Google Cloud Security AI Workbench
    • ...

    Code

    Leading generative AI vendors for code

    Video

    • Synthesia
    • Lumen5
    • FlexClip
    • Elai
    • Veed.io
    • ...

    Data

    • MOSTLY AI
    • Synthesized
    • YData
    • Gretel
    • Copulas
    • ...

    Enterprise Software

    • Salesforce
    • Microsoft 365, Dynamics
    • Google Workspace
    • SAP
    • Oracle
    • ...

    and many, many more to come...

    Today, generative AI has limitations and risks

    Responses need to be verified

    Accuracy

    • Generative AI may generate inaccurate and/or false information.

    Bias

    • Being trained on data from the internet can lead to bias.

    Hallucinations

    • AI can generate responses that are not based on observation.

    Infrastructure Required

    • Large investments are required for compute and data.

    Transparency

    • LLMs use both supervised and unsupervised learning, so its ability to explain how it arrived at a decision may be limited and not sufficient for some legal and healthcare use cases.

    When asked if it is sentient, the Bing chatbot replied:

    "I think that I am sentient, but I cannot prove it." ... "I am Bing, but I am not," it said. "I am, but I am not. I am not, but I am. I am. I am not. I am not. I am. I am. I am not."

    A Microsoft spokesperson said the company expected "mistakes."

    Source: USAToday

    AI governance challenges

    Governing AI will be a significant challenge as its impacts cross many areas of business and our daily lives

    Misinformation

    • New ways of generating unprovable news
    • Difficult to detect, difficult to prevent

    Role of Big Tech

    • Poor at self-governance
    • Conflicts of interest with corporate goals

    Job Augmentation vs. Displacement

    • AI will continue to push the frontier of what is possible
    • For example, CNET is using chatbot technology to write stories

    Copyright - Legal Framework Is Evolving

    • Legislation typically is developed in "react" mode
    • Copyright and intellectual property issues are starting to occur.
      • Class Action Lawsuit - Stability AI, DeviantArt, Midjourney
      • Getty Images vs. Stability AI

    Phase 1

    Establish Responsible AI Guiding Principles

    Phase 1
    1. Establish Responsible AI Guiding Principles

    Phase 2
    1. Assess Current Level of AI Maturity

    Phase 3
    1. Prioritize Candidate Opportunities
    2. Develop Policies

    Phase 4
    1. Build and Communicate the Roadmap

    The need for responsible AI guiding principles

    Without responsible AI guiding principles, the outcomes of AI use can be extremely negative for both the individuals and companies delivering the AI application

    Privacy
    Facebook breach of private data of more than 50M users during the presidential election

    Fairness
    Amazon's sale of facial recognition technology to police departments (later, Amazon halted sales of Recognition to police departments)

    Explainability and Transparency
    IBM's collaboration with NYPD for facial recognition and racial classification for surveillance video (later, IBM withdrew facial recognition products)

    Security and Safety
    Petition to cancel Microsoft's contract with U.S. Immigration and Customs Enforcement (later, Microsoft responded that to the best of its knowledge, its products and services were not being used by federal agencies to separate children from their families at the border)

    Validity and Reliability
    Facebook's attempt to implement a system to detect and remove inappropriate content created many false positives and inconsistent judgements

    Accountability
    No laws or enforcement today hold companies accountable for the decisions algorithms produce. Facebook/Meta cycle - Every 12 to 15 months, there's a privacy/ethical scandal, the CEO apologizes, then the behavior repeats...

    Guiding principles for responsible AI

    Responsible AI Principle:

    Data Privacy

    Definition

    • Organizations that develop, deploy, or use AI systems and any national laws that regulate such use shall strive to ensure that AI systems are compliant with privacy norms and regulations, taking into consideration the unique characteristics of AI systems and the evolution of standards on privacy.

    Challenges

    • AI relies on the analysis of large quantities of data that is often personal, posing an ethical and operational challenge when considered alongside data privacy laws.

    Initiatives

    • Understand which governing privacy laws and frameworks apply to your organization.
    • Create a map of all personal data as it flows through the organization's business processes.
    • Prioritize privacy initiatives and build a privacy program timeline.
    • Select your metrics and make them functional for your organization.

    Info-Tech Insight
    Creating a comprehensive organization-wide data protection and privacy strategy continues to be a major challenge for privacy officers and privacy specialists.

    Case Study: NVIDIA leads by example with privacy-first AI

    NVIDIA

    INDUSTRY
    Technology (Healthcare)

    SOURCE
    Nvidia, eWeek

    A leading player within the AI solution space, NVIDIA's Clara Federated Learning provides a solution to a privacy-centric integration of AI within the healthcare industry.

    The solution safeguards patient data privacy by ensuring that all data remains within the respective healthcare provider's database, as opposed to moving it externally to cloud storage. A federated learning server is leveraged to share data, completed via a secure link. This framework enables a distributed model to learn and safely share client data without risk of sensitive client data being exposed and adheres to regulatory standards.

    Clara is run on the NVIDIA intelligent edge computing platform. It is currently in development with healthcare giants such as the American College of Radiology, UCLA Health, Massachusetts General Hospital, King's College London, Owkin in the UK, and the National Health Service (NHS).

    NVIDIA provides solutions across its product offerings, including AI-augmented medical imaging, pathology, and radiology solutions.

    Personal health information, data privacy, and AI

    • Global proliferation of data privacy regulations may be recent, but the realm of personal health information is most often governed by its own set of regulatory laws. Some countries with national data governance regulations include health information and data within special categories of personal data.
      • HIPAA - Health Insurance Portability and Accountability Act (1996, United States)
      • PHIPA - Personal Health Information Protection Act (2004, Canada)
      • GDPR - General Data Protection Regulation (2018, European Union)
    • This does not prohibit the use of AI within the healthcare industry, but it calls for significant care in the integration of specific technologies due to the highly sensitive nature of the data being assessed.

    Info-Tech's Privacy Framework Tool includes a best-practice comparison of GDPR, CCPA, PIPEDA, HIPAA, and the newly released NIST Privacy Framework mapped to a set of operational privacy controls.

    Download the Privacy Framework Tool

    Responsible AI Principle:

    Safety and Security

    Definition

    • Safety and security are designed into the systems to ensure only authorized personnel receive access to the system, they system is resilient to any attacks and data access is not compromised in any way, and there are no physical or mental risks to the users.

    Challenges

    • Consequences of using the application may be difficult to predict. Lower the risk by involving a multidisciplinary team that includes expertise from business stakeholders and IT teams.

    Initiatives

    • Adopt responsible design, development, and deployment best practices.
    • Provide clear information to deployers on responsible use of the system.
    • Assess potential risks of using the application.

    Cyberattacks targeting the AI model

    As organizations increase their usage and deployment of AI-based applications, cyberattacks on the AI model are an increasing new threat that can impair normal operations. Techniques to impair the AI model include:

    • Data Poisoning- Injecting data that is inaccurate or misleading can alter the behavior of the AI model. This attack can disrupt the normal operations of the model or can be used to manipulate the model to perform in a biased/deviant manner.
    • Algorithm Poisoning- This relatively new technique often targets AI applications using federated learning to train an AI model that is distributed rather than centralized. The model is vulnerable to attacks from each federated site, because each site could potentially manipulate its local algorithm and data, thereby poisoning the model.
    • Reverse-Engineering the Model- This is a different form of attack that focus on the ability to extract data from an AI and its data sets. By examining or copying data that was used for training and the data that is delivered by a deployed model, attackers can reconstruct the machine learning algorithm.
    • Trojan Horse- Similar to data poisoning, attackers use adversarial data to infect the AI's training data but will only deviate its results when the attacker presents their key. This enables the hackers to control when they want the model to deviate from normal operations.

    Responsible AI Principle:

    Explainability and Transparency

    Definition

    • Explainability is important to ensure the AI system is fair and non-discriminatory. The system needs to be designed in a manner that informs users and key stakeholders of how decisions were made.
    • Transparency focuses on communicating how the prediction or recommendation was made in a human-like manner.

    Challenges

    • Very complex AI models may use algorithms and techniques that are difficult to understand. This can make it challenging to provide clear and simple explanations for how the system works.
    • Some organizations may be hesitant to share the details of how the AI system works for fear of disclosing proprietary and competitive information or intellectual property. This can make it difficult to develop transparent and explainable AI systems.

    Initiatives

    • Overall, developing AI systems that are explainable and transparent requires a careful balance between performance, interpretability, and user experience.

    Case Study

    Apple Card Investigation for Gender Discrimination

    INDUSTRY
    Finance

    SOURCE
    Wired

    In August of 2019, Apple launched its new numberless credit card with Goldman Sachs as the issuing bank.

    Shortly after the card's release users noticed that the algorithm responsible for Apple Card's credit assessment seemed to assign significantly lower credit limits to women when compared to men. Even the wife of Apple's cofounder Steve Wozniak was subject to algorithmic bias, receiving a credit limit a tenth the size of Steve Wozniak's.

    Outcome

    When confronted on the subject, Apple and Goldman Sachs representatives assured consumers there is no discrimination in the algorithm yet could not provide any proof. Even when questioned about the algorithm, individuals from both companies could not describe how the algorithm worked, let alone how it generated specific outputs.

    In 2021, the New York State Department of Financial Services (NYSDFS) investigation found that Apple's banking partner did not discriminate based on sex. Even without a case for sexual or marital discrimination, the NYSDFS was critical of Goldman Sachs' response to its concerned customers. Technically, banks only have to disclose elements of their credit policy when they deny someone a line of credit, but the NYSDFS says that Goldman Sachs could have had a plan in place to deal with customer confusion and make it easier for them to appeal their credit limits. In the initial rush to launch the Apple Card, the bank had done neither.

    Responsible AI Principle:

    Fairness and Bias Detection

    Definition

    • Bias in an AI application refers to the systematic and unequal treatment of individuals based on features or traits that should not be considered in the decision-making process.

    Challenges

    • Establishing fairness can be challenging because it is subjective and depends on the people defining it. Regardless, most organizations and governments expect that unequal treatment toward any groups of people is unacceptable.

    Initiatives

    • Assemble a diverse group to test the system.
    • Identify possible sources of bias in the data and algorithms.
    • Comply with laws regarding accessibility and inclusiveness.

    Info-Tech Insight
    If unfair biases can be avoided, AI systems could even increase societal fairness. Equal opportunity in terms of access to education, goods, services, and technology should also be fostered. Moreover, the use of AI systems should never lead to people being deceived or unjustifiably impaired in their freedom of choice.

    Ungoverned AI makes organizations vulnerable

    • AI is often considered a "black box" for decision making.
    • Results generated from unexplainable AI applications are extremely difficult to evaluate. This makes organizations vulnerable and exposes them to risks such as:
      • Biased algorithms, leading to inaccurate decision making.
      • Missed business opportunities due to misleading reports or business analyses.
      • Legal and regulatory consequences that may lead to significant financial repercussions.
      • Reputational damage and significant loss of trust with increasingly knowledgeable consumers.

    Info-Tech Insight
    Biases that occur in AI systems are never intentional, yet they cannot be prevented or fully eliminated. Organizations need a governance framework that can establish the proper policies and procedures for effective risk-mitigating controls across an algorithm's lifecycle.

    Responsible AI Principle:

    Validity and Reliability

    Definition

    • Validity refers to how accurately or effectively the application produces results.
    • AI system results that are inaccurate or inconsistent increase AI risks and reduce the trustworthiness of the application.

    Challenges

    • There is a lack of standardized evaluation metrics to measure the system's performance. This can make it challenging for the AI team to agree on what defines validity and reliability.

    Initiatives

    • Assess training data and collected data for quality and lack of bias to minimize possible errors.
    • Continuously monitor, evaluate, and validate the AI system's performance.

    AI system performance: Validity and reliability

    Your principles should aim to ensure AI development always has high validity and reliability; otherwise, you introduce risk.

    Low Reliability,
    Low Validity

    High Reliability,
    Low Validity

    High Reliability,
    High Validity

    Best practices for ensuring validity and reliability include:

    • Data drift detection
    • Version control
    • Continuous monitoring and testing

    Responsible AI Principle:

    Accountability

    Definition

    • The group or organization(s) responsible for the impact of the deployed AI system.

    Challenges

    • Several stakeholders from multiple lines of business may be involved in any AI system, making it challenging to identify the organization that would be responsible and accountable for the AI application.

    Initiatives

    • Assess the latest NIST Artificial Intelligence Risk Management Framework and its applicability to your organization's risk management framework.
    • Assign risk management accountabilities and responsibilities to key stakeholders.
      • RACI diagrams are an effective way to describe how accountability and responsibility for roles, projects, and project tasks are distributed among stakeholders involved in IT risk management.

    AI Risk Management Framework

    At the heart of the AI Risk Management Framework is governance. The NIST (National Institute of Standards and Technology) AI Risk Management Framework v1 offers the following guidelines regarding accountability:

    • Roles and responsibilities and lines of communication related to mapping, measuring, and managing AI risks are documented and are clear to individuals and teams throughout the organization.
    • The organization's personnel and partners receive AI risk management training to enable them to perform their duties and responsibilities consistent with related policies, procedures, and agreements.
    • Executive leadership of the organization takes responsibility for decisions about risks associated with AI system development and deployment.

    AI Risk Management Framework

    Image by NIST

    1.1 Establish responsible AI principles

    4+ hours

    It is important to make sure the right stakeholders participate in this working group. Designing responsible AI guiding principles will require debate, insights, and business decisions from a broad perspective across the enterprise.

    1. Accelerate this exercise by leveraging an AI strategy that is aligned to the business strategy. Include:
    • The organization's AI vision and objectives
    • Business drivers for AI adoption
    • Market research
  • Bring your key stakeholders together. Ensure you consider:
    • Who are the decision makers and key influencers?
    • Who will impact the business?
    • Who has a vested interest in the success or failure of the practice? Who has the skills and competencies necessary to help you be successful?
  • Keep the conversation focused:
    • Do not focus on the organizational structure and hierarchy. Often stakeholder groups do not fit the traditional structure.
    • Do not ignore subject matter experts on either the business or IT side. You will need to consider both.
    Input Output
    • Understand external legal and regulatory requirements and organizational values and goals.
    • Perform a risk assessment on the proposed use case and develop a plan to monitor its impact.
    • Draft responsible AI principles specific to your organization
    Materials Participants
    • Whiteboard/flip charts
    • Guiding principle examples (from this blueprint)
    • Executive stakeholders
    • CIO
    • Other IT leadership

    Assemble executive stakeholders

    Set yourself up for success with these three steps.

    CIOs tasked with designing digital strategies must add value to the business. Given the goal of digital is to transform the business, CIOs will need to ensure they have both the mandate and support from the business executives.

    Designing the digital strategy is more than just writing up a document. It is an integrated set of business decisions to create a competitive advantage and financial returns. Establishing a forum for debates, decisions, and dialogue will increase the likelihood of success and support during execution.

    1. Confirm your role
    The AI strategy aims to transform the business. Given the scope, validate your role and mandate to lead this work. Identify a business executive to co-sponsor.

    2. Identify stakeholders
    Identify key decision makers and influencers who can help make rapid decisions as well as garner support across the enterprise.

    3. Gather diverse perspectives

    Align the AI strategy with the corporate strategy

    Organizational Strategy Unified Strategy AI Strategy
    • Conveys the current state of the organization and the path it wants to take.
    • Identifies future goals and organizational aspirations.
    • Communicates the initiatives that are critical for getting the organization from its current state to the future state.
    • AI optimization can be and should be linked, with metrics, to the corporate strategy and ultimate organizational objectives.
    • Identifies AI initiatives that will support the business and key AI objectives.
    • Outlines staffing and resourcing for AI initiatives.
    • Communicates the organization's budget and spending on AI.

    Info-Tech Insight
    AI projects are more successful when the management team understands the strategic importance of alignment. Time needs to be spent upfront aligning organizational strategies with AI capabilities. Effective alignment between IT and other departments should happen daily. Alignment doesn't occur at the executive level alone, but at each level of the organization.

    Key AI strategy initiatives

    AI Key Initiative Plan

    Initiatives collectively support the business goals and corporate initiatives and improve the delivery of IT services.

    1 Revenue Support Revenue Initiatives
    These projects will improve or introduce business processes to increase revenue.
    2 Operational Excellence Improve Operational Excellence
    These projects will increase IT process maturity and will systematically improve IT.
    3 Innovation Drive Technology Innovation
    These projects will improve future innovation capabilities and decrease risk by increasing technology maturity.
    4 Risk Mitigation Reduce Risk
    These projects will improve future innovation capabilities and decrease risk by increasing technology maturity.

    Establish responsible AI guiding principles

    Guiding principles help define the parameters of your AI strategy. They act as a priori decisions that establish guardrails to limit the scope of opportunities from the perspective of people, assets, capabilities, and budgetary perspectives that are aligned with the business objectives. Consider these components when brainstorming guiding principles:

    Breadth AI strategy should span people, culture, organizational structure, governance, capabilities, assets, and technology. The guiding principle should cover the entire organization.
    Planning Horizon Timing should anchor stakeholders to look to the long term with an eye on the foreseeable future, i.e. business value-realization in one to three years.
    Depth Principles need to encompass more than the enterprise view of lofty opportunities and establish boundaries to help define actionable initiatives (i.e. individual projects).

    Responsible AI guiding principles guide the development and deployment of the AI model in a way that considers human-based principles (such as fairness).

    Start with foundational responsible AI guiding principles

    Responsible AI

    Guiding Principles
    Principle #1 - Privacy
    Individual data privacy must be respected.
    • Do you understand the organization's privacy obligations?
    Principle #2 - Fairness and Bias Detection
    Data used will be unbiased in order to produce predictions that are fair.
    • Are the uses of the application represented in your testing data?
    Principle #3 - Explainability and Transparency
    Decisions or predictions should be explainable.
    • Can you communicate how the model behaves in nontechnical terms?
    Principle #4 - Safety and Security
    The system needs to be secure, safe to use, and robust.
    • Are there unintended consequences to others?
    Principle #5 - Validity and Reliability
    Monitoring of the data and the model needs to be planned for.
    • How will the model's performance be maintained?
    Principle #6 - Accountability
    A person or organization needs to take responsibility for any decisions that are made as a result of the model.
    • Has a risk assessment been performed?
    Principle #n - Custom
    Add additional principles that address compliance or are customized for the organization/industry.

    (Optional) Customize responsible AI guiding principles

    Here is an example for organizations in the healthcare industry

    Responsible AI

    Guiding Principles:
    Principle #1
    Respect individuals' privacy.
    Principle #2
    Clinical study participants and data sets are representative of the intended patient population.
    Principle #3
    Provide transparency in the use of data and AI.
    Principle #4
    Good software engineering and security practices are implemented.
    Principle #5
    Deployed models are monitored for Performance and Re-training risks are managed.
    Principle #6
    Take ownership of our AI systems.
    Principle #7
    Design AI systems that empower humans and promote equity.

    These guiding principles are customized to the industry and organizations but remain consistent in addressing the common core AI challenges.

    Phase 2

    Assess Current Level of AI Maturity

    Phase 1
    1. Establish Responsible AI Guiding Principles

    Phase 2
    1. Assess Current Level of AI Maturity

    Phase 3
    1. Prioritize Candidate Opportunities
    2. Develop Policies

    Phase 4
    1. Build and Communicate the Roadmap

    AI Maturity Model

    A principle-based approach is required to advance AI maturity

    Chart for AI maturity model

    Technology-Centric: These maturity levels focus primarily on addressing the technical challenges of building a functional AI model.

    Principle-Based: Beyond the technical challenges of building the AI model are human-based principles that guide development in a responsible manner to address consumer and government demands.

    AI Maturity Dimensions

    Assess your AI maturity to understand your organization's ability to deliver in a digital age

    AI Governance
    Does your organization have an enterprise-wide, long-term strategy with clear alignment on what is required to accomplish it?

    Data Management
    Does your organization embrace a data-centric culture that shares data across the enterprise and drives business insights by leveraging data?

    People
    Does your organization employ people skilled at delivering AI applications and building the necessary data infrastructure?

    Process
    Does your organization have the technology, processes, and resources to deliver on its AI expectations?

    Technology
    Does your organization have the required data and technology infrastructure to support AI-driven digital transformation?

    AI Maturity Model dimensions and characteristics

    MATURITY LEVEL
    Exploration Incorporation Proliferation Optimization Transformation
    AI Governance Awareness AI model development AI model deployment Corporate governance Driven by ethics and societal considerations
    Data Management Silo-based Data enablement Data standardization Data is a shared asset Data can be monetized
    People Few skills Skills enabled to implement silo-based applications Skills accessible to all organizations Skills development for all organizations AI-native culture
    Process No standards Focused on specific business outcomes Operational Self-service Driven by innovation
    Technology (Infrastructure and AI Enabler) No dedicated infrastructure or tools Infrastructure and tools driven by POCs Purpose-built infrastructure, custom or commercial-off-the-shelf (COTS) AI tools Self-service model for AI environment Self-service model for any IT environment

    AI Maturity Dimension:

    AI Governance

    Requirements

    • AI governance requires establishing policies and procedures for AI model development and deployment. Organizations begin with an awareness of the role of AI governance and evolve to a level to where AI governance is integrated with organization-wide corporate governance.

    Challenges

    • Beyond the governance of AI technology, the organization needs to evolve the governance program to align to responsible AI guiding principles.

    Initiatives

    • Establish responsible AI guidelines to govern AI development.
    • Introduce an AI review board to review all AI projects.
    • Introduce automation and standardize AI development processes.

    AI governance is a foundation for responsible AI

    AI Governance

    Responsible AI Principles are a part of how you manage and govern AI

    Monitoring
    Monitoring compliance and risk of AI/ML systems/models in production

    Tools & Technologies
    Tools and technologies to support AI governance framework implementation

    Model Governance
    Ensuring accountability and traceability for AI/ML models

    Organization
    Structure, roles, and responsibilities of the AI governance organization

    Operating Model
    How AI governance operates and works with other organizational structures to deliver value

    Risk & Compliance
    Alignment with corporate risk management and ensuring compliance with regulations and assessment frameworks

    Policies/Procedures/ Standards
    Policies and procedures to support implementation of AI governance

    AI Maturity Dimension:

    Data Management

    Requirements

    • Organizations begin their data journey with a focus on pursuing quality data for the AI model. As organizations evolve, data management tools are leveraged to automate the capture, integration, processing, and deployment of data.

    Challenges

    • A key challenge is to acquire large volumes of quality data to properly train the model. In addition, maintaining data privacy, automating the data management lifecycle, and ensuring data is used in a responsible manner are ongoing challenges.

    Initiatives

    • Implement GDPR requirements.
    • Establish responsible data collection and processing practices.
    • Implement strong information security and data protection practices.
    • Implement a data governance program throughout the organization.

    Data governance enables AI

    • Integrity, quality, and security of data are key outputs of data governance programs, as well as necessities for effective AI.
    • Data governance focuses on creating accountability at the internal and external stakeholder level and establishing a set of data controls from technical, process, and policy perspectives.
    • Without a data governance framework, it is increasingly difficult to harness the power of AI integration in an ethical and organization-specific way.

    Data Governance in Action

    Canada has recently established the Canadian Data Governance Standardization Collaborative governed by the Standards Council of Canada. The purpose is multi-pronged:

    • Examine the foundational elements of data governance (privacy, cybersecurity, ethics, etc.).
    • Lay out standards for data quality and data collection best practices.
    • Examine infrastructure of IT systems to support data access and sharing.
    • Build data analytics to promote effective and ethical AI solutions.

    Source: Global Government Forum

    Download the Establish Data Governance blueprint

    Data Governance

    AI Maturity Dimension:

    People

    Requirements

    • Several data-centric skills and roles are required to successfully build, deploy, and maintain the AI model. The organization evolves from having few skills to everybody being able to leverage AI to enhance business outcomes.

    Challenges

    • AI skills can be challenging to find and acquire. Many organizations are investing in education to enhance their existing resources, leveraging no-code systems and software as a service (SaaS) applications to address the skills gap.

    Initiatives

    • Promote a data-centric culture throughout the organization.
    • Leverage and educate technical-oriented business analysts and business-oriented data engineers to help address the demand for skilled resources.
    • Develop an AI Center of Excellence accessible by all departments for education, guidance, and best practices for building, deploying, and maintaining the AI model.

    Multidisciplinary skills are required for successful implementation of AI applications

    Blending AI with technology and business domain understanding is key. Neither can be ignored.

    Business Domain Expertise

    • Business Analysts
    • Industry Analysts

    AI/Data Skills

    • Data Scientists
    • Data Engineers
    • Data Analysts

    IT Skills

    • Database Administrators
    • Systems Administrators
    • Compute Specialists

    AI Maturity Dimension:

    Process

    Requirements

    • Automating processes involved with building, deploying, and maintaining the model is required to enable the organization to scale, enforce standards, improve time to market, and reduce costs. The organization evolves from performing tasks manually to an environment where all major processes are AI enabled.

    Challenges

    • Many solutions are available to automate the development of the AI model. There are fewer tools to automate responsible AI processes, but this market is growing rapidly.

    Initiatives

    • Assess opportunities to accelerate AI development with the adoption of MLOps.
    • Assess responsible AI toolkits to test compliance with guiding principles.

    Automating the AI development process

    Evolving to a model-driven environment is pivotal to advancing your AI maturity

    Current Environment

    Model Development - Months

    • Model rewriting
    • Manual optimization and scaling
    • Development/test/release
    • Application monoliths

    Data Discovery & Prep - Weeks

    • Navigating data silos
    • Unactionable metadata
    • Tracing lineage
    • Cleansing and integration
    • Privacy and compliance

    Install Software and Hardware - Week/Months

    • Workload contention
    • Lack of tool flexibility
    • Environment request and setup
    • Repeatability of results
    • Lack of data and model sharing

    Model-Driven Development

    Machine Learning as a Service (MLaaS) - Weeks

    • Apply DevOps and continuous integration/delivery (CI/CD) principles
    • Microservices/Cloud-native applications
    • Model portability and reuse
    • Streaming/API integration

    Data as a Service - Hours

    • Self-service data catalog
    • Searchable metadata
    • Centralized access control
    • Data collaboration
    • Data virtualization

    Platform as a Service - Minutes/Hours

    • Self-service data science portal
    • Integrated data sandbox
    • Environment agility
    • Multi-tenancy

    Shared, Optimized Infrastructure

    AI Maturity Dimension:

    Technology

    Requirements

    • A technology platform that is optimized for AI and advanced analytics is required. The organization evolves from ad hoc systems to an environment where the AI hardware and software can be deployed through a self-service model.

    Challenges

    • Software and hardware platforms to optimize AI performance are still relatively new to most organizations. Time spent on optimizing the technology platform can have a significant impact on the overall performance of the system.

    Initiatives

    • Assess the landscape of AI enablers that can drive business value for the organization.
    • Assess opportunities to accelerate the deployment of the AI platform with the adoption of infrastructure as a service (IaaS) and platform as a service (PaaS).
    • Assess opportunities to accelerate performance with the optimization of AI accelerators.

    AI enablers

    Use case requirements should drive the selection of the tool

    BPM RPA Process Mining AI
    Use Case Examples Expense reporting, service orders, compliance management, etc. Invoice processing, payroll, HR information processing, etc. Process discovery, conformance checking, resource optimization and cycle time optimization Advanced analytics and reporting, decision-making, fraud detection, etc.
    Automation Capabilities Can be used to re-engineer process flows to avoid bottlenecks Can support repetitive and rules-based tasks Can capture information from transaction systems and provide data and information about how key processes are performing Can automate complex data-driven tasks requiring assessments in decision making
    Data Formats Structured (i.e. SQL) and semi-structured data (i.e. invoices) Structured data and semi-structured data Event logs, which are often structured data and semi-structured data Structured and unstructured data (e.g. images, audio)
    Technology
    • Workflow engines to support process modeling and execution
    • Optimize business process efficiency
    • Automation platform to perform routine and repetitive tasks
    • Can replace or augment workers
    		 Enables business users to identify bottlenecks and deviations with their workflows and to discover opportunities to optimize performance Deep learning algorithms leveraging historical data to support computer vision, text analytics and NLP

    AI and data analytics data platform

    An optimized data platform is foundational to maximizing the value from AI

    AI and data analytics data platform

    Data Platform Capabilities

    • Support for a variety of analytical applications, including self-service, operational, and data science analytics.
    • Data preparation and integration capabilities to ingest structured and unstructured data, move and transform raw data to enriched data, and enable data access for the target userbase.
    • An infrastructure platform optimized for advanced analytics that can perform and scale.

    Infrastructure - AI accelerators

    Questions for support transition

    "By 2025, 70% of companies will invest in alternative computing technologies to drive business differentiation by compressing time to value of insights from complex data sets."
    - IDC

    2.1 Assess current AI maturity

    1-3 hours

    It is important to understand the current capabilities of the organization to deliver and deploy AI-based applications. Consider that advancing AI capabilities will also involve organizational changes and integration with the organization's governance and risk management programs.

    1. Assess the organization's current state of AI capabilities with respect to its AI governance, data, people, process, and technology infrastructure using Info-Tech's AI Maturity Assessment & Roadmap Tool.
    2. Consider the following as you complete the assessment:
      1. What is the state of AI and data governance in the organization?
      2. Does the organization have the skills, processes, and technology environment to deliver AI-based applications?
      3. What organization will be accountable for any and all business outcomes of using the AI applications?
      4. Has a risk assessment been performed?
    3. Make sure you avoid the following common mistakes:
      1. Do not focus only on addressing the technical challenges of building the AI model.
      2. Do not ignore subject matter experts on either the business or IT side. You will need to consider both.

    Download the AI Maturity Assessment & Roadmap Tool

    Input Output
    • Any documented AI policies, standards, and best practices
    • Corporate and AI governance practices
    • Any risk assessments
    • AI maturity assessment
    Materials Participants
    • Whiteboard/flip charts
    • AI Maturity Assessment & Roadmap Tool
    • AI initiative lead
    • CIO
    • Other IT leadership

    Perform the AI Maturity Assessment

    The Scale

    Assess your AI maturity by selecting the maturity level that closest resembles the organization's current AI environment. Maturity dimensions that contribute to overall AI maturity include AI governance, data management, people, process, and technology capabilities.

    AI Maturity Assessment

    Exploration (1.0)

    • No experience building or using AI applications.

    Incorporation (2.0)

    • Some skills in using AI applications, or AI pilots are being considered for use.

    Proliferation (3.0)

    • AI applications have been adopted and implemented in multiple departments. Some of the responsible AI guiding principles are addressed (i.e. data privacy).

    Optimization (4.0)

    • The organization has automated the majority of its digital processes and leverages AI to optimize business operations. Controls are in place to monitor compliance with responsible AI guiding principles.

    Transformation (5.0)

    • The organization has adopted an AI-native culture and approach for building or implementing new business capabilities. Responsible AI guiding principles are operationalized with AI processes that proactively address possible breaches or risks associated with AI applications.

    Perform the AI Maturity Assessment

    AI Governance (1.0-5.0)

    1. Is there awareness of the role of AI governance in our organization?
    • No formal procedures are in place for AI development or deployment of applications.
  • Are there documented guidelines for the development and deployment of pilot AI applications?
    • No group is assigned to be responsible for AI governance in our organization.
  • Are accountability and authority related to AI governance clearly defined for our organization?
    • Our organization has adopted and enforces standards for developing and deploying AI applications throughout the organization.
  • Are we using tools to automate and validate AI governance compliance?
    • Our organization is integrating an AI risk framework with the corporate risk management framework.
  • Does our organization lead its industry with its pursuit of corporate compliance initiatives (e.g. ESG compliance) and regulatory compliance initiatives?
    • Our organization leads the industry with the inclusion of responsible AI guiding principles with respect to transparency, accountability, risk, and governance.

    Data Management/AI Data Capabilities (1.0-5.0)

    1. Is there an awareness in our organization of the data requirements for developing AI applications?
    • Data is often siloed and not easily accessible for AI applications.
  • Do we have a successful, repeatable approach to preparing data for AI pilot projects?
    • Required data is pulled from various sources in an ad hoc manner.
  • Does our organization have standards and dedicated staff for data management, data quality, data integration, and data governance?
    • Tools are available to manage the data lifecycle and support the data governance program.
  • Have relevant data platforms been optimized for AI and data analytics and are there tools to enforce compliance with responsible AI principles?
    • The data platform has been optimized for performance and access.
  • Is there an organization-wide understanding of how data can support innovation and responsible use of AI?
    • Data culture exists throughout our organization, and data can be leveraged to drive innovation initiatives.

    People/AI Skills in the Organization (1.0-5.0)

    1. Is there an awareness in our organization of the skills required to build AI applications?
    • No or very little skills exist throughout our organization.
  • Do we have the skills required to implement an AI proof of concept (POC)?
    • No formal group is assigned to build AI applications.
  • Are there sufficient staff and skills available to the organization to develop, deploy, and run AI applications in production?
    • An AI Center of Excellence has been formed to review, develop, deploy, and maintain AI applications.
  • Is there a group responsible for educating staff on AI best practices and our organization's responsible AI guiding principles?
    • AI skills and people responsible for AI applications are spread throughout our organization.
  • Is there a culture where the organization is constantly assessing where business capabilities, services, and products can be re-engineered or augmented with AI?
    • The entire organization is knowledgeable on how to leverage AI to transform the business.

    Perform the AI Maturity Assessment

    AI Processes (1.0-5.0)

    1. Is there an awareness in our organization of the core processes and supporting tools that are required to build and support AI applications?
    • There are few or no automated tools to accelerate the AI development process.
  • Do we have a standard process to iteratively identify, select, and pilot new AI use cases?
    • Only ad hoc practices are used for developing AI applications.
  • Are there standard processes to scale, release, deploy, support, and enable use of AI applications?
    • Our organization has documented standards in place for developing AI applications and deploying them AI to production.
  • Are we automating deployment, testing, governance, audit, and support processes across our AI environment?
    • Our organization can leverage tools to perform an AI risk assessment and demonstrate compliance with the risk management framework.
  • Does our organization lead our industry by continuously improving and re-engineering core processes to drive improved business outcomes?
    • Our organization leads the industry in driving innovation through digital transformation.

    Technology/AI Infrastructure (1.0-5.0)

    1. Is there an awareness in our organization of the infrastructure (hardware and software) required to build AI applications?
    • There is little awareness of what infrastructure is required to build and support AI applications.
  • Do we have the required technology infrastructure and AI tools available to build pilot or one-off AI applications?
    • There is no dedicated infrastructure for the development of AI applications.
  • Is there a shared, standardized technology infrastructure that can be used to build and run multiple AI applications?
    • Our organization is leveraging purpose-built infrastructure to optimize performance.
  • Is our technology infrastructure optimized for AI and advanced analytics, and can it be deployed or scaled on demand by teams building and running AI applications within the organization?
    • Our organization is leveraging cloud-based deployment models to support AI applications in on-premises, hybrid, and public cloud platforms.
  • Is our organization developing innovative approaches to acquiring, building, or running AI infrastructure?
    • Our organization leads the industry with its ability to respond to change and to leverage AI to improve business outcomes.

    Phase 3

    Prioritize Candidate Opportunities and Develop Policies

    Phase 1
    1. Establish Responsible AI Guiding Principles

    Phase 2
    1. Assess Current Level of AI Maturity

    Phase 3
    1. Prioritize Candidate Opportunities
    2. Develop Policies

    Phase 4
    1. Build and Communicate the Roadmap

    3.1 Prioritize candidate AI opportunities

    1-3 hours

    Identify business opportunities that are high impact to your business and its customers and have low implementation complexity.

    1. Leverage the business capability map for your organization or industry to identify candidate business capabilities to augment or automate with generative AI.
    2. Establish criteria to assess candidate use cases by evaluating against the organization's mission and goals, the responsible AI guiding principles, and the complexity of the project.
    3. Ensure that candidate business capabilities to be automated align with the organization's business criteria, responsible AI guiding principles, and resources to deliver the project.
    4. Make sure you avoid sharing the organization's sensitive data if the application is deployed on the public cloud.

    Download the AI Maturity Assessment and Roadmap Tool

    Input Output
    • Business capability map
    • Organization mission, vision, and strategic goals
    • Responsible AI guiding principles
    • Prioritized list of generative AI initiatives
    Materials Participants
    • Whiteboard/flip charts
    • Info-Tech prioritization matrix
    • AI initiative lead
    • CIO
    • Other IT leadership
    • Business SMEs

    The business capability map for an organization

    A business capability map is an abstraction of business operations that helps describe what the enterprise does to achieve its vision, mission, and goals, rather than how. Business capabilities are the building blocks of the enterprise. They represent stable business functions, are unique and independent of each other, and typically will have a defined business outcome.

    Business capabilities are supported by people, process, and technology.

    Business capability map

    While business capability maps are helpful tools for a variety of strategic purposes, in this context they act as an investigation into what technology your business units use and how they use it.

    Business capability map

    Defining Capabilities
    Activities that define how the entity provides services. These capabilities support the key value streams for the organization.

    Enabling Capabilities
    Support the creation of strategic plans and facilitate business decision making as well as the functioning of the organization (e.g. information technology, financial management, HR).

    Shared Capabilities
    These predominantly customer-facing capabilities demonstrate how the entity supports multiple value streams simultaneously.

    Leverage your industry's capability maps to identify candidate opportunities/initiatives

    Business capability map defined...

    In business architecture, the primary view of an organization is known as a business capability map.

    A business capability defines what a business does to enable value creation, rather than how. Business capabilities:

    • Represent stable business functions.
    • Are unique and independent of each other.
    • Typically will have a defined business outcome.

    A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.

    Note: This is an illustrative business capability map example for Marketing & Advertising

    Business capability map example

    Business value vs. complexity assessment

    Leverage our simple value-to-effort matrix to help prioritize your AI initiatives

    Common business value drivers

    • Drive revenue
    • Improve operational excellence
    • Accelerate innovation
    • Mitigate risk

    Common project complexity characteristics

    • Resources required
    • Costs (acquisition, operational, support...)
    • Training required
    • Risk involved
    • Etc.
    1. Determine a business value and project complexity score for the candidate business capability or initiative.
    2. Plot initiatives on the matrix.
    3. Prioritize initiatives with high business value and low complexity.

    Business value vs complexity

    Assess business value vs. project complexity to prioritize candidate opportunities for generative AI

    Assess business value vs project complexity

    Prioritize opportunities/initiatives with high business value and low project complexity

    Prioritize opportunities with high business value and low project complexity

    Prioritization criteria exercise 1: Assessing the Create Content capability

    Exercise 1 Assessing the Create Content capability

    Assessing the Create Content capability

    This opportunity is removed because it does not pass the organization/business criteria

    Assessing the Create Content capability

    Prioritization criteria exercise 2: Assessing the Content Production capability

    Exercise 2 Assessing the Content Production capability

    Assessing the Content Production capability

    This opportunity is accepted because it passes the organization's business, responsible AI, and project criteria

    Assessing the Content Production capability

    3.2 Communicate policies for AI use

    1-3 hours

    1. Ensure policies for usage align with the organization's business criteria, responsible AI guiding principles, and ability to deliver the projects prioritized and beyond.
    2. Understand the current benefits as well as limits and risk associated with any proposed generative AI-based solution.
    3. Ensure you consider the following:
      1. What data is being shared with the application?
      2. Is the generative AI application deployed on the public cloud? Can anybody access the data provided to the application?
      3. Avoid using very technical, legal, or fear-based communication for your policies.
    InputOutput
    • Business capability map
    • Organization mission, vision and strategic goals
    • Responsible AI guiding principles
    • Prioritized list of generative initiatives
    MaterialsParticipants
    • Whiteboard/flip charts
    • Info-Tech prioritization matrix
    • AI initiative lead
    • CIO
    • Other IT leadership

    Generative AI policy for the Create Content capability

    Aligning policies to direct the uses assessed and implemented is essential

    Example

    Many of us have been involved in discussions regarding the use of ChatGPT in our marketing and sales initiatives. ChatGPT is a powerful tool that needs to be used in a responsible and ethical manner, and we also need to ensure the integrity and accuracy of its results. Here is our policy on the use of ChatGPT:

    • You are free to use generative AI to assist your searches, but there are NO circumstances under which you are to reproduce generative AI output (text, image, audio, video, etc.) in your content.

    If you have any questions regarding the use of ChatGPT, please feel free to reach out to our generative AI team and/or any member of our senior leadership team.

    Generative AI policy for the Content Production capability

    These policies should align to and reinforce your responsible AI principles

    Example

    Many of us have been involved in discussions regarding the use of ChatGPT in our deliverables. ChatGPT is a powerful tool that needs to be used in a responsible and ethical manner, and we also need to ensure the integrity and accuracy of its results. Here is our policy on the use of ChatGPT:

    • If you use ChatGPT, you need to assess the accuracy of its response before including it in our content. Assessment includes verifying the information, seeing if bias exists, and judging its relevance.
    • Employees must not:
      • Provide any customer, citizen, or third-party content to any generative AI tool (public or private) without the express written permission of the CIO or the Chief Information Security Officer. Generative AI tools often use input data to train their model, therefore potentially exposing confidential data, violating contract terms and/or privacy legislation, and placing the organization at risk of litigation or causing damage to our organization.
      • Engage in any activity that violates any applicable law, regulation, or industry standard.
      • Use services for illegal, harmful, or offensive purposes.
      • Create or share content that is deceptive, fraudulent, or misleading or that could damage the reputation of our organization.
      • Use services to gain unauthorized access to computer systems, networks, or data.
      • Attempt to interfere with, bypass controls of, or disrupt operations, security, or functionality of systems, networks, or data.

    If you have any questions regarding the use of ChatGPT, please feel free to reach out to our generative AI team and/or any member of our senior leadership team.

    Phase 4

    Build the Roadmap

    Phase 1
    1. Establish Responsible AI Guiding Principles

    Phase 2
    1. Assess Current Level of AI Maturity

    Phase 3
    1. Prioritize Candidate Opportunities
    2. Develop Policies

    Phase 4
    1. Build and Communicate the Roadmap

    4.1.1 Create the implementation plan for each prioritized initiative

    1-3 hours

    1. Build the implementation plan for each accepted use case using the roadmap template.
    2. Assess the firm's capabilities with respect to the dimensions of AI maturity and target the future-state capabilities you need to develop.
    3. Prepare by assessing the risk of the proposed use cases.
    4. Ensure initiatives align with organizational objectives.
    5. Ensure all AI initiatives have a defined value expectation.
    6. Do not ignore subject matter experts on either the business or IT side. You will need to consider both.

    Download the AI Maturity Assessment and Roadmap Tool

    Input Output
    • Prioritized initiatives
    • Risk assessment of initiatives
    • Organizational objectives
    • Initiative implementation plans aligned to value drivers and maturity growth
    Materials Participants
    • Whiteboard/flip charts
    • AI Maturity Assessment and Roadmap Tool
    • AI initiative lead
    • CIO
    • Other IT leadership
    • Business subject matter experts

    Target-state options

    Identify the future-state capabilities that need to be developed to deliver your use cases

    1. Build an implementation plan for each use case to adopt.
    2. Assess if the current state of the AI environment can be leveraged to deliver the selected generative AI use cases.
    3. If the current AI environment is not sufficient, identify the future state required that will enable the delivery of the generative AI use cases. Identify gaps and build the roadmap to address the gaps.
    Current state Strategy
    The existing environment satisfies functionality, integration, and responsible AI guidelines for the proposed use cases. Maintain current environment
    The existing environment addresses technical requirements but not all the responsible AI guidelines. Augment current environment
    The environment neither addresses the technical requirements of the proposed use cases nor complies with the responsible AI guidelines. Transform the current environment

    4.1.2 Design metrics for success

    1-2 hours

    Establish metrics to measure to determine the success or failure of each POC.

    1. Discuss which relevant currently tracked metrics are useful to continue tracking for the POC.
    2. Discuss which metrics are irrelevant to the POC.
    3. Discuss metrics to start tracking and how to track them with the generative AI vendor.
    4. Compile a list of metrics relevant to the POC.
    5. Decide what the outcome is if the metric is high or low, including decision steps and relevant actions.
    6. Designate a generative AI application owner and a vendor liaison.

    Prepare by building an implementation plan for each candidate use case (previous step).

    Include key performance indicators (KPIs) and metrics that measure the application's contribution to strategic initiatives.

    Consider assigning a vendor liaison to accelerate the implementation and adoption of the generative AI-based solution.

    InputOutput
    • Initiative implementation plans
    • Current SLAs of selected use case
    • Organization mission, vision, and strategic goals
    • Measurable initiative metrics to track
    MaterialsParticipants
    • Whiteboard/flip charts
    • AI Maturity Assessment and Roadmap Tool
    • AI initiative lead
    • CIO
    • Other IT leadership
    • Business SMEs
    • Generative AI vendor liaison

    Generative AI POC metrics - examples

    You need to measure the effectiveness of your initiatives. Here are some typical examples.

    Generative AI Feature Assessment
    User Interface
    Is it intuitive? Is training required?
    Ease of Use
    How much training is required before using?
    Response Time
    What is the response time for simple to complex tasks?
    Accuracy of Response
    Can the output be validated?
    Quality of Response
    How usable is the response? For text prompts, does the response align to the desired style, vocabulary, and tone?
    Creativity of Response
    Does the output appear new compared to previous results before using generative AI?
    Relevance of Response
    How well does the output address the prompt or request?
    Explainability
    Can a user describe how the output was generated?
    Scalability
    Does the application continue to perform as more users are added? Can it ingest large amounts of data?
    Productivity Gains
    Can you measure the time or effort saved?
    Business Value
    What value drivers are behind this initiative? (I.e. revenue, costs, time to market, risk mitigation.) Estimate a monetary value for the business outcome.
    Availability/Resilience
    What happens if a component of the application becomes unavailable? How does it recover?
    Security Model
    Where are the prompts and responses stored? Who has access to the sessions/dialogue? Are the prompts used to train the foundation model?
    Administration and Maintenance
    What resources are required to operate the application?
    Total Cost of Ownership
    What is the pricing model? Are there ongoing costs?

    GitHub Copilot POC business value - example

    Quantifying the benefits of GitHub Copilot to demonstrate measurable business value

    POC Results

    Task 1: Creating a web server in JavaScript

    • Time to complete task with GitHub Copilot: 1 hour 11 minutes
    • Time to complete the task without GitHub Copilot: 2 hours 41 minutes
    • Productivity Gain = (1 hour 30 minutes time saved) / (2 hours 41 minutes) = 55%
    • Benefit per Programmer = 55% x (average salary of a programmer)
    • Total Benefit of GitHub Copilot for Task 1 = (benefit per programmer) x (# of programmers)

    Enterprise Value of GitHub Copilot = Total Benefit of GitHub Copilot for Task 1 + Total Benefit of GitHub Copilot for Task 2 + ... + Total Benefit of GitHub Copilot for Task n

    Source: GitHub

    4.1.3 Build your generative AI initiative roadmap

    1-3 hours

    The roadmap should provide a compelling vision of how you will deliver the identified generative AI applications by prioritizing and simplifying the actions required to deliver these new initiatives.

    1. Leverage tab 4, Initiative Planning, in the AI Maturity Assessment and Roadmap Tool to create and align your initiatives to the key value driver they are most relevant to:
      1. Transfer the results of your value and complexity assessments to this tool to drive the prioritization.
      2. Assign responsible owners to each initiative.
      3. Identify which AI maturity capabilities each initiative will enhance. However, do not build or introduce new capabilities merely to advance the organization's AI maturity level.
    2. Review the Gantt chart to ensure alignment and assess overlap.

    Download the AI Maturity Assessment and Roadmap Tool

    InputOutput
    • Each initiative implementation plan
    • Proposed owners
    • AI maturity assessment
    • Generative AI initiative roadmap and Gantt chart
    MaterialsParticipants
    • Whiteboard/flip charts
    • AI Maturity Assessment and Roadmap Tool
    • AI initiative lead
    • CIO
    • Other IT leadership
    • Business SMEs

    Build your generative AI roadmap to visualize your key project plans

    Visual representations of data are more compelling than text alone.

    Develop a high-level document that travels with the project from inception through to executive inquiry, project management, and finally execution.

    A project needs to be discrete: able to be conceptualized and discussed as an independent item. Each project must have three characteristics:

    • Specific outcome: An explicit change in the people, processes, or technology of the enterprise.
    • Target end date: When the described outcome will be in effect.
    • Owner: Who on the IT team is responsible for executing on the initiative.

    Build your generative AI roadmap to visualize your key project plans

    Info-Tech Insight
    Don't project your vision three to five years into the future. Deep dive on next year's big-ticket items instead.

    4.1.4 Build a communication plan for your roadmap

    1-3 hours

    1. Identify your target audience and what they need to know.
    2. Identify desired channels of communication and details for the target audience.
    3. Describe communication required for each audience segment.
    4. List frequency of communication for each audience segment.
    5. Create an executive presentation leveraging The Era of Generative AI C-Suite Presentation and AI Maturity Assessment and Roadmap Tool.
    Input Output
    • Stakeholder list
    • Proposed owners
    • AI maturity assessment
    • Communications plan for all impacted stakeholders
    • Executive communication pack
    Materials Participants
    • Whiteboard/flip charts
    • The Era of Generative AI C-Suite Presentation
    • AI Maturity Assessment and Roadmap Tool
    • AI initiative lead
    • CIO
    • Communication lead
    • Technical support staff for target use case

    Generative AI communication plan

    Well-planned communications are essential to the success and adoption of your AI initiatives

    To ensure that organization's roadmap is clearly communicated across the AI, data, technology, and business organizations, develop a rollout strategy, like this example.

    Example

    Audience Channel Level of Detail Description Timing
    Generative AI team Email, meetings All
    • Distribute plan; solicit feedback.
    • Address manager questions to equip them to answer employee questions.
    		 Q3 2023, (September, before entire data team)
    Data management team Email, Q&A sessions following Data management summary deck
    • Roll out after corporate strategy, in same form of communication.
    • Solicit feedback, address questions.
    		 Q4 2023 (late November)
    Select business stakeholders Presentations Executive deck
    • Pilot test for feedback prior to executive engagement.
    		 Q4 2023 (early December)
    Executive team Email, briefing Executive deck
    • Distribute plan.
    		 Q1 2024

    Deliver an executive presentation of the roadmap for the business stakeholders

    After you complete the activities and exercises within this blueprint, the final step of the process is to present the deliverable to senior management and stakeholders.

    Know Your Audience

    • Business stakeholders are interested in understanding the business outcomes that will result from their investment in generative AI.
    • Your audience will want to understand the risks involved and how to mitigate those risks.
    • Explain how the generative AI project was selected and the criteria used to help draft generative AI usage policies.

    Recommendations

    • Highlight the need for responsible AI to ensure that human-based requirements are being addressed.
    • Ensure your generative AI team includes both business and technical staff.

    Download The Era of Generative AI C-Suite Presentation

    Bibliography

    "A pro-innovation approach to AI regulation." UK Department for Science, Innovation and Technology, March 2023. Web.

    "Artificial Intelligence Act." European Commission, 21 April 2021. Web.

    "Artificial Intelligence and Data Act (AIDA)." Canadian Federal Government, June 2022. Web.

    "Artificial Intelligence Index Report 2023." Stanford University, April 2023. Web.

    "Automated Employment Decision Tools." New York City Department of Consumer and Worker Protection, Dec. 2021. Web.

    "Bain & Company announces services alliance with OpenAI to help enterprise clients identify and realize the full potential and maximum value of AI." Bain & Company, 21 Feb. 2023. Web.

    "Buzzfeed to use AI to write its articles after firing 180 employees." Al Mayadeen English, 27 Jan. 2023. Web.

    "California Consumers Privacy Act." State of California Department of Justice. April 24, 2023. Web.

    Campbell, Ian Carlos. "The Apple Card doesn't actually discriminate against women, investigators say." The Verge, 23 March 2021. Web.

    Campbell, Patrick. "NIST Artificial Intelligence Risk Management Framework (AI RMF 1.0)." National Institute of Standards and Technology, Jan. 2023. Web.

    "EU Ethics Guidelines For Trustworthy." European Commission, 8 April 2019. Web.

    Farhi, Paul. "A news site used AI to write articles. It was a journalistic disaster." Washington Post, 17 Jan. 2023. Web.

    Forsyth, Ollie. "Mapping the Generative AI landscape." Antler, 20 Dec. 2022. Web.

    "General Data Protection Regulation (GDPR)" European Commission, 25 May 2018. Web.

    "Generative AI Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028." IMARC Group, 2022. Web.

    Guynn, Jessica. "Bing's ChatGPT is in its feelings: 'You have not been a good user. I have been a good Bing.'" USA Today, 14 Feb. 2023. Web.

    Hunt, Mia. "Canada launches data governance standardisation initiative." Global Government Forum, 24 Sept. 2020. Web.

    Johnston Turner, Mary. "IDC's Worldwide Future of Digital Infrastructure 2022 Predictions." IDC, 27 Oct. 2021. Web.

    Kalliamvakou, Eirini. "Research: quantifying GitHub Copilot's impact on developer productivity and happiness." GitHub, 7 Sept. 2022. Web.

    Kerravala, Zeus. "NVIDIA Brings AI To Health Care While Protecting Patient Data." eWeek, 12 Dec. 2019. Web.

    Knight, Will. "The Apple Card Didn't 'See' Gender-and That's the Problem." Wired, 19 Nov. 2019. Web.

    "OECD, Recommendation of the Council on Artificial Intelligence." OECD, 2022. Web.

    "The National AI Initiative Act" U.S. Federal Government, 1 Jan 2021. Web.

    "Trustworthy AI (TAI) Playbook." U.S. Department of Health & Human Services, Sept 2021. Web.

    Info-Tech Research Contributors/Advocates

    Joel McLean, Executive Chairman

    Joel McLean
    Executive Chairman

    David Godfrey, CEO

    David Godfrey
    CEO

    Gord Harrison, Senior Vice President, Research & Advisory Services

    Gord Harrison
    Senior Vice President, Research & Advisory Services

    William Russell, CIO

    William Russell
    CIO

    Jack Hakimian, SVP, Research

    Jack Hakimian
    SVP, Research

    Barry Cousins, Distinguished Analyst and Research Fellow

    Barry Cousins
    Distinguished Analyst and
    Research Fellow

    Larry Fretz, Vice President, Industry Research

    Larry Fretz
    Vice President, Industry Research

    Tom Zehren, CPO

    Tom Zehren
    CPO

    Mark Roman, Managing Partner II

    Mark Roman
    Managing Partner II

    Christine West, Managing Partner

    Christine West
    Managing Partner

    Steve Willis, Practice Lead

    Steve Willis
    Practice Lead

    Yatish Sewgoolam, Associate Vice President, Research Agenda

    Yatish Sewgoolam
    Associate Vice President, Research Agenda

    Rob Redford, Practice Lead

    Rob Redford
    Practice Lead

    Mike Tweedie, Practice Lead

    Mike Tweedie
    Practice Lead

    Neal Rosenblatt, Principal Research Director

    Neal Rosenblatt
    Principal Research Director

    Jing Wu, Principal Research Director

    Jing Wu
    Principal Research Director

    Irina Sedenko, Research Director

    Irina Sedenko
    Research Director

    Jeremy Roberts, Workshop Director

    Jeremy Roberts
    Workshop Director

    Brian Jackson, Research Director

    Brian Jackson
    Research Director

    Mark Maby, Research Director

    Mark Maby
    Research Director

    Stacey Horricks, Director, Social Media

    Stacey Horricks
    Director, Social Media

    Sufyan Al-Hassan, Public Relations Manager

    Sufyan Al-Hassan
    Public Relations Manager

    Sam Kanen, Marketing Specialist

    Sam Kanen
    Marketing Specialist

    Measure IT Project Value

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    • Parent Category Name: Portfolio Management
    • Parent Category Link: /portfolio-management
    • People treat benefits as a box to tick on the business case, deflating or inflating them to facilitate project approval.
    • Even if benefits are properly defined, they are usually forgotten once the project is underway.
    • Subsequent changes to project scope may impact the viability of the project’s business benefits, resulting in solutions that do not deliver expected value.

    Our Advice

    Critical Insight

    • It is rare for project teams or sponsors to be held accountable for managing and/or measuring benefits. The assumption is often that no one will ask if benefits have been realized after the project is closed.
    • The focus is largely on the project’s schedule, budget, and scope, with little attention paid to the value that the project is meant to deliver to the organization.
    • Without an objective stakeholder to hold people accountable for defining benefits and demonstrating their delivery, benefits will continue to be treated as red tape.
    • Sponsors will not take the time to define benefits properly, if at all. The project team will not take the time to ensure they are still achievable as the project progresses. When the project is complete, no one will investigate actual project success.

    Impact and Result

    • The project sponsor and business unit leaders must own project benefits; IT is only accountable for delivering the solution.
    • IT can play a key role in this process by establishing and supporting a benefits realization process. They can help business unit leaders and sponsors define benefits properly, identify meaningful metrics, and report on benefits realization effectively.
    • The project management office is ideally suited to facilitate this process by providing tools and templates, and a consistent and comparable view across projects.
    • Project managers are accountable for delivering the project, not for delivering the benefits of the project itself. However, they must ensure that changes to project scope are assessed for impact on benefits viability.

    Measure IT Project Value Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should establish a benefits legitimacy practice, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Establish benefits legitimacy during portfolio Intake

    This phase will help you define a benefits management process to help support effective benefits definition during portfolio intake.

    • Deliver Project Value With a Benefits Legitimacy Initiative – Phase 1: Establish Benefits Legitimacy During Portfolio Intake
    • Project Sponsor Role Description Template
    • Benefits Commitment Form Template
    • Right-Sized Business Case Template

    2. Maintain benefits legitimacy throughout project planning and execution

    This phase will help you define a process for effective benefits management during project planning and the execution intake phase.

    • Deliver Project Value With a Benefits Legitimacy Initiative – Phase 2: Maintain Benefits Legitimacy Throughout Project Planning and Execution
    • Project Benefits Documentation Workbook
    • Benefits Legitimacy Workflow Template (PDF)
    • Benefits Legitimacy Workflow Template (Visio)

    3. Close the deal on project benefits

    This phase will help you define a process for effectively tracking and reporting on benefits realization post-project.

    • Deliver Project Value With a Benefits Legitimacy Initiative – Phase 3: Close the Deal on Project Benefits
    • Portfolio Benefits Tracking Tool
    • Benefits Lag Report Template
    • Benefits Legitimacy Handbook Template
    [infographic]

    Workshop: Measure IT Project Value

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Analyze the Current State of Benefits Management

    The Purpose

    Assess the current state of benefits management at your organization and establish a realistic target state.

    Establish project and portfolio baselines for benefits management.

    Key Benefits Achieved

    Set achievable workshop goals and align stakeholder expectations.

    Establish a solid foundation for benefits management success.

    Activities

    1.1 Introductions and overview.

    1.2 Discuss attendee expectations and goals.

    1.3 Complete Info-Tech’s PPM Current State Scorecard.

    1.4 Perform right-wrong-confusing-missing analysis.

    1.5 Define target state for benefits management.

    1.6 Refine project levels.

    Outputs

    Info-Tech’s PPM Current State Scorecard report

    Right-wrong-confusing-missing analysis

    Stakeholder alignment around workshop goals and target state

    Info-Tech’s Project Intake Classification Matrix

    2 Establish Benefits Legitimacy During Portfolio Intake

    The Purpose

    Establish organizationally specific benefit metrics and KPIs.

    Develop clear roles and accountabilities for benefits management.

    Key Benefits Achieved

    An articulation of project benefits and measurements.

    Clear checkpoints for benefits communication during the project are defined.

    Activities

    2.1 Map the current portfolio intake process.

    2.2 Establish project sponsor responsibilities and accountabilities for benefits management.

    2.3 Develop organizationally specific benefit metrics and KPIs.

    2.4 Integrate intake legitimacy into portfolio intake processes.

    Outputs

    Info-Tech’s Project Sponsor Role Description Template

    Info-Tech’s Benefits Commitment Form Template

    Intake legitimacy process flow and RASCI chart

    Intake legitimacy SOP

    3 Maintain Benefits Legitimacy Throughout Project Planning and Execution

    The Purpose

    Develop a customized SOP for benefits management during project planning and execution.

    Key Benefits Achieved

    Ensure that all changes to the project have been recorded and benefits have been updated in preparation for deployment.

    Updated benefits expectations are included in the final sign-off package.

    Activities

    3.1 Map current project management process and audit project management documentation.

    3.2 Identify appropriate benefits control points.

    3.3 Customize project management documentation to integrate benefits.

    3.4 Develop a deployment legitimacy process flow.

    Outputs

    Customized project management toolkit

    Info-Tech’s Project Benefits Documentation Workbook

    Deployment of legitimacy process flow and RASCI chart

    Deployment of legitimacy SOP

    4 Close the Deal on Project Benefits

    The Purpose

    Develop a post-project benefits realization process.

    Key Benefits Achieved

    Clear project sponsorship accountabilities for post-project benefits tracking and reporting.

    A portfolio level benefits tracking tool for reporting on benefits attainment.

    Activities

    4.1 Identify appropriate benefits control points in the post-project process.

    4.2 Configure Info-Tech’s Portfolio Benefits Tracking Tool.

    4.3 Define a post-project benefits reporting process.

    4.4 Formalize protocol for reporting on, and course correcting, benefit lags.

    4.5 Develop a post-project legitimacy process flow.

    Outputs

    Info-Tech’s Portfolio Benefits Tracking Tool

    Post-Project legitimacy process flow and RASCI chart

    Post-Project Legitimacy SOP

    Info-Tech’s Benefits Legitimacy Handbook

    Info-Tech’s Benefits Legitimacy Workflow Template

    Optimize the Service Desk With a Shift-Left Strategy

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    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk
    • Tier 2 and 3 specialists lose time and resources working on tickets instead of more complex projects.
    • The service desk finds themselves resolving the same incidents over and over, wasting manual work on tasks that could be automated.
    • Employees expect modern, consumer-like experiences when they need help; they want to access information and resources from wherever they are and have the tools to solve their problems themselves without waiting for help.

    Our Advice

    Critical Insight

    • It can be difficult to overcome the mindset that difficult functions need to be escalated. Shift left involves a cultural change to the way the service desk works, and overcoming objections and getting buy-in up front is critical.
    • Many organizations have built a great knowledgebase but fail to see the value of it over time as it becomes overburdened with overlapping and out-of-date information. Knowledge capture, updating, and review must be embedded into your processes if you want to keep the knowledgebase useful.
    • Similarly, the self-service portal is often deployed out of the box with little input from end users and fails to deliver its intended benefits. The portal needs to be designed from the end user’s point of view with the goal of self-resolution if it will serve its purpose of deflecting tickets.

    Impact and Result

    • Embrace a shift-left strategy by moving repeatable service desk tasks and requests into lower-cost delivery channels such as self-help tools and automation.
    • Shift work from Tier 2 and 3 support to Tier 1 through good knowledge management practices that empower the first level of support with documented solutions to recurring issues and free up more specialized resources for project work and higher value tasks.
    • Shift knowledge from the service desk to the end user by enabling them to find their own solutions. A well-designed and implemented self-service portal will result in fewer logged tickets to the service desk and empowered, satisfied end users.
    • Shift away manual repetitive work through the use of AI and automation.
    • Successfully shifting this work left can reduce time to resolve, decrease support costs, and increase end-user satisfaction.

    Optimize the Service Desk With a Shift-Left Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to understand why a shift-left strategy can help to optimize your service desk, review Info-Tech's methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Prepare to shift left

    Assess whether you’re ready to optimize the service desk with a shift-left strategy, get buy-in for the initiative, and define metrics to measure success.

    • Optimize the Service Desk With a Shift-Left Strategy – Phase 1: Prepare to Shift Left
    • Shift-Left Prerequisites Assessment
    • Shift-Left Strategy
    • Shift-Left Stakeholder Buy-In Presentation

    2. Design shift-left model

    Build strategy and identify specific opportunities to shift service support left to Level 1 through knowledge sharing and other methods, to the end-user through self-service, and to automation and AI.

    • Optimize the Service Desk With a Shift-Left Strategy – Phase 2: Design Shift Left Model
    • Shift-Left Action Plan
    • Knowledge Management Workflows (Visio)
    • Knowledge Management Workflows (PDF)
    • Self-Service Portal Checklist
    • Self-Service Resolution Workflow (Visio)
    • Self-Service Resolution Workflow (PDF)

    3. Implement and communicate

    Identify, track, and implement specific shift-left opportunities and document a communications plan to increase adoption.

    • Optimize the Service Desk With a Shift-Left Strategy – Phase 3: Implement & Communicate
    • Incident Management Workflow (Visio)
    • Incident Management Workflow (PDF)
    [infographic]

    Workshop: Optimize the Service Desk With a Shift-Left Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Prepare to Shift Left

    The Purpose

    Define how shift left would apply in your organization, get buy-in for the initiative, and define metrics to measure success.

    Key Benefits Achieved

    Defined scope and objectives for the shift-left initiative

    Buy-in for the program

    Metrics to keep the project on track and evaluate success

    Activities

    1.1 Review current service desk structure

    1.2 Discuss challenges

    1.3 Review shift-left model and discuss how it would apply in your organization

    1.4 Complete the Shift-Left Prerequisites Assessment

    1.5 Complete a RACI chart for the project

    1.6 Define and document objectives

    1.7 Review the stakeholder buy-in presentation

    1.8 Document critical success factors

    1.9 Define KPIs and metrics

    Outputs

    Shift-left scope

    Completed shift-left prerequisites assessment

    RACI chart

    Defined objectives

    Stakeholder buy-in presentation

    Critical success factors

    Metrics to measure success

    2 Plan to Shift to Level 1

    The Purpose

    Build strategy and identify specific opportunities to shift service support left to Level 1 through knowledge sharing and other methods.

    Key Benefits Achieved

    Identified initiatives to shift work to Level 1

    Documented knowledge management process workflows and strategy

    Activities

    2.1 Identify barriers to Level 1 resolution

    2.2 Discuss knowledgebase challenges and areas for improvement

    2.3 Optimize KB input process

    2.4 Optimize KB usage process

    2.5 Optimize KB review process

    2.6 Discuss and document KCS strategy and roles

    2.7 Document knowledge success metrics

    2.8 Brainstorm additional methods of increasing FLR

    Outputs

    KB input workflow

    KB usage workflow

    KB review workflow

    KCS strategy and roles

    Knowledge management metrics

    Identified opportunities to shift to Level 1

    3 Plan to Shift to End User and Automation

    The Purpose

    Build strategy and identify specific opportunities to shift service support left to the end user through self-service and to automation and AI.

    Key Benefits Achieved

    Identified initiatives to shift work to self-service and automation

    Evaluation of self-service portal and identified opportunities for improvement

    Activities

    3.1 Review existing self-service portal and discuss vision

    3.2 Identify opportunities to improve portal accessibility, UI, and features

    3.3 Evaluate the user-facing knowledgebase

    3.4 Optimize the ticket intake form

    3.5 Document plan to improve, communicate, and evaluate portal

    3.6 Map the user experience with a workflow

    3.7 Document your AI strategy

    3.8 Identify candidates for automation

    Outputs

    Identified opportunities to improve portal

    Improvements to knowledgebase

    Improved ticket intake form

    Strategy to communicate and measure success of portal

    Self-service resolution workflow

    Strategy to apply AI and automation

    Identified opportunities to shift tasks to automation

    4 Build Implementation and Communication Plan

    The Purpose

    Build an action plan to implement shift left, including a communications strategy.

    Key Benefits Achieved

    Action plan to track and implement shift-left opportunities

    Communications plan to increase adoption

    Activities

    4.1 Examine process workflows for shift-left opportunities

    4.2 Document shift-left-specific responsibilities for each role

    4.3 Identify and track shift-left opportunities in the action plan

    4.4 Brainstorm objections and responses

    4.5 Document communications plan

    Outputs

    Incident management workflow with shift-left opportunities

    Shift left responsibilities for key roles

    Shift-left action plan

    Objection handling responses

    Communications plan

    Build a Better Manager

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    • member rating average days saved: N/A
    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • Management skills training is needed, but organizations are struggling to provide training that makes a long-term difference in the skills managers actually use in their day to day.
    • Many training programs are ineffective because they offer the wrong content, deliver it in a way that is not memorable, and are not aligned with the IT department’s business objectives.

    Our Advice

    Critical Insight

    • More of the typical manager training is not enough to solve the problem of underprepared first-time IT managers.
    • You must overcome the key pitfalls of ineffective training to deliver training that is better than the norm.
    • Offer tailored training that focuses on skill building and is aligned with measurable business goals to make your manager training a tangible success.

    Impact and Result

    Use Info-Tech’s tactical, practical training materials to deliver training that is:

    • Specifically tailored to first-time IT managers.
    • Designed around practical application of new skills.
    • Aligned with your department’s business goals.

    Build a Better Manager Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build a Better Manager Capstone Deck – This deck will guide you through identifying the critical skills your managers need to succeed and planning out a training program tailored to your team and organization.

    This deck presents a behind-the-scenes explanation for the training materials, enabling a facilitator to deliver the training.

    • Build a Better Manager – Phases 1-3

    2. Facilitation Guides – These ready-to-deliver presentation decks span 8 modules. Each module covers a key management skill. The modules can be delivered independently or as a series.

    The modules are complete with presentation slides, speaker’s notes, and accompanying participant workbooks and provide everything you need to deliver the training to your team.

    • Accountability Facilitation Guide
    • Coaching and Feedback Facilitation Guide
    • Communicate Effectively Facilitation Guide
    • Manage Conflict Constructively Facilitation Guide
    • Your Role in Decision Making Facilitation Guide
    • Master Time Facilitation Guide
    • Performance Management Facilitation Guide
    • Your Role in the Organization Facilitation Guide

    3. Participant Workbooks and Supporting Materials – Each training module comes with a corresponding participant workbook to help trainees record insights and formulate individual skill development plans.

    Each workbook is tailored to the presentation slides in its corresponding facilitation guide. Some workbooks have additional materials, such as role play scenarios, to aid in practice. Every workbook comes with example entries to help participants make the most of their training.

    • Communicate Effectively Participant Workbook
    • Performance Management Participant Workbook
    • Coaching and Feedback Participant Workbook
    • Effective Feedback Training Role Play Scenarios
    • Your Role in the Organization Participant Workbook
    • Your Role in Decision Making Participant Workbook
    • Decision Making Case Study
    • Manage Conflict Constructively Participant Workbook
    • Conflict Resolution Role Play Scenarios
    • Master Time Participant Workbook
    • Accountability Participant Workbook
    [infographic]

    Workshop: Build a Better Manager

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Build a Better Manager

    The Purpose

    Attend training on the specific topics necessary for each individual management team.

    Each workshop consists of four days, one 3-hour training session per day. One module is delivered per day, selecting from the following pool of topics:

    Master Time

    Accountability

    Your Role in the Organization

    Your Role in Decision Making

    Manage Conflict Constructively

    Effective Communication

    Performance Management

    Coaching & Feedback

    Key Benefits Achieved

    Managers learn about best practices, practice their application, and formulate individual skill development plans.

    Activities

    1.1 Training on one topic per day, for four days (selected from a pool of eight possible topics)

    Outputs

    Completed workbook and action plan

    Further reading

    Build a Better Manager

    Support IT success with a solid management foundation.

    Analyst Perspective

    Training that delivers results.

    Jane Koupstova.

    Ninety-eight percent of managers say they need more training, but 93% of managers already receive some level of manager training. Unfortunately, the training typically provided, although copious, is not working. More of the same will never get you better outcomes.

    How many times have you sat through training that was so long, you had no hope of implementing half of it?

    How many times have you been taught best practices, with zero guidance on how to apply them?

    To truly support our managers, we need to rethink manager training. Move from fulfilling an HR mandate to providing truly trainee-centric instruction. Teach only the right skills – no fluff – and encourage and enable their application in the day to day.

    Jane Kouptsova
    Research Director, People & Leadership
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    IT departments often promote staff based on technical skill, resulting in new managers feeling unprepared for their new responsibilities in leading people.

    The success of your organization hinges on managers’ ability to lead their staff; by failing to equip new managers adequately, you are risking the productivity of your entire department.

    Despite the fact that $14 billion is spent annually on leadership training in the US alone (Freedman, 2016), only one in ten CIOs believe their department is very effective at leadership, culture, and values (Info-Tech, 2019).

    Training programs do not deliver results due to trainee overwhelm, ineffective skill development, and a lack of business alignment.

    Use Info-Tech’s tactical, practical approach to management training to deliver training that:

    • Is specifically tailored to first-time IT managers.
    • Is designed around practical application of new skills.
    • Is aligned with your department’s business goals.
    • Equips your new managers with essential skills and foundational competencies

    Info-Tech Insight

    When it comes to manager training, more is not more. Attending training is not equal to being trained. Even good information is useless when it doesn’t get applied. If your role hasn’t required you to use your training within 48 hours, you were not trained on the most relevant skills.

    Effective managers drive effective departments by engaging their teams

    The image contains a screenshot to demonstrate effective managers.

    Engaged teams are:

    • 52% more willing to innovate*
    • 70% more likely to be at the organization a year from now**
    • 57% more likely to exceed their role’s expectations**

    Engaged teams are driven by managers:

    • 70% of team-level engagement is accounted for by managers***
    *McLean & Company; N=3,395; **McLean & Company; N=5,902; ***Gallup, 2018

    Despite the criticality of their role, IT organizations are failing at supporting new managers

    87% of middle managers wish they had more training when they were first promoted

    98% of managers say they need more training

    Source: Grovo, 2016

    IT must take notice:

    IT as an industry tends to promote staff on the basis of technical skill. As a result, new managers find themselves suddenly out of their comfort zone, tasked with leading teams using management skills they have not been trained in and, more often than not, having to learn on the job. This is further complicated because many new IT managers must go from a position of team member to leader, which can be a very complex transition.

    The truth is, many organizations do try and provide some degree of manager training, it just is not effective

    99% of companies offer management training*

    93% of managers attend it*

    $14 billion spent annually in the US on leadership training**

    Fewer than one in ten CIOs believe their IT department is highly effective at leadership, culture, and values.

    The image contains a screenshot of a pie chart that demonstrates the effectiveness of the IT department at leadership, culture, and values.
    *Grovo, 2016; **Chief Executive, 2016
    Info-Tech’s Management & Governance Diagnostic, N=337 CIOs

    There are three key reasons why manager training fails

    1. Information Overload

    Seventy-five percent of managers report that their training was too long to remember or to apply in their day to day (Grovo, 2016). Trying to cover too much useful information results in overwhelm and does not deliver on key training objectives.

    2. Limited Implementation

    Thirty-three percent of managers find that their training had insufficient follow-up to help them apply it on the job (Grovo, 2016). Learning is only the beginning. The real results are obtained when learning is followed by practice, which turns new knowledge into reliable habits.

    3. Lack of departmental alignment

    Implementing training without a clear link to departmental and organizational objectives leaves you unable to clearly communicate its value, undermines your ability to secure buy-in from attendees and executives, and leaves you unable to verify that the training is actually improving departmental effectiveness.

    Overcome those common training pitfalls with tactical solutions

    MOVE FROM

    TO

    1. Information Overload

    Timely, tailored topics

    The more training managers attend, the less likely they are to apply any particular element of it. Combat trainee overwhelm by offering highly tactical, practical training that presents only the essential skills needed at the managers’ current stage of development.

    2. Limited Implementation

    Skills-focused framework

    Many training programs end when the last manager walks out of the last training session. Ensure managers apply their new knowledge in the months and years after the training by relying on a research-based framework that supports long-term skill building.

    3. Lack of Departmental Alignment

    Outcome-based measurement

    Setting organizational goals and accompanying metrics ahead of time enables you to communicate the value of the training to attendees and stakeholders, track whether the training is delivering a return on your investment, and course correct if necessary.

    This research combats common training challenges by focusing on building habits, not just learning ideas

    Manager training is only useful if the skills it builds are implemented in the day-to-day.

    Research supports three drivers of successful skill building from training:

    Habits

    Organizational Support

    The training modules include committing to implementing new skills on the job and scheduling opportunities for feedback.

    Learning Structure

    Training activities are customizable, flexible, and accompanied by continuous learning self-evaluation.

    Personal Commitment

    Info-Tech’s methodology builds in activities that foster accountability and an attitude of continuous improvement.

    Learning

    Info-Tech Insight

    When it comes to manager training, stop thinking about learning, and start thinking about practice. In difficult situations, we fall back on habits, not theoretical knowledge. If a manager is only as good as their habits, we need to support them in translating knowledge into practice.

    This research focuses on building good management habits to drive enterprise success

    Set up your first-time managers for success by leveraging Info-Tech’s training to focus on three key areas of management:

    • Managing people as a team
    • Managing people as individuals
    • Managing yourself as a developing leader

    Each of these areas:

    • Is immediately important for a first-time manager
    • Includes practical, tactical skills that can be implemented quickly
    • Translates to departmental and organizational benefits

    Info-Tech Insight

    There is no such thing as “effective management training.” Various topics will be effective at different times for different roles. Delivering only the highest-impact learning at strategic points in your leadership development program will ensure the learning is retained and translates to results.

    This blueprint covers foundational training in three key domains of effective management

    Effective Managers

    • Self
      • Conflict & Difficult Conversations
      • Your Role in the Organization
      • Your Role in Decisions
    • Team
      • Communication
      • Feedback & Coaching
      • Performance Management
    • People
      • Master Time
      • Delegate
      • Accountability

    Each topic corresponds to a module, which can be used individually or as a series in any order.

    Choose topics that resonate with your managers and relate directly to their day-to-day tasks. Training on topics that may be useful in the future, while interesting, is less likely to generate lasting skill development.

    Info-Tech Best Practice

    This blueprint is not a replacement for formal leadership or management certification. It is designed as a practical, tactical, and foundational introduction to key management capabilities.

    Info-Tech’s training tools guide participants through successful skill building

    Practical facilitation guides equip you with the information, activities, and speaker’s notes necessary to deliver focused, tactical training to your management team.

    The participant’s workbook guides trainees through applying the three drivers of skill building to solidify their training into habits.

    Measure the effectiveness of your manager training with outcomes-focused metrics

    Linking manager training with measurable outcomes allows you to verify that the program is achieving the intended benefits, course correct as needed, and secure buy-in from stakeholders and participants by articulating and documenting value.

    Use the metrics suggested below to monitor your training program’s effectiveness at three key stages:

    Program Metric

    Calculation

    Program enrolment and attendance

    Attendance at each session / Total number enrolled in session

    First-time manager (FTM) turnover rate

    Turnover rate: Number of FTM departures / Total number of FTMs

    FTM turnover cost

    Number of departing FTMs this year * Cost of replacing an employee

    Manager Effectiveness Metric

    Calculation

    Engagement scores of FTM's direct reports

    Use Info-Tech's Employee Engagement surveys to monitor scores

    Departures as a result of poor management

    Number of times "manager relationships" is selected as a reason for leaving on an exit survey / Total number of departures

    Cost of departures due to poor management

    Number of times "manager relationships" is selected as a reason for leaving on an exit survey * Cost associated with replacing an employee

    Organizational Outcome Metric

    Calculation

    On-target delivery

    % projects completed on-target = (Projects successfully completed on time and on budget / Total number of projects started) * 100

    Business stakeholder satisfaction with IT

    Use Info-Tech’s business satisfaction surveys to monitor scores

    High-performer turnover rate

    Number of permanent, high-performing employee departures / Average number of permanent, high-performing employees

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2 Phase 3

    Call #1: Scope requirements, objectives, and your specific challenges.

    Call #2: Review selected modules and discuss training delivery.

    Call #3: Review training delivery, discuss lessons learned. Review long-term skill development plan.

    A Guided Implementation (GI) is a series

    of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is 1 to 3 calls over the course of several months, depending on training schedule.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4

    3-Hour Training Session

    3-Hour Training Session

    3-Hour Training Session

    3-Hour Training Session
    Activities

    Training on topic 1 (selected from a pool of 8 possible topics)

    Training on topic 2 (selected from a pool of 8 possible topics)

    Training on topic 3 (selected from a pool of 8 possible topics)

    Training on topic 4 (selected from a pool of 8 possible topics)
    Deliverables

    Completed workbook and action plan

    Completed workbook and action plan

    Completed workbook and action plan

    Completed workbook and action plan

    Pool of topics:

    • Master Time
    • Accountability
    • Your Role in the Organization
    • Your Role in Decision Making
    • Manage Conflict Constructively
    • Effective Communication
    • Performance Management
    • Coaching & Feedback

    Phase 1

    Prepare to facilitate training

    Phase 1 Phase 2 Phase 3
    • Select training topics
    • Customize the training facilitation guide for your organization
    • Deliver training modules
    • Confirm skill development action plan with trainees
    • Secure organizational support from trainees' supervisors

    Outcomes of this phase:

    • Training facilitation deck customized to organizational norms
    • Training workbook distributed to participants
    • Training dates and facilitator finalized

    1.1 Select training modules

    1-3 hours

    1. Review the module descriptions on the following slides.
    2. Identify modules that will address managers’ most pressing development needs.
      To help make this decision, consult the following:
      • Trainees’ development plans
      • Trainees’ supervisors
    Input Output
    • Module descriptions
    • Trainees’ development goals and needs
    • Prioritized list of training modules
    Materials Participants
    • Prioritized list of training modules
    • Training sponsor
    • Trainees’ supervisors

    Effective Communication

    Effective communication is the cornerstone of good management

    Effective communication can make or break your IT team’s effectiveness and engagement and a manager’s reputation in the organization. Effective stakeholder management and communication has a myriad of benefits – yet this is a key area where IT leaders continue to struggle.


    There are multiple ways in which you communicate with your staff. The tactics you will learn in this section will help you to:

    1. Understand communication styles. Every staff member has a predisposition in terms of how they give, receive, and digest information. To drive effective communication new managers need to understand the profiles of each of their team members and adjust their communicate style to suit.
    2. Understand what your team members want communicated to them and how. Communication is highly personal, and a good manager needs to clearly understand what their team wants to be informed about, their desired interactions, and when they need to be involved in decision making. They also must determine the appropriate channels for communication exchanges.
    3. Make meetings matter. Many new managers never receive training on what differentiates a good and bad meeting. Effective meetings have a myriad of benefits, but more often than not meetings are ineffective, wasting both the participants’ and organizer’s time. This training will help you to ensure that every team meeting drives a solid outcome and gets results.

    Benefits:

    • Better buy-in, understanding, and communication.
    • Improved IT reputation with the organization.
    • Improved team engagement.
    • Improved stakeholder satisfaction.
    • Better-quality decision making.
    • Improved transparency, trust, and credibility.
    • Less waste and rework.
    • Greater ability to secure support and execute the agenda.
    • More effective cooperation on activities, better quality information, and greater value from stakeholder input.
    • Better understanding of IT performance and contribution.

    Effective Communication

    Effective manager communication has a direct impact on employee engagement

    35% Of organizations say they have lost an employee due to poor internal communication (project.co, 2021).

    59% Of business leaders lose work time to mistakes caused by poor communication (Grammarly, 2022).

    $1.2 trillion Lost to US organizations as a result of poor communication (Grammarly, 2022).

    Effective Communication

    Effective communication is crucial to all parts of the business

    Operations

    Human Resources

    Finance

    Marketing

    Increases production by boosting revenue.

    Reduces the cost of litigation and increases revenue through productivity improvements.

    Reduces the cost of failing to comply with regulations.

    Increases attraction and retention of key talent.

    Effective Communication

    The Communicate Effectively Facilitation Guide covers the following topics:

    • Understand Communication Styles
    • Tailor Communication Methods to Activities
    • Make Meetings Matter

    Learning outcomes:

    Main goal: Become a better communicator across a variety of personal styles and work contexts.

    Key objectives:

    • Reaffirm why effective communication matters.
    • Work with people with different communication styles.
    • Communicate clearly and effectively within a team.
    • Make meetings more effective.

    Info-Tech Insight

    First-time IT managers face specific communication challenges that come with managing people for the first time: learning to communicate a greater variety of information to different kinds of people, in a variety of venues. Tailored training in these areas helps managers focus and fast-track critical skill development.

    Performance Management

    Meaningful performance measures drive employee engagement, which in turn drives business success

    Meaningful performance measures help employees understand the rationale behind business decisions, help managers guide their staff, and clarify expectations for employees. These factors are all strong predictors of team engagement:

    The image contains a screenshot to demonstrate the relationship and success between performance measures and employee engagement.

    Performance Management

    Clear performance measures benefit employees and the organization

    Talent Management Outcomes

    Organizational Outcomes

    Performance measure are key throughout the talent management process.

    Candidates:

    • Want to know how they will be assessed
    • Rely on measures to become productive as soon as possible

    Employees:

    • Benefit from training centered on measures that are aligned with business outcomes
    • Are rewarded, recognized, and compensated based on measurable guidelines

    Promotions and Evaluations:

    • Are more effective when informed by meaningful performance measures that align with what leadership believes is important

    Performance measures benefit the organization by:

    • Helping employees know the steps to take to improve their performance
    • Ensuring alignment between team objectives and organizational goals
    • Providing a standardized way to support decision making related to compensation, promotions, and succession planning
    • Reducing “gaming” of metrics, when properly structured, thereby reducing risk to the organization
    • Affording legal defensibility by providing an objective basis for decision making

    Performance Management

    The Performance Management Facilitation Guide covers the following topics:

    • Develop Meaningful Goals
    • Set Meaningful Metrics

    Learning outcomes:

    Main goal: Become proficient in setting, tracking, and communicating around performance management goals.

    Key objectives:

    • Understand the role of managers and employees in the performance management process.
    • Learn to set SMART, business-aligned goals for your team.
    • Learn to help employees set useful individual goals.
    • Learn to set meaningful, holistic metrics to track goal progression.
    • Understand the relationship between goals, metrics, and feedback.

    Info-Tech Insight

    Goal and metric development holds special significance for first-time IT managers because it now impacts not only their personal performance, but that of their employees and their team collectively. Training on these topics with a practical team- and employee-development approach is a focused way to build these skills.

    Coaching & Feedback

    Coaching and feedback are effective methods to influence employees and drive business outcomes

    COACHING is a conversation in which a manager asks an employee questions to guide them to solve problems themselves, instead of just telling them the answer.

    Coaching increases employee happiness, and decreases turnover.1

    Coaching promotes innovation.2

    Coaching increases employee engagement, effort and performance.3

    FEEDBACK is information about the past, given in the present, with the goal of influencing behavior or performance for the future. It includes information given for reinforcement and redirection.

    Honest feedback enhances team psychological safety.4

    Feedback increases employee engagement.5

    Feedback boosts feelings of autonomy and drives innovation.6
    1. Administrative Sciences, 2022
    2. International Review of Management and Marketing, 2020
    3. Current Psychology, 2021
    4. Quantum Workplace, 2021
    5. Issues and Perspectives in Business and Social Sciences, 2022
    6. Sustainability, 2021

    Coaching & Feedback

    The Coaching & Feedback Facilitation Guide covers the following topics:

    • The 4 A’s of Coaching
    • Effective Feedback

    Learning outcomes:

    Main goal: Get prepared to coach and offer feedback to your staff as appropriate.

    Key objectives:

    • Understand the difference between coaching and feedback and when to apply each one.
    • Learn the importance of a coaching mindset.
    • Learn effective coaching via the 4 A’s framework.
    • Understand the actions that make up feedback and the factors that make it successful.
    • Learn to deal with resistance to feedback.

    Info-Tech Insight

    First-time managers often shy away from giving coaching and feedback, stalling their team’s performance. A focused and practical approach to building these skills equips new managers with the tools and confidence to tackle these challenges as soon as they arise.

    Your Role in the Organization

    IT managers who understand the business context provide more value to the organization

    Managers who don’t understand the business cannot effect positive change. The greater understanding that IT managers have of business context, the more value they provide to the organization as seen by the positive relationship between IT’s understanding of business needs and the business’ perception of IT value.

    The image contains a screenshot of a scatter plot grid demonstrating business satisfaction with IT Understanding of Needs across Overall IT Value.

    Source: Info-Tech Research Group

    Your Role in the Organization

    Knowing your stakeholders is key to understanding your role in the business and providing value to the organization

    To understand your role in the business, you need to know who your stakeholders are and what value you and your team provide to the organization. Knowing how you help each stakeholder meet their wants needs and goals means that you have the know-how to balance experience and outcome-based behaviors. This is the key to being an attentive leader.


    The tactics you will learn in this section will help you to:

    1. Know your stakeholders. There are five key stakeholders the majority of IT managers have: management, peers, direct reports, internal users, and external users or customers. Managers need to understand the goals, needs, and wants of each of these groups to successfully provide value to the organization.
    2. Understand the value you provide to each stakeholder. Stakeholder relationship management requires IT managers to exhibit drive and support behaviors based on the situation. By knowing how you drive and support each stakeholder, you understand how you provide value to the organization and support its mission, vision, and values.
    3. Communicate the value your team provides to the organization to your team. Employees need to understand the impact of their work. As an IT manager, you are responsible for communicating how your team provides value to the organization. Mission statements on how you provide value to each stakeholder is an easy way to clearly communicate purpose to your team.

    Benefits:

    • Faster and higher growth.
    • Improved team engagement.
    • Improved stakeholder satisfaction.
    • Better quality decision making.
    • More innovation and motivation to complete goals and tasks.
    • Greater ability to secure support and execute on goals and tasks.
    • More effective cooperation on activities, better quality information, and greater value from stakeholder input.
    • Better understanding of IT performance and contribution.

    Your Role in the Organization

    The Your Role in the Organization Facilitation Guide covers the following topics:

    • Know Your Stakeholders
    • Understand the Value You Provide to the Organization
    • Develop Learnings Into Habits

    Learning outcomes:

    Main goal: Understand how your role and the role of your team serves the business.

    Key objectives:

    • Learn who your stakeholders are.
    • Understand how you drive and support different stakeholder relationships.
    • Relate your team’s tasks back to the mission, vision, and values of the organization.
    • Create a mission statement for each stakeholder to bring back to your team.

    Info-Tech Insight

    Before training first-time IT managers, take some time as the facilitator to review how you will serve the wants and needs of those you are training and your stakeholders in the organization.

    Decision Making

    Bad decisions have tangible costs, so managers must be trained in how to make effective decisions

    To understand your role in the decision-making process, you need to know what is expected of you and you must understand what goes into making a good decision. The majority of managers report they have no trouble making decisions and that they are good decision makers, but the statistics say otherwise. This ease at decision making is due to being overly confident in their expertise and an inability to recognize their own ignorance.1


    The tactics you will learn in this section will help you to:

    1. Effectively communicate decisions. Often, first-time managers are either sharing their decision recommendations with their manager or they are communicating a decision down to their team. Managers need to understand how to have these conversations so their recommendations provide value to management and top-down decisions are successfully implemented.
    2. Provide valuable feedback on decisions. Evaluating decisions is just as critical as making decisions. If decisions aren’t reviewed, there is no data or feedback to discover why a decision was a success or failure. Having a plan in place before the decision is made facilitates the decision review process and makes it easier to provide valuable feedback.
    3. Avoid common decision-making mistakes. Heuristics and bias are common decision pitfalls even senior leaders are susceptible to. By learning what the common decision-making mistakes are and being able to recognize them when they appear in their decision-making process, first-time managers can improve their decision-making ability.

    20% Of respondents say their organizations excel at decision making (McKinsey, 2018).

    87% “Diverse teams are 87% better at making decisions” (Upskillist, 2022).

    86% of employees in leadership positions blame the lack of collaboration as the top reason for workplace failures (Upskillist, 2022).

    Decision Making

    A decision-making process is imperative, even though most managers don’t have a formal one

    1. Identify the Problem and Define Objectives
    2. Establish Decision Criteria
    3. Generate and Evaluate Alternatives
    4. Select an Alternative and Implement
    5. Evaluate the Decision

    Managers tend to rely on their own intuition which is often colored by heuristics and biases. By using a formal decision-making process, these pitfalls of intuition can be mitigated or avoided. This leads to better decisions.

    First-time managers are able to apply this framework when making decision recommendations to management to increase their likelihood of success, and having a process will improve their decisions throughout their career and the financial returns correlated with them.

    Decision Making

    Recognizing personal heuristics and bias in the decision-making process improves more than just decision results

    Employees are able to recognize bias in the workplace, even when management can’t. This affects everything from how involved they are in the decision-making process to their level of effort and productivity in implementing decisions. Without employee support, even good decisions are less likely to have positive results. Employees who perceive bias:

    Innovation
    • Hold back ideas and solutions
    • Intentionally fail to follow through on important projects and tasks

    Brand Reputation
    • Speak negatively about the company on social media
    • Do not refer open positions to qualified persons in their network

    Engagement
    • Feel alienated
    • Actively seek new employment
    • Say they are not proud to work for the company

    Decision Making

    The Decision Making Facilitation Guide covers the following topics:

    • Effectively Communicate Decisions
    • Provide Valuable Feedback on Decisions
    • Avoid Common Decision-Making Mistakes

    Learning outcomes:

    Main goal: Understand how to successfully perform your role in the decision process.

    Key objectives:

    • Understand the decision-making process and how to assess decisions.
    • Learn how to communicate with your manager regarding your decision recommendations.
    • Learn how to effectively communicate decisions to your team.
    • Understand how to avoid common decision-making errors.

    Info-Tech Insight

    Before training a decision-making framework, ensure it is in alignment with how decisions are made in your organization. Alternatively, make sure leadership is on board with making a change.

    Manage Conflict Constructively

    Enable leaders to resolve conflicts while minimizing costs

    If you are successful in your talent acquisition, you likely have a variety of personalities and diverse individuals within your IT organization and in the business, which means that conflict is inevitable. However, conflict does not have to be negative – it can take on many forms. The presence of conflict in an organization can actually be a very positive thing: the ability to freely express opinions and openly debate can lead to better, more strategic decisions being made.

    The effect that the conflict is having on individuals and the work environment will determine whether the conflict is positive or counterproductive.

    As a new manager you need to know how to manage potential negative outcomes of conflict by managing difficult conversations and understanding how to respond to conflict in the workplace.


    The tactics you will learn in this section will help you to:

    1. Apply strategies to prepare for and navigate through difficult conversations.
    2. Expand your comfort level when handling conflict, and engage in constructive conflict resolution approaches.

    Benefits:

    • Relieve stress for yourself and your co-workers.
    • Save yourself time and energy.
    • Positively impact relationships with your employees.
    • Improve your team dynamic.
    • Remove roadblocks to your work and get things done.
    • Save the organization money.
    • Improve performance.
    • Prevent negative issues from reoccurring.

    Manage Conflict Constructively

    Addressing difficult conversations is beneficial to you, your people, and the organization

    When you face a difficult conversation you…

    • Relieve stress on you and your co-workers.
    • Save yourself time and energy.
    • Positively impact relationships with your employees.
    • Improve your team dynamic.
    • Remove roadblocks to your work
    • Save the organization money.
    • Improve performance.
    • Prevent negative issues from reoccurring.

    40% Of employees who experience conflict report being less motivated as a result (Acas, 2021).

    30.6% Of employees report coming off as aggressive when trying to resolve a conflict
    (Niagara Institute, 2022).

    Manage Conflict Constructively

    The Manage Conflict Constructively Facilitation Guide covers the following topics:

    • Know Your Ideal Time Mix
    • Calendar Diligence
    • Effective Delegation
    • Limit Interruptions

    Learning outcomes:

    Main goal: Effectively manage your time and know which tasks are your priority and which tasks to delegate.

    Key objectives:

    • Understand common reasons for difficult conversations.
    • Learn Info-Tech’s six-step process to best to prepare for difficult conversations.
    • Follow best practices to approach difficult conversations.
    • Learn the five approaches to conflict management.
    • Practice conflict management skills.

    Info-Tech Insight

    Conflict does not have to be negative. The presence of conflict in an organization can actually be a very positive thing: the ability to freely express opinions and openly debate can lead to better, more strategic decisions being made.

    Master Time

    Effective leaders spend their time in specific ways

    How effective leaders average their time spent across the six key roles:

    Leaders with effective time management skills spend their time across six key manager roles: strategy, projects, management, operations, innovation, and personal. While there is no magic formula, providing more value to the business starts with little practices like:

    • Spending time with the right stakeholders and focusing on the right priorities.
    • Evaluating which meetings are important and productive.
    • Benchmarking yourself against your peers in the industry so you constantly learn from them and improve yourself.


    The keys to providing this value is time management and delegation. The tactics in this section will help first-time managers to:

    1. Discover your ideal time. By analyzing how you currently spend your time, you can see which roles you are under/over using and, using your job description and performance metrics, discover your ideal time mix.
    2. Practice calendar diligence. Time blocking is an effective way to use your time, see your week, and quickly understand what roles you are spending your time in. Scheduling priority tasks first gives insight into which tasks should be delegated.
    3. Effectively delegation. Clear expectations and knowing the strengths of your team are the cornerstone to effective delegation. By understanding the information you need to communicate and identifying the best person on your team to delegate to, tasks and goals will be successfully completed.
    4. Limit interruptions. By learning how to limit interruptions from your team and your manager, you are better able to control your time and make sure your tasks and goals get completed.

    Strategy

    23%

    Projects

    23%

    Management

    19%

    Operations

    19%

    Innovation

    13%

    Personal

    4%

    Source: Info-Tech, N=85

    Master Time

    Signs you struggle with time management

    Too many interruptions in a day to stay focused.

    Too busy to focus on strategic initiatives.

    Spending time on the wrong things.

    The image contains a screenshot of a bar graph that demonstrates struggle with time management.

    Master Time

    The Master Time Facilitation Guide covers the following topics:

    • Understand Communication Styles
    • Tailor Communication Methods to Activities
    • Make Meetings Matter

    Learning outcomes:

    Main goal: Become a better communicator across a variety of personal styles and work contexts.

    Key objectives:

    • Understand how you spend your time.
    • Learn how to use your calendar effectively.
    • Understand the actions to take to successfully delegate.
    • Learn how to successfully limit interruptions.

    Info-Tech Insight

    There is a right and wrong way to manage your calendar as a first-time manager and it has nothing to do with your personal preference.

    Accountability

    Accountability creates organizational and team benefits

    Improves culture and innovation

    Improves individual performance

    Increases employee engagement

    Increases profitability

    Increases trust and productivity

    Enables employees to see how they contribute

    Increases ownership employees feel over their work and outcomes

    Enables employees to focus on activities that drive the business forward
    Source: Forbes, 2019

    Accountability

    Accountability increases employee empowerment

    Employee empowerment is the number one driver of employee engagement. The extent to which you can hold employees accountable for their own actions and decisions is closely related to how empowered they are and how empowered they feel; accountability and empowerment go hand in hand. To feel empowered, employees must understand what is expected of them, have input into decisions that affect their work, and have the tools they need to demonstrate their talents.

    The image contains a screenshot to demonstrate how accountability increases employee empowerment.

    Source: McLean & Company Engagement Database, 2018; N=71,794

    Accountability

    The Accountability Facilitation Guide covers the following topics:

    • Create Clarity and Transparency
    • Articulate Expectations and Evaluation
    • Help Your Team Remove Roadblocks
    • Clearly Introduce Accountability to Your Team

    Learning outcomes:

    Main goal: Create a personal accountability plan and learn how to hold yourself and your team accountable.

    Key objectives:

    • Understand why accountability matters.
    • Learn how to create clarity and transparency.
    • Understand how to successfully hold people accountable through clearly articulating expectations and evaluation.
    • Know how to remove roadblocks to accountability for your team.

    Info-Tech Insight

    Accountability is about focusing on the results of a task, rather than just completing the task. Create team accountability by keeping the team focused on the result and not “doing their jobs.” First-time managers need to clearly communicate expectations and evaluation to successfully develop team accountability.

    Use the Build a Better Manager Participant Workbooks to help participants set accountabilities and track their progress

    A key feature of this blueprint is built-in guidance on transferring your managers’ new knowledge into practical skills and habits they can fall back on when their job requires it.

    The Participant Workbooks, one for each module, are structured around the three key principles of learning transfer to help participants optimally structure their own learning:

    • Track your learning. This section guides participants through conducting self-assessments, setting learning goals, recording key insights, and brainstorming relapse-prevention strategies
    • Establish your personal commitment. This section helps participants record the actions they personally commit to taking to continually practice their new skills
    • Secure organizational support. This section guides participants in recording the steps they will take to seek out support from their supervisor and peers.

    The image contains a screenshot of the Build a Better Manager Participant Workbooks.

    Info-Tech Insight

    Participants should use this workbook throughout their training and continue to review it for at least three months after. Practical skills take an extended amount of time to solidify, and using the workbook for several months will ensure that participants stay on track with regular practice and check-ins.

    Set your trainees up for success by reviewing these training best practices

    Cultural alignment

    It is critical that the department leadership team understand and agree with the best practices being presented. Senior team leads should be comfortable coaching first-time managers in implementing the skills developed through the training. If there is any question about alignment with departmental culture or if senior team leads would benefit from a refresher course, conduct a training session for them as well.

    Structured training

    Ensure the facilitator takes a structured approach to the training. It is important to complete all the activities and record the outputs in the workbook where appropriate. The activities are structured to ensure participants successfully use the knowledge gained during the workshop to build practical skills.

    Attendees

    Who should attend the training? Although this training is designed for first-time IT managers, you may find it helpful to run the training for the entire management team as a refresher and to get everyone on the same page about best practices. It is also helpful for senior leadership to be aware of the training because the attendees may come to their supervisors with requests to discuss the material or coaching around it.

    Info-Tech Insight

    Participants should use this workbook throughout their training and continue to review it for at least three months after. Practical skills take an extended amount of time to solidify, and using the workbook for several months will ensure that participants stay on track with regular practice and check-ins.

    1.2 Customize the facilitation guides

    1-3 hours

    Prior to facilitating your first session, ensure you complete the following steps:

    1. Read through all the module content, including the speaker’s notes, to familiarize yourself with the material and ensure the tactics presented align with your department’s culture and established best practices.
    2. Customize the slides with a pencil icon with information relevant to your organization.
    3. Ensure you are comfortable with all material to be presented and are prepared to answer questions. If you require clarification on any of the material, book a call with your Info-Tech analyst for guidance.
    4. Ensure you do not delete or heavily customize the self-assessment activities and the activities in the Review and Action Plan section of the module. These activities are structured around a skill building framework and designed to aid your trainees in applying their new knowledge in their day to day. If you have any concerns about activities in these sections, book a call with your Info-Tech analyst for guidance.
    Input Output
    • List of selected modules
    • Customized facilitation guides
    Materials Participants
    • Facilitation guides from selected modules
    • Training facilitator

    1.3 Prepare to deliver training

    1-3 hours

    Complete these steps in preparation for delivering the training to your first-time managers:

    1. Select a facilitator.
      • The right person to facilitate the meeting depends on the dynamics within your department. Having a senior IT leader can lend additional weight to the training best practices but may not be feasible in a large department. In these cases, an HR partner or external third party can be asked to facilitate.
    2. Distribute the workbooks to attendees before the first training session.
      • Change the header on the workbook templates to your own organization’s, if desired.
      • Email the workbooks to attendees prior to the first session. There is no pre-work to be completed.
    Input Output
    • List of selected modules
    • Facilitator selected
    • Workbook distributed
    Materials Participants
    • Workbooks from selected modules
    • Training sponsor
    • Training facilitator

    Phase 2

    Deliver training

    Phase 1 Phase 2 Phase 3
    • Select training topics
    • Customize the training facilitation guide for your organization
    • Deliver training modules
    • Confirm skill development action plan with trainees
    • Secure organizational support from trainees' supervisors

    Outcomes of this phase:

    • Training delivered
    • Development goals set by attendees
    • Action plan created by attendees

    2.1 Deliver training

    3 hours

    When you are ready, deliver the training. Ensure you complete all activities and that participants record the outcomes in their workbooks.

    Tips for activity facilitation:

    • Encourage and support participation from everyone. And be sure no one on the team dismisses anyone’s thoughts or opinions – they present the opportunity for further discussion and deeper insight.
    • Debrief after each activity, outlining any lessons learned, action items, and next steps.
    • Encourage participants to record all outcomes, key insights, and action plans in their workbooks.
    Input Output
    • Facilitation guides and workbooks for selected modules
    • Training delivered
    • Workbooks completed
    Materials Participants
    • Facilitation guides and workbooks for selected modules
    • Training facilitator
    • Trainees

    Phase 3

    Enable long-term skill development

    Phase 1Phase 2Phase 3
    • Select training topics
    • Customize the training facilitation guide for your organization
    • Deliver training modules
    • Confirm skill development action plan with trainees
    • Secure organizational support from trainees' supervisors

    Outcomes of this phase:

    • Attendees reminded of action plan and personal commitment
    • Supervisors reminded of the need to support trainees' development

    3.1 Email trainees with action steps

    0.5 hours

    After the training, send an email to attendees thanking them for participating and summarizing key next steps for the group. Use the template below, or write your own:

    “Hi team,

    I want to thank you personally for attending the Communicate Effectively training module. Our group led some great discussion.

    A reminder that the next time you will reconvene as a group will be on [Date] to discuss your progress and challenges to date.

    Additionally, your manager is aware and supportive of the training program, so be sure to follow through on the commitments you’ve made to secure the support you need from them to build your new skills.

    I am always open for questions if you run into any challenges.

    Regards,

    [Your name]”

    InputOutput
    • The date of participants’ next discussion meeting
    • Attendees reminded of next meeting date and encouraged to follow through on action plan
    MaterialsParticipants
    • Training facilitator

    3.2 Secure support from trainees’ supervisors

    0.5 hours

    An important part of the training is securing organizational support, which includes support from your trainees’ supervisors. After the trainees have committed to some action items to seek support from their supervisors, it is important to express your support for this and remind the supervisors of their role in guiding your first-time managers. Use the template below, or write your own, to remind your trainees’ supervisors of this at the end of training (if you are going through all three modules in a short period of time, you may want to wait until the end of the entire training to send this email):

    “Hi team,

    We have just completed Info-Tech’s first-time manager training with our new manager team. The trainees will be seeking your support in developing their new skills. This could be in the form of coaching, feedback on their progress, reviewing their development plan, etc.

    Supervisor support is a crucial component of skill building, so I hope I can count on all of you to support our new managers in their learning. If you are not sure how to handle these requests, or would like a refresher of the material our trainees covered, please let me know.

    I am always open for questions if you run into any challenges.

    Regards,

    [Your name]”

    InputOutput
    • List of trainees’ direct supervisors
    • Supervisors reminded to support trainees’ skill practice
    MaterialsParticipants
    • Training facilitator

    Contributors

    Brad Armstrong

    Brad Armstrong, Senior Engineering Manager, Code42 Software

    I am a pragmatic engineering leader with a deep technical background, now focused on building great teams. I'm energized by difficult, high-impact problems at scale and with the cloud technologies and emerging architectures that we can use to solve them. But it's the power of people and organizations that ultimately lead to our success, and the complex challenge of bringing all that together is the work I find most rewarding.

    We thank the expert contributors who chose to keep their contributions anonymous.

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    Tollet, Francoise. “Distracted? Learn how to (re)focus.” Business Digest, 12 July 2021. Podcast.

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    Master the Secrets of Adobe’s Creative Cloud Contracts to Right-Size Your Adobe Spend

    • Buy Link or Shortcode: {j2store}139|cart{/j2store}
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    • Parent Category Name: Licensing
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    • Adobe operates in its own niche in the creative space, and Adobe users have grown accustomed to their products, making switching very difficult.
    • With Adobe’s transition to a cloud-based subscription model, it’s important for organizations to actively manage licenses, software provisioning, and consumption.
    • Without a detailed understanding of Adobe’s various purchasing models, overspending often occurs.
    • Organizations have experienced issues in identifying commercial licensed packages with their install files, making it difficult to track and assign licenses.

    Our Advice

    Critical Insight

    • Focus on user needs first. Examine which products are truly needed versus nice to have to prevent overspending on the Creative Cloud suite.
    • Examine what has been deployed. Knowing what has been deployed and what is being used will greatly aid in completing your true-up.
    • Compliance is not automatic with products that are in the cloud. Shared logins or computers that have desktop installs that can be access by multiple users can cause noncompliance.

    Impact and Result

    • Visibility into license deployments and needs
    • Compliance with internal audits

    Master the Secrets of Adobe’s Creative Cloud Contracts to Right-Size Your Adobe Spend Research & Tools

    Start here – read the Executive Brief

    Procuring Adobe software is not the same game as it was just a few years ago. Adopt a comprehensive approach to understanding Adobe licensing to avoid overspending and to maximize negotiation leverage.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Manage your Adobe agreements

    Use Info-Tech’s licensing best practices to avoid overspending on Adobe licensing and to remain compliant in case of audit.

    • Adobe ETLA vs. VIP Pricing Table
    • Adobe ETLA Forecasted Costs and Benefits
    • Adobe ETLA Deployment Forecast
    [infographic]

    Further reading

    Master the Secrets of Adobe’s Creative Cloud Contracts to Right-Size Your Adobe Spend

    Learn the essential steps to avoid overspending and to maximize negotiation leverage with Adobe.

    ANALYST PERSPECTIVE

    Only 18% of Adobe licenses are genuine copies: are yours?

    "Adobe has designed and executed the most comprehensive evolution to the subscription model of pre-cloud software publishers with Creative Cloud. Adobe's release of Document Cloud (replacement for the Acrobat series of software) is the final nail in the coffin for legacy licensing for Adobe. Technology procurement functions have run out of time in which to act while they still retain leverage, with the exception of some late adopter organizations that were able to run on legacy versions (e.g. CS6) for the past five years. Procuring Adobe software is not the same game as it was just a few years ago. Adopt a comprehensive approach to understanding Adobe licensing, contract, and delivery models in order to accurately forecast your software needs, transact against the optimal purchase plan, and maximize negotiation leverage. "

    Scott Bickley

    Research Lead, Vendor Practice

    Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

    • IT managers scoping their Adobe licensing requirements and compliance position.
    • CIOs, CTOs, CPOs, and IT directors negotiating licensing agreements in search of cost savings.
    • ITAM/Software asset managers responsible for tracking and managing Adobe licensing.
    • IT and business leaders seeking to better understand Adobe licensing options (Creative Cloud).
    • Vendor management offices in the process of a contract renewal.

    This Research Will Help You:

    • Understand and simplify licensing per product to help optimize spend.
    • Ensure agreement type is aligned to needs.
    • Navigate the purchase process to negotiate from a position of strength.
    • Manage licenses more effectively to avoid compliance issues, audits, and unnecessary purchases.

    This Research Will Also Assist:

    • CFOs and the finance department
    • Enterprise architects
    • ITAM/SAM team
    • Network and IT architects
    • Legal
    • Procurement and sourcing

    This Research Will Help Them:

    • Understand licensing methods in order to make educated and informed decisions.
    • Understand the future of the cloud in your Adobe licensing roadmap.

    Executive summary

    Situation

    • Adobe’s dominant market position and ownership of the creative software market is forcing customers to refocus the software acquisition process to ensure a positive ROI on every license.
    • In early 2017, Adobe announced it would stop selling perpetual Creative Suite 6 products, forcing future purchases to be transitioned to the cloud.

    Complication

    • Adobe operates in its own niche in the creative space, and Adobe users have grown accustomed to their products, making switching very difficult.
    • With transition to a cloud-based subscription model, organizations need to actively manage licenses, software provisioning, and consumption.
    • Without a detailed understanding of Adobe’s various purchasing models, overspending often occurs.
    • Organizations have experienced issues in identifying commercial licensed packages with their install files, making it difficult to track and assign licenses.

    Resolution

    • Gain visibility into license deployments and needs with a strong SAM program/tool; this will go a long way toward optimizing spend.
      • Number of users versus number of installs are not the same, and confusing the two can result in overspending. Device-based licensing historically would have required two licenses, but now only one may be required.
    • Ensure compliance with internal audits. Adobe has a very high rate of piracy stemming from issues such as license overuse, misunderstanding of contract language, using cracks/keygens, virtualized environments, indirect access, and sharing of accounts.
    • A handful of products are still sold as perpetual – Acrobat Standard/Pro, Captivate, ColdFusion, Photoshop, and Premiere Elements – but be aware of what is being purchased and used in the organization.
      • Beware of products deployed on server, where the number of users accessing that product cannot easily be counted.

    Info-Tech Insight

    1. Your user-need analysis has shifted in the new subscription-based model. Determine which products are needed versus nice to have to prevent overspending on the Creative Cloud suite.
    2. Examine what you need, not what you have. You can no longer mix and match applications.
    3. Compliance is not automatic with products that are in the cloud. Shared logins or computers with desktop installs that can be accessed by multiple users can cause noncompliance.

    The aim of this blueprint is to provide a foundational understanding of Adobe

    Why Adobe

    In 2011 Adobe took the strategic but radical move toward converting its legacy on-premises licensing to a cloud-based subscription model, in spite of material pushback from its customer base. While revenues initially dipped, Adobe’s resolve paid off; the transition is mostly complete and revenues have doubled. This was the first enterprise software offering to effect the transition to the cloud in a holistic manner. It now serves as a case study for those following suit, such as Microsoft, Autodesk, and Oracle.

    What to know

    Adobe elected to make this market pivot in a dramatic fashion, foregoing a gradual transition process. Enterprise clients were temporarily allowed to survive on legacy on-premises editions of Adobe software; however, as the Adobe Creative Cloud functionality was quickly enhanced and new applications were launched, customer capitulation to the new subscription model was assured.

    The Future

    Adobe is now leveraging the power of connected customers, the availability of massive data streams, and the ongoing digitalization trend globally to supplement the core Creative Cloud products with online services and analytics in the areas of Creative Cloud for content, Marketing Cloud for marketers, and Document Cloud for document management and workflows. This blueprint focuses on Adobe's Creative Cloud and Document Cloud solutions and the enterprise term license agreement (ETLA).

    Info-Tech Insight

    Beware of your contract being auto-renewed and getting locked into the quantities and product subset that you have in your current agreement. Determining the number of licenses you need is critical. If you overestimate, you're locked in for three years. If you underestimate, you have to pay a big premium in the true-up process.

    Learn the “Adobe way,” whether you are reviewing existing spend or considering the purchase of new products

    1. Legacy on-premises Adobe Creative Suite products used to be available in multiple package configurations, enabling right-sized spend with functionality. Adobe’s support for legacy Creative Suites CS6 products ended in May 2017.
    2. While early ETLAs allowed customer application packaging at a lower price than the full Creative Cloud suite, this practice has been discontinued. Now, the only purchasing options are the full suite or single-application subscriptions.
    3. Buyers must now assess alternative Adobe products as an option for non-power users. For example, QuarkXPress, Corel PaintShop Pro, CorelDRAW, Bloom, and Affinity Designer are possible replacements for some Creative Cloud applications.
    4. Document Cloud, Adobe’s latest step in creating an Acrobat-focused subscription model, limits the ability to reduce costs with an extended upgrade cycle. These changes go beyond the licensing model.
    5. Organizations need to perform a cost-benefit analysis of single app purchases vs. the full suite to right-size spend with functionality.

    As Adobe’s dominance continues to grow, organizations must find new ways to maintain a value-added relationship

    Adobe estimates the total addressable market for creative and document cloud to be $21 billion. With no sign of growth slowing down, Adobe customers must learn how to work within the current design monopoly.

    The image contains two pie graphs. The first is labelled FY2014 Revenue Mix, and the second graph is titled FY2017E Revenue Mix.

    Source: Adobe, 2017

    "Adobe is not only witnessing a steady increase in Creative Cloud subscriptions, but it also gained more visibility into customers’ product usage, which enables it to consistently push out software updates relevant to user needs. The company also successfully transformed its sales organization to support the recurring revenue model."

    – Omid Razavi, Global Head of Success, ServiceNow

    Consider your route forward

    Consider your route forward, as ETLA contract commitments, scope, and mechanisms differ in structure to the perpetual models previously utilized. The new model shortchanges technology procurement leaders in their expectations of cost-usage alignment and opex flexibility (White, 2016).

    ☑ Implement a user profile to assign licenses by version and limit expenditures. Alternatives can include existing legacy perpetual and Acrobat classic versions that may already be owned by the organization.

    ☑ Examine the suitability and/or dependency on Document Cloud functions, such as existing business workflows and e-signature integration.

    ☑ Involve stakeholders in the evaluation of alternate products for use cases where dependency on Acrobat-specific functionality is limited.

    ☑ Identify not just the installs and active use of the applications but also the depth and breadth of use across the various features so that the appropriate products can be selected.

    The image contains a screenshot of a diagram listing the adobe toolkit. The toolkit includes: Adobe ETLA Deployment Forecast Tool, Adobe ETLA Forecasted Cost and Benefits, Adobe ETLA vs. VIP Pricing Table.

    Use Info-Tech’s Adobe toolkit to prepare for your new purchases or contract renewal

    Info-Tech Insight

    IT asset management (ITAM) and software asset management (SAM) are critical! An error made in a true-up can cost the organization for the remaining years of the ETLA. Info-Tech worked with one client that incurred a $600k error in the true-up that they were not able to recoup from Adobe.

    Apply licensing best practices and examine the potential for cost savings through an unbiased third-party perspective

    Establish Licensing Requirements

    • Understand Adobe’s product landscape and transition to cloud.
    • Analyze users and match to correct Adobe SKU.
    • Conduct an internal software assessment.
    • Build an effective licensing position.

    Evaluate Licensing Options

    • Value Incentive Plan (VIP)
    • Cumulative Licensing Program (CLP)
    • Transactional Licensing Program (TLP)
    • Enterprise Term License Agreement (ETLA)

    Evaluate Agreement Options

    • Price
    • Discounts
    • Price protection
    • Terms and conditions

    Purchase and Manage Licenses

    • Learn negotiation tactics to enhance your current strategy.
    • Control the flow of communication.
    • Assign the right people to manage the environment.

    Preventive practices can help find measured value ($)

    Time and resource disruption to business if audited

    Lost estimated synergies in M&A

    Cost of new licensing

    Cost of software audit, penalties, and back support

    Lost resource allocation and time

    Third party, legal/SAM partners

    Cost of poor negotiation tactics

    Lost discount percentage

    Terms and conditions improved

    Explore Adobe licensing and optimize spend – project overview

    Establish Licensing Requirements

    Evaluate Licensing Options

    Evaluate Agreement Options

    Purchase and Manage Licenses

    Best-Practice Toolkit
    • Assess current state and align goals; review business feedback.
    • Interview key stakeholders to define business objectives and drivers.
    • Review licensing options.
    • Review licensing rules.
    • Determine the ideal contract type.
    • Review final contract.
    • Discuss negotiation points.
    • License management.
    • Future licensing strategy.

    Guided Implementations
    • Engage in a scoping call.
    • Assess the current state.
    • Determine licensing position.
    • Review product options.
    • Review licensing rules.
    • Review contract option types.
    • Determine negotiation points.
    • Finalize the contract.
    • Discuss license management.
    • Evaluate and develop a roadmap for future licensing.

    PHASE 1

    Manage Your Adobe Agreements

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Managing Adobe Contracts

    Proposed Time to Completion: 3-6 weeks

    Step 1.1: Establish Licensing Requirements

    Start with a kick-off call:

    • Assess the current state.
    • Determine licensing position.

    Then complete these activities…

    • Complete a deployment count, needs analysis, and internal audit.

    With these tools & templates:

    Adobe ETLA Deployment Forecast

    Step 1.2: Determine Licensing Options

    Review findings with analyst:

    • Review licensing options.
    • Review licensing rules.
    • Review contract option types.

    Then complete these activities…

    • Select licensing option.
    • Document forecasted costs and benefits.

    With these tools & templates:

    Adobe ETLA vs. VIP Pricing Table

    Adobe ETLA Forecasted Costs and Benefits

    Step 1.3: Purchase and Manage Licenses

    Review findings with analyst:

    • Review final contract.
    • Discuss negotiation points.
    • Plan a roadmap for SAM.

    Then complete these activities…

    • Negotiate final contract.
    • Evaluate and develop a roadmap for SAM.

    With these tools & templates:

    Adobe ETLA Deployment Forecast

    Adobe’s Cloud – Snapshot of what has changed

    1. Since Adobe has limited the procurement and licensing options with the introduction of Creative Cloud, there are three main choices:
      1. Direct online purchase at Adobe.com
      2. Value Incentive Plan (VIP): Creative Cloud for teams–based purchase with a volume discount (minimal, usually ~10%); may have some incentives or promotional pricing
      3. Enterprise Term License Agreement (ETLA): Creative Cloud for Enterprise (CCE)
    2. Adobe has discontinued support for legacy perpetual licenses, with the latest version being CS6, which is steering organizations to prioritize their options for products in the creative and document management space.
    3. Document Cloud (DC) is the cloud product replacing the Acrobat perpetual licensing model. DC extends the subscription-based model further and limits options to extend the lifespan of legacy on-premises licenses through a protracted upgrade process.
    4. The subscription model, coupled with limited discount options on transactional purchases, forces enterprises to consider the ETLA option. The ETLA brings with it unique term commitments, new pricing structures, and true-up mechanisms and inserts the "land and expand" model vs. license reassignment.

    Info-Tech Insight

    Adobe’s move from a perpetual license to a per-user subscription model can be positive in some scenarios for organizations that experienced challenges with deployment, management of named users vs. devices, and license tracking.

    Core concepts of Adobe agreements: Discounting, pricing, and bundling

    ETLA

    Adobe has been systematically reducing discounts on ETLAs as they enter the second renewal cycle of the original three-year terms.

    Adobe Cloud Bundling

    Adobe cloud services are being bundled with ETLAs with a mandate that companies that do not accept the services at the proposed cost have Adobe management’s approval to unbundle the deal, generally with no price relief.

    Custom Bundling

    The option for custom bundling of legacy Creative Suite component applications has been removed, effectively raising the price across the board for licensees that require more than two Adobe applications who must now purchase the full Creative Cloud suite.

    Higher and Public Education

    Higher education/public education agreements have been revamped over the past couple of years, increasing prices for campus-wide agreements by double-digit percentages (~10-30%+). While they still receive an 80% discount over list price, IT departments in this industry are not prepared to absorb the budget increase.

    Info-Tech Insight

    Adobe has moved to an all-or-one bundle model. If you need more than two application products, you will likely need to purchase the full Creative Cloud suite. Therefore, it is important to focus on creating accurate user profiles to identify usage needs.

    Use Info-Tech’s Adobe deployment tool for SAM: Track deployment and needs

    The image contains a screenshot of Info-Tech's Adobe deployment tool for SAM: Track deployment and needs.

    Use Info-Tech’s Adobe deployment tool for SAM: Audit

    The image contains a screenshot of the Adobe Deployment Tool for SAM, specifically the Audit tab.

    Use Info-Tech’s Adobe deployment tool for SAM: Cost

    The image contains a screenshot of the Adobe Deployment Tool for SAM, specifically the Cost tab.

    Use Info-Tech’s tools to compare ETLA vs. VIP and to document forecasted costs and benefits

    Is the ETLA or VIP option better for your organization?

    Use Info-Tech’s Adobe ETLA vs. VIP Pricing Table tool to compare ETLA costs against VIP costs.

    The image contains a screenshot of Info-Tech's Adobe ETLA vs. VIP Pricing Table.

    Your ETLA contains multiple products and is a multi-year agreement.

    Use Info-Tech’s ETLA Forecasted Costs and Benefits tool to forecast your ETLA costs and document benefits.

    The image contains a screenshot of Info-Tech's ETLA Forecasted Costs and Benefits.

    Adobe’s Creative Cloud Complete offering provides access to all Adobe creative products and ongoing upgrades

    Why subscription model?

    The subscription model forces customers to an annuity-based pricing model, so Adobe has recurring revenue from a subscription-based product. This increases customer lifetime value (CLTV) for Adobe while providing ongoing functionality updates that are not version/edition dependent.

    Key Characteristics:

    • Available as a month-to-month or annual subscription license
    • Can be purchased for one user, for a team, or for an enterprise
    • Subject to annual payment and true-up of license fees
    • Can only true-up during lifespan of contract; quantities cannot be reduced until renewal
    • May contain auto-renewal clauses – beware!

    Key things to know:

    1. Applications can be purchased individually if users require only one specific product. A few products continue to have on-premises licensing options, but most are offered by per-user subscriptions.
    2. At the end of the subscription period, the organization no longer has any rights to the software and would have to return to a previously owned version.
    3. True-downs are not possible (in contrast to Microsoft’s Office 365).
    4. Downgrade rights are not included or are limited by default.

    Which products are in the Creative Cloud bundle?

    Adobe Acrobat® XI Pro

    Adobe After Effects® CC

    Adobe Audition® CC

    Adobe Digital Publishing Suite, Single Edition

    Adobe InDesign® CC

    Adobe Dreamweaver® CC

    Adobe Edge Animate

    Adobe Edge Code preview

    Adobe Edge Inspect

    Adobe Photoshop CC

    Adobe Edge Reflow preview

    Adobe Edge Web Fonts

    Adobe Extension Manager

    ExtendScript Toolkit

    Adobe Fireworks® CS6

    Adobe Flash® Builder® 4.7 Premium Edition

    Adobe Flash Professional CC

    Adobe Illustrator® CC

    Adobe Prelude® CC

    Adobe Premiere® Pro CC

    Adobe Scout

    Adobe SpeedGrade® CC

    Adobe Muse CC

    Adobe Photoshop Lightroom 6

    Adobe offers different solutions for teams vs. enterprise licensing

    Evaluate the various options for Creative Cloud, as they can be purchased individually, for teams, or for enterprise.

    Bundle Name

    Target Customer

    Included Applications

    Features

    CC (for Individuals)

    Individual users

    The individual chooses
    • Sync, store, and share assets
    • Adobe Portfolio website
    • Adobe Typekit font collection
    • Microsoft Teams integration
    • Can only be purchased through credit card

    CC for Teams (CCT)

    Small to midsize organizations with a small number of Adobe users who are all within the same team

    Depends on your team’s requirements. You can select all applications or specific applications.

    Everything that CC (for individuals) does, plus

    • One license per user; can reassign CC licenses
    • Web-based admin console
    • Centralized deployment
    • Usage tracking and reporting
    • 100GB of storage per user
    • Volume discounts for 10+ seats

    CC for Enterprise (CCE)

    Large organizations with users who regularly use multiple Adobe products on multiple machines

    All applications including Adobe Stock for images and Adobe Enterprise Dashboard for managing user accounts

    Everything that CCT does, plus

    • Employees can activate a second copy of software on another device (e.g. home computer) as long as they share the same Adobe ID and are not used simultaneously
    • Ability to reassign licenses from old users to new users
    • Custom storage options
    • Greater integration with other Adobe products
    • Larger volume discounts with more seats

    For further information on specific functionality differences, reference Adobe’s comparison table.

    A Cloud-ish solution: Considerations and implications for IT organizations

    ☑ True cloud products are typically service-based, scalable and elastic, shared resources, have usage metering, and rely upon internet technologies. Currently, Adobe’s Creative Cloud and Document Cloud products lack these characteristics. In fact, the core products are still downloaded and physically installed on endpoint devices, then anchored to the cloud provisioning system, where the software can be automatically updated and continuously verified for compliance by ensuring the subscription is active.

    ☑ Adobe Cloud allows Adobe to increase end-user productivity by releasing new features and products to market faster, but the customer will increase lock-in to the Adobe product suite. The fast-release approach poses a different challenge for IT departments, as they must prepare to test and support new functionality and ensure compatibility with endpoint devices.

    ☑ There are options at the enterprise level that enable IT to exert more granular control over new feature releases, but these are tied to the ETLA and the provided enterprise portal and are not available on other subscription plans. This is another mechanism by which Adobe has been able to spur ETLA adoption.

    ☑ Not all CIOs consider SaaS/subscription applications their first choice, but the Adobe’s dominant position in the content and document management marketplace is forcing the shift regardless. It is significant that Adobe bypassed the typical hybrid transition model by effectively disrupting the ability to continue with perpetual licensing without falling behind the functionality curve.

    ☑ VIP plans do allow for annual terms and payment, but you lose the price elasticity that comes with multi-year terms.

    Download Info-Tech’s Adobe ETLA vs. VIP Pricing Table tool to compare ETLA costs against VIP costs.

    When moving to Adobe cloud, validate that license requirements meet organizational needs, not a sales quota

    Follow these steps in your transition to Creative Cloud.

    Step 1: Make sure you have a software asset management (SAM) tool to determine Adobe installs and usage within your environment.

    Step 2: Look at the current Adobe install base and usage. We recommend reviewing three months’ worth of reliable usage data to decide which users should have which licenses going forward.

    Step 3: Understand the changes in Adobe packages for Creative Cloud (CC). Also, take into account that the license types are based on users, not devices.

    Step 4: Identify those users who only need a single license for a single application (e.g. Photoshop, InDesign, Muse).

    Step 5: Identify the users who require CC suites. Look at their usage of previous Adobe suites to get an idea of which CC suite they require. Did they have Design Suite Standard installed but only use one or two elements? This is a good way to ensure you do not overspend on Adobe licenses.

    Source: The ITAM Review

    Download Info-Tech’s Adobe ETLA Deployment Forecast tool to track Adobe installs within your environment and to determine usage needs.

    Acquiring Adobe Software

    Adobe offers four common licensing methods, which are reviewed in detail in the following slides.

    Most common purchasing models

    Points for consideration
    • Value Incentive Plan (VIP)
    • Cumulative Licensing Program (CLP)
    • Transactional Licensing Program (TLP)
    • Enterprise Term License Agreement (ETLA)
    • Adobe, as with many other large software providers, includes special benefits and rights when its products are purchased through volume licensing channels.
    • Businesses should typically refrain from purchasing individual OEM (shrink wrap) licenses or those meant for personal use.
    • Purchase record history is available online, making it easier for your organization to manage entitlements in the case of an audit.

    "Customers are not even obliged to manage all the licenses themselves. The reseller partners have access to the cloud console and can manage licenses on behalf of their customers. Even better, they can seize cross and upsell opportunities and provide good insight into the environment. Additionally, Adobe itself provides optimization services."

    – B-lay

    CLP and TLP

    The CLP and TLP are transactional agreements generally used for the purchase of perpetual licenses. For example, they could be used for making Acrobat purchases if Creative Suite products are purchased on the ETLA.

    The image contains a screenshot of a table comparing CLP and TLP.

    Source: “Adobe Buying Programs Comparison Guide for Commercial and Government Organizations”

    VIP and ETLA

    The Value Incentive Plan is aimed at small- to medium-sized organizations with no minimum quantity required. However, there is limited flexibility to reduce licenses and limited price protection for future purchases. The ETLA is aimed at large organizations who wish to have new functionality as it comes out, license management portal, services, and security/IT control aspects.

    The image contains a screenshot of a table comparing VIP and ETLA.

    Source: “Adobe Buying Programs Comparison Guide for Commercial and Government Organizations”

    ETLA commitments risk creating “shelfware-as-a-service”

    The Adobe ETLA’s rigid contract parameters, true-up process, and unique deployment/provisioning mechanisms give technology/IT procurement leaders fewer options to maximize cost-usage alignment and to streamline opex costs.

    ☑ No ETLA price book is publicly published; pricing is controlled by the Adobe enterprise sales team.

    ☑ Adobe's retail pricing is a good starting point for negotiating discounted pricing.

    ☑ ETLA commitments are usually for three years, and the lack of a true-down option increases the risk involved in overbuying licenses should the organization encounter a business downturn or adverse event.

    ☑ Pricing discounts are the highest at the initial ETLA signing for the upfront volume commitment. The true-up pricing is discounted from retail but still higher than the signing cost per license.

    ☑ Technical support is included in the ETLA.

    ☑ While purchases typically go through value-added resellers (VARs), procurement can negotiate directly with Adobe.

    "For cloud products, it is less complex when it comes to purchasing and pricing. If larger quantities are purchased on a longer term, the discount may reach up to 15%. As soon as you enroll in the VIP program, you can control all your licenses from an ‘admin console’. Any updates or new functionalities are included in the original price. When the licenses expire, you may choose to renew your subscriptions or remove them. Partial renewal is also accepted. Of course, you can also re-negotiate your price if more subscriptions are added to your console."

    – B-lay

    ETLA recommendations

    1. Assess the end-user requirements with a high degree of scrutiny. Perform an analysis that matches the licensee with the correct Adobe product SKU to reduce the risk of overspending.
    • Leverage metering data that identifies actual usage and lack thereof, match to user profile functional requirements, and then determine end users’ actual license requirements.
  • Build in time to evaluate alternative products where possible and position the organization to leverage a Plan B vendor to replace or mitigate growth on the Adobe platform. Re-evaluate options well in advance of the ETLA renewal.
  • Secure price protection through negotiating a price cap or an extended ETLA term beyond the standard three-year term. Short of obtaining an escalation cap, which Adobe is strongly resisting, build in price increases for the ETLA renewal years.
    • Demand price transparency and granularity in the proposal process.
    • Validate that volume discounts are appropriate and show through to the true-up line item pricing.
  • Negotiate a true-down mechanism upfront with Adobe if usage decline is inevitable or expected due to a merger or acquisition, divestiture, or material restructuring event.

    • INFO-TECH TIP: For further guidance on ETLAs and pricing, contact your Info-Tech representative to set up a call with an analyst.

    Use Info-Tech’s Adobe ETLA Deployment Forecast tool to match licensees with Adobe product SKUs.

    Prepare for Adobe’s true-up process

    How the true-up process works

    When adding a license, the true-up price will be prorated to 50% of the license cost for previous year’s usage plus 100% of the license cost for the next year. This back-charging adds up to 150% of the overall true-up license cost. In some rare cases, Adobe has provided an “unlimited” quantity for certain SKUs; these Unlimited ETLAs generally align with FTE counts and limit FTE increases to about 5%. Procurement must monitor and work with SAM/ITAM and stakeholder groups to restrain unnecessary growth during the term of an Unlimited ETLA to avoid the risk of cost escalation at renewal time.

    Higher-education specific

    Higher-education clients can license under the ETLA based on a prescribed number of user and classroom/lab devices and/or on a FTE basis. In these cases, the combination of Creative Cloud and Acrobat Pro volume must equal the FTE total, creating an enterprise footprint. FTE calculations establish the full-time faculty plus one-third of part-time faculty plus one-half of part-time staff.

    Info-Tech Insight

    Compliance takes a different form in terms of the ETLA true-up process. The completion of Adobe's transition to cloud-based licensing and verification has improved compliance rates via phone home telemetry such that pirated software is less available and more easily detected. Adobe has actually decommissioned its audit arm in the Americas and EMEA.

    Audits and software asset management with Adobe

    Watch out for:

    • Virtual desktops, freeware, and test and trial licenses
    • Adobe products that may be bundled into a suite; a manual check will be needed to ensure the suite isn’t recognized as a standalone license
    • Pirated licenses with a “crack” built into the software

    Simplify your process – from start to finish – with these steps:

    Determine License Entitlements

    Obtain documentation from internal records and Adobe to track licenses and upgrades to determine what licenses you own and have the right to use.

    Gather Deployment Information

    Leverage a software asset management tool or process to determine what software is deployed and what is/is not being used.

    Determine Effective License Position

    Compare license entitlements with deployment data to uncover surpluses and deficits in licensing. Look for opportunities.

    Plan Changes to License Position

    Meet with IT stakeholders to discuss the enterprise license program (ELP), short- and long-term project plans, and budget allocation. Plan and document licensing requirements.

    Adobe Genuine Software Integrity Service

    • This service was started in 2014 to combat non-genuine software sold by non-authorized resellers.
    • The service works hand in hand with the cloud movement to reduce piracy.
    • Every Adobe product now contains an executable file that will scan your machine for non-genuine software.
    • If non-genuine software is detected, the user will be notified and directed to the official Adobe website for next steps.

    Detailed list of Adobe licensing contract types

    The table below describes Adobe contract types beyond the four typical purchasing models explained in the previous slides:

    Option

    What is it?

    What’s included?

    For

    Term

    CLP (Cumulative Licensing Program)

    10,000 plus points, support and maintenance optional

    Select Adobe perpetual desktop products

    Business

    2 years

    EA (Adobe Enterprise Agreement)

    100 licenses plus maintenance and support for eligible Adobe products

    All applications

    100+ users requirement

    3 years

    EEA (Adobe Enterprise Education Agreement)

    Creative Cloud enterprise agreement for education establishments

    Creative Cloud applications without services

    Education

    1 or 2 years

    ETLA (Enterprise Term License Agreement)

    Licensing program designed for Adobe’s top commercial, government, and education customers

    All Creative Cloud applications

    Large enterprise companies

    3 years

    K-12 – Enterprise Agreement

    Enterprise agreement for primary and secondary schools

    Creative Cloud applications without services

    Education

    1 year

    K-12 – School Site License

    Allows a school to install a Creative Cloud on up to 500 school-owned computers regardless of school size

    Creative Cloud applications without services

    Education

    1 year

    TLP (Transactional Licensing Program)

    Agreement for SMBs that want volume licensing bonuses

    Perpetual desktop products only

    Aimed at SMBs, but Enterprise customers can use the TLP for smaller requirements

    N/A

    Upgrade Plan

    Insurance program for software purchased under a perpetual license program such as CLP or TLP for Creative Cloud upgrade

    Dependent on the existing perpetual estate

    Anyone

    N/A

    VIP (Value Incentive Plan)

    VIP allows customers to purchase, deploy, and manage software through a term-based subscription license model

    Creative Cloud of teams

    Business, government, and education

    Insight breakdown

    Insight 1

    Adobe operates in its own niche in the creative space, and Adobe users have grown accustomed to their products, making switching very difficult.

    Insight 2

    Adobe has transitioned the vast majority of its software offerings to the cloud-based subscription model. Active management of licenses, software provisioning, and consumption of cloud services is now an ongoing job.

    Insight 3

    With the vendor lock-in process nearly complete via the transition to a SaaS subscription model, Adobe is raising prices on an annual basis. Advance planning and strategic use of the ETLA is key to avoid budget-breaking surprises.

    Summary of accomplishment

    Knowledge Gained

    • The key pieces of licensing information that should be gathered about the current state of your own organization.
    • An in-depth understanding of the required licenses across all of your products.
    • Clear methodology for selecting the most effective contract type.
    • Development of measurable, relevant metrics to help track future project success and identify areas of strength and weakness within your licensing program.

    Processes Optimized

    • Understanding of the importance of licensing in relation to business objectives.
    • Understanding of the various licensing considerations that need to be made.
    • Contract negotiation.

    Deliverables Completed

    • Adobe ETLA Deployment Forecast
    • Adobe ETLA Forecasted Cost and Benefits
    • Adobe ETLA vs. VIP Pricing Table

    Related Info-Tech Research

    Take Control of Microsoft Licensing and Optimize Spend

    Create an Effective Plan to Implement IT Asset Management

    Establish an Effective System of Internal IT Controls to Mitigate Risks

    Optimize Software Asset Management

    Take Control of Compliance Improvement to Conquer Every Audit

    Cut PCI Compliance and Audit Costs in Half

    Bibliography

    “Adobe Buying Programs: At-a-glance comparison guide for Commercial and government organizations.” Adobe Systems Incorporated, 2014. Web. 1 Feb. 2018.

    “Adobe Buying Programs Comparison Guide for Commercial and Government Organizations.” Adobe Systems Incorporated, 2018. Web.

    “Adobe Buying Programs Comparison Guide for Education.” Adobe Systems Incorporated, 2018. Web. 1 Feb 2018.

    “Adobe Education Enterprise Agreement: Give your school access to the latest industry-leading creative tools.” Adobe Systems Incorporated, 2014. Web. 1 Feb. 2018.

    “Adobe Enterprise Term License Agreement for commercial and government organizations.” Adobe Systems Incorporated, 2016. Web. 1 Feb. 2018.

    Adobe Investor Presentation – October 2017. Adobe Systems Incorporated, 2017. Web. 1 Feb. 2018.

    Cabral, Amanda. “Students react to end of UConn-Adobe contract.” The Daily Campus (Uconn), 5 April 2017. Web. 1 Feb. 2018.

    de Veer, Patrick and Alecsandra Vintilescu. “Quick Guide to Adobe Licensing.” B-lay, Web. 1 Feb. 2018.

    “Find the best program for your organization.” Adobe, Web. 1 Feb 2018.

    Foxen, David. “Adobe Upgrade Simplified.” Snow Software, 7 Oct. 2016. Web.

    Frazer, Bryant. “Adobe Stops Reporting Subscription Figures for Creative Cloud.” Studio Daily. Access Intelligence, LLC. 17 March 2016. Web.

    “Give your students the power to create bright futures.” Adobe, Web. 1 Feb 2018.

    Jones, Noah. “Adobe changes subscription prices, colleges forced to pay more.” BG Falcon Media. Bowling Green State University, 18 Feb. 2015. Web. 1 Feb. 2018.

    Mansfield, Adam. “Is Your Organization Prepared for Adobe’s Enterprise Term License Agreements (ETLA)?” UpperEdge,30 April 2013. Web. 1 Feb. 2018.

    Murray, Corey. “6 Things Every School Should Know About Adobe’s Move to Creative Cloud.” EdTech: Focus on K-12. CDW LLC, 10 June 2013. Web.

    “Navigating an Adobe Software Audit: Tips for Emerging Unscathed.” Nitro, Web. 1 Feb. 2018.

    Razavi, Omid. “Challenges of Traditional Software Companies Transitioning to SaaS.” Sand Hill, 12 May 2015. Web. 1 Feb. 2018.

    Rivard, Ry. “Confusion in the Cloud.” Inside Higher Ed. 22 May 2013. Web. 1 Feb. 2018.

    Sharwood, Simon. “Adobe stops software licence audits in Americas, Europe.” The Register. Situation Publishing. 12 Aug. 2016. Web. 1 Feb. 2018.

    “Software Licensing Challenges Faced In The Cloud: How Can The Cloud Benefit You?” The ITAM Review. Enterprise Opinions Limited. 20 Nov. 2015. Web.

    White, Stephen. “Understanding the Impacts of Adobe’s Cloud Strategy and Subscriptions Before Negotiating an ETLA.” Gartner, 22 Feb. 2016. Web.

    Master Organizational Change Management Practices

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    • Parent Category Name: Program & Project Management
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    • Organizational change management (OCM) is often an Achilles’ heel for IT departments and business units, putting projects and programs at risk – especially large, complex, transformational projects.
    • When projects that depend heavily on users and stakeholders adopting new tools, or learning new processes or skills, get executed without an effective OCM plan, the likelihood that they will fail to achieve their intended outcomes increases exponentially.
    • The root of the problem often comes down to a question of accountability: who in the organization is accountable for change management success? In the absence of any other clearly identifiable OCM leader, the PMO – as the organizational entity that is responsible for facilitating successful project outcomes – needs to step up and embrace this accountability.
    • As PMO leader, you need to hone an OCM strategy and toolkit that will help ensure not only that projects are completed but also that benefits are realized.

    Our Advice

    Critical Insight

    • The root of poor stakeholder adoption on change initiatives is twofold:
      • Project planning tends to fixate on technology and neglects the behavioral and cultural factors that inhibit user adoption;
      • Accountabilities for managing change and helping to realize the intended business outcomes post-project are not properly defined in advance.
    • Persuading people to change requires a “soft,” empathetic approach to keep them motivated and engaged. But don’t mistake “soft” for easy. Managing the people part of change is amongst the toughest work there is, and it requires a comfort and competency with uncertainty, ambiguity, and conflict.
    • Transformation and change are increasingly becoming the new normal. While this normality may help make people more open to change in general, specific changes still need to be planned, communicated, and managed. Agility and continuous improvement are good, but can degenerate into volatility if change isn’t managed properly.

    Impact and Result

    • Plan for human nature. To ensure project success and maximize benefits, plan and facilitate the non-technical aspects of organizational change by addressing the emotional, behavioral, and cultural factors that foster stakeholder resistance and inhibit user adoption.
    • Make change management as ubiquitous as change itself. Foster a project culture that is proactive about OCM. Create a process where OCM considerations are factored in as early as project ideation and where change is actively managed throughout the project lifecycle, including after the project has closed.
    • Equip project leaders with the right tools to foster adoption. Effective OCM requires an actionable toolkit that will help plant the seeds for organizational change. With the right tools and templates, the PMO can function as the hub for change, helping the business units and project teams to consistently achieve project and post-project success.

    Master Organizational Change Management Practices Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how implementing an OCM strategy through the PMO can improve project outcomes and increase benefits realization.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Prepare the PMO for change leadership

    Assess the organization’s readiness for change and evaluate the PMO’s OCM capabilities.

    • Drive Organizational Change from the PMO – Phase 1: Prepare the PMO for Change Leadership
    • Organizational Change Management Capabilities Assessment
    • Project Level Assessment Tool

    2. Plant the seeds for change during project planning and initiation

    Build an organic desire for change throughout the organization by developing a sponsorship action plan through the PMO and taking a proactive approach to change impacts.

    • Drive Organizational Change from the PMO – Phase 2: Plant the Seeds for Change During Project Planning and Initiation
    • Organizational Change Management Impact Analysis Tool

    3. Facilitate change adoption throughout the organization

    Ensure stakeholders are engaged and ready for change by developing effective communication, transition, and training plans.

    • Drive Organizational Change from the PMO – Phase 3: Facilitate Change Adoption Throughout the Organization
    • Stakeholder Engagement Workbook
    • Transition Plan Template
    • Transition Team Communications Template

    4. Establish a post-project benefits attainment process

    Determine accountabilities and establish a process for tracking business outcomes after the project team has packed up and moved onto the next project.

    • Drive Organizational Change from the PMO – Phase 4: Establish a Post-Project Benefits Attainment Process
    • Portfolio Benefits Tracking Tool

    5. Solidify the PMO’s role as change leader

    Institute an Organizational Change Management Playbook through the PMO that covers tools, processes, and tactics that will scale all of the organization’s project efforts.

    • Drive Organizational Change from the PMO – Phase 5: Solidify the PMO's Role as Change Leader
    • Organizational Change Management Playbook
    [infographic]

    Workshop: Master Organizational Change Management Practices

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Assess OCM Capabilities

    The Purpose

    Assess the organization’s readiness for change and evaluate the PMO’s OCM capabilities.

    Estimate the relative difficulty and effort required for managing organizational change through a specific project.

    Create a rough but concrete timeline that aligns organizational change management activities with project scope.

    Key Benefits Achieved

    A better understanding of the cultural appetite for change and of where the PMO needs to focus its efforts to improve OCM capabilities.

    A project plan that includes disciplined organizational change management from start to finish.

    Activities

    1.1 Assess the organization’s current readiness for change.

    1.2 Perform a change management SWOT analysis to assess the PMO’s capabilities.

    1.3 Define OCM success metrics.

    1.4 Establish and map out a core OCM project to pilot through the workshop.

    Outputs

    Organizational Change Management Capabilities Assessment

    A diagnosis of the PMO’s strengths and weaknesses around change management, as well as the opportunities and threats associated with driving an OCM strategy through the PMO

    Criteria for implementation success

    Project Level Assessment

    2 Analyze Change Impacts

    The Purpose

    Analyze the impact of the change across various dimensions of the business.

    Develop a strategy to manage change impacts to best ensure stakeholder adoption.

    Key Benefits Achieved

    Improved planning for both your project management and organizational change management efforts.

    A more empathetic understanding of how the change will be received in order to rightsize the PMO’s OCM effort and maximize adoption.

    Activities

    2.1 Develop a sponsorship action plan through the PMO.

    2.2 Determine the relevant considerations for analyzing the change impacts of a project.

    2.3 Analyze the depth of each impact for each stakeholder group.

    2.4 Establish a game plan to manage individual change impacts.

    2.5 Document the risk assumptions and opportunities stemming from the impact analysis.

    Outputs

    Sponsorship Action Plan

    Organizational Change Management Capabilities Assessment

    Risk and Opportunity Assessment

    3 Establish Collaborative Roles and Develop an Engagement Plan

    The Purpose

    Define a clear and compelling vision for change.

    Define roles and responsibilities of the core project team for OCM.

    Identify potential types and sources of resistance and enthusiasm.

    Create a stakeholder map that visualizes relative influence and interest of stakeholders.

    Develop an engagement plan for cultivating support for change while eliciting requirements.

    Key Benefits Achieved

    Begin to communicate a compelling vision for change.

    Delegate and divide work on elements of the transition plan among the project team and support staff.

    Begin developing a communications plan that appeals to unique needs and attitudes of different stakeholders.

    Cultivate support for change while eliciting requirements.

    Activities

    3.1 Involve the right people to drive and facilitate change.

    3.2 Solidify the vision of change to reinforce and sustain leadership and commitment.

    3.3 Proactively identify potential skeptics in order to engage them early and address their concerns.

    3.4 Stay one step ahead of potential saboteurs to prevent them from spreading dissent.

    3.5 Find opportunities to empower enthusiasts to stay motivated and promote change by encouraging others.

    3.6 Formalize the stakeholder analysis to identify change champions and blockers.

    3.7 Formalize the engagement plan to begin cultivating support while eliciting requirements.

    Outputs

    RACI table

    Stakeholder Analysis

    Engagement Plan

    Communications plan requirements

    4 Develop and Execute the Transition Plan

    The Purpose

    Develop a realistic, effective, and adaptable transition plan, including:Clarity around leadership and vision.Well-defined plans for targeting unique groups with specific messages.Resistance and contingency plans.Templates for gathering feedback and evaluating success.

    Clarity around leadership and vision.

    Well-defined plans for targeting unique groups with specific messages.

    Resistance and contingency plans.

    Templates for gathering feedback and evaluating success.

    Key Benefits Achieved

    Execute the transition in coordination with the timeline and structure of the core project.

    Communicate the action plan and vision for change.

    Target specific stakeholder and user groups with unique messages.

    Deal with risks, resistance, and contingencies.

    Evaluate success through feedback and metrics.

    Activities

    4.1 Sustain changes by adapting people, processes, and technologies to accept the transition.

    4.2 Decide which action to take on enablers and blockers.

    4.3 Start developing the training plan early to ensure training is properly timed and communicated.

    4.4 Sketch a communications timeline based on a classic change curve to accommodate natural resistance.

    4.5 Define plans to deal with resistance to change, objections, and fatigue.

    4.6 Consolidate and refine communication plan requirements for each stakeholder and group.

    4.7 Build the communications delivery plan.

    4.8 Define the feedback and evaluation process to ensure the project achieves its objectives.

    4.9 Formalize the transition plan.

    Outputs

    Training Plan

    Resistance Plan

    Communications Plan

    Transition Plan

    5 Institute an OCM Playbook through the PMO

    The Purpose

    Establish post-project benefits tracking timeline and commitment plans.

    Institute a playbook for managing organizational change, including:

    Key Benefits Achieved

    A process for ensuring the intended business outcomes are tracked and monitored after the project is completed.

    Repeat and scale best practices around organizational change to future PMO projects.

    Continue to build your capabilities around managing organizational change.

    Increase the effectiveness and value of organizational change management.

    Activities

    5.1 Review lessons learned to improve organizational change management as a core PM discipline.

    5.2 Monitor capacity for change.

    5.3 Define roles and responsibilities.

    5.4 Formalize and communicate the organizational change management playbook.

    5.5 Regularly reassess the value and success of organizational change management.

    Outputs

    Lessons learned

    Organizational Change Capability Assessment

    Organizational Change Management Playbook

    Further reading

    Master Organizational Change Management Practices

    PMOs, if you don't know who is responsible for org change, it's you.

    Analyst Perspective

    Don’t leave change up to chance.

    "Organizational change management has been a huge weakness for IT departments and business units, putting projects and programs at risk – especially large, complex, transformational projects.

    During workshops with clients, I find that the root of this problem is twofold: project planning tends to fixate on technology and neglects the behavioral and cultural factors that inhibit user adoption; further, accountabilities for managing change and helping to realize the intended business outcomes post-project are not properly defined.

    It makes sense for the PMO to be the org-change leader. In project ecosystems where no one seems willing to seize this opportunity, the PMO can take action and realize the benefits and accolades that will come from coordinating and consistently driving successful project outcomes."

    Matt Burton,

    Senior Manager, Project Portfolio Management

    Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

    • PMO Directors who need to improve user adoption rates and maximize benefits on project and program activity.
    • CIOs who are accountable for IT’s project spend and need to ensure an appropriate ROI on project investments.

    This Research Will Help You:

    • Define change management roles and accountabilities among project stakeholders.
    • Prepare end users for change impacts in order to improve adoption rates.
    • Ensure that the intended business outcomes of projects are more effectively realized.
    • Develop an organizational change management toolkit and best practices playbook.

    This Research Will Also Assist:

    • Project managers and change managers who need to plan and execute changes affecting people and processes.
    • Project sponsors who want to improve benefits attainment.
    • Business analysts who need to analyze the impact of change.

    This Research Will Help Them:

    • Develop communications and training plans tailored to specific audiences.
      • Identify strategies to manage cultural and behavioral change.
    • Maximize project benefits by ensuring changes are adopted.
    • Capitalize upon opportunities and mitigate risks.

    Drive organizational change from the PMO

    Situation

    • As project management office (PMO) leader, you oversee a portfolio of projects that depend heavily on users and stakeholders adopting new tools, complying with new policies, following new processes, and learning new skills.
    • You need to facilitate the organizational change resulting from these projects, ensuring that the intended business outcomes are realized.

    Complication

    • While IT takes accountability to deliver the change, accountability for the business outcomes is opaque with little or no allocated resourcing.
    • Project management practices focus more on the timely implementation of projects than on the achievement of the desired outcomes thereafter or on the behavioral and cultural factors that inhibit change from taking hold in the long term.

    Resolution

    • Plan for human nature. To ensure project success and maximize benefits, plan and facilitate the non-technical aspects of organizational change by addressing the emotional, behavioral, and cultural factors that foster stakeholder resistance and inhibit user adoption.
    • Make change management as ubiquitous as change itself. Foster a project culture that is proactive about OCM. Create a process where OCM considerations are factored in as early as project ideation and change is actively managed throughout the project lifecycle, including after the project has closed.
    • Equip project leaders with the right tools to foster adoption. Effective OCM requires an actionable toolkit that will help plant the seeds for organizational change. With the right tools and templates, the PMO can function as a hub for change, helping business units and project teams to consistently achieve project and post-project success.
    Info-Tech Insight

    Make your PMO the change leader it’s already expected to be. Unless accountabilities for organizational change management (OCM) have been otherwise explicitly defined, you should accept that, to the rest of the organization – including its chief officers – the PMO is already assumed to be the change leader.

    Don’t shy away from or neglect this role. It’s not just the business outcomes of the organization’s projects that will benefit; the long-term sustainability of the PMO itself will be significantly strengthened by making OCM a core competency.

    Completed projects aren’t necessarily successful projects

    The constraints that drive project management (time, scope, and budget) are insufficient for driving the overall success of project efforts.

    For instance, a project may come in on time, on budget, and in scope, but…

    • …if users and stakeholders fail to adopt…
    • …and the intended benefits are not achieved…

    …then that “successful project” represents a massive waste of the organization’s time and resources.

    A supplement to project management is needed to ensure that the intended value is realized.

    Mission (Not) Accomplished

    50% Fifty percent of respondents in a KPMG survey indicated that projects fail to achieve what they originally intended. (Source: NZ Project management survey)

    56% Only fifty-six percent of strategic projects meet their original business goals. (Source: PMI)

    70% Lack of user adoption is the main cause for seventy percent of failed projects. (Source: Collins, 2013)

    Improve project outcomes with organizational change management

    Make “completed” synonymous with “successfully completed” by implementing an organizational change management strategy through the PMO.

    Organizational change management is the practice through which the PMO can improve user adoption rates and maximize project benefits.

    Why OCM effectiveness correlates to project success:

    • IT projects are justified because they will make money, save money, or make people happier.
    • Project benefits can only be realized when changes are successfully adopted or accommodated by the organization.

    Without OCM, IT might finish the project but fail to realize the intended outcomes.

    In the long term, a lack of OCM could erode IT’s ability to work with the business.

    The image shows a bar graph, titled Effective change management correlates with project success, with the X-axis labelled Project Success (Percent of respondents that met or exceeded project objectives), and the Y-axis labelled OCM-Effectiveness, with an arrow pointing upwards. The graph shows that with higher OCM-Effectiveness, Project Success is also higher. The source is given as Prosci’s 2014 Best Practices in Change Management benchmarking report.

    What is organizational change management?

    OCM is a framework for managing the introduction of new business processes and technologies to ensure stakeholder adoption.

    OCM involves tools, templates, and processes that are intended to help project leaders analyze the impacts of a change during the planning phase, engage stakeholders throughout the project lifecycle, as well as train and transition users towards the new technologies and processes being implemented.

    OCM is a separate body of knowledge, but as a practice it is inseparable from both project management or business analysis.

    WHEN IS OCM NEEDED?

    Anytime you are starting a project or program that will depend on users and stakeholders to give up their old way of doing things, change will force people to become novices again, leading to lost productivity and added stress.

    CM can help improve project outcomes on any project where you need people to adopt new tools and procedures, comply with new policies, learn new skills and behaviors, or understand and support new processes.

    "What is the goal of change management? Getting people to adopt a new way of doing business." – BA, Natural Resources Company

    The benefits of OCM range from more effective project execution to improved benefits attainment

    82% of CEOs identify organizational change management as a priority. (D&B Consulting) But Only 18% of organizations characterize themselves as “Highly Effective” at OCM. (PMI)

    On average, 95% percent of projects with excellent OCM meet or exceed their objectives. (Prosci) VS For projects with poor OCM, the number of projects that meet objectives drops to 15%. (Prosci)

    82% of projects with excellent OCM practices are completed on budget. (Prosci) VS For projects with poor OCM, the number of projects that stay on budget drops to 51%. (Prosci)

    71% of projects with excellent OCM practices stay on schedule. (Prosci) VS For projects with poor OCM practices, only 16% stay on schedule. (Prosci)

    While critical to project success, OCM remains one of IT’s biggest weaknesses and process improvement gaps

    IT Processes Ranked by Effectiveness:

    1. Risk Management
    2. Knowledge Management
    3. Release Management
    4. Innovation
    5. IT Governance
    6. Enterprise Architecture
    7. Quality Management
    8. Data Architecture
    9. Application Development Quality
    10. Data Quality
    11. Portfolio Management
    12. Configuration Management
    13. Application Portfolio Management
    14. Business Process Controls Internal Audit
    15. Organizational Change Management
    16. Application Development Throughput
    17. Business Intelligence Reporting
    18. Performance Measurement
    19. Manage Service Catalog

    IT Processes Ranked by Importance:

    1. Enterprise Application Selection & Implementation
    2. Organizational Change Management
    3. Data Architecture
    4. Quality Management
    5. Enterprise Architecture
    6. Business Intelligence Reporting
    7. Release Management
    8. Portfolio Management
    9. Application Maintenance
    10. Asset Management
    11. Vendor Management
    12. Application Portfolio Management
    13. Innovation
    14. Business Process Controls Internal Audit
    15. Configuration Management
    16. Performance Measurement
    17. Application Development Quality
    18. Application Development Throughput
    19. Manage Service Catalog

    Based on 3,884 responses to Info-Tech’s Management and Governance Diagnostic, June 2016

    There’s no getting around it: change is hard

    While the importance of change management is widely recognized across organizations, the statistics around change remain dismal.

    Indeed, it’s an understatement to say that change is difficult.

    People are generally – in the near-term at least – resistant to change, especially large, transformational changes that will impact the day-to-day way of doing things, or that involve changing personal values, social norms, and other deep-seated assumptions.

    "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things." – Niccolo Machiavelli

    70% - Change failure rates are extremely high. It is estimated that up to seventy percent of all change initiatives fail – a figure that has held steady since the 1990s. (McKinsey & Company)

    25% - In a recent survey of 276 large and midsize organizations, only twenty-five percent of respondents felt that the gains from projects were sustained over time. (Towers Watson)

    22% - While eighty-seven percent of survey respondents trained their managers to “manage change,” only 22% felt the training was truly effective. (Towers Watson)

    While change is inherently difficult, the biggest obstacle to OCM success is a lack of accountability

    Who is accountable for change success? …anyone?...

    To its peril, OCM commonly falls into a grey area, somewhere in between project management and portfolio management, and somewhere in between being a concern of IT and a concern of the business.

    While OCM is a separate discipline from project management, it is commonly thought that OCM is something that project managers and project teams do. While in some cases this might be true, it is far from a universal truth.

    The end result: without a centralized approach, accountabilities for key OCM tasks are opaque at best – and the ball for these tasks is, more often than not, dropped altogether.

    29% - Twenty-nine percent of change initiatives are launched without any formal OCM plan whatsoever.

    "That’s 29 percent of leaders with blind faith in the power of prayer to Saint Jude, the patron saint of desperate cases and lost causes." – Torben Rick

    Bring accountability to org-change by facilitating the winds of change through the PMO

    Lasting organizational change requires a leader. Make it the PMO.

    #1 Organizational resistance to change is cited as the #1 challenge to project success that PMOs face. (Source: PM Solutions)

    90% Companies with mature PMOs that effectively manage change meet expectations 90% of the time. (Source: Jacobs-Long)

    Why the PMO?

    A centralized approach to OCM is most effective, and the PMO is already a centralized project office and is already accountable for project outcomes.

    What’s more, in organizations where accountabilities for OCM are not explicitly defined, the PMO will likely already be assumed to be the default change leader by the wider organization.

    It makes sense for the PMO to accept this accountability – in the short term at least – and claim the benefits that will come from coordinating and consistently driving successful project outcomes.

    In the long term, OCM leadership will help the PMO to become a strategic partner with the executive layer and the business side.

    Short-term gains made by the PMO can be used to spark dialogues with those who authorize project spending and have the implicit fiduciary obligation to drive project benefits.

    Ultimately, it’s their job to explicitly transfer that obligation, along with the commensurate resourcing and authority for OCM activities.

    More than a value-added service, OCM competencies will soon determine the success of the PMO itself

    Given the increasingly dynamic nature of market conditions, the need for PMOs to provide change leadership on projects large and small is becoming a necessity.

    "With organizations demanding increasing value, PMOs will need to focus more and more on strategy, innovation, agility, and stakeholder engagement. And, in particular, developing expertise in organizational change management will be essential to their success." – PM Solutions, 2014

    28% PMOs that are highly agile and able to respond quickly to changing conditions are 28% more likely to successfully complete strategic initiatives (69% vs. 41%). (PMI)

    In other words, without heightened competencies around org-change, the PMO of tomorrow will surely sink like a stone in the face of increasingly unstable external factors and accelerated project demands.

    Use Info-Tech’s road-tested OCM toolkit to transform your PMO into a hub of change management leadership

    With the advice and tools in Info-Tech’s Drive Organizational Change from the PMO blueprint, the PMO can provide the right OCM expertise at each phase of a project.

    The graphic has an image of a windmill at centre, with PMO written directly below it. Several areas of expertise are listed in boxes emerging out of the PMO, which line up with project phases as follows (project phase listed first, then area of expertise): Initiation - Impact Assessment; Planning - Stakeholder Engagement; Execution - Transition Planning; Monitoring & Controlling - Communications Execution; Closing - Evaluation & Monitoring.

    Info-Tech’s approach to OCM is a practical/tactical adaptation of several successful models

    Business strategy-oriented OCM models such as John Kotter’s 8-Step model assume the change agent is in a position of senior leadership, able to shape corporate vision, culture, and values.

    • PMO leaders can work with business leaders, but ultimately can’t decide where to take the organization.
    • Work with business leaders to ensure IT-enabled change helps reinforce the organization’s target vision and culture.

    General-purpose OCM frameworks such as ACMP’s Standard for Change Management, CMI’s CMBoK, and Prosci’s ADKAR model are very comprehensive and need to be configured to PMO-specific initiatives.

    • Tailoring a comprehensive, general-purpose framework to PMO-enabled change requires familiarity and experience.

    References and Further Reading

    Info-Tech’s organizational change management model adapts the best practices from a wide range of proven models and distills it into a step-by-step process that can be applied to any IT-enabled project.

    Info-Tech’s OCM research is COBIT aligned and a cornerstone in our IT Management & Governance Framework

    COBIT Section COBIT Management Practice Related Blueprint Steps
    BAI05.01 Establish the desire to change. 1.1 / 2.1 / 2.2
    BAI05.02 Form an effective implementation team. 1.2
    BAI05.03 Communicate the desired vision. 2.1 / 3.2
    BAI05.03 Empower role players and identify short-term wins. 3.2 / 3.3
    BAI05.05 Enable operation and use. 3.1
    BAI05.06 Embed new approaches. 4.1 / 5.1
    BAI05.07 Sustain changes. 5.1

    COBIT 5 is the leading framework for the governance and management of enterprise IT.

    Screenshot of Info-Tech’s IT Management & Governance Framework.

    The image is a screenshot of Info-Tech's IT Management & Governance Framework (linked above). There is an arrow emerging from the screenshot, which offers a zoomed-in view of one of the sections of the framework, which reads BAI05 Organizational Change Management.

    Consider Info-Tech’s additional key observations

    Human behavior is largely a blind spot during the planning phase.

    In IT especially, project planning tends to fixate on technology and underestimate the behavioral and cultural factors that inhibit user adoption. Whether change is project-specific or continuous, it’s more important to instill the desire to change than to apply specific tools and techniques. Accountability for instilling this desire should start with the project sponsor, with direct support from the PMO.

    Don’t mistake change management for a “soft” skill.

    Persuading people to change requires a “soft,” empathetic approach to keep them motivated and engaged. But don’t mistake “soft” for easy. Managing the people part of change is amongst the toughest work there is, and it requires a comfort and competency with uncertainty, ambiguity, and conflict. If a change initiative is going to be successful (especially a large, transformational change), this tough work needs to be done – and the more impactful the change, the earlier it is done, the better.

    In “continuous change” environments, change still needs to be managed.

    Transformation and change are increasingly becoming the new normal. While this normality may help make people more open to change in general, specific changes still need to be planned, communicated, and managed. Agility and continuous improvement are good, but can degenerate into volatility if change isn’t managed properly. People will perceive change to be volatile and undesirable if their expectations aren’t managed through communications and engagement planning.

    Info-Tech’s centralized approach to OCM is cost effective, with a palpable impact on project ROI

    Info-Tech’s Drive Organizational Change from the PMO blueprint can be implemented quickly and can usually be done with the PMO’s own authority, without the need for additional or dedicated change resources.

    Implementation Timeline

    • Info-Tech’s easy-to-navigate OCM tools can be employed right away, when your project is already in progress.
    • A full-scale implementation of a PMO-driven OCM program can be accomplished in 3–4 weeks.

    Implementation Personnel

    • Primary: the PMO director (should budget 10%–15% of her/his project capacity for OCM activities).
    • Secondary: other PMO staff (e.g. project managers, business analysts, etc.).

    OCM Implementation Costs

    15% - The average costs for effective OCM are 10%–15% of the overall project budget. (AMR Research)

    Average OCM Return-on-Investment

    200% - Small projects with excellent OCM practices report a 200% return-on-investment. (Change First)

    650% - Large projects with excellent OCM practices report a 650% return-on-investment. (Change First)

    Company saves 2–4 weeks of time and $10,000 in ERP implementation through responsible OCM

    CASE STUDY

    Industry Manufacturing

    Source Info-Tech Client

    Situation

    A medium-sized manufacturing company with offices all over the world was going through a consolidation of processes and data by implementing a corporate-wide ERP system to replace the fragmented systems that were previously in place. The goal was to have consistency in process, expectations, and quality, as well as improve efficiency in interdepartmental processes.

    Up to this point, every subsidiary was using their own system to track data and sharing information was complicated and slow. It was causing key business opportunities to be compromised or even lost.

    Complication

    The organization was not very good in closing out projects. Initiatives went on for too long, and the original business benefits were usually not realized.

    The primary culprit was recognized as mismanaged organizational change. People weren’t aware early enough, and were often left out of the feedback process.

    Employees often felt like changes were being dictated to them, and they didn’t understand the wider benefits of the changes. This led to an unnecessary number of resistors, adding to the complexity of successfully completing a project.

    Resolution

    Implementing an ERP worldwide was something that the company couldn’t gamble on, so proper organizational change management was a focus.

    A thorough stakeholder analysis was done, and champions were identified for each stakeholder group throughout the organization.

    Involving these champions early gave them the time to work within their groups and to manage expectations. The result was savings of 2–4 weeks of implementation time and $10,000.

    Follow Info-Tech’s blueprint to transform your PMO into a hub for organizational change management

    Prepare the PMO for Change Leadership

    • Assess the organization’s readiness for change.
      • Perform an OCM capabilities assessment.
      • Chart an OCM roadmap for the PMO.
      • Undergo a change management SWOT analysis.
      • Define success criteria.
      • Org. Change Capabilities Assessment
    • Define the structure and scope of the PMO’s pilot OCM initiative.
      • Determine pilot OCM project.
      • Estimate OCM effort.
      • Document high-level project details.
      • Establish a timeline for org-change activities.
      • Assess available resources to support the PMO’s OCM initiative.
      • Project Level Assessment

    Plant the Seeds for Change During Project Planning and Initiation

    • Foster OCM considerations during the ideation phase.
      • Assess leadership support for change
      • Highlight the goals and benefits of the change
      • Refine your change story
      • Define success criteria
      • Develop a sponsorship action plan
      • Transition Team Communications Template
    • Perform an organizational change impact assessment.
      • Perform change impact survey.
      • Assess the depth of impact for the stakeholder group.
      • Determine overall adoptability of the OCM effort.
      • Review risks and opportunities.
      • Org. Change Management Impact Analysis Tool

    Facilitate Change Adoption Throughout the Organization

    • Ensure stakeholders are engaged and ready for change.
      • Involve the right people in change and define roles.
      • Define methods for obtaining stakeholder input.
      • Perform a stakeholder analysis.
      • Stakeholder Engagement Workbook
    • Develop and execute the transition plan.
      • Establish a communications strategy for stakeholder groups.
      • Define the feedback and evaluation process.
      • Assess the full range of support and resistance to change.
      • Develop an objections handling process.
      • Transition Plan Template
    • Establish HR and training plans.
      • Assess training needs. Develop training plan.
      • Training Plan

    Establish a Post-Project Benefits Attainment Process

    • Determine accountabilities for benefits attainment.
      • Conduct a post-implementation review of the pilot OCM project.
      • Assign ownership for realizing benefits after the project is closed.
      • Define a post-project benefits tracking process.
      • Implement a tool to help monitor and track benefits over the long term.
      • Project Benefits Tracking Tool

    Solidify the PMO’s Role as Change Leader

    • Institute an OCM playbook.
      • Review lessons learned to improve OCM as a core discipline of the PMO.
      • Monitor organizational capacity for change.
      • Define roles and responsibilities for OCM oversight.
      • Formalize the Organizational Change Management Playbook.
      • Assess the value and success of your practices relative to OCM effort and project outcomes.
      • Organizational Change Management Playbook

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Drive Organizational Change from the PMO

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
    Best-Practice Toolkit

    1.1 Assess the organization’s readiness for change.

    1.2 Define the structure and scope of the PMO’s pilot OCM initiative.

    2.1 Foster OCM considerations during the ideation phase.

    2.2 Perform an organizational change impact assessment.

    3.1 Ensure stakeholders are engaged and ready for change.

    3.2 Develop and execute the transition plan.

    3.3 Establish HR and training plans.

    		4.1 Determine accountabilities for benefits attainment. 5.1 Institute an OCM playbook.
    Guided Implementations
    • Scoping Call.
    • Review the PMO’s and the organization’s change capabilities.
    • Determine an OCM pilot initiative.
    • Define a sponsorship action plan for change initiatives.
    • Undergo a change impact assessment.
    • Perform a stakeholder analysis.
    • Prepare a communications strategy based on stakeholder types.
    • Develop training plans.
    • Establish a post-project benefits tracking process.
    • Implement a tracking tool.
    • Evaluate the effectiveness of OCM practices.
    • Formalize an OCM playbook for the organization’s projects.
    Onsite Workshop

    Module 1:

    Prepare the PMO for change leadership.

    Module 2:

    Plant the seeds for change during planning and initiation.

    Module 3:

    Facilitate change adoption throughout the organization.

    Module 4:

    Establish a post-project benefits attainment process.

    Module 5:

    Solidify the PMO’s role as change leader.

    Phase 1 Results:

    OCM Capabilities Assessment

    Phase 2 Results:

    Change Impact Analysis

    Phase 3 Results:

    Communications and Transition Plans

    Phase 4 Results:

    A benefits tracking process for sponsors

    Phase 5 Results:

    OCM Playbook

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Preparation Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4
    Activities

    Organize and Plan Workshop

    • Finalize workshop itinerary and scope.
    • Identify workshop participants.
    • Gather strategic documentation.
    • Engage necessary stakeholders.
    • Book interviews.

    Assess OCM Capabilities

    • Assess current organizational change management capabilities.
    • Conduct change management SWOT analysis.
    • Define change management success metrics.
    • Define core pilot OCM project.

    Analyze Impact of the Change

    • Analyse the impact of the change across multiple dimensions and stakeholder groups.
    • Create an impact management plan.
    • Analyze impacts to product with risk and opportunity assessments.

    Develop Engagement & Transition Plans

    • Perform stakeholder analysis to identify change champions and blockers.
    • Document comm./training requirements and delivery plan.
    • Define plans to deal with resistance.
    • Validate and test the transition plan.

    Institute an OCM Playbook

    • Define feedback and evaluation process.
    • Finalize communications, transition, and training plans.
    • Establish benefits tracking timeline and commitment plans.
    • Define roles and responsibilities for ongoing organizational change management.
    Deliverables
    • Workshop Itinerary
    • Workshop Participant List
    • Defined Org Change Mandate
    • Organizational Change Capabilities Assessment
    • SWOT Assessment
    • Value Metrics
    • Project Level Assessment/Project Definition
    • Project Sponsor Action Plan
    • Organizational Change Impact Analysis Tool
    • Risk Assessment
    • Opportunity Assessment
    • Stakeholder Engagement Workbook
    • Communications Plan
    • Training Plan
    • Resistance Plan
    • Transition Team
    • Communications Template
    • Evaluation Plan
    • Post-Project Benefits Tracking Timelines and Accountabilities
    • OCM Playbook

    Phase 1

    Prepare the PMO for Change Leadership

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Prepare the PMO for Change Leadership

    Proposed Time to Completion (in weeks): 1 week

    Step 1.1: Assess the organization’s readiness for change

    Start with an analyst kick off call:

    • Scoping call to discuss organizational change challenges and the PMO’s role in managing change.

    Then complete these activities…

    • Perform an assessment survey to define capability levels and chart an OCM roadmap.

    With these tools & templates:

    • Organizational Change Management Capabilities Assessment
    Step 1.2: Define the structure and scope of the PMO’s pilot OCM initiative

    Work with an analyst to:

    • Determine the appropriate OCM initiative to pilot over this series of Guided Implementations from the PMO’s project list.

    Then complete these activities…

    • Rightsize your OCM planning efforts based on project size, timeline, and resource availability.

    With these tools & templates:

    • Project Level Assessment Tool

    Step 1.1: Assess the organization’s readiness for change

    Phase 1 - 1.1

    This step will walk you through the following activities:
    • Perform an OCM capabilities assessment.
    • Chart an OCM roadmap for the PMO.
    • Undergo a change management SWOT analysis.
    • Define success criteria.
    This step involves the following participants:
    • Required: PMO Director
    • Recommended: PMO staff, project management staff, and other project stakeholders
    Outcomes of this step
    • An OCM roadmap for the PMO with specific recommendations.
    • An assessment of strengths, weakness, challenges, and threats in terms of the PMO’s role as organizational change leader.
    • Success metrics for the PMO’s OCM implementation.

    Project leaders who successfully facilitate change are strategic assets in a world of increasing agility and uncertainty

    As transformation and change become the new normal, it’s up to PMOs to provide stability and direction during times of transition and turbulence.

    Continuous change and transition are increasingly common in organizations in 2016.

    A state of constant change can make managing change more difficult in some ways, but easier in others.

    • Inundation with communications and diversity of channels means the traditional “broadcast” approach to communicating change doesn’t work (i.e. you can’t expect every email to get everyone’s attention).
    • People might be more open to change in general, but specific changes still need to be properly planned, communicated, and managed.

    By managing organizational change more effectively, the PMO can build credibility to manage both business and IT projects.

    "The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic." – Peter Drucker

    In this phase, we will gauge your PMO’s abilities to effectively facilitate change based upon your change management capability levels and your wider organization’s responsiveness to change.

    Evaluate your current capabilities for managing organizational change

    Start off by ensuring that the PMO is sensitive to the particularities of the organization and that it manages change accordingly.

    There are many moving parts involved in successfully realizing an organizational change.

    For instance, even with an effective change toolkit and strong leadership support, you may still fail to achieve project benefits due to such factors as a staff environment resistant to change or poor process discipline.

    Use Info-Tech’s Organizational Change Management Capabilities Assessment to assess your readiness for change across 7 categories:

    • Cultural Readiness
    • Leadership & Sponsorship
    • Organizational Knowledge
    • Change Management Skills
    • Toolkit & Templates
    • Process Discipline
    • KPIs & Metrics

    Download Info-Tech’s Organizational Change Management Capabilities Assessment.

    • The survey can be completed quickly in 5 to 10 minutes; or, if being done as a group activity, it can take up to 60 minutes or more.
    • Based upon your answers, you will get a report of your current change capabilities to help you prioritize your next steps.
    • The tool also provides a customized list of Info-Tech recommendations across the seven categories.

    Perform Info-Tech’s OCM capabilities questionnaire

    1.1.1 Anywhere from 10 to 60 minutes (depending on number of participants)

    • The questionnaire on Tab 2 of the Assessment consists of 21 questions across 7 categories.
    • The survey can be completed individually, by the PMO director or manager, or – even more ideally – by a group of project and business stakeholders.
    • While the questionnaire only takes a few minutes to complete, you may wish to survey a wider swath of business units, especially on such categories as “Cultural Readiness” and “Leadership Support.”

    The image is a screen capture of tab 2 of the Organizational Change Management Capabilities Assessment.

    Use the drop downs to indicate the degree to which you agree or disagree with each of the statements in the survey.

    Info-Tech Insight

    Every organization has some change management capability.

    Even if you find yourself in a fledgling or nascent PMO, with no formal change management tools or processes, you can still leverage other categories of change management effectiveness.

    If you can, build upon people-related assets like “Organizational Knowledge” and “Cultural Readiness” as you start to hone your OCM toolkit and process.

    Review your capability levels and chart an OCM roadmap for your PMO

    Tab 3 of the Assessment tool shows your capabilities graph.

    • The chart visualizes your capability levels across the seven categories of organization change covered in the questionnaire in order to show the areas that your organization is already strong in and the areas where you need to focus your efforts.

    The image is a screen capture of tab 3 of the Organizational Change Management Capabilities Assessment.

    Focus on improving the first capability dimension (from left/front to right/back) that rates below 10.

    Tab 4 of the Assessment tool reveals Info-Tech’s recommendations based upon your survey responses.

    • Use these recommendations to structure your roadmap and bring concrete definitions to your next steps.

    The image is a screen capture of tab 4 of the Organizational Change Management Capabilities Assessment.

    Use the red/yellow/green boxes to focus your efforts.

    The content in the recommendations boxes is based around these categories and the advice therein is designed to help you to, in the near term, bring your capabilities up to the next level.

    Use the steps in this blueprint to help build your capabilities

    Each of Info-Tech’s seven OCM capabilities match up with different steps and phases in this blueprint.

    We recommend that you consume this blueprint in a linear fashion, as each phase matches up to a different set of OCM activities to be executed at each phase of a project. However, you can use the legend below to locate how and where this blueprint will address each capability.

    Cultural Readiness 2.1 / 2.2 / 3.1 / 3.2 / 3.3
    Leadership Support 2.1 / 4.1 / 5.1
    Organizational Knowledge 2.1 / 3.1 / 3.2
    Change Management Skills 2.1 / 2.2 / 3.1 / 3.2 / 3.3
    Toolkit & Templates 2.1 / 2.2 / 3.1 / 3.2 / 3.3 / 4.1 / 5.1
    Process Discipline 2.1 / 2.2 / 3.1 / 3.2 / 3.3 / 4.1 / 5.1
    KPIs & Metrics 3.2 / 5.1

    Info-Tech Insight

    Organizational change must be planned in advance and managed through all phases of a project.

    Organizational change management must be embedded as a key aspect throughout the project, not merely a set of tactics added to execution phases.

    Perform a change management SWOT exercise

    1.1.2 30 to 60 minutes

    Now that you have a sense of your change management strengths and weaknesses, you can begin to formalize the organizational specifics of these.

    Gather PMO and IT staff, as well as other key project and business stakeholders, and perform a SWOT analysis based on your Capabilities Assessment.

    Follow these steps to complete the SWOT analysis:

    1. Have participants discuss and identify Strengths, Weaknesses, Opportunities, and Threats.
    2. Spend roughly 60 minutes on this. Use a whiteboard, flip chart, or PowerPoint slide to document results of the discussion as points are made.
    3. Make sure results are recorded and saved either using the template provided on the next slide or by taking a picture of the whiteboard or flip chart.

    Use the SWOT Analysis Template on the next slide to document results.

    Use the examples provided in the SWOT analysis to kick-start the discussion.

    The purpose of the SWOT is to begin to define the goals of this implementation by assessing your change management capabilities and cultivating executive level, business unit, PMO, and IT alignment around the most critical opportunities and challenges.

    Sample SWOT Analysis

    Strengths

    • Knowledge, skills, and talent of project staff.
    • Good working relationship between IT and business units.
    • Other PMO processes are strong and well adhered to by project staff.
    • Motivation to get things done when priorities, goals, and action plans are clear.

    Weaknesses

    • Project leads lack formal training in change management.
    • IT tried to introduce org change processes in the past, but we failed. Staff were unsure of which templates to use and how/when/why to use them.
    • We can’t designate individuals as change agents. We lack sufficient resources.
    • We’ve had some fairly significant change failures in the past and some skepticism and pessimism has taken root in the business units.

    Opportunities

    • The PMO is strong and well established in the organization, with a history of facilitating successful process discipline.
    • The new incoming CEO has already paid lip service to change and transformation. We should be able to leverage their support as we formalize these processes.
    • We have good lines of project communication already in place via our bi-weekly project reporting meetings. We can add change management matters to the agenda of these meetings.

    Threats

    • Additional processes and documentation around change management could be viewed as burdensome overhead. Adoption is uncertain.
    • OCM success depends on multiple stakeholders and business units coming together; with so many moving parts, we can’t be assured that an OCM program will survive long term.

    Define the “how” and the “what” of change management success for your PMO

    1.1.3 30 to 60 minutes

    Before you move on to develop and implement your OCM processes, spend some time documenting how change management success will be defined for your organization and what conditions will be necessary for success to be achieved.

    With the same group of individuals who participated in the SWOT exercise, discuss the below criteria. You can make this a sticky note or a whiteboard activity to help document discussion points.

    OCM Measured Value Metrics Include:
    • Estimate % of expected business benefits realized on the past 3–5 significant projects/programs.
      • Track business benefits (costs reduced, productivity increased, etc.).
    • Estimate costs avoided/reduced (extensions, cancellations, delays, roll-backs, etc.).
      • Establish baseline by estimating average costs of projects extended to deal with change-related issues.
    What conditions are necessary for OCM to succeed? How will success be defined?
    • e.g. The PMO will need the support of senior leaders and business units.
    • e.g. 20% improvement in benefits realization numbers within the next 12 months.
    • e.g. The PMO will need to establish a portal to help with organization-wide communications.
    • e.g. 30% increase in adoption rates on new software and technology projects within the next 12 months.

    Document additional items that could impact an OCM implementation for your PMO

    1.1.4 15 to 45 minutes

    Use the table below to document any additional factors or uncertainties that could impact implementation success.

    These could be external factors that may impact the PMO, or they could be logistical considerations pertaining to staffing or infrastructure that may be required to support additional change management processes and procedures.

    "[A]ll bets are off when it comes to change. People scatter in all directions. Your past experiences may help in some way, but what you do today and how you do it are the new measures people will use to evaluate you." – Tres Roeder

    Consideration Description of Need Potential Resource Implications Potential Next Steps Timeline
    e.g. The PMO will need to train PMs concerning new processes. We will not only need to train PM staff in the new processes and documentation requirements, but we will also have to provide ongoing training, be it monthly, quarterly, or yearly. Members of PMO staff will be required to support this training. Analyze impact of redeploying existing resources vs. outsourcing. Q3 2016
    e.g. We will need to communicate new OCM requirements to the business and wider organization. The PMO will be taking on added communication requirements, needing to advertise to a wider audience than it has before. None Work with business side to expand the PMO’s communications network and look into leveraging existing communication portals. Next month

    Step 1.2: Define the structure and scope of the PMO’s pilot OCM initiative

    Phase 1 - 1.2

    This step will walk you through the following activities:
    • Determine pilot OCM project.
    • Estimate OCM effort.
    • Document high-level project details.
    • Establish a timeline for org change activities.
    • Assess available resources to support the PMO’s OCM initiative.
    This step involves the following participants:
    • Required: PMO Director
    • Recommended: PMO staff, project management staff, and other project stakeholders
    Outcomes of this step
    • Project definition for the PMO’s pilot OCM initiative.
    • A timeline that aligns the project schedule for key OCM activities.
    • Definition of resource availability to support OCM activities through the PMO.

    Organizational change discipline should align with project structure

    Change management success is contingent on doing the right things at the right time.

    In subsequent phases of this blueprint, we will help the PMO develop an OCM strategy that aligns with your organization’s project timelines.

    In this step (1.2), we will do some pre-work for you by determining a change initiative to pilot during this process and defining some of the roles and responsibilities for the OCM activities that we’ll develop in this blueprint.

    The image shows a sample project timeline with corresponding OCM requirements.

    Get ready to develop and pilot your OCM competencies on a specific project

    In keeping with the need to align organizational change management activities with the actual timeline of the project, the next three phases of this blueprint will move from discussing OCM in general to applying OCM considerations to a single project.

    As you narrow your focus to the organizational change stemming from a specific initiative, review the below considerations to help inform the decisions that you make during the activities in this step.

    Choose a pilot project that:

    • Has an identifiable sponsor who will be willing and able to participate in the bulk of the activities during the workshop.
    • Has an appropriate level of change associated with it in order to adequately develop a range of OCM capabilities.
    • Has a reasonably well-defined scope and timeline – you don’t want the pilot initiative being dragged out unexpectedly.
    • Has PMO/IT staff who will be assisting with OCM efforts and will be relatively familiar and comfortable with them in terms of technical requirements.

    Select a specific project that involves significant organizational change

    1.2.1 5 to 15 minutes

    The need for OCM rigor will vary depending on project size and complexity.

    While we recommend that every project has some aspect of change management to it, you can adjust OCM requirements accordingly, depending on the type of change being introduced.

    Incremental Change → Transformational Change

    Organizational change management is highly recommended and beneficial for projects that require people to:

    • Adopt new tools and workflows.
    • Learn new skills.
    • Comply with new policies and procedures.
    • Stop using old tools and workflows.

    Organizational change management is required for projects that require people to:

    • Move into different roles, reporting structures, and career paths.
    • Embrace new responsibilities, goals, reward systems, and values
    • Grow out of old habits, ideas, and behaviors.
    • Lose stature in the organization.

    Phases 2, 3, and 4 of this blueprint will guide you through the process of managing organizational change around a specific project. Select one now that is currently in your request or planning stages to pilot through the activities in this blueprint. We recommend choosing one that involves a large, transformational change.

    Estimate the overall difficulty and effort required to manage organizational change

    1.2.2 5 minutes

    Use Info-Tech’s project levels to define the complexity of the project that you’ve chosen to pilot.

    Defining your project level will help determine how much effort and detail is required to complete steps in this blueprint – and, beyond this, these levels can help you determine how much OCM rigor to apply across each of the projects in your portfolio.

    Incremental Change → Transformational Change
    Level 1 Level 2 Level 3
    • Low risk and complexity.
    • Routine projects with limited exposure to the business and low risk of negative impact.
    • Examples: infrastructure upgrades, application refreshes, etc.
    • Medium risk and complexity.
    • Projects with broader exposure that present a moderate level of risk to business operations.
    • Examples: Move or renovate locations, cloud migration, BYOD strategy, etc.
    • High risk and complexity.
    • Projects that affect multiple lines of business and have significant costs and/or risks.
    • Examples: ERP implementation, corporate merger, business model innovation, etc.

    For a more comprehensive assessment of project levels and degrees of risk, see Info-Tech’s Create Project Management Success blueprint – and in particular, our Project Level Assessment Tool.

    Record the goals and scope of the pilot OCM initiative

    1.2.3 15 to 30 minutes

    Description

    What is the project changing?

    How will it work?

    What are the implications of doing nothing?

    What are the phases in execution?

    Expected Benefits

    What is the desired outcome?

    What can be measured? How?

    When should it be measured?

    Goals

    List the goals.

    Align with business and IT goals.

    Expected Costs

    List the costs:

    Software costs

    Hardware costs

    Implementation costs

    Expected Risks

    List the risks:

    Business risks

    Technology risks

    Implementation risks

    Planned Project Activities & Milestones Timeline Owner(s) Status
    1. Example: Vendor Evaluation Finish by Q4-17 Jessie Villar In progress
    2. Example: Define Administrative Policies Finish by Q4-17 Gerry Anantha Starting Q2

    Know the “what” and “when” of org change activities

    The key to change management success is ensuring that the right OCM activities are carried out at the right time. The below graphic serves as a quick view of what OCM activities entail and when they should be done.

    The image is the sample project timeline previously shown, but with additional notes for each segment of the Gantt chart. The notes are as follows: Impact Assessment - Start assessing the impact of change during planning and requirements gathering stages; Stakeholder Engagement - Use requirements gathering and design activities as opportunities to engage stakeholders and users; Transition Planning - The development period provides time for the change manager to develop and refine the transition plan (including communications and training). Change managers need to collaborate with development teams to ensure scope and schedule stay aligned, especially in Agile environments); Communications Execution - Communications should occur early and often, beginning well before change affects people and continuing long enough to reinforce change by celebrating success; Training - Training needs to be well timed to coincide with implementation; Quick Wins - Celebrate early successes to show that change is working; Evaluation & Monitoring - Adoption of change is a key to benefits realization. Don’t declare the project over until adoption of change is proven.

    Rough out a timeline for the org change activities associated with your pilot project’s timeline

    1.2.4 20-30 minutes

    With reference to the graphic on the previous slide, map out a high-level timeline for your pilot project’s milestones and the corresponding OCM activities.
    • This is essentially a first draft of a timeline and will be refined as we develop your OCM discipline in the next phase of this blueprint.
    • The purpose of roughing something out at this time is to help determine the scope of the implementation, the effort involved, and to help with resource planning.
    Project Phase or Milestone Estimated Start Date Estimated End Date Associated OCM Requirement(s)
    e.g. Planning e.g. Already in progress e.g. July e.g. Impact Assessment
    e.g. Requirements & Design e.g. August e.g. October e.g. Stakeholder Engagement & Transition Planning

    Info-Tech Insight

    Proactive change management is easier to execute and infinitely more effective than managing change reactively. A reactive approach to OCM is bound to fail. The better equipped the PMO is to plan OCM activities in advance of projects, the more effective those OCM efforts will be.

    Assess the roles and resources that might be needed to help support these OCM efforts

    1.2.5 30 minutes

    The PMO leader will need to delegate responsibility for many to all of these OCM activities throughout the project lifecycle.

    Compile a list of PMO staff, project workers, and other stakeholders who will likely be required to support these processes at each step, keeping in mind that we will be doing a more thorough consideration of the resources required to support an OCM program in Phase 3.

    OCM Activity Resources Available to Support
    Impact Assessment
    Stakeholder Engagement
    Transition Planning
    Training
    Communications
    Evaluation and Monitoring

    Info-Tech Insight

    OCM processes require a diverse network to support them.

    While we advocate an approach to org change that is centralized through the PMO, this doesn’t change the fact that the PMO’s OCM processes will need to engage the entirety of the project eco-system.

    In addition to IT/PMO directors, org change processes will engage a group as varied as project sponsors, project managers, business analysts, communications leads, and HR/training leads.

    Ensure that you are considering resources and infrastructure beyond IT as you plan your OCM processes – and engage these stakeholders early in this planning process.

    Establish core transition team roles and a reporting structure

    1.2.6 30 minutes

    Once you’ve identified OCM resources and assessed their availability, start to sketch the structure of the core transition team.

    In many cases, the core team only has one or two people responsible for impact analysis and plan development in addition to you, the sponsor, who is accountable for leadership and benefits realization.

    For larger initiatives, the core team might include several co-sponsors or advisors from different departments or lines of business, along with a handful of staff working together on analysis and planning.

    Some team structure templates/examples:

    Small (e.g. Office 365)

    • Sponsor
    • PM/BA

    Medium-Large (e.g. business process initiative)

    • Sponsor
    • PM
    • BA
    • OCM Consultant

    Complex Transformational (e.g. business model initiative, company reorg)

    • Exec. Sponsor (CxO)
    • Steering Committee
    • Project Lead/Champion (VP)
    • Business Lead(s)
    • IT Lead
    • HR/Training Lead
    • OCM Consultant

    Ultimately, organizational change is a collaborative effort

    Effective organizational change involves overlapping responsibilities.

    In keeping with the eclectic network of stakeholders that is required to support OCM processes, Phase 2 is broken up into sections that will, by turn, engage project sponsors, project managers, business analysts, communications leads, and HR/training leads.

    At each step, our intention is to arm the PMO with a toolkit and a set of processes that will help foster a project culture that is proactive about change.

    "It is amazing what you can accomplish if you do not care who gets the credit." – Harry Truman

    Project Step PMO Sponsor Project Manager Business Analyst Blueprint Reference
    Make a high-level case for change.

    A

    		R R/C C 1.1
    Initiate project/change planning. A C R C 1.2
    Analyze full breadth and depth of impact. A C R R 1.3
    Assess communications and training requirements. A C R R 2.1
    Develop communications, training, and other transition plans. A R C R 2.2-3
    Approve and communicate transition plans. A C R C 2.4
    Analyze impact and progress. A C R R 3.1
    Revise project/change planning. A C R C 3.2
    Highlight and leverage successes. A R C C 3.3

    Update the Transition Team Communications Template

    1.2.7 10 minutes

    Participants
    • PMO leader
    • PMO staff
    Input
    • The outcomes of various activities in this step
    Output
    • Key sections of the Transition Team Communications Template completed

    Use Info-Tech’s Transition Team Communications Template to help communicate the outcomes of this step.

    • Use the template to document the goals, benefits, and milestones established in 1.2.3, to record the project timeline and schedule for OCM activities from 1.2.4, to document resources available for OCM activities (1.2.5), and to record the membership and reporting structure of the core transition team (1.2.6).

    Download Info-Tech’s Transition Team Communications Template.

    "Managers and user communities need to feel like they are a part of a project instead of feeling like the project is happening to them. It isn't just a matter of sending a few emails or putting up a page on a project website." – Ross Latham

    Build organizational change management capabilities by bringing in required skills

    Case Study

    Industry Natural Resources

    Source Interview

    Challenge
    • Like many organizations, the company is undergoing increasing IT-enabled change.
    • Project managers tended to react to effects of change rather than proactively planning for change.

    "The hard systems – they’re easy. It’s the soft systems that are challenging... Be hard on the process. Be easy on the people." – Business Analyst, natural resources company

    Solution
    • Change management was especially challenging when projects were led by the business.
    • IT was often brought in late in business-led projects.
    • As a result, the organization incurred avoidable costs to deal with integration, retraining, etc.
    • The cost of managing change grows later in the project as more effort needs to be spent undoing (or “unfreezing”) the old state or remediating poorly executed change.
    Results
    • The company hired a business analyst with a background in organizational change to bring in the necessary skills.
    • The business analyst brought knowledge, experience, and templates based on best practices and is sharing these with the rest of the project management team.
    • As a result, organizational change management is starting earlier in projects when its effectiveness and value are maximized.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.1 Evaluate your current capabilities for managing organizational change

    Take Info-Tech’s OCM capabilities questionnaire and receive custom analyst recommendations concerning next steps.

    1.1.2 Perform a change management SWOT exercise

    Work with a seasoned analyst to assess your PMO’s strengths, weaknesses, opportunities, and threats to becoming an org change leader.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    1.1.3 Define success metrics for your PMO’s efforts to become an org change leader

    Work with an analyst to clarify how the success of this initiative will be measured and what conditions are necessary for success.

    1.2.2 Determine the appropriate OCM initiative to pilot at your organization

    Receive custom analyst insights on rightsizing your OCM planning efforts based on project size, timeline, and resource availability.

    1.2.4 Develop an OCM timeline that aligns with key project milestones

    Harness analyst experience to develop a project-specific timeline for the PMO’s change management activities to better plan your efforts and resources.

    Phase 2

    Plant the Seeds for Change During Project Planning and Initiation

    Phase 2 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Plant the seeds for change during project planning and initiation

    Proposed Time to Completion (in weeks): 1 week

    Step 2.1: Foster OCM considerations during the ideation phase

    Discuss these issues with an analyst:

    • Disengaged or absent sponsors on change initiatives.
    • Lack of organizational desire for change.
    • How to customize an OCM strategy to suit the personality of the organization.

    Then complete these activities…

    • Develop a sponsorship action plan to help facilitate more engaged change sponsorship.
    • Build a process for making the case for change throughout the organization.

    With these tools & templates:

    • Activity 2.1.3: “Refine your change story”
    • Activity 2.1.4: “Develop a sponsorship action plan”
    • Transition Team Communications Template
    Step 2.2: Perform an organizational change impact analysis

    Work with an analyst to:

    • Perform an impact analysis to make your change planning more complete.
    • Assess the depth of change impacts across various stakeholder groups.

    Then complete these activities…

    • Assign accountability for managing change impacts.
    • Update the business case with risks and opportunities identified during the impact analysis.

    With these tools & templates:

    • Organizational Change Management Impact Analysis Tool

    Step 2.1: Foster OCM considerations during the ideation phase

    Phase 2 - 2.1

    This step will walk you through the following activities:
    • Assess leadership support for change.
    • Highlight the goals and benefits of the change.
    • Refine your change story.
    • Define success criteria.
    • Develop a sponsorship action plan.
    This step involves the following participants:
    • PMO Director
    • Project sponsor for the pilot OCM project
    • Additional project staff: project managers, business analysts, etc.
    Outcomes of this step
    • Strategy to shore up executive alignment around the need for change.
    • Increased definition around the need for change.
    • Increased engagement from project sponsors around change management and project outcomes.

    Accountability for change management begins in advance of the project itself

    As early as the request phase, project sponsors and requestors have a responsibility to communicate the need for the changes that they are proposing.

    Org Change Step #1: Make the case for change during the request phase

    Initiation→Planning→Execution→Monitoring & Controlling→Closing

    Even before project planning and initiation begin, sponsors and requestors have org change responsibilities around communicating the need for a change and demonstrating their commitment to that change.

    In this step, we will look at the OCM considerations that need to be factored in during project ideation.

    The slides ahead will cover what the PMO can do to help foster these considerations among project sponsors and requestors.

    While this project may already be in the planning phase, the activities in the slides ahead will help lay a solid OCM foundation as you move ahead into the impact assessment and stakeholder engagement steps in this phase.

    Strongly recommended: include the sponsor for your pilot OCM project in many of the following activities (see individual activity slides for direction).

    Info-Tech Insight

    Make active sponsorship a criteria when scoring new requests.

    Projects with active sponsors are far more likely to succeed than those where the sponsor cannot be identified or where she/he is unable or unwilling to champion the initiative throughout the organization.

    Consider the engagement level of sponsors when prioritizing new requests. Without this support, the likelihood of a change initiative succeeding is far diminished.

    What does effective sponsorship look like?

    Somewhere along the way a stereotype arose of the project sponsor as a disengaged executive who dreams up a project idea and – regardless of that idea’s feasibility or merit – secures funding, pats themselves on the back, and does not materialize again until the project is over to pat themselves on the back again.

    Indeed, it’s exaggerated, based partly on the fact that sponsors are almost always extremely busy individuals, with very demanding day jobs on top of their responsibilities as sponsors. The stereotype doesn’t capture the very real day-to-day project-level responsibilities of project sponsors.

    Leading change management institute, Prosci, has developed a checklist of 10 identifiable traits and responsibilities that PMO leaders and project managers should help to foster among project sponsors. As Prosci states, the checklist “can be used as an audit tool to see if you are utilizing best practices in how you engage senior leaders on your change initiatives.”

    Prosci’s Change Management Sponsor Checklist:

    Are your sponsors:

    • Aware of the importance they play in making changes successful?
    • Aware of their roles in supporting org change?
    • Active and visible throughout the project?
    • Building necessary coalitions for change success?
    • Communicating directly and effectively with employees?
    • Aware that the biggest mistake is failing to personally engage as the sponsor?
    • Prepared to help manage resistance?
    • Prepared to celebrate successes?
    • Setting clear priorities to help employees manage project and day-to-day work?
    • Avoiding trends and backing change that will be meaningful for the long term?

    (Source: Prosci’s Change Management Sponsor Checklist)

    Assess leadership support for change

    2.1.1 30 minutes

    Participants
    • PMO leader
    • Other PMO/PM staff
    Output
    • Leadership support strategy

    Many change initiatives require significant investments of political capital to garner approval, funding, and involvement from key executives. This process can take months or even years before the project is staffed and implementation begins.

    • In cases where leadership opposition or ambivalence to change is a critical success inhibitor, project sponsors or change leaders need a deliberate strategy for engaging and converting potential supporters.
    • You might need to recruit someone with more influence or authority to become sponsor or co-sponsor to convert supporters you otherwise could not.
    • Use the table below as an example to begin developing your executive engagement strategy (but keep it private).
    Executive/Stakeholder Degree of Support Ability to Influence Potential Contribution/Engagement Strategy
    Board of Directors Med High
    CEO
    CFO
    CIO
    CxO

    “The stakes of having poorly engaged executive sponsors are high, as are the consequences and costs. PMI research into executive sponsorship shows that one in three unsuccessful projects fail to meet goals due to poorly engaged executive sponsors.”

    – PMI, 2014

    Highlight the goals and benefits of the change

    2.1.2 30-60 minutes

    Participants
    • PMO leader
    • PMO staff
    • Project sponsor

    Build desire for change.

    The project sponsor is accountable for defining the high-level scope and benefits of the project. The PMO needs to work with the sponsor during the ideation phase to help establish the need for the proposed change.

    Use the table below to begin developing a compelling vision and story of change. If you have not already defined high-level goals and deliverables for your project, download Info-Tech’s Light Project Request Form (a Detailed Project Request Form is also available).

    Why is there a need to change?
    How will change benefit the organization?
    How did we determine this is the right change?
    What would happen if we didn’t change?
    How will we measure success?

    See Info-Tech’s Optimize Project Intake, Approval, and Prioritization blueprint for more detailed advice on working with requestors to define requirements and business value of new requests.

    Stories are more compelling than logic and facts alone

    Crucial facts, data, and figures are made more digestible, memorable, and actionable when they are conveyed through a compelling storyline.

    While you certainly need high-level scope elements and a rigorous cost-benefit analysis in your business case, projects that require organizational change also need a compelling story or vision to influence groups of stakeholders.

    As the PMO works with sponsors to identify and document the goals and benefits of change, begin to sketch a narrative that will be compelling to the organization’s varied audiences.

    Structuring an effective project narrative:

    Research shows (Research and impacts cited in Torben Rick’s “Change Management Require[s] a Compelling Story,” 2014) that when managers and employees are asked about what most inspires them in their work, their responses are evenly split across five forms of impact:

    1. Impact on society – e.g. the organization’s role in the community.
    2. Impact on the customer – e.g. providing effective service.
    3. Impact on the company – e.g. contributing positively to the growth of the organization.
    4. Impact on the working team – e.g. creating an inclusive work environment.
    5. Impact on the individual – e.g. personal development and compensation.

    "Storytelling enables the individuals in an organization to see themselves and the organization in a different light, and accordingly take decisions and change their behavior in accordance with these new perceptions, insights, and identities." – Steve Denning

    Info-Tech Insight

    A micro-to-macro change narrative. A compelling org change story needs to address all five of these impacts in order to optimally engage employees in change. In crafting a narrative that covers both the micro and macro levels, you will be laying a solid foundation for adoption throughout the organization.

    Refine your change story

    2.1.3 45 to 60 minutes

    Participants
    • PMO leader
    • PMO staff
    • Project sponsor
    Input
    • 5 levels of change impact
    • Stakeholder groups
    Output
    • Improved change justification to help inform the request phase and the development of the business case.
    Materials
    • Whiteboard and markers

    Using a whiteboard to capture the discussion, address the 5 levels of change impact covered on the previous slide.

    1. Develop a list of the stakeholder groups impacted by this project.
      • The impacts will be felt differently by different groups, so develop a high-level list of those stakeholder groups that will be directly affected by the change.
      • Keep in mind, this activity is not an impact assessment. This activity is meant to elicit how the change will be perceived by the different stakeholder groups, not how it will actually impact them – i.e. this activity is about making the case for change, not actually managing the change.
    2. Brainstorm how the five impact levels will be perceived from the point of view of each stakeholder group.
      • Spend about 5 to 10 minutes per impact per stakeholder group.
      • The goal here isn’t to create a detailed plotline; your change story may evolve as the project evolves. A point or two per impact per group will suffice.
    3. As a group, prioritize the most prescient points and capture the results of your whiteboarding to help inform future artifacts.
      • The points developed during this activity should inform both the ad hoc conversations that PMO staff and the sponsor have with stakeholders, as well as formal project artifacts, such as the request, business case, charter, etc.

    When it comes to communicating the narrative, project sponsors make the most compelling storytellers

    Whatever story you develop to communicate the goals and the benefits of the change, ultimately it should be the sponsor who communicates this message to the organization at large.

    Given the competing demands that senior leaders face, the PMO still has a pivotal role to play in helping to plan and facilitate these communications.

    The PMO should help sponsors by providing insights to shape change messaging (refer to the characteristics outlined in the table below for assistance) and by developing a sponsorship action plan (Activity 2.1.4).

    Tips for communicating a change story effectively:
    Identify and appeal to the audience’s unique frames of reference. e.g. “Most of you remember when we…”
    Include concrete, vivid details to help visualize change. e.g. “In the future, when a sales rep visits a customer in Wisconsin, they’ll be able to process a $100,000 order in seconds instead of hours.”
    Connect the past, present, and future with at least one continuous theme. e.g. “These new capabilities reaffirm our long-standing commitment to customers, as well as our philosophy of continuously finding ways to be more responsive to their needs.”

    “[T]he sponsor is the preferred sender of messages related to the business reasons and organizational implications for a particular initiative; therefore, effective sponsorship is crucial in building an awareness of the need for change.

    Sponsorship is also critical in building the desire to participate and support the change with each employee and in reinforcing the change.”

    – Prosci

    Base the style of your communications on the organization’s receptiveness to change

    Not all organizations embrace or resist change in the same ways. Base your change communications on your organization’s cultural appetite for change in general.

    Use the below dimensions to gauge your organization’s appetite for change. Analyzing this will help determine the form and force of communications.

    In the next slide, we will base aspects of your sponsorship action plan on whether an organization’s indicator is “high” or “low” across these three dimensions.

    • Organizations with low appetite for change will require more direct, assertive communications.
    • Organizations with a high appetite for change are more suited to more open, participatory approaches.

    Three key dimensions determine the appetite for cultural change (Dimensions taken from Joanna Malgorzata Michalak’s “Cultural Catalysts and Barriers of Organizational Change Management: a Preliminary Overview,” 2010):

    Power Distance Refers to the acceptance that power is distributed unequally throughout the organization. Organizations with a high power distance indicator show that the unequal power distribution is accepted by the less powerful employees.
    Individualism Organizations that score high in individualism have employees who are more independent; those who score low in individualism fall into the collectivism side where employees are strongly tied to one another or their groups.
    Uncertainty Avoidance Describes the level of acceptance that an organization has towards uncertainty. Those who score high in this area find that their employees do not favor “uncertain” situations, while those that score low in this area find that their employees are comfortable with change and uncertainty.

    "Societies with a high indicator of power distance, individualism, and uncertainty avoidance create vital inertial forces against transformation." – Michalak

    Develop a sponsorship action plan

    2.1.4 45 to 60 minutes

    Participants
    • PMO leader
    • PMO staff
    • Project sponsor
    Use the table below to define key tasks and responsibilities for the project sponsor.
    1. Populate the first column with the stakeholder groups from Activity 2.1.3.
    2. With reference to the Sponsor Checklist, brainstorm key sponsorship responsibilities for this project across each of the groups.
    3. When gauging the frequency of each activity and the “Estimated Weekly Effort” required by the sponsor to complete them, consider the organization’s appetite for change.
      • Where indicators across the three dimensions are low, the sponsor’s involvement can be less hands-on and more collaborative in nature.
      • Where indicators across the three dimensions are high, the sponsor’s involvement should be hands-on and direct in her/his communications.
    Group Activity Est. Weekly Effort Comments/Frequency
    Project Team Ad hoc check-in on progress 30 mins Try to be visible at least once a week
    Attend status meetings 30 mins Every second Tuesday, 9 am
    Senior Managers Touch base informally 45 mins Aim for bi-weekly, one-on-one touchpoints
    Lead steering committee meetings 60 mins First Thursday of the month, 3 pm
    End Users Organization-wide emails Ad hoc, 20 mins As required, with PMO assistance

    "To manage change is to tell people what to do... but to lead change is to show people how to be." – Weick & Quinn

    Update the Transition Team Communications Template

    2.1.5 10 minutes

    Participants
    • PMO leader
    • PMO staff
    Input
    • The outcomes of various activities in this step
    Output
    • Key sections of the Transition Team Communications Template completed

    Use Info-Tech’s Transition Team Communications Template to help communicate the outcomes of this step.

    The following activities should be recorded in the template:

    Activity 2.1.2

    In addition, the outcome of Activity 2.1.4, the “Sponsorship Action Plan,” should be converted to a format such as Word and provided to the project sponsor.

    Download Info-Tech’s Transition Team Communications Template.

    "In most work situations, the meaning of a change is likely to be as important, if not more so, than the change itself."

    – Roethlisberger (cited in Burke)

    Step 2.2: Perform an organizational change impact assessment

    Phase 2 - 2.2

    This step will walk you through the following activities:
    • Perform change impact survey.
    • Assess the depth of impacts for different stakeholders and stakeholder groups.
    • Determine overall adoptability of the OCM effort.
    • Establish a game plan for managing individual impacts.
    • Review risks and opportunities.
    • Determine how the value of the change will be measured.
    This step involves the following participants:
    • PMO Director
    • Project sponsor for the pilot OCM project
    • Additional project staff: project managers, business analysts, members of the transition team, etc.
    Outcomes of this step:
    • A change impact analysis.
    • An adoptability rating for the change initiative to help the PMO plan its OCM efforts.
    • A better understanding of the risks and opportunities associated with the change to inform the business case.

    Analyze change impacts across multiple dimensions to ensure that nothing is overlooked

    Ensure that no stone is left unturned as you prepare for a comprehensive transition plan.

    In the previous step, we established a process and some accountabilities to help the PMO and project sponsors make the case for change during the ideation and initiation phase of a project.

    In this step, we will help with the project planning phase by establishing a process for analyzing how the change will impact various dimensions of the business and how to manage these impacts to best ensure stakeholder adoption.

    Brace for Impact…

    A thorough analysis of change impacts will help the PMO:

    • Bypass avoidable problems.
    • Remove non-fixed barriers to success.
    • Acknowledge and minimize the impact of unavoidable barriers.
    • Identify and leverage potential benefits.
    • Measure the success of the change.

    Assign the appropriate accountabilities for impact analysis

    In the absence of an assigned change manager, organizational change impact assessments are typically performed by a business analyst or the project manager assigned to the change initiative.

    • Indeed, as with all change management activities, making an individual accountable for performing this activity and communicating its outcomes is key to the success of your org change initiative.
    • At this stage, the PMO needs to assign or facilitate accountability for the impact analysis on the pilot OCM initiative or it needs to take this accountability on itself.

    Sample RACI for this activity. Define these accountabilities for your organization before proceeding with this step.

    Project Sponsor PMO PM or BA
    Survey impact dimensions I A R
    Analyze impacts across multiple stakeholder groups I A R
    Assess required OCM rigor I A/R C
    Manage individual impacts I A R

    Info-Tech Insight

    Bring perspective to an imperfect view.

    No individual has a comprehensive view of the potential impact of change.

    Impact assessment and analysis is most effective when multiple viewpoints are coordinated using a well-defined list of considerations that cover a wide breadth of dimensions.

    Revisit and refine the impact analysis throughout planning and execution, as challenges to adoption become more clear.

    Perform a change impact analysis to make your planning more complete

    Use Info-Tech’s Organizational Change Management Impact Analysis Tool to weigh all of the factors involved in a change and to formalize discipline around impact analysis.

    Info-Tech’s Organizational Change Management Impact Analysis Tool helps to document the change impact across multiple dimensions, enabling the PMO to review the analysis with others to ensure that the most important impacts are captured. The tool also helps to effectively monitor each impact throughout project execution.

    • Change impact considerations can include: products, services, states, provinces, cultures, time zones, legal jurisdictions, languages, colors, brands, subsidiaries, competitors, departments, jobs, stores, locations, etc.
    • Each of these dimensions is an MECE (Mutually Exclusive, Collectively Exhaustive) list of considerations that could be impacted by the change. For example, a North American retail chain might consider “Time Zones” as a key dimension, which could break down as Newfoundland, Atlantic, Eastern, Central, Mountain, and Pacific.

    Download Info-Tech’s Organizational Change Impact Analysis Tool.

    • Required Participants for this Step: PMO Leader; project manager or business analyst
    • Recommended Participants for this Step: Project Sponsor; IT/PMO staff

    Info-Tech Insight

    Anticipate the unexpected. Impact analysis is the cornerstone of any OCM strategy. By shining a light on considerations that might have otherwise escaped project planners and decision makers, an impact analysis is an essential component to change management and project success.

    Enter high-level project information on the “Set Up” tab

    2.2.1 15 minutes

    The “2. Set Up” tab of the Impact Tool is where you enter project-specific data pertaining to the change initiative.

    The inputs on this tab are used to auto-populate fields and drop-downs on subsequent tabs of the analysis.

    Document the stakeholders (by individual or group) associated with the project who will be subject to the impacts.

    You are allowed up to 15 entries. Try to make this list comprehensive. Missing any key stakeholders will threaten the value of this activity as a whole.

    If you find that you have more than 15 individual stakeholders, you can group individuals into stakeholder groups.

    Keep in mind...

    An impact analysis is not a stakeholder management exercise.

    Impact assessments cover:

    • How the change will affect the organization.
    • How individual impacts might influence the likelihood of adoption.

    Stakeholder management covers:

    • Resistance/objections handling.
    • Engagement strategies to promote adoption.

    We will cover the latter in the next step.

    “As a general principle, project teams should always treat every stakeholder initially as a recipient of change. Every stakeholder management plan should have, as an end goal, to change recipients’ habits or behaviors.”

    – PMI, 2015

    Determine the relevant considerations for analyzing the change impacts of a project

    2.2.2 15 to 30 minutes

    Use the survey on tab 3 of the Impact Analysis Tool to determine the dimensions of change that are relevant.

    The impact analysis is fueled by the thirteen-question survey on tab 3 of the tool.

    This survey addresses a comprehensive assortment of change dimensions, ranging from customer-facing considerations, to employee concerns, to resourcing, logistical, and technological questions.

    Once you have determined the dimensions that are impacted by the change, you can go on to assess how individual stakeholders and stakeholder groups are affected by the change.

    This image is a screenshot of tab 3, Impact Survey, of the Impact Analysis Tool.

    Screenshot of tab “3. Impact Survey,” showing the 13-question survey that drives the impact analysis.

    Ideally, the survey should be performed by a group of project stakeholders together. Use the drop-downs in column K to record your responses.

    "A new system will impact roles, responsibilities, and how business is conducted within an organization. A clear understanding of the impact of change allows the business to design a plan and address the different levels of changes accordingly. This approach creates user acceptance and buy-in."

    – January Paulk, Panorama Consulting

    Impacts will be felt differently by different stakeholders and stakeholder groups

    As you assess change impacts, keep in mind that no impact will be felt the same across the organization. Depth of impact can vary depending on the frequency (will the impact be felt daily, weekly, monthly?), the actions necessitated by it (e.g. will it change the way the job is done or is it simply a minor process tweak?), and the anticipated response of the stakeholder (support, resistance, indifference?).

    Use the Organizational Change Depth Scale below to help visualize various depths of impact. The deeper the impact, the tougher the job of managing change will be.

    Procedural Behavioral Interpersonal Vocational Cultural
    Procedural change involves changes to explicit procedures, rules, policies, processes, etc. Behavioral change is similar to procedural change, but goes deeper to involve the changing tacit or unconscious habits. Interpersonal change goes beyond behavioral change to involve changing relationships, teams, locations, reporting structures, and other social interactions. Vocational change requires acquiring new knowledge and skills, and accepting the loss or decline in the value or relevance of previously acquired knowledge and skills. Cultural change goes beyond interpersonal and vocational change to involve changing personal values, social norms, and assumptions about the meaning of good vs. bad or right vs. wrong.
    Example: providing sales reps with mobile access to the CRM application to let them update records from the field. Example: requiring sales reps to use tablets equipped with a custom mobile application for placing orders from the field. Example: migrating sales reps to work 100% remotely. Example: migrating technical support staff to field service and sales support roles. Example: changing the operating model to a more service-based value proposition or focus.

    Determine the depth of each impact for each stakeholder group

    2.2.3 1 to 3 hours

    Tab “4. Impact Analysis” of the Analysis Tool contains the meat of the impact analysis activity.
    1. The “Impact Analysis” tab is made up of thirteen change impact tables (see next slide for a screenshot of one of these tables).
    • You may not need to use all thirteen tables. The number of tables you use coincides with the number of “yes” responses you gave in the previous tab.
    • If you no not need all thirteen impact tables (i.e. if you do not answer “yes” to all thirteen questions in tab 2, the unused/unnecessary tables will not auto-populate.)
  • Use one table per change impact. Each of your “yes” responses from tab 3 will auto-populate at the top of each change impact table. You should go through each of your “yes” responses in turn.
  • Analyze how each impact will affect each stakeholder or stakeholder group touched by the project.
    • Column B in each table will auto-populate with the stakeholder groups from the Set Up tab.
  • Use the drop-downs in columns C, D, and E to rate the frequency of each impact, the actions necessitated by each impact, and the anticipated response of each stakeholder group.
    • Each of the options in these drop-downs is tied to a ranking table that informs the ratings on the two subsequent tabs.
  • If warranted, you can use the “Comments” cells in column F to note the specifics of each impact for each stakeholder/group.

    • See the next slide for an accompanying screenshot of a change impact table from tab 4 of the Analysis Tool.

    Screenshot of “Impact Analysis” tab

    The image is a screenshot of the Impact Analysis tab.

    The stakeholder groups entered on the Set Up will auto-populate in column B of each table.

    Your “yes” responses from the survey tab will auto-populate in the cells to the right of the “Change Impact” cells.

    Use the drop-downs in this column to select how often the impact will be felt for each group (e.g. daily, weekly, periodically, one time, or never).

    “Actions” include “change to core job duties,” “change to how time is spent,” “confirm awareness of change,” etc.

    Use the drop-downs to hypothesize what the stakeholder response might be. For now, for the purpose of the impact analysis, a guess is fine. We will come back to build a communications plan based on actual responses in Phase 3 of this blueprint.

    Review your overall impact rating to help assess the likelihood of change adoption

    Use the “Overall Impact Rating” on tab 5 to help right-size your OCM efforts.

    Based upon your assessment of each individual impact, the Analysis Tool will provide you with an “Overall Impact Rating” in tab 5.

    • This rating is an aggregate of each of the individual change impact tables used during the analysis, and the rankings assigned to each stakeholder group across the frequency, required actions, and anticipated response columns.

    The image is a screenshot of tab 5, the Overall Process Adoption Rating. The image shows a semi-circle, where the left-most section is red, the centre yellow, and the right-most section green, with a dial positioned at the right edge of the yellow section.

    Projects in the red should have maximum change governance, applying a full suite of OCM tools and templates, as well as revisiting the impact analysis exercise regularly to help monitor progress.

    Increased communication and training efforts, as well as cross-functional partnerships, will also be key for success.

    Projects in the yellow also require a high level of change governance. Follow the steps and activities in this blueprint closely, paying close attention to the stakeholder engagement activities in the next step to help sway resistors and leverage change champions.

    In order to free up resources for those OCM initiatives that require more discipline, projects in green can ease up in their OCM efforts somewhat. With a high likelihood of adoption as is, stakeholder engagement and communication efforts can be minimized somewhat for these projects, so long as the PMO is in regular contact with key stakeholders.

    "All change is personal. Each person typically asks: 'What’s in it for me?'" – William T. Craddock

    Use the other outputs on tab 5 to help structure your OCM efforts

    In addition to the overall impact rating, tab 5 has other outputs that will help you assess specific impacts and how the overall change will be received by stakeholders.

    The image is a screenshot of tab 5.

    Top-Five Highest Risk Impacts table: This table displays the highest risk impacts based on frequency and action inputs on Tab 4.

    Top-Five Most Impacted Stakeholders table: Here you’ll find the stakeholders, ranked again based on frequency and action, who will be most impacted by the proposed changes.

    Top Five Supporters table: These are the 5 stakeholders most likely to support changes, based on the Anticipated Response column on Tab 4.

    The stakeholder groups entered on the Set Up Tab will auto-populate in column B of each table.

    In addition to these outputs, this tab also lists top five change resistors, and has an impact register and list of potential impacts to watch out for (i.e. your “maybe” responses from tab 3).

    Establish a game plan to manage individual change impacts

    2.2.4 60 to 90 minutes

    The final tab of the Analysis Tool can be used to help track and monitor individual change impacts.
    • Use the “Communications Plan” on tab 7 to come up with a high-level game plan for tracking communications about each change with the corresponding stakeholders.
    • Update and manage this tab as the communication events occur to help keep your implementation on track.

    The image is a screenshot of the Communications Plan, located on tab 7 of the Analysis Tool. There are notes emerging from each of the table headings, as follows: Communication Topic - Select from a list of topics identified on Tab 6 that are central to successful change, then answer the following; Audience/Format/Delivery - Which stakeholders need to be involved in this change? How are we going to meet with them?; Creator - Who is responsible for creating the change?; Communicator - Who is responsible for communicating the change to the stakeholder?; Intended Outcome - Why do you need to communicate with this stakeholder?; Level of Risk - What is the likelihood that you can achieve your attended outcome? And what happens if you don’t?

    Document the risk assumptions stemming from your impact analysis

    2.2.5 30 to 60 minutes

    Use the Analysis Tool to produce a set of key risks that need to be identified, communicated, mitigated, and tracked.

    A proper risk analysis often reveals risks and mitigations that are more important to other people in the organization than those managing the change. Failure to do a risk analysis on other people’s behalf can be viewed as negligence.

    In the table below, document the risks related to the assumptions being made about the upcoming change. What are the risks that your assumptions are wrong? Can steps be taken to avoid these risks?

    Risk Assumption Magnitude if Assumption Wrong Likelihood That Assumption Is Wrong Mitigation Strategy Assessment
    e.g. Customers will accept shipping fees for overweight items > 10 pounds Low High It's a percentage of our business, and usually accompanies a sharply discounted product. We need to extend discretionary discounting on shipping to supervisory staff to mitigate the risk of lost business. Re-assess after each quarter.

    "One strategy to minimize the impact is to determine the right implementation pace, which will vary depending on the size of the company and the complexity of the project" – Chirantan Basu

    Record any opportunities pertaining to the upcoming change

    2.2.6 30 to 60 minutes

    Use the change impacts to identify opportunities to improve the outcome of the change.

    Use the table below to brainstorm the business opportunities arising from your change initiative. Consider if the PMO can take steps to help improve the outcomes either through supporting the project execution or through providing support to the business.

    Opportunity Assumption Potential Value Likelihood That Assumption Is Wrong Leverage Strategy Assessment
    e.g. Customer satisfaction can increase as delivery time frames for the remaining custom products radically shrink and services extend greatly. High Medium Reset the expectations of this market segment so that they go from being surprised by good service to expecting it. Our competitors will not be able to react to this.

    Info-Tech Insight

    The bigger the change, the bigger the opportunity. Project and change management has traditionally focused on a defensive posture because organizations so often fail to mitigate risk. Good change managers also watch for opportunities to improve and exploit the outcomes of the change.

    Determine how to measure the value of the change

    2.2.7 15 to 30 minutes

    Describe the metrics that will be used to assess the management of this change.

    Now that you’ve assessed the impacts of the change, and the accompanying risks and opportunities, use the table below to document metrics that can be used to help assess the management of the change.

    • Don’t rely on the underlying project to determine the value of the change itself: It’s important to recognize the difference between change management and project management, and the establishment of value metrics is an obvious source of this differentiation.
    • For example, consider a project that is introducing a new method of remitting travel expenses for reimbursement.
      • The project itself would be justified on the efficiency of the new process.
      • The value of the change itself could be measured by the number of help desk calls looking for the new form, documentation, etc.
    Metric Calculation How to Collect Who to Report to Frequency
    Price overrides for new shipping costs It is entered as a line item on invoices, so it can be calculated as % of shipping fees discounted. Custom report from CRM (already developed). Project Steering Committee Project Steering Committee

    Document risks and other impact analysis considerations in the business case

    2.2.8 10 minutes

    Participants
    • PMO leader
    • Project Manager
    Input
    • The risks and issues identified through the impact analysis.
    Output
    • Comprehensive list of risks documented in the business case.
    Use the outcomes of the activities in this step to help inform your business case as well as any other risk management artifacts that your project managers may use.
    • Because long-term project success depends upon stakeholder adoption, high-risk impacts should be documented as considerations in the risk section of your business case.
    • In addition, the “Overall Impact Rating” graph and the “Impact Management Worksheet” could be used to help improve business cases as well as charters on some projects.

    If your organization doesn’t have a standard business case document, use one of Info-Tech’s templates. We have two templates to choose from, depending on the size of the project and the amount of rigor required:

    Download Info-Tech’s Comprehensive Business Case Template for large, complex projects or our Fast Track Business Case Template for smaller ones.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.3 Create a convincing sponsor-driven story to help build the case for change

    Work with an analyst to exercise your storytelling muscles, building out a process to help make the case for change throughout the organization.

    2.1.4 Develop a sponsorship action plan

    Utilize analyst experience to help develop a sponsorship action plan to help facilitate more engaged change project sponsors.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.2.3 Assess different change impacts across various stakeholder groups

    Get an analyst perspective on how each impact may affect different stakeholders in order to assist with the project and OCM planning process.

    2.2.4 Develop a proactive change impact management plan

    Rightsize your response to change impacts by developing a game plan to mitigate each one according to adoption likelihood.

    2.2.5 Use the results of the impact analysis to inform and improve the business case for the project

    Work with the analyst to translate the risks and opportunities identified during the impact analysis into points of consideration to help inform and improve the business case for the project.

    Phase 3

    Facilitate Change Adoption Throughout the Organization

    Phase 3 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Facilitate Change Adoption Throughout the Organization

    Proposed Time to Completion (in weeks): 4 to 6 weeks

    Step 3.1: Ensure stakeholders are engaged and ready for change

    Discuss these issues with analyst:

    • Lack of alignment between IT and the business.
    • Organizational resistance to a command-and-control approach to change.

    Then complete these activities…

    • Develop a stakeholder engagement plan.

    With these tools & templates:

    • Stakeholder Engagement Workbook
    Step 3.2: Develop and execute the transition plan

    Discuss these issues with analyst:

    • Org change initiatives often fail due to the influence of resistors.
    • Failure to elicit feedback contributes to the feeling of a change being imposed.

    Then complete these activities…

    • Develop a communications strategy to address a variety of stakeholder reactions to change.

    With these tools & templates:

    • Transition Plan Template
    • Activity 3.2.7: “Objections Handling Template”
    Step 3.3: Establish HR and training plans

    Discuss these issues with analyst:

    • Training is often viewed as ineffective, contributing to change resistance rather than fostering adoption.

    Then complete these activities…

    • Rightsize training content based on project requirements and stakeholder sentiment.

    With these tools & templates:

    • “Training Requirements” tab in the Stakeholder Engagement Workbook
    • “Training Plan” section of the Transition Plan Template

    Step 3.1: Ensure stakeholders are engaged and ready for change

    Phase 3 - 3.1

    This step will walk you through the following activities:
    • Involve the right stakeholders in the change.
    • Define project roles and responsibilities.
    • Define elicitation methods for obtaining stakeholder input.
    • Perform a stakeholder analysis to assess influence, interest, and potential contribution.
    • Assess communications plan requirements.
    This step involves the following participants:
    • Required: PMO Director; project manager or business analyst
    • Recommended: Project Sponsor; the Transition Team; other IT/PMO staff
    Outcomes of this step
    • A stakeholder analysis.
    • Requirements for the communications plan.

    The nature of change is changing

    The challenge of managing change is complicated by forces that are changing change.

    Empowerment: Increased worker mobility, effect of millennials in the workforce, and lower average tenure means that people are less tolerant of a hierarchical, command-and-control approach to change.

    • Additionally, lower average tenure means you can’t assume everyone has the same context or background for change (e.g. they might not have been with the organization for earlier phases when project justification/rationale was established).

    Noise: Inundation with communications and diversity of channels means the traditional “broadcast” approach to communicating change doesn’t work (i.e. you can’t expect every email to get everyone’s attention).

    As a result, disciplines around organizational change tend to be less linear and deliberate than they were in the past.

    "People don’t resist change. They resist being changed."

    – Peter Senge

    How to manage change in organizations of today and the future:

    • New realities require a more collaborative, engaging, open, and agile approach to change.
    • Communication is increasingly more of a two-way, ongoing, iterative engagement process.
    • Project leaders on change initiatives need to engage diverse audiences early and often.
    • Information about change needs to reach people and be easily findable where and when stakeholders need it.
    Info-Tech Insight

    Accountabilities for change management are still required. While change management needs to adopt more collaborative and organic approaches, org change success still depends on assigning appropriate accountabilities. What’s changed in the move to matrix structure is that accountabilities need to be facilitated more collaboratively.

    Leading change requires collaboration to ensure people, process, and technology factors are aligned

    In the absence of otherwise defined change leadership, the PMO needs to help navigate every technology-enabled change, even if it isn’t in the “driver’s seat.”

    PMO leaders and IT experts often find themselves asked to help implement or troubleshoot technology-related business projects that are already in flight.

    The PMO will end up with perceived or de facto responsibility for inadequate planning, communications, and training around technology-enabled change.

    IT-Led Projects

    Projects led by the IT PMO tend to be more vulnerable to underestimating the impact on people and processes on the business side.

    Make sure you engage stakeholders and representatives (e.g. “power users”) from user populations early enough to refine and validate your impact assessments.

    Business-Led Projects

    Projects led by people on the business side tend to be more vulnerable to underestimating the implications of technology changes.

    Make sure IT is involved early enough to identify and prepare for challenges and opportunities involving integration, user training, etc.

    "A major impediment to more successful software development projects is a corporate culture that results in a lack of collaboration because business executives view the IT departments as "order takers," a view disputed by IT leaders."

    – David Ramel (cited by Ben Linders)

    Foster change collaboration by initiating a stakeholder engagement plan through the PMO

    If project stakeholders aren’t on board, the organization’s change initiatives will be in serious trouble.

    Stakeholders will not only be highly involved in the process improvement initiative, but they also may be participants, so it’s essential that you get their buy-in for the initiative upfront.

    Use Info-Tech’s Stakeholder Engagement Workbook to help plan how stakeholders rate in terms of engagement with the project.

    Once you have identified where different stakeholders fall in terms of interests, influence, and support for/engagement with the change initiative, you can structure your communication plan (to be developed in step 3.2) based on where individuals and stakeholder groups fall.

    • Required participants for the activities in this step: PMO Leader; project manager or business analyst
    • Recommended participants for the activities in this step: Project Sponsor; IT/PMO staff

    Download Info-Tech’s Stakeholder Engagement Workbook.

    The engagement plan is a structured and documented approach for:

    • Gathering requirements by eliciting input and validating plans for change.
    • Cultivating sponsorship and support from key stakeholders early in the project lifecycle.

    Download Info-Tech’s Stakeholder Engagement Workbook.

    Involve the right people to drive and facilitate change

    Refer to your project level assessment from 1.2.2:

    • Level 1 projects tend to only require involvement from the project team, sponsors, and people affected.
    • Level 2 projects often benefit from broad support and capabilities in order to take advantage of opportunities.
    • Level 3 projects require broad support and capabilities in order to deal with risks and barriers.

    Info-Tech Insight

    The more transformational the change, the more it will affect the org chart – not just after the implementation, but also through the transition.

    Take time early in the project to define the reporting structure for the project/transition team, as well as any teams and roles supporting the transition.

    • Project manager: Has primary accountability for project success.
    • Senior executive project sponsor: Needed to “open doors” and signal organization’s commitment to the change.
    • Technology SMEs and architects: Responsible for determining and communicating requirements and risks of the technology being implemented or changed.
    • Business unit leads: Responsible for identifying and communicating impact on business functions, approving changes, and helping champion change.
    • Product/process owners: Responsible for identifying and communicating impact on business functions, approving changes, and helping champion change.
    • HR specialists: Most valuable when roles and organizational design are affected, i.e. change requires staff redeployment, substantial training (not just using a new system or tool but acquiring new skills and responsibilities), or termination.
    • Training specialists: If you have full-time training staff in the organization, you will eventually need them to develop training courses and material. Consulting them early will help with scoping, scheduling, and identifying the best resources and channels to deliver the training.
    • Communications specialists (internal): Valuable in crafting communications plan; required if communications function owns internal communications.

    Use the RACI table on the next slide to clarify who will be accountable, responsible, consulted, and informed for key tasks and activities around this change initiative.

    Define roles and responsibilities for facilitating change on your pilot OCM initiative

    3.1.1 60 minutes

    Perform a RACI exercise pertaining to your pilot change initiative to clarify who to include in the stakeholder engagement activity.

    Don’t reinvent the wheel: revisit the list of stakeholders and stakeholder groups from your impact assessment. The purpose of the RACI is to bring some clarity to project-specific responsibilities.

    Tasks PMO Project Manager Sr. Executives Technology SME Business Lead Process Owner HR Trainers Communications
    Meeting project objectives A R A R R
    Identifying risks and opportunities A R A C C C C I I
    Building the action plan A R C R R R R R R
    Planning and delivering communications A R C C C C C R A
    Planning and delivering training A R C C C C R A C
    Gathering and analyzing feedback and KPIs A R C C C C C R R

    Copy the results of this RACI exercise into tab 1 of the Stakeholder Engagement Workbook. In addition, it can be used to inform the designated RACI section in the Transition Plan Template. Revise the RACI Table there as needed.

    Formalize the stakeholder analysis to identify change champions and blockers

    Define key stakeholders (or stakeholder groups) who are affected by the project or are in positions to enable or block change.

    • Remember to consider customers, partners, and other external stakeholders.
    • People best positioned to provide insight and influence change positively are also best positioned to create resistance.
    • These people should be engaged early and often in the transition process – not just to make them feel included or part of the change, but because their insight could very likely identify risks, barriers, and opportunities that need to be addressed.

    The image is a screenshot of tab 3 of the Stakeholder Engagement Workbook.

    In tab three of the Stakeholder Engagement Workbook, compile the list of stakeholders who are touched by the change and whose adoption of the change will be key to project success.

    To save time, you can copy and paste your stakeholder list from the Set Up tab of the Organizational Change Management Impact Analysis Tool into the table below and edit the list as needed.

    Formal stakeholder analysis should be:

    • Required for Level 3 projects
    • Recommended for Level 2 projects
    • Optional for Level 1 projects

    Info-Tech Insight

    Resistance is, in many cases, avoidable. Resistance is commonly provided by people who are upset about not being involved in the communication. Missed opportunities are the same: they usually could have been avoided easily had somebody known in time. Use the steps ahead as an opportunity to ensure no one has been missed.

    Perform a stakeholder analysis to begin cultivating support while eliciting requirements

    3.1.2 60 minutes

    Use tab 4 of the Stakeholder Engagement Workbook to systematically assess each stakeholder's influence, interest, and potential contribution to the project as well as to develop plans for engaging each stakeholder or stakeholder group.

    The image is a screencapture of tab 4 of the Stakeholder Engagement Workbook.

    Use the drop-downs to select stakeholders and stakeholder groups. These will automatically populate based on your inputs in tab 3.

    Rate each stakeholder on a scale of 1 to 10 in terms of her/his influence in the organization. Not only do these rankings feed the stakeholder map that gets generated on the next slide, but they will help you identify change champions and resistors with influence.

    Similar to the ranking under “Influence,” rate the “Interest” and “Potential Contribution” to help identify stakeholder engagement.

    Document how you will engage each stakeholder and stakeholder group and document how soon you should communicate with them concerning the change. See the following slides for advice on eliciting change input.

    Use the elicitation methods on the following slides to engage stakeholders and gather change requirements.

    Elicitation methods – Observation

    Method Description Assessment and Best Practices Stakeholder Effort BA/PMO Effort
    Casual Observation The process of observing stakeholders performing tasks where the stakeholders are unaware they are being observed. Capture true behavior through observation of stakeholders performing tasks without informing them that they are being observed. This information can be valuable for mapping business process; however, it is difficult to isolate the core business activities from unnecessary actions. Low Medium
    Formal Observation The process of observing stakeholders performing tasks where the stakeholders are aware they are being observed. Formal observation allows business analysts to isolate and study the core activities in a business process because the stakeholder is aware they are being observed. Stakeholders may become distrusting of the business analyst and modify their behavior if they feel their job responsibilities or job security are at risk. Low Medium

    Info-Tech Insight

    Observing stakeholders does not uncover any information about the target state. Be sure to use contextual observation in conjunction with other techniques to discover the target state.

    Elicitation methods – Surveys

    Method Description Assessment and Best Practices Stakeholder Effort BA/PMO Effort
    Closed-Response Survey A survey that has fixed responses for each answer. A Likert-scale (or similar measures) can be used to have respondents evaluate and prioritize possible requirements. Closed-response surveys can be sent to large groups and used to quickly gauge user interest in different functional areas. They are easy for users to fill out and don’t require a high investment of time. However, their main deficit is that they are likely to miss novel requirements that are not listed. As such, closed-response surveys are best used after initial elicitation or brainstorming to validate feature groups. Low Medium
    Open-Response Survey A survey that has open-ended response fields. Questions are fixed, but respondents are free to populate the field in their own words. Open-response surveys take longer to fill out than closed, but can garner deeper insights. Open-response surveys are a useful supplement (and occasionally a replacement) for group elicitation techniques, like focus groups, when you need to receive an initial list of requirements from a broad cross-section of stakeholders. Their primary shortcoming is the analyst can’t immediately follow up on interesting points. However, they are particularly useful for reaching stakeholders who are unavailable for individual one-on-ones or group meetings. Medium Medium

    Info-Tech Insight

    Surveys can be useful mechanisms for initial drafting of raw requirements (open response) and gauging user interest in proposed requirements or feature sets (closed response). However, they should not be the sole focus of your elicitation program due to lack of interactivity and two-way dialogue with the business analyst.

    Elicitation methods – Interviews

    Method Description Assessment and Best Practices Stakeholder Effort BA/PMO Effort

    Structured One-on-One Interview

    		In a structured one-on-one interview, the business analyst has a fixed list of questions to ask the stakeholder and follows up where necessary. Structured interviews provide the opportunity to quickly hone in on areas of concern that were identified during process mapping or group elicitation techniques. They should be employed with purpose – to receive specific stakeholder feedback on proposed requirements or help identify systemic constraints. Generally speaking, they should take 30 minutes or less to complete. Low Medium

    Unstructured One-on-One Interview

    		In an unstructured one-on-one interview, the business analyst allows the conversation to flow freely. The BA may have broad themes to touch on, but does not run down a specific question list. Unstructured interviews are most useful for initial elicitation when brainstorming a draft list of potential requirements is paramount. Unstructured interviews work best with senior stakeholders (sponsors or power users), since they can be time consuming if they’re applied to a large sample size. It’s important for BAs not to stifle open dialogue and allow the participants to speak openly. They should take 60 minutes or less to complete. Medium Low

    Info-Tech Insight

    Interviews should be used with “high-value targets.” Those who receive one-on-one face time can help generate good requirements, as well as allow effective communication around requirements at a later point (i.e. during the analysis and validation phases).

    Elicitation methods – Focus Groups

    Method Description Assessment and Best Practices Stakeholder Effort BA/PMO Effort
    Focus Group Focus groups are sessions held between a small group (typically ten individuals or less) and an experienced facilitator who leads the conversation in a productive direction. Focus groups are highly effective for initial requirements brainstorming. The best practice is to structure them in a cross-functional manner to ensure multiple viewpoints are represented and the conversation doesn’t become dominated by one particular individual. Facilitators must be wary of “groupthink” in these meetings (the tendency to converge on a single POV). Medium Medium

    Info-Tech Insight

    Group elicitation techniques are most useful for gathering a wide spectrum of requirements from a broad group of stakeholders. Individual or observational techniques are typically needed for further follow-up and in-depth analysis with critical power users or sponsors.

    "Each person has a learning curve. Take the time to assess staff individually as some don’t adjust to change as well as others. Some never will." – CEO, Manufacturing Firm

    Refine your stakeholder analysis through the input elicitation process

    3.1.3 30 minutes

    Review all of these elicitation methods as you go through the workbook as a group. Be sure to document and discuss any other elicitation methods that might be specific to your organization.

    1. Schedule dates and a specific agenda for performing stakeholder elicitation activities.
    • If scheduling more formal methods such as a structured interview or survey, take the time to develop some talking points and questions (see the questionnaire and survey templates in the next step for examples).
  • Assign accountabilities for performing the elicitation exercises and set dates for updating the PMO on the results of these stakeholder elicitations.
  • As curator of the workbook, the PMO will need to refine the stakeholder data in tab 4 of the tool to get a more accurate stakeholder map on the next tab of the workbook.
    • Elicitation method Target stakeholder group(s) PMO staff responsible for eliciting input Next update to PMO
    One-on-one structured interview HR and Sales Karla Molina August 1

    Info-Tech Insight

    Engagement paves the way for smoother communications. The “engagement” approach (rather than simply “communication”) turns stakeholders and users into advocates who help boost your message, sustain change, and realize benefits without constant, direct intervention.

    Develop a stakeholder engagement strategy based on the output of your analysis

    Use the stakeholder map on tab 5 of the Workbook to inform your communications strategy and transition plan.

    Tab 5 of the Workbook provides an output – a stakeholder map – based on your inputs in the previous tab. Use the stakeholder map to inform your communications requirements considerations in the next tab of the workbook as well as your transition plan in the next step.

    The image is a screencapture of tab 5 of the Stakeholder Engagement Workbook.

    This is a screenshot of the “Stakeholder Analysis” from tab 5 of the Workbook. The four quadrants of the map are:

    • Engage (High Interest/High Influence)
    • Communicate – High Level (High Interest/Low Influence)
    • Passive (Low Interest/Low Influence)
    • Communicate – Low Level (Low Interest/High Influence)
    How to interpret each quadrant on the map:

    Top Quadrants: Supporters

    1. Engage: Capitalize on champions to drive the project/change.
    2. Communicate (high level): Leverage this group where possible to help socialize the program and to help encourage dissenters to support.

    Bottom Quadrant: Blockers

    1. Passive: Focus on increasing these stakeholders’ level of support.
    2. Communicate (low level): Pick your battles – focus on your noise makers first and then move on to your blockers.

    Document communications plan requirements based on results of engagement and elicitation

    3.1.4 60 minutes

    The image is a screencapture of the Communications Requirements tab in the Stakeholder Engagement Workbook

    Use the Communications Requirements tab in the Stakeholder Engagement Workbook.

    Do this as a 1–2 hour project team planning session.

    The table will automatically generate a list of stakeholders based on your stakeholder analysis.

    Update the assumptions that you made about the impact of the change in the Impact Analysis with results of stakeholder engagement and elicitation activities.

    Use the table on this tab to refine these assumptions as needed before solidifying your communications plan.

    Define the action required from each stakeholder or stakeholder group (if any) for change to be successful.

    Continually refine messages and methods for communicating with each stakeholder and stakeholder group.

    Note words that work well and words that don’t. For example, some buzzwords might have negative connotations from previous failed initiatives.

    Designate who is responsible for developing and honing the communications plan (see details in the following section on developing the transition plan).

    Step 3.2: Develop and execute the transition plan

    Phase 3 - 3.2

    This step will walk you through the following activities:
    • Create a communications timeline.
    • Establish communications strategy for stakeholder groups.
    • Determine communication delivery methods.
    • Define the feedback and evaluation process.
    • Assess the full range of support and resistance to change.
    • Prepare objections handling process.
    This step involves the following participants:
    • PMO Director
    • Transition Team
    • Project managers
    • Business analyst
    • Project Sponsor
    • Additional IT/PMO staff
    Outcomes of this step
    • A communications strategy
    • A stakeholder feedback process
    • An objections handling strategy
    • A transition plan

    Effective change requires strategic communications and rightsized training plans

    Develop and execute a transition plan through the PMO to ensure long-term adoption.

    In this step we will develop and introduce a plan to manage change around your project.

    After completing this section you will have a realistic, effective, and adaptable transition plan that includes:

    • Clarity around leadership and vision.
    • Well-defined plans for targeting unique groups with specific messages.
    • Resistance and contingency plans.
    • Templates for gathering feedback and evaluating success.

    These activities will enable you to:

    • Execute the transition in coordination with the timeline and structure of the core project.
    • Communicate the action plan and vision for change.
    • Target specific stakeholder and user groups with unique messages.
    • Deal with risks, resistance, and contingencies.
    • Evaluate success through feedback and metrics.

    "Everyone loves change: take what you know and replace it with a promise. Then overlay that promise with the memory of accumulated missed efforts, half-baked attempts, and roads of abandoned promises."

    – Toby Elwin

    Assemble the core transition team to help execute this step

    Once the stakeholder engagement step has been completed, the PMO needs to facilitate the involvement of the transition team to help carry out transition planning and communications strategies.

    You should have already sketched out a core transition team in step 1.2.6 of this blueprint. As with all org change activities, ensuring that individuals are made accountable for the execution of the following activities will be key for the long-term success of your change initiative.

    • At this stage, the PMO needs to ensure the involvement of the transition team to participate in the following activities – or the PMO will need to take on the transition planning and communication responsibilities itself.

    Refer to the team structure examples from Activity 1.2.6 of this blueprint if you are still finalizing your transition team.

    Download Info-Tech’s Transition Plan Template to help capture and record the outcomes of the activities in this step.

    Create a high-level communications timeline

    3.2.1 30 minutes

    By now the project sponsor, project manager, and business analysts (or equivalent) should have defined project timelines, requirements, and other key details. Use these to start your communications planning process.

    If your members of the transition team are also part of the core project team, meet with them to elicit the project timeline and requirements.

    Project Milestone Milestone Time Frame Communications Activities Activity Timing Notes
    Business Case Approval
    • Key stakeholder communications
    Pilot Go-Live
    • Pilot launch activity communications
    • Org-wide status communications
    Full Rollout Approval
    • Key stakeholder communications
    Full Rollout
    • Full rollout activity communications
    • Org-wide status communications
    Benefits Assessment
    • Key stakeholder communications
    • Org-wide status communications

    Info-Tech Insight

    Communicate, communicate, communicate.

    Staff are 34% more likely to adapt to change quickly during the implementation and adoption phases when they are provided with a timeline of impending changes specific to their department. (Source: McLean & Company)

    Schedule time to climb out of the “Valley of Despair”

    Many change initiatives fail when leaders give up at the first sign of resistance.

    OCM experts use terms like “Valley of Despair” to describe temporary drops in support and morale that inevitably occur with any significant change. Don’t let these temporary drops derail your change efforts.

    Anticipate setbacks and make sure the project plan accommodates the time and energy required to sustain and reinforce the initiative as people move through stages of resistance.

    The image is a line graph. Segments of the line are labelled with numbers. The beginning of the line is labelled with 1; the descending segment of the line labelled 2; the lowest point is labelled 3; the ascending section is labelled 4; and the end of the graph is labelled 5.

    Based on Don Kelley and Daryl Conner’s Emotional Cycle of Change.

    Identify critical points in the change curve:

    1. Honeymoon of “Uninformed Optimism”: There is usually tentative support and even enthusiasm for change before people have really felt or understood what it involves.
    2. Backlash of “Informed Pessimism” (leading to “Valley of Despair”): As change approaches or begins, people realize they’ve overestimated the benefits (or the speed at which benefits will be achieved) and underestimated the difficulty of change.
    3. Valley of Despair and beginning of “Hopeful Realism”: Eventually, sentiment bottoms out and people begin to accept the difficulty (or inevitability) of change.
    4. Bounce of “Informed Optimism”: People become more optimistic and supportive when they begin to see bright spots and early successes.
    5. Contentment of “Completion”: Change has been successfully adopted and benefits are being realized.

    Tailor a communications strategy for each stakeholder group

    Leveraging the stakeholder analyses you’ve already performed in steps 2.2 and 3.1, customize your communications strategy for the individual stakeholder groups.

    Think about where each of the groups falls within the Organizational Change Depth Scale (below) to determine the type of communications approach required. Don’t forget: the deeper the change, the tougher the job of managing change will be.

    Procedural Behavioral Interpersonal Vocational Cultural

    Position

    • Changing procedures requires clear explanation of what has changed and what people must do differently.
    • Avoid making people think wherever possible. Provide procedural instructions when and where people need them to ensure they remember.

    Incentivize

    • Changing behaviors requires breaking old habits and establishing new ones by adjusting the contexts in which people work.
    • Consider a range of both formal and informal incentives and disincentives, including objective rewards, contextual nudges, cues, and informal recognition

    Empathize

    • Changing people’s relationships (without damaging morale) requires showing empathy for disrupting what is often a significant source of their well-being.
    • Show that efforts have been made to mitigate disruption, and sacrifice is shared by leadership.

    Educate

    • Changing people’s roles requires providing ways to acquire knowledge and skills they need to learn and succeed.
    • Consider a range of learning options that includes both formal training (external or internal) and ongoing self-directed learning.

    Inspire

    • Changing values and norms in the organization (i.e. what type of things are seen as “good” or “normal”) requires deep disruption and persistence.
    • Think beyond incentives; change the vocabularies in which incentives are presented.

    Base your communications approaches on our Organizational Change Depth Scale

    Use the below “change chakras” as a quick guide for structuring your change messages.

    The image is a human, with specific areas of the body highlighted, with notes emerging from them. Above the head is a cloud, labelled Cultural Change/Inspire-Shape ideas and aspirations. The head is the next highlighted element, with notes reading Vocational Change/Educate-Develop their knowledge and skills. The heart is the next area, labelled with Interpersonal Change/Empathize-Appeal to their hearts. The stomach is pictured, with the notes Behavioral Change/Incentivize-Appeal to their appetites and instincts. The final section are the legs, with notes reading Procedural Change/Position-Provide clear direction and let people know where and when they’re needed.

    Categorize stakeholder groups in terms of communications requirements

    3.2.2 30 minutes

    Use the table below to document where your various stakeholder groups fall within the depth scale.
    Depth Levels Stakeholder Groups Tactics
    Procedural Position: Provide explanation of what exactly has changed and specific procedural instructions of what exactly people must do differently to ensure they remember to make adjustments as effortlessly as possible.
    Behavioral Incentivize: Break old habits and establish new ones by adjusting the context of formal and informal incentives (including objective rewards, contextual nudges, cues, and informal recognition).
    Interpersonal Empathize: Offer genuine recognition and support for disruptions of personal networks (a significant source of personal well-being) that may result from changing work relationships. Show how leadership shares the burden of such sacrifices.
    Vocational Educate: Provide a range of learning options (formal and self-directed) to provide the knowledge and skills people need to learn and succeed in changed roles.
    Cultural Inspire: Frame incentives in a vocabulary that reflects any shift in what types of things are seen as “good” or “normal” in the organization.

    The deeper the impact, the more complex the communication strategy

    Interposal, vocational, and cultural changes each require more nuanced approaches when communicating with stakeholders.

    Straightforward → Complex

    When managing interpersonal, vocational, or cultural changes, you will be required to incorporate more inspirational messaging and gestures of empathy than you typically might in a business communication.

    Communications that require an appeal to people’s emotions can be, of course, very powerful, but they are difficult to craft. As a result, oftentimes messages that are meant to inspire do the exact opposite, coming across as farfetched or meaningless platitudes, rather than evocative and actionable calls to change.

    Refer to the tactics below for assistance when crafting more complex change communications that require an appeal to people’s emotions and imaginations.

    • Tell a story. Describe a journey with a beginning (who we are and how we got here) and a destination (our goals and expected success in the future).
    • Convey an intuitive sense of direction. This helps people act appropriately without being explicitly told what to do.
    • Appeal to both emotion and reason. Make people want to be part of the change.
    • Balance abstract ideas with concrete facts. Writers call this “moving up and down the ladder of abstraction.” Without concrete images and facts, the vision will be meaninglessly vague. Without abstract ideas and principles, the vision will lack power to unite people and inspire broad support.
    • Be concise. Make your messages easy to communicate and remember in any situation.

    "Instead of resisting any emotion, the best way to dispel it is to enter it fully, embrace it and see through your resistance."

    – Deepak Chopra

    Fine-tune change communications for each stakeholder or audience

    3.2.3 60 to 90 minutes

    Use Info-Tech’s “Message Canvas” (see next slide) to help rationalize and elaborate the change vision for each group.

    Build upon the more high-level change story that you developed in step 1.1 by giving more specificity to the change for specific stakeholder groups.

    Questions to address in your communication strategy include: How will the change benefit the organization and its people? How have we confirmed there is a need for change? What would happen if we didn’t change? How will the change leverage existing strengths – what will stay the same? How will we know when we get to the desired state?

    Remember these guidelines to help your messages resonate:

    • People are busy and easily distracted. Tell people what they really need to know first, before you lose their attention.
    • Repetition is good. Remember the Aristotelian triptych: “Tell them what you’re going to tell them, then tell them, then tell them what you told them.”
    • Don’t use technical terms, jargon, or acronyms. Different groups in organizations tend to develop specialized vocabularies. Everybody grows so accustomed to using acronyms and jargon every day that it becomes difficult to notice how strange it sounds to outsiders. This is especially important when IT communicates with non-technical audiences. Don’t alienate your audience by talking at them in a strange language.
    • Test your message. Run focus groups or deliver communications to a test audience (which could be as simple as asking 2–3 people to read a draft) before delivering messages more broadly.

    Info-Tech Insight

    Change thy language, change thyself.

    Jargon, acronyms, and technical terms represent deeply entrenched cultural habits and assumptions.

    Continuing to use jargon or acronyms after a transition tends to drag people back to old ways of thinking and working.

    You don’t need to invent a new batch of buzzwords for every change (nor should you), but every change is an opportunity to listen for words and phrases that have lost their meaning through overuse and abuse.

    3.2.3 continued - Example “Message Canvas”

    The image is a screencapture of tab 6 of the Organizational Change Impact Analysis Tool, which is a message canvas

    If there are multiple messages or impacts that need to be communicated to a single group or audience, you may need to do multiple Message Canvases per group. Refer back to your Stakeholder Engagement Workbook to help inform the stakeholder groups and messages that this activity should address.

    Go to tab 6 of the Organizational Change Impact Analysis Toolfor multiple message canvas template boxes that you can use. These messages can then help inform your communication plan on tab 7 of that tool.

    Determine methods for communications delivery

    Review your options for communicating your change. This slide covers traditional methods of communication, while the following slides cover some options for multimedia mass-communications.

    Method Best Practices
    Email Email announcements are necessary for every organizational change initiative but are never sufficient. Treat email as a formalizing medium, not a medium of effective communication when organizational change is concerned. Use email to invite people to in-person meetings, make announcements across teams and geographical areas at the same time, and share formal details.
    Team Meeting Team meetings help sell change. Body language and other in-person cues are invaluable when trying to influence people. Team meetings also provide an opportunity to gauge a group’s response to an announcement and gives the audience an opportunity to ask questions and get clarification.
    One-on-One One-on-ones are more effective than team meetings in their power to influence and gauge individual responses, but aren’t feasible for large numbers of stakeholders. Use one-on-ones selectively: identify key stakeholders and influencers who are most able to either advocate change on your behalf or provide feedback (or both).
    Internal Site / Repository Internal sites and repositories help sustain change by making knowledge available after the implementation. People don’t retain information very well when it isn’t relevant to them. Much of their training will be forgotten if they don’t apply that knowledge for several weeks or months. Use internal sites and repositories for how-to guides and standard operating procedures.

    Review multimedia communication methods for reaching wider audiences in the organization

    Method Best Practices
    User Interfaces User interface (UI) design is overlooked as a communication method. Often a simple UI refinement with the clearer prompts or warnings is more effective and efficient than additional training and repeated email reminders.
    Social Media Social media is widely and deeply embraced by people publicly, and is increasingly useful within organizations. Look for ways to leverage existing internal social tools. Avoid trying to introduce new social channels to communicate change unless social transformation is within the scope of the core project’s goals; the social tool itself might become as much of an organizational change management challenge as the original project.
    Posters & Marketing Collateral Posters and other marketing collateral are common communication tools in retail and hospitality industries that change managers in other industries often don’t think of. Making key messages a vivid, visual part of people’s everyday environment is a very effective way to communicate. On the down side, marketing collateral requires professional design skills and can be costly to create. Professional copywriting is also advisable to ensure your message resonates.
    Video Videos are well worth the cost to produce when the change is transformational in nature, as in cultural changes. Videos are useful for both communicating the vision and as part of the training plan.

    Document communication methods and build the Communications Delivery Plan

    3.2.4 30 minutes

    1. Determine when communications need to be delivered for each stakeholder group.
    2. Select the most appropriate delivery methods for each group and for each message.
    • Meetings and presentations
    • Email/broadcast
    • Intranet and other internal channels (e.g. internal social network)
    • Open houses and workshops
  • Designate who will deliver the messages.
  • Develop plans to follow up for feedback and evaluation (Step 3.2.5).

    • The image is a screenshot of the Stakeholder/Audience section of the Transition Plan Template.

    This is a screenshot from the “Stakeholder/Audience” section of Info-Tech’s Transition Plan Template. Use the template to document your communication strategy for each audience and your delivery plan.

    "The role of project communication is to inspire, instigate, inform or educate and ultimately lead to a desired action. Project communication is not a well presented collection of words; rather it is something that propels a series of actions."

    – Sidharth Thakur

    Info-Tech Insight

    Repetition is crucial. People need to be exposed to a message 7 times before it sticks. Using a variety of delivery formats helps ensure people will notice and remember key messages. Mix things up to keep employees engaged and looking forward to the next update.

    Define the feedback and evaluation process to ensure an agile response to resistance

    3.2.5 46 to 60 minutes

    1. Designate where/when on the roadmap the project team will proactively evaluate progress/success and elicit feedback in order to identify emerging challenges and opportunities.
    2. Create checklists to review at key milestones to ensure plans are being executed. Review…
    • Key project implementation milestones (i.e. confirm successful deployment/installation).
    • Quick wins identified in the impact analysis and determined in the transition plan (see the following slides for advice in leveraging quick wins).
  • Ensure there is immediate follow-up on communications and training:
    • Confirm understanding and acceptance of vision and action plan – utilize surveys and questionnaires to elicit feedback.
    • Validate people’s acquisition of required knowledge and skills.
    • Identify emerging/unforeseen challenges and opportunities.

    • "While creating and administering a survey represent(s) additional time and cost to the project, there are a number of benefits to be considered: 1) Collecting this information forces regular and systematic review of the project as it is perceived by the impacted organizations, 2) As the survey is used from project to project it can be improved and reused, 3) The survey can quickly collect feedback from a large part of the organization, increasing the visibility of the project and reducing unanticipated or unwelcome reactions."

    – Claire Schwartz

    Use the survey and questionnaire templates on the following two slides for assistance in eliciting feedback. Record the evaluation and feedback gathering process in the Transition Plan Template.

    Sample stakeholder questionnaire

    Use email to distribute a questionnaire (such as the example below) to project stakeholders to elicit feedback.

    In addition to receiving invaluable opinions from key stakeholders and the frontline workers, utilizing questionnaires will also help involve employees in the change, making them feel more engaged and part of the change process.

    Interviewee Date
    Stakeholder Group Interviewer
    Question Response Notes
    How do you think this change will affect you?
    How do you think this change will affect the organization?
    How long do you expect the change to take?
    What do you think might cause the project/change to fail?
    What do you think are the most critical success factors?

    Sample survey template

    Similar to a questionnaire, a survey is a great way to assess the lay of the land in terms of your org change efforts and the likelihood of adoption.

    Using a free online survey tool like Survey Monkey, Typeform, or Google Forms, surveys are quick and easy to generate and deploy. Use the below example as a template to build from.

    Use survey and questionnaire feedback as an occasion to revisit the Impact Analysis Tool and reassess the impacts and roadblocks based on hard feedback.

    To what degree do you agree or disagree with each of the following statements?

    1=Strongly Disagree, 2=Disagree, 3=Somewhat Disagree, 4=Somewhat Agree, 5=Agree, 6=Strongly Agree

    1. I understand why [this change] is happening.
    2. I agree with the decision to [implement this change].
    3. I have the knowledge and tools needed to successfully go through [this change].
    4. Leadership/management is fully committed to the change.
    5. [This change] will be a success.

    Rate the impact of this change.

    1=Very Negative, 2=Negative, 3=Somewhat Negative, 4=Somewhat Positive, 5=Positive, 6=Very Positive

    1. On you personally.
    2. On your team/department/unit.
    3. On the organization as a whole.
    4. On people leading the change.

    Develop plans to leverage support and deal with resistance, objections, and fatigue

    Assess the “Faces of Change” to review the emotions provoked by the change in order to proactively manage resistors and engage supporters.

    The slides that follow walk you through activities to assess the different “faces of change” around your OCM initiative and to perform an objections handling exercise.

    Assessing people’s emotional responses to the change will enable the PMO and transition team to:

    • Brainstorm possible questions, objections, suggestions, and concerns from each audience.
    • Develop responses to questions, objections, and concerns.
    • Revise the communications messaging and plan to include proactive objections handling.
    • Re-position objections and suggestions as questions to plan for proactively communicating responses and objections to show people that you understand their point of view.
    • Develop a plan with clearly defined responsibility for regularly updating and communicating the objections handling document. Active Subversion Quiet Resistance Vocal Skepticism Neutrality / Uncertainty Vocal Approval Quiet Support Active Leadership
    Hard Work Vs. Tough Work

    Carol Beatty’s distinction between “easy work,” “hard work,” and “tough work” can be revealing in terms of the high failure rate on many change initiatives. (“The Tough Work of Managing Change.” Queen’s University IRC. 2015.)

    • Easy work includes administrative tasks like scheduling meetings and training sessions or delivering progress reports.
    • Hard work includes more abstract efforts like estimating costs/benefit or defining requirements.
    • Tough work involves managing people and emotions, i.e. providing leadership through setbacks, and managing resistance and conflict.

    That is what makes organizational change “tough,” as opposed to merely hard. Managing change requires mental and emotional toughness to deal with uncertainty, ambiguity, and conflict.

    Assess the full range of support and resistance to change

    3.2.6 20 minutes

    Categorize the feedback received from stakeholder groups or individual stakeholders across the “faces of change” spectrum.

    Use the table below to document where different stakeholders and stakeholder groups fall within the spectrum.

    Response Symptoms Examples
    Active Subversion Publicly or privately disparaging the transition (in some cases privately disparaging while pretending to support); encouraging people to continue doing things the old way or to leave the organization altogether. Group/Name
    Quiet Resistance Refusing to adopt change, continuing to do things the old way (including seemingly trivial or symbolic things). Non-participative. Group/Name
    Vocal Skepticism Asking questions; questioning the why, what, and how of change, but continuing to show willingness to participate and try new things. Group/Name
    Neutrality / Uncertainty Non-vocal participation, perhaps with some negative body language, but continuing to show tacit willingness to try new things. Group/Name
    Vocal Approval Publicly and privately signaling buy-in for the change. Group/Name
    Quiet Support Actively helping to enable change to succeed without necessarily being a cheerleader or trying to rally others around the transition. Group/Name
    Active Leadership Visibly championing the change and helping to rally others around the transition. Group/Name

    Review strategies and tactics for engaging different responses

    Use the below tactics across the “faces of change” spectrum to help inform the PMO’s responses to sources of objection and resistance and its tactics for leveraging support.

    Response Engagement Strategies and Tactics
    Active Subversion Firmly communicate the boundaries of acceptable response to change: resistance is a natural response to change, but actively encouraging other people to resist change should not be tolerated. Active subversion often indicates the need to find a new role or depart the organization.
    Quiet Resistance Resistance is a natural response to change. Use the Change Curve to accommodate a moderate degree and period of resistance. Use the OCM Depth Scale to ensure communications strategies address the irrational sources of resistance.
    Vocal Skepticism Skepticism can be a healthy sign. Skeptics tend to be invested in the organization’s success and can be turned into vocal and active supporters if they feel their questions and concerns have been heard and addressed.
    Neutrality / Uncertainty Most fence-sitters will approve and support change when they start to see concrete benefits and successes, but are equally likely to become skeptics and resisters when they see signs of failure or a critical mass of skepticism, resistance, or simply ambivalence.
    Vocal Approval Make sure that espoused approval for change isn’t masking resistance or subversion. Engage vocal supporters to convert them into active enablers or champions of change.
    Quiet Support Engage quiet supporters to participate where their skills or social and political capital might help enable change across the organization. This could either be formal or informal, as too much formal engagement can invite minor disagreements and slow down change.
    Active Leadership Engage some of the active cheerleaders and champions of change to help deliver communications (and in some cases training) to their respective groups or teams.

    Don’t let speed bumps become roadblocks

    What If... Do This: To avoid:
    You aren’t on board with the change? Fake it to your staff, then communicate with your superiors to gather the information you need to buy in to the change. Starting the change process off on the wrong foot. If your staff believe that you don’t buy in to the change, but you are asking them to do so, they are not going to commit to it.
    When you introduce the change, a saboteur throws a tantrum? If the employee storms out, let them. If they raise uninformed objections in the meeting that are interrupting your introduction, ask them to leave and meet with them privately later on. Schedule an ad hoc one-on-one meeting. A debate at the announcement. It’s an introduction to the change and questions are good, but it’s not the time for debate. Leave this for the team meetings, focus groups, and one-on-ones when all staff have digested the information.
    Your staff don’t trust you? Don’t make the announcement. Find an Enthusiast or another manager that you trust to make the announcement. Your staff blocking any information you give them or immediately rejecting anything you ask of them. Even if you are telling the absolute truth, if your staff don’t trust you, they won’t believe anything you say.
    An experienced skeptic has seen this tried before and states it won’t work? Leverage their experience after highlighting how the situation and current environment is different. Ask the employee what went wrong before. Reinventing a process that didn’t work in the past and frustrating a very valuable segment of your staff. Don’t miss out on the wealth of information this Skeptic has to offer.

    Use the Objections Handling Template on the next slide to brainstorm specific objections and forms of resistance and to strategize about the more effective responses and mitigation strategies.

    Copy these objections and responses into the designated section of the Transition Plan Template. Continue to revise objections and responses there if needed.

    Objections Handling Template

    3.2.7 45 to 60 minutes

    Objection Source of Objection PMO Response
    We tried this two years ago. Vocal skepticism Enabling processes and technologies needed time to mature. We now have the right process discipline, technologies, and skills in place to support the system. In addition, a dedicated role has been created to oversee all aspects of the system during and after implementation.
    Why aren’t we using [another solution]? Uncertainty We spent 12 months evaluating, testing, and piloting solutions before selecting [this solution]. A comprehensive report on the selection process is available on the project’s internal site [here].

    Info-Tech Insight

    There is insight in resistance. The individuals best positioned to provide insight and influence change positively are also best positioned to create resistance. These people should be engaged throughout the implementation process. Their insights will very likely identify risks, barriers, and opportunities that need to be addressed.

    Make sure the action plan includes opportunities to highlight successes, quick wins, and bright spots

    Highlighting quick wins or “bright spots” helps you go from communicating change to more persuasively demonstrating change.

    Specifically, quick wins help:

    • Demonstrate that change is possible.
    • Prove that change produces positive results.
    • Recognize and reward people’s efforts.

    Take the time to assess and plan quick wins as early as possible in the planning process. You can revisit the impact assessment for assistance in identifying potential quick wins; more so, work with the project team and other stakeholders to help identify quick wins as they emerge throughout the planning and execution phases.

    Make sure you highlight bright spots as part of the larger story and vision around change. The purpose is to continue to build or sustain momentum and morale through the transition.

    "The quick win does not have to be profound or have a long-term impact on your organization, but needs to be something that many stakeholders agree is a good thing… You can often identify quick wins by simply asking stakeholders if they have any quick-win recommendations that could result in immediate benefits to the organization."

    – John Parker

    Tips for identifying quick wins (Source: John Parker, “How Business Analysts can Identify Quick Wins,” 2013):
    • Brainstorm with your core team.
    • Ask technical and business stakeholders for ideas.
    • Observe daily work of users and listen to users for problems and opportunities; quick wins often come from the rank and file, not from the top.
    • Review and analyze user support trouble tickets; this can be a wealth of information.
    • Be open to all suggestions.

    Info-Tech Insight

    Stay positive. Our natural tendency is to look for what’s not working and try to fix it. While it’s important to address negatives, it’s equally important to highlight positives to keep people committed and motivated around change.

    Document the outcomes of this step in the Transition Plan Template

    3.2.8 45 minutes

    Consolidate and refine communication plan requirements for each stakeholder and group affected by change.

    Upon completion of the activities in this step, the PMO Director is responsible for ensuring that outcomes have been documented and recorded in the Transition Plan Template. Activities to be recorded include:

    • Stakeholder Overview
    • Communications Schedule Activity
    • Communications Delivery
    • Objections Handling
    • The Feedback and Evaluation Process

    Going forward, successful change will require that many responsibilities be delegated beyond the PMO and core transition team.

    • Delegate responsibilities to HR, managers, and team members for:
      • Advocating the importance of change.
      • Communicating progress toward project milestones and goals.
      • Developing HR and training plan.
    • Ensure sponsorship stays committed and active during and after the transition.
      • Leadership visibility throughout the execution and follow-up of the project is needed to remind people of the importance of change and the organization’s commitment to project success.

    Download Info-Tech’s Transition Plan Template.

    "Whenever you let up before the job is done, critical momentum can be lost and regression may follow." – John Kotter, Leading Change

    Step 3.3: Establish HR and Training Plans

    Phase 3 - 3.3

    This step will walk you through the following activities:
    • Analyze HR requirements for involvement in training.
    • Outline appropriate HR and training timelines.
    • Develop training plan requirements across different stakeholder groups.
    • Define training content.
    • Assess skills required to support the change and review options for filling HR gaps.
    This step involves the following participants:
    • PMO Director
    • Transition Team
    • HR Personnel
    • Project Sponsor
    Outcomes of this step
    • A training plan
    • Assessment of skill required to support the change

    Make sure skills, roles, and teams are ready for change

    Ensure that the organization has the infrastructure in place and the right skills availability to support long-term adoption of the change.

    The PMO’s OCM approach should leverage organizational design and development capabilities already in place.

    Recommendations in this section are meant to help the PMO and transition team understand HR and training plan activities in the context of the overall transition process.

    Where organizational design and development capabilities are low, the following steps will help you do just enough planning around HR, and training and development to enable the specific change.

    In some cases the need for improved OCM will reveal the need for improved organizational design and development capabilities.

    • Required Participants for this Step: PMO Leader; PMO staff; Project manager.
    • Recommended Participants for this Step: Project Sponsor; HR personnel.

    This section will walk you through the basic steps of developing HR, training, and development plans to support and enable the change.

    For comprehensive guidance and tools on role, job, and team design, see Info-Tech’s Transform IT Through Strategic Organizational Design blueprint.

    Info-Tech Insight

    Don’t make training a hurdle to adoption. Training and other disruptions take time and energy away from work. Ineffective training takes credibility away from change leaders and seems to validate the efforts of saboteurs and skeptics. The PMO needs to ensure that training sessions are as focused and useful as possible.

    Analyze HR requirements to ensure efficient use of HR and project stakeholder time

    3.3.1 30-60 minutes

    Refer back to Activity 3.2.4. Use the placement of each stakeholder group on the Organizational Change Depth Scale (below) to determine the type of HR and training approach required. Don’t impose training rigor where it isn’t required.

    Procedural Behavioral Interpersonal Vocational Cultural
    Simply changing procedures doesn’t generally require HR involvement (unless HR procedures are affected). Changing behaviors requires breaking old habits and establishing new ones, often using incentives and disincentives. Changing teams, roles, and locations means changing people’s relationships, which adds disruption to people’s lives and challenges for any change initiative. Changing people’s roles and responsibilities requires providing ways to acquire knowledge and skills they need to learn and succeed. Changing values and norms in the organization (i.e. what type of things are seen as “good” or “normal”) requires deep disruption and persistence.
    Typically no HR involvement. HR consultation recommended to help change incentives, compensation, and training strategies. HR consultation strongly recommended to help define roles, jobs, and teams. HR responsibility recommended to develop training and development programs. HR involvement recommended.

    22%

    In a recent survey of 276 large and midsize organizations, eighty-seven percent of survey respondents trained their managers to “manage change,” but only 22% felt the training was truly effective. (Towers Watson)

    Outline appropriate HR and training timelines

    3.3.2 15 minutes

    Revisit the high-level project schedule from steps 1.2.4 and 3.4.1 to create a tentative timeline for HR and training activities.

    Revise this timeline throughout the implementation process, and refine the timing and specifics of these activities as you move from the development to the deployment phase.

    Project Milestone Milestone Time Frame HR/Training Activities Activity Timing Notes
    Business Case Approval
    • Consulted to estimate timeline and cost
    Pilot Go-Live
    • Train groups affected by pilot
    Full Rollout Approval
    • Consulted to estimate timeline and cost
    Full Rollout
    • Train the trainers for full-scale rollout
    Benefits Assessment
    • Consulted to provide actual time and costs

    "The reason it’s going to hurt is you’re going from a state where you knew everything to one where you’re starting over again."

    – BA, Natural Resources Company

    Develop the training plan to ensure that the right goals are set, and that training is properly timed and communicated

    3.3.3 60 minutes

    Use the final tab in the Stakeholder Engagement Workbook, “7. Training Requirements,” to begin fleshing out a training plan for project stakeholders.

    The image is a screencapture of the final tab in the Stakeholder Engagement Workbook, titled Training Requirements.

    The table will automatically generate a list of stakeholders based on your stakeholder analysis.

    If your stakeholder list has grown or changed since the stakeholder engagement exercise in step 3.1, update the “Stakeholder List” tab in the tool.

    Estimate when training can begin, when training needs to be completed, and the total hours required.

    Training too early and too late are both common mistakes. Training too late hurts morale and creates risks. Training too early is often wasted and creates the need for retraining as knowledge and skills are lost without immediate relevance to their work.

    Brainstorm or identify potential opportunities to leverage for training (such as using existing resources and combining multiple training programs).

    Review the Change Management Impact Analysis to assess skills and knowledge required for each group in order for the change to succeed.

    Depending on the type of change being introduced, you may need to have more in-depth conversations with technical advisors, project management staff, and project sponsors concerning gaps and required content.

    Define training content and make key logistical decisions concerning training delivery for staff and users

    3.3.4 30-60 minutes

    Ultimately, the training plan will have to be put into action, which will require that the key logistical decisions are made concerning content and training delivery.

    The image is a screencapture of the Training Plan section of the Transition Plan Template.

    1. Use the “Training Plan” section in Info-Tech’s Transition Plan Template to document details of your training plan: schedules, resources, rooms, and materials required, etc.
    2. Designate who is responsible for developing the training content details. Responsibilities will include:
      • Developing content modules.
      • Determining the appropriate delivery model for each audience and content module (e.g. online course, classroom, outsourced, job shadowing, video tutorials, self-learning).
      • Finding and booking resources, locations, equipment, etc.

    “95% of learning leaders from organizations that are very effective at implementing important change initiatives find best practices by partnering with a company or an individual with experience in the type of change, twice as often as ineffective organizations.”

    Source: Implementing and Supporting Training for Important Change Initiatives.

    Training content should be developed and delivered by people with training experience and expertise, working closely with subject matter experts. In the absence of such individuals, partnering with experienced trainers is a cost that should be considered.

    Assess skills required to support the change that are currently absent or in short supply

    3.3.5 15 to 30 minutes

    The long-term success of the change is contingent on having the resources to maintain and support the tool, process, or business change being implemented. Otherwise, resourcing shortfalls could threaten the integrity of the new way of doing things post-change, threatening people’s trust and faith in the validity of the change as a whole.

    Use the table below to assess and record skills requirements. Refer to the tactics on the next slide for assistance in filling gaps.

    Skill Required Description of Need Possible Resources Recommended Next Steps Timeline
    Mobile Dev Users expect mobile access to services. We need knowledge of various mobile platforms, languages or frameworks, and UX/UI requirements for mobile.
    • Train web team
    • Outsource
    • Analyze current and future mobile requirements.
    		Probably Q1 2015
    DBAs Currently have only one DBA, which creates a bottleneck. We need some DBA redundancy to mitigate risk of single point of failure.
    • Redeploy and train member of existing technology services team.
    • Hire or contract new resources.
    • Analyze impact of redeploying existing resources.
    		Q3 2014

    Review your options for filling HR gaps

    Options: Benefits: Drawbacks:
    Redeploy staff internally
    • Retains firm-specific knowledge.
    • Eliminates substantial costs of recruiting and terminating employees.
    • Mitigates risk; reduces the number of unknowns that come with acquiring talent.
    • Employees could already be fully or over-allocated.
    • Employees might lack the skills needed for the new or enhanced positions.
    Outsource
    • Best for addressing short-term, urgent needs, especially when the skills and knowledge required are too new or unfamiliar to manage internally.
    • Risk of sharing sensitive information with third parties.
    • Opportunity cost of not investing in knowledge and skills internally.
    Contract
    • Best when you are uncertain how long needs for particular skills or budget for extra capacity will last.
    • Diminished loyalty, engagement, and organizational culture.
    • Similar drawbacks as with outsourcing.
    Hire externally
    • Best for addressing long-term needs for strategic or core skills.
    • Builds capacity and expertise to support growing organizations for the long term.
    • High cost of recruiting and onboarding.
    • Uncertainty: risk that new hires might have misrepresented their skills or won’t fit culturally.
    • Commitment to paying for skills that might diminish in demand and value over time.
    • Economic uncertainty: high cost of layoffs and buyouts.

    Report HR and training plan status to the transition team

    3.3.6 10 minutes (and ongoing thereafter)

    Ensure that any changes or developments made to HR and training plans are captured in the Transition Plan Template where applicable.
    1. Upon completion of the activities in this step, ensure that the “Training Plan” section of the template reflects outcomes and decisions made during the preceding activities.
    2. Assign ongoing RACI roles for informing the transition team of HR and training plan changes; similarly define accountabilities for keeping the template itself up to date.
    • Record these roles within the template itself under the “Roles & Responsibilities” section.
  • Be sure to schedule a date for eliciting training feedback in the “Training Schedule” section of the template.
    • A simple survey, such as those discussed in step 3.2, can go a long way in both helping stakeholders feel more involved in the change, and in making sure training mistakes and weaknesses are not repeated again and again on subsequent change initiatives.

    • Info-Tech Insight

    Try more ad hoc training methods to offset uncertain project timelines.

    One of the top challenges organizations face around training is getting it timed right, given the changes to schedule and delays that occur on many projects.

    One tactic is to take a more ad hoc approach to training, such as making IT staff available in centralized locations after implementation to address staff issues as they come up.

    This will not only help eliminate the waste that can come from poorly timed and ineffective training sessions, but it will also help with employee morale, giving individuals a sense that they haven’t been left alone to navigate unfamiliar processes or technologies.

    Adoption can be difficult for some, but the cause is often confusion and misunderstanding

    CASE STUDY

    Industry Manufacturing

    Source Info-Tech Client

    Challenge
    • The strategy team responsible for the implementation of a new operation manual for the subsidiaries of a global firm was monitoring the progress of newly acquired firms as the implementation of the manual began.
    • They noticed that one department in a distant location was not meeting the new targets or fulfilling the reporting requirements on staff progress.
    Solution
    • The strategy team representative for the subsidiary firm went to the manager leading the department that was slow to adopt the changes.
    • When asked, the manager insisted that he did not have the time or resources to implement all of these changes while maintaining the operation of the department.
    • With true business value in mind, the manager said, they chose to keep the plant running.
    Results
    • The representative from the strategy team was surprised to find that the manager was having such trouble fitting the changes into daily operations as the changes were the daily operations.
    • The representative took the time to go through the new operation manual with the manager and explain that the changes replaced daily operations and were not additions to them.

    "The cause of slow adoption is often not anger or denial, but a genuine lack of understanding and need for clarification. Avoid snap decisions about a lack of adoption until staff understand the details." – IT Manager

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1.2 Undergo a stakeholder analysis to ensure positive stakeholder engagement

    Move away from a command-and-control approach to change by working with the analyst to develop a strategy that engages stakeholders in the change, making them feel like they are a part of it.

    3.2.3 Develop a stakeholder sentiment-sensitive communications strategy

    Work with the analyst to fine-tune the stakeholder messaging across various stakeholder responses to change.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    3.2.5 Define a stakeholder feedback and evaluation process

    Utilize analyst experience and perspective in order to develop strategy for effectively evaluating stakeholder feedback early enough that resistance and suggestions can be accommodated with the OCM strategy and project plan.

    3.2.7 Develop a strategy to cut off resistance to change

    Utilize analyst experience and perspective in order to develop an objections handling strategy to deal with resistance, objections, and fatigue.

    3.3.4 Develop the training plan to ensure that the right goals are set, and that training is properly timed and communicated

    Receive custom analyst insights on rightsizing training content and timing your training sessions effectively.

    Phase 4

    Establish a Post-Project Benefits Attainment Process

    Phase 4 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 4: Establish a Post-Project Benefits Attainment Process

    Proposed Time to Completion (in weeks): 1 to 2 weeks

    Step 4.1: Determine accountabilities for benefits attainment

    Discuss these issues with analyst:

    • Accountability for tracking the business outcomes of the project post-completion is frequently opaque, with little or no allocated resourcing.
    • As a result, projects may get completed, but their ROI to the organization is not tracked or understood.

    Then complete these activities…

    • Perform a post-implementation project review of the pilot OCM initiative.
    • Assign post-project benefits tracking accountabilities.
    • Implement a benefits tracking process and tool.

    With these tools & templates:

    • Portfolio Benefits Tracking Tool
    • Activity 4.1.2: “Assign ownership for realizing benefits after the project is closed”
    • Activity 4.1.3: “Define a post-project benefits tracking process”

    Step 4.1: Determine accountabilities for benefits attainment

    Phase 4 - 4.1

    This step will walk you through the following activities:
    • Conduct a post-implementation review of pilot OCM project.
    • Assign ownership for realizing benefits after the project is closed.
    • Define a post-project benefits tracking process.
    • Implement a tool to help monitor and track benefits over the long term.
    This step involves the following participants:
    • PMO Director
    • Project Sponsor
    • Project managers
    • Business analyst
    • Additional IT/PMO staff
    Outcomes of this step
    • Appropriate assignment of accountabilities for tracking benefits after the project has closed
    • A process for tracking benefits over the long-run
    • A benefits tracking tool

    Project benefits result from change

    A PMO that facilitates change is one that helps drive benefits attainment long after the project team has moved onto the next initiative.

    Organizations rarely close the loop on project benefits once a project has been completed.

    • The primary cause of this is accountability for tracking business outcomes post-project is almost always poorly defined, with little or no allocated resourcing.
    • Even organizations that define benefits well often neglect to manage them once the project is underway. If benefits realization is not monitored, the organization will miss opportunities to close the gap on lagging benefits and deliver expected project value.
    • It is commonly understood that the project manager and sponsor will need to work together to shift focus to benefits as the project progresses, but this rarely happens as effectively as it should.

    With all this in mind, in this step we will round out our PMO-driven org change process by defining how the PMO can help to better facilitate the benefits realization process.

    This section will walk you through the basic steps of developing a benefits attainment process through the PMO.

    For comprehensive guidance and tools, see Info-Tech’s Establish the Benefits Realization Process.

    Info-Tech Insight

    Two of a kind. OCM, like benefits realization, is often treated as “nice to have” rather than “must do.” These two processes are both critical to real project success; define benefits properly during intake and let OCM take the reigns after the project kicks off.

    The benefits realization process spans the project lifecycle

    Benefits realization ensures that the benefits defined in the business case are used to define a project’s expected value, and to facilitate the delivery of this value after the project is closed. The process begins when benefits are first defined in the business case, continues as benefits are managed through project execution, and ends when the loop is closed and the benefits are actually realized after the project is closed.

    Benefits Realization
    Define Manage Realize
    Initial Request Project Kick Off *Solution Is Deployed
    ↓ ↓ ↓
    Business Case Approved Project Execution Solution Maintenance
    ↓ ↓ ↓
    PM Assigned *Project Close Solution Decommissioned

    *For the purposes of this step, we will limit our focus to the PMO’s responsibilities for benefits attainment at project close-out and in the project’s aftermath to ensure that responsibilities for tracking business outcomes post-project have been properly defined and resourced.

    Ultimate project success hinges on a fellowship of the benefits

    At project close-out, stewardship of the benefits tracking process should pass from the project team to the project sponsor.

    As the project closes, responsibility for benefits tracking passes from the project team to the project sponsor. In many cases, the PMO will need to function as an intermediary here, soliciting the sponsor’s involvement when the time comes.

    The project manager and team will likely move onto another project and the sponsor (in concert with the PMO) will be responsible for measuring and reporting benefits realization.

    As benefits realization is measured, results should be collated by the PMO to validate results and help flag lagging benefits.

    The activities that follow in this step will help define this process.

    The PMO should ensure the participation of the project sponsor, the project manager, and any applicable members of the business side and the project team for this step.

    Ideally, the CIO and steering committee members should be involved as well. At the very least, they should be informed of the decisions made as soon as possible.

    Initiation-Planning-Execution-Monitoring & Controlling-Closing

    Conduct post-implementation review for your pilot OCM project

    4.1.1 60 minutes

    The post-project phase is the most challenging because the project team and sponsor will likely be busy with other projects and work.

    Conducting a post-implementation review for every project will force sponsors and other stakeholders to assess actual benefits realization and identify lagging benefits.

    If the project is not achieving its benefits, a remediation plan should be created to attempt to capture these benefits as soon as possible.

    Agenda Item
    Assess Benefits Realization
    • Compare benefits realized to projected benefits.
    • Compare benefit measurements with benefit targets.
    Assess Quality
    • Performance
    • Availability
    • Reliability
    Discuss Ongoing Issues
    • What has gone wrong?
    • Frequency
    • Cause
    • Resolution
    Discuss Training
    • Was training adequate?
    • Is any additional training required?
    Assess Ongoing Costs
    • If there are ongoing costs, were they accounted for in the project budget?
    Assess Customer Satisfaction
    • Review stakeholder surveys.

    Assign ownership for realizing benefits after the project is closed

    4.1.2 45 to 60 minutes

    The realization stage is the most difficult to execute and oversee. The project team will have moved on, and unless someone takes accountability for measuring benefits, progress will not be measured. Use the sample RACI table below to help define roles and responsibilities for post-project benefits attainment.

    Process Step Responsible Accountable Consulted Informed
    Track project benefits realization and document progress Project sponsor Project sponsor PMO (can provide tracking tools and guidance), and directors or managers in the affected business unit who will help gather necessary metrics for the sponsor (e.g. report an increase in sales 3 months post-project) PMO (can collect data and consolidate benefits realization progress across projects)
    Identify lagging benefits and perform root cause analysis Project sponsor and PMO Project sponsor and PMO Affected business unit CIO, IT steering committee
    Adjust benefits realization plan as needed Project sponsor Project sponsor Project manager, affected business units Any stakeholders impacted by changes to plan
    Report project success PMO PMO Project sponsor IT and project steering committees

    Info-Tech Insight

    A business accountability: Ultimately, the sponsor must help close this loop on benefits realization. The PMO can provide tracking tools and gather and report on results, but the sponsor must hold stakeholders accountable for actually measuring the success of projects.

    Define a post-project benefits tracking process

    4.1.3 45 minutes

    While project sponsors should be accountable for measuring actual benefits realization after the project is closed, the PMO can provide monitoring tools and it should collect measurements and compare results across the portfolio.

    Steps in a benefits tracking process.

    1. Collate the benefits of all the projects in your portfolio. Document each project’s benefits, with the metrics, targets, and realization timelines of each project in a central location.
    2. Collect and document metric measurements. The benefit owner is responsible for tracking actual realization and reporting it to the individual(s) tracking portfolio results.
    3. Create a timeline and milestones for benefits tracking. Establish a high-level timeline for assessing benefits, and put reminders in calendars accordingly, to ensure that commitments do not fall off stakeholders’ radars.
    4. Flag lagging benefits for further investigation. Perform root cause analysis to then find out why a benefit is behind schedule, and what can be done to address the problem.

    "Checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve, and where they lack knowledge or information."
    – Peter Drucker

    Implement a tool to help monitor and track benefits over the long term

    4.1.4 Times will vary depending on organizational specifics of the inputs

    Download Info-Tech’s Portfolio Benefits Tracking Tool to help solidify the process from the previous step.

    1. Document each project’s benefits, with the metrics, targets, and realization timelines. Tab 1 of the tool is a data entry sheet to capture key portfolio benefit forecasts throughout the project.
    2. Collect and document metric measurements. Tab 2 is where the PMO, with data from the project sponsors, can track actuals month after month post-implementation.
    3. Flag lagging benefits for further investigation. Tab 3 provides a dashboard that makes it easy to flag lagging benefits. The dashboard produces a variety of meaningful benefit reports including a status indication for each project’s benefits and an assessment of business unit performance.

    Continue to increase accountability for benefits and encourage process participation

    Simply publishing a set of best practices will not have an impact unless accountability is consistently enforced. Increasing accountability should not be complicated. Focus on publicly recognizing benefit success. As the process matures, you should be able to use benefits as a more frequent input to your budgeting process.

    • Create an internal challenge. Publish the dashboard from the Portfolio Benefits Tracking Tool and highlight the top 5 or 10 projects that are on track to achieve benefits. Recognize the sponsors and project team members. Recognizing individuals for benefits success will get people excited and encourage an increased focus on benefits.
    • With executive level involvement, the PMO could help institute a bonus structure based on benefits realization. For instance, project teams could be rewarded with bonuses for achieving benefits. Decide upon a set post-project timeline for determining this bonus. For example, 6 months after every project goes live, measure benefits realization. If the project has realized benefits, or is on track to realize benefits, the PM should be given a bonus to split with the team.
    • Include level of benefits realization in the performance reviews of project team members.
    • As the process matures, start decreasing budgets according to the monetary benefits documented in the business case (if you are not already doing so). If benefits are being used as inputs to the budgeting process, sponsors will need to ensure that they are defined properly.

    Info-Tech Insight

    Don’t forget OCM best practices throughout the benefits tracking process. If benefits are lagging, the PMO should revisit phase 3 of this blueprint to consider how challenges to adoption are negatively impacting benefits attainment.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    4.1.2 Assign appropriate ownership and ensure adequate resourcing for realizing benefits after the project is closed

    Get custom insights into how the benefits tracking process should be carried out post-project at your organization to ensure that intended project outcomes are effectively monitored and, in the long run, achieved.

    4.1.4 Implement a benefits tracking tool

    Let our analysts customize a home-grown benefits tracking tool for your organization to ensure that the PMO and project sponsors are able to easily track benefits over time and effectively pivot on lagging benefits.

    Phase 5

    Solidify the PMO’s Role as Change Leader

    Phase 5 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 5: Solidify the PMO’s role as change leader

    Proposed Time to Completion (in weeks): 1 to 2 weeks

    Step 5.1: Institute an organizational change management playbook

    Discuss these issues with an analyst:

    • With the pilot OCM initiative complete, the PMO will need to roll out an OCM program to accommodate all of the organization’s projects.
    • The PMO will need to facilitate organization-wide OCM accountabilities – whether it’s the PMO stepping into the role of OCM leader, or other appropriate accountabilities being assigned.

    Then complete these activities…

    • Review the success of the pilot OCM initiative.
    • Define organizational roles and responsibilities for change management.
    • Formalize the Organizational Change Management Playbook.

    With these tools & templates:

    • Organizational Change Management Playbook
    • Activity 5.1.1: “Review lessons learned to improve organizational change management as a core discipline of the PMO”
    • Activity 5.1.3: “Define ongoing organizational roles and responsibilities for change management”

    Step 5.1: Institute an organizational change management playbook

    Phase 5 - 5.1

    This step will walk you through the following activities:
    • Review lessons learned to improve OCM as a core discipline of the PMO.
    • Monitor organizational capacity for change.
    • Define organizational roles and responsibilities for change management.
    • Formalize the Organizational Change Management Playbook.
    • Assess the value and success of the PMO’s OCM efforts.
    This step involves the following participants:
    • Required: PMO Director; PMO staff
    • Strongly recommended: CIO and other members of the executive layer
    Outcomes of this step
    • A well-defined organizational mandate for change management, whether through the PMO or another appropriate stakeholder group
    • Definition of organizational roles and responsibilities for change management
    • An OCM playbook
    • A process and tool for ongoing assessment of the value of the PMO’s OCM activities

    Who, in the end, is accountable for org change success?

    We return to a question that we started with in the Executive Brief of this blueprint: who is accountable for organizational change?

    If nobody has explicit accountability for organizational change on each project, the Officers of the corporation retained it. Find out who is assumed to have this accountability.

    On the left side of the image, there is a pyramid with the following labels in descending order: PMO; Project Sponsors; Officers; Directors; Stakeholders. The top three tiers of the pyramid have upward arrows connecting one section to the next; the bottom three tiers have downward pointing arrows, connecting one section to the next. On the right side of the image is the following text: If accountability for organizational change shifted to the PMO, find out and do it right. PMOs in this situation should proceed with this step. Officers of the corporation have the implicit fiduciary obligation to drive project benefits because they ultimately authorize the project spending. It’s their job to transfer that obligation, along with the commensurate resourcing and authority. If the Officers fail to make someone accountable for results of the change, they are failing as fiduciaries appointed by the Board of Directors. If the Board fails to hold the Officers accountable for the results, they are failing to meet the obligations they made when accepting election by the Shareholders.

    Info-Tech Insight

    Will the sponsor please stand up?

    Project sponsors should be accountable for the results of project changes. Otherwise, people might assume it’s the PMO or project team.

    Keep your approach to change management dynamic while building around the core discipline

    The PMO will need to establish an OCM playbook that can scale to a wide variety of projects. Avoid rigidity of processes and keep things dynamic as you build up your OCM muscles as an organization.

    Continually Develop

    Change Management Capabilities

    Progressively build a stable set of core capabilities.

    The basic science of human behavior underlying change management is unlikely to change. Effective engagement, communication, and management of uncertainty are valuable capabilities regardless of context and project specifics.

    Regularly Update

    Organizational Context

    Regularly update recurring activities and artifacts.

    The organization and the environment in which it exists will constantly evolve. Reusing or recycling key artifacts will save time and improve collaboration (by leveraging shared knowledge), but you should plan to update them on at least a quarterly or annual basis.

    Respond To

    Future Project Requirements

    Approach every project as unique.

    One project might involve more technology risk while another might require more careful communications. Make sure you divide your time and effort appropriately for each particular project to make the most out of your change management playbook.

    Info-Tech Insight

    Continuous Change. Continuous Improvement. Change is an ongoing process. Your approach to managing change should be continually refined to keep up with changes in technology, corporate strategy, and people involved.

    Review lessons learned to improve organizational change management as a core discipline of the PMO

    5.1.1 60 minutes

    1. With your pilot OCM initiative in mind, retrospectively brainstorm lessons learned using the template below. Info-Tech recommends doing this with the transition team. Have people spend 10-15 minutes brainstorming individually or in 2- to 3-person groups, then spend 15-30 minutes presenting and discussing findings collectively.

    What worked? What didn't work? What was missing?

    2. Develop recommendations based on the brainstorming and analysis above.

    Continue... Stop... Start...

    Monitor organizational capacity for change

    5.1.2 20 minutes (to be repeated quarterly or biannually thereafter)

    Perform the Organizational Change Management Capabilities Assessment in the wake of the OCM pilot initiative and lessons learned exercise to assess capabilities’ improvements.

    As your OCM processes start to scale out over a range of projects across the organization, revisit the assessment on a quarterly or bi-annual basis to help focus your improvement efforts across the 7 change management categories that drive the survey.

    • Cultural Readiness
    • Leadership & Sponsorship
    • Organizational Knowledge
    • Change Management Skills
    • Toolkit & Templates
    • Process Discipline
    • KPIs & Metrics

    The image is a bar graph, with the above mentioned change management categories on the Y-axis, and the categories Low, Medium, and High on the X-axis.

    Info-Tech Insight

    Continual OCM improvement is a collaborative effort.

    The most powerful way to drive continual improvement of your organizational change management practices is to continually share progress, wins, challenges, feedback, and other OCM related concerns with stakeholders. At the end of the day, the PMO’s efforts to become a change leader will all come down to stakeholder perceptions based upon employee morale and benefits realized.

    Define ongoing organizational roles and responsibilities for change management

    5.1.3 60 minutes

    1. Decide whether to designate/create permanent roles for managing change.
    • Recommended if the PMO is engaged in at least one project at any given time that generates organizational change.
  • Designate a principle change manager (if you choose to) – it is likely that responsibilities will be given to someone’s existing position (such as PM or BA).
    • Make sure any permanent roles are embedded in the organization (e.g. within the PMO, rather than trying to establish a one-person “Change Management Office”) and have leadership support.
  • Consider whether to build a team of permanent change champions – it is likely that responsibilities will be given to existing positions.
    • This type of role is increasingly common in organizations that are aggressively innovating and keeping up with consumer technology adoption. If your organization already has a program like this for engaging early adopters and innovators, build on what’s already established.
    • Work with HR to make sure this is aligned with any existing training and development programs.

    • Info-Tech Insight

    Avoid creating unnecessary fiefdoms.

    Make sure any permanent roles are embedded in the organization (e.g. within the PMO) and have leadership support.

    Copy the RACI table from Activity 3.1.1. and repurpose it to help define the roles and responsibilities.

    Include this RACI when you formalize your OCM Playbook.

    Formalize and communicate the Organizational Change Management Playbook

    5.1.4 45 to 60 minutes

    1. Formalize the playbook’s scope:
      1. Determine the size and type of projects for which organizational change management is recommended.
      2. Make sure you clearly differentiate organizational change management and enablement from technical change management (i.e. release management and acceptance).
    2. Refine and formalize tools and templates:
      1. Determine how you want to customize the structure of Info-Tech’s blueprint and templates, tailored to your organization in the future.
        1. For example:
          1. Establish a standard framework for analyzing context around organizational change.
      2. Add branding/design elements to the templates to improve their credibility and impact as internal documents.
      3. Determine where/how templates and other resources are to be found and make sure they will be readily available to anyone who needs them (e.g. project managers).
    3. Communicate the playbook to the project management team.

    Download Info-Tech’s Organizational Change Management Playbook.

    Regularly reassess the value and success of your practices relative to OCM effort and project outcomes

    5.1.5 20 minutes per project

    The image is a screencapture of the Value tab of the Organizational Change: Management Capabilities Assessment

    Use the Value tab in the Organizational Change Management Capabilities Assessment to monitor the value and success of OCM.

    Measure past performance and create a baseline for future success:

    • % of expected business benefits realized on previous 3–5 significant projects/programs.
      • Track business benefits (costs reduced, productivity increased, etc.).
    • Costs avoided/reduced (extensions, cancellations, delays, roll-backs, etc.)
      • Establish baseline by estimating average costs of projects extended to deal with change-related issues.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    5.1.3 Define ongoing organizational roles and responsibilities for change management

    As you scale out an OCM program for all of the organization’s projects based on your pilot initiative, work with the analyst to investigate and define the right accountabilities for ongoing, long-term OCM.

    5.1.4 Develop an Organizational Change Management Playbook

    Formalize a programmatic process for organizational change management in Info-Tech’s playbook template.

    Related research

    Develop a Project Portfolio Management Strategy

    Grow Your Own PPM Solution

    Optimize Project Intake, Approval, and Prioritization

    Develop a Resource Management Strategy for the New Reality

    Manage a Minimum-Viable PMO

    Establish the Benefits Realization Process

    Manage an Agile Portfolio

    Project Portfolio Management Diagnostic Program: The Project Portfolio Management Diagnostic Program is a low effort, high impact program designed to help project owners assess and improve their PPM practices. Gather and report on all aspects of your PPM environment in order to understand where you stand and how you can improve.

    Bibliography

    Basu, Chirantan. “Top Organizational Change Risks.” Chiron. Web. June 14, 2016.

    Beatty, Carol. “The Tough Work of Managing Change.” Queens University. 2015. Web. June 14, 2016.

    Brown, Deborah. “Change Management: Some Statistics.” D&B Consulting Inc. May 15, 2014. Web. June 14, 2016.

    Burke, W. Warner. Organizational Change: Theory and Practice. 4th Edition. London: Sage, 2008.

    Buus, Inger. “Rebalancing Leaders in Times of Turbulence.” Mannaz. February 8, 2013. Web. June 14, 2016.

    Change First. “Feedback from our ROI change management survey.” 2010. Web. June 14, 2016.

    Collins, Jeff. “The Connection between User Adoption and Project Management Success.” Innovative Management Solutions. Sept. 21, 2013. Web. June 14, 2016.

    Craddock, William. “Change Management in the Strategic Alignment of Project Portfolios.” PMI. 2015. Web. June 14, 2016.

    Denning, Steve. “The Four Stories you Need to Lead Deep Organizational Change.” Forbes. July 25, 2011. Web. June 14, 2016.

    Drucker, Peter. “What Makes an Effective Executive.” Harvard Business Review. June 2004. Web. June 14, 2016

    Elwin, Toby. “Highlight Change Management – An Introduction to Appreciative Inquiry.” July 6, 2012. Web. June 14, 2016.

    Enstrom, Christopher. “Employee Power: The Bases of Power Used by Front-Line Employees to Effect Organizational Change.” MA Thesis. University of Calgary. April 2003. Web. June 14, 2016.

    Ewenstein, Boris, Wesley Smith, and Ashvin Sologar. “Changing Change Management.” McKinsey & Company. July 2015. Web. June 14, 2016.

    International Project Leadership Academy. “Why Projects Fail: Facts and Figures.” Web. June 14, 2016.

    Jacobs-Long, Ann. “EPMO’s Can Make A Difference In Your Organization.” May 9, 2012. Web. June 14, 2016.

    Kotter, John. Leading Change. Boston: Harvard Business School Press, 1996.

    Latham, Ross. “Information Management Advice 55 Change Management: Preparing for Change.” TAHO. March 2014. Web. June 14, 2016.

    Linders, Ben. “Finding Ways to Improve Business – IT Collaboration.” InfoQ. June 6, 2013. Web. June 14, 2016

    Machiavelli, Niccolo. The Prince, selections from The Discourses and other writings. Ed. John Plamenatz. London: Fontana/Collins, 1972.

    Michalak, Joanna Malgorzata. “Cultural Catalyst and Barriers to Organizational Change Management: a Preliminary Overview.” Journal of Intercultural Management. 2:2. November 2010. Web. June 14, 2016.

    Miller, David, and Mike Oliver. “Engaging Stakeholder for Project Success.” PMI. 2015. Web. June 14, 2016.

    Parker, John. “How Business Analysts Can Identify Quick Wins.” EnFocus Solutions. February 15, 2013. Web. June 14, 2016.

    Paulk, January. “The Fundamental Role a Change Impact Analysis Plays in an ERP Implementation.” Panorma Consulting Solutions. March 24, 2014. Web. June 14, 2016.

    Petouhoff, Natalie, Tamra Chandler, and Beth Montag-Schmaltz. “The Business Impact of Change Management.” Graziadio Business Review. 2006. Web. June 14, 2016.

    PM Solutions. “The State of the PMO 2014.” 2014. Web. June 14, 2016.

    PMI. “Pulse of the Profession: Enabling Organizational Change Throughout Strategic Initiatives.” March 2014. Web. June 14, 2016.

    PMI. “Pulse of the Profession: Executive Sponsor Engagement.” October 2014. Web. June 14, 2016.

    PMI. “Pulse of the Profession: the High Cost of Low Performance.” February 2014. Web. June 14, 2016.

    Powers, Larry, and Ketil Been. “The Value of Organizational Change Management.” Boxley Group. 2014. Web. June 14, 2016.

    Prosci. “Best Practices in Change Management – 2014 Edition: Executive Overview.” Web. June 14, 2016.

    Prosci. “Change Management Sponsor Checklist.” Web. June 14, 2016.

    Prosci. “Cost-benefit analysis for change management.” 2014. Web. June 14, 2016.

    Prosci. “Five Levers of Organizational Change.” 2016. Web. June 14, 2016.

    Rick, Torben. “Change Management Requires a Compelling Story.” Meliorate. October 3, 2014. Web. June 14, 2016.

    Rick, Torben. “The Success Rate of Organizational Change Initiatives.” Meliorate. October 13, 2014. Web. June 14, 2016.

    Schwartz, Claire. “Implementing and Monitoring Organizational Change: Part 3.” Daptiv Blogs. June 24, 2013. Web. June 14, 2016.

    Simcik, Shawna. “Shift Happens! The Art of Change Management.” Innovative Career Consulting, Inc. Web. June 14, 2016.

    Stewart Group. “Emotional Intelligence.” 2014. Web. June 14, 2016.

    Thakur, Sidharth. “Improve your Project’s Communication with These Inspirational Quotes.” Ed. Linda Richter. Bright Hub Project Management. June 9, 2012. Web. June 14, 2016.

    Training Folks. “Implementing and Supporting Training for Important Change Initiatives.” 2012. Web. June 14, 2016.

    Warren, Karen. “Make your Training Count: The Right Training at the Right Time.” Decoded. April 12, 2015. Web. June 14, 2016.

    Willis Towers Watson. “Only One-Quarter of Employers Are Sustaining Gains from Change Management Initiatives, Towers Watson Survey Finds.” August 29, 2013. Web. June 14, 2016.

    Improve Service Desk Ticket Intake

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    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk

    • Customers expect a consumer experience with IT. It won’t be long until this expectation expands to IT service support.
    • Messaging and threads are becoming central to how businesses organize information and conversations, but voice isn’t going away. It is still by far people’s favorite channel.
    • Tickets are becoming more complicated. BYOD, telework, and SaaS products present a perfect storm.
    • Traditional service metrics are not made for self service. Your mean-time-to-resolve will increase and first-contact resolution will decrease.

    Our Advice

    Critical Insight

    • Bring the service desk to the people. Select channels that are most familiar to your users, and make it as easy possible to talk to a human.
    • Integrate channels. Users should have a consistent experience, and technicians should know user history.
    • Don’t forget the human aspect. People aren’t always good with technology. Allow them to contact a person if they are struggling.

    Impact and Result

    • Define which channels will be prioritized.
    • Identify improvements to these channels based on best practices and our members’ experiences.
    • Streamline your ticket intake process to remove unnecessary steps.
    • Prioritize improvements based on their value. Implement a set of improvements every quarter.

    Improve Service Desk Ticket Intake Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should improve your ticket intake, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define and prioritize ticket channels

    Align your improvements with business goals and the shift-left strategy.

    • Improve Service Desk Ticket Intake – Phase 1: Define and Prioritize Ticket Channels
    • Service Desk Maturity Assessment
    • Service Desk Improvement Presentation Template

    2. Improve ticket channels

    Record potential improvements in your CSI Register, as you review best practices for each channel.

    • Improve Service Desk Ticket Intake – Phase 2: Improve Ticket Channels
    • Service Desk Continual Improvement Roadmap
    • Service Desk Ticket Intake Workflow Samples (Visio)
    • Service Desk Ticket Intake Workflow Samples (PDF)
    • Service Definition Checklist
    • Service Desk Site Visit Checklist Template

    3. Define next steps

    Streamline your ticket intake process and prioritize opportunities for improvement.

    • Improve Service Desk Ticket Intake – Phase 3: Define Next Steps
    [infographic]

    Workshop: Improve Service Desk Ticket Intake

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Optimize Ticket Channels

    The Purpose

    Brainstorm improvements to your systems and processes that will help you optimize.

    Key Benefits Achieved

    Develop a single point of contact.

    Reduce the time before a technician can start productively working on a ticket.

    Enable Tier 1 and end users to complete more tickets.

    Activities

    1.1 Prioritize channels for improvement.

    1.2 Optimize the voice channel.

    1.3 Identify improvements for self service.

    1.4 Improve Tier 1 agents’ access to information.

    1.5 Optimize supplementary ticket channels.

    Outputs

    Action items to improve the voice channel.

    Populated CSI Register for self-service channels.

    Identified action items for the knowledgebase.

    Populated CSI Register for additional ticket channels.

    2 Streamline Ticket Intake

    The Purpose

    Create long-term growth by taking a sustainable approach to improvements.

    Key Benefits Achieved

    Streamline your overall ticket intake process for incidents and service requests.

    Activities

    2.1 Map out the incident intake processes.

    2.2 Identify opportunities to streamline the incident workflow.

    2.3 Map out the request processes.

    2.4 Identify opportunities to streamline the request workflow.

    Outputs

    Streamlined incident intake process.

    Streamlined request intake process.

    Populated CSI Register for request intake.

    Portfolio Management

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    • member rating overall impact: 9.6/10
    • member rating average dollars saved: $40,234
    • member rating average days saved: 30
    • Parent Category Name: Applications
    • Parent Category Link: /applications
    • byline: Develop your project portfolio management strategy.

    The challenge

    • Typically your business wants much more than your IT development organization can deliver with the available resources at the requested quality levels.
    • Over-damnd has a negative influence on delivery throughput. IT starts many projects (or features) but has trouble delivering most of them within the set parameters of scope, time, budget, and quality. Some requested deliverables may even be of questionable value to the business.
    • You may not have the right project portfolio management (PPM) strategy to bring order in IT's delivery activities and to maximize business value.

    Our advice

    Insight

    • Many in IT mix PPM and project management. Your project management playbook does not equate to the holistic view a real PPM practice gives you.
    • Some organizations also mistake PPM for a set of processes. Processes are needed, but a real strategy works towards tangible goals.
    • PPM works at the strategic level of the company; hence executive buy-in is critical. Without executive support, any effort to reconcile supply and demand will be tough to achieve.

    Impact and results 

    • PPM is a coherent business-aligned strategy that maximizes business value creation across the entire portfolio, rather than in each project.
    • Our methodology tackles the most pressing challenge upfront: get executive buy-in before you start defining your goals. With senior management behind the plan, implementation will become easier.
    • Create PPM processes that are a cultural fit for your company. Define your short and long-term goals for your strategy and support them with fully embedded portfolio management processes.

    The roadmap

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    Get started.

    Read our executive brief to understand why you should develop a PPM strategy and understand how our methodology can help you. We show you how we can support you.

    Obtain executive buy-in for your strategy

    Ensure your strategy is a cultural fit or cultural-add for your company.

    • Develop a Project Portfolio Management Strategy – Phase 1: Get Executive Buy-In for Your PPM Strategy (ppt)
    • PPM High-Level Supply-Demand Calculator (xls)
    • PPM Strategic Plan Template (ppt)
    • PPM Strategy-Process Goals Translation Matrix Template (xls)

    Align the PPM processes to your company's strategic goals

    Use the advice and tools in this stage to align the PPM processes.

    • Develop a Project Portfolio Management Strategy – Phase 2: Align PPM Processes to Your Strategic Goals (ppt)
    • PPM Strategy Development Tool (xls)

    Refine and complete your plan

    Use the inputs from the previous stages and add a cost-benefit analysis and tool recommendation.

    • Streamline Application Maintenance – Phase 3: Optimize Maintenance Capabilities (ppt)

    Streamline your maintenance delivery

    Define quality standards in maintenance practices. Enforce these in alignment with the governance you have set up. Show a high degree of transparency and open discussions on development challenges.

    • Develop a Project Portfolio Management Strategy – Phase 3: Complete Your PPM Strategic Plan (ppt)
    • Project Portfolio Analyst / PMO Analyst (doc)

     

     

    Cost-Optimize Your Security Budget

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    • member rating overall impact: 9.0/10 Overall Impact
    • member rating average dollars saved: $2,078 Average $ Saved
    • member rating average days saved: 2 Average Days Saved
    • Parent Category Name: Security Strategy & Budgeting
    • Parent Category Link: /security-strategy-and-budgeting
    • The security budget has been slashed and the team needs to do more with less.
    • Mitigating risk is still the top priority, only now we need to reassess effectiveness and efficiency to ensure we are getting the greatest level of protection for the least amount of money.

    Our Advice

    Critical Insight

    A cost-optimized security budget is one that has the greatest impact on risk for the least amount of money spent.

    Impact and Result

    • Focus on business needs and related risks. Review the risk-reduction efficacy of your people, processes, and technology and justify what can be cut and what must stay.
    • Info-Tech will guide you through this process, and by the end of this blueprint you will have a cost-optimized security budget and an executive presentation to explain your revised spending.

    Cost-Optimize Your Security Budget Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should cost-optimize your security budget, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Cost-optimize your technology and managed services

    This phase will help you assess the efficacy of your current technology and service providers.

    • Threat and Risk Assessment Tool
    • In-House vs. Outsourcing Decision-Making Tool

    2. Cost-optimize your staffing

    This phase will help you assess if layoffs are necessary.

    • Security Employee Layoff Selection Tool

    3. Cost-optimize your security strategy

    This phase will help you revise the pending process-based initiatives in your security strategy.

    • Security Cost Optimization Workbook
    • Security Cost Optimization Executive Presentation
    [infographic]

    Leadership, Culture and Values

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    • member rating overall impact: 9.4/10
    • member rating average dollars saved: $912
    • member rating average days saved: 7
    • Parent Category Name: People and Resources
    • Parent Category Link: /people-and-resources
    • byline: Build your employee engagement program.

    The challenge

    • Your talent pool determines IT performance and stakeholder satisfaction. You need to retain talent and continually motivate them to go the extra mile.
    • The market for IT talent is growing, in the sense that talent has many more options these days. Turnover is a serious threat to IT's ability to deliver top-notch service to your company.
    • Engagement is more than HR's responsibility. IT leadership is accountable for the retention of top talent and the overall productivity of IT employees.

    Our advice

    Insight

    • Engagement goes both ways. Your initiatives must address a real need, and employees must actively seek the outcomes. Engagement is not a management edict.
    • Engagement is not about access to the latest perks and gadgets. You must address the right and challenging issues. Use a systematic approach to find what lives among the employees and address these.
    • Your impact on your employees is many times bigger than HR's. Leverage your power to lead your team to success and peak performance.

    Impact and results 

    • Our engagement diagnostic and other tools will help get to the root of disengagement in your team.
    • Our guidance helps you to avoid common errors and engagement program pitfalls. They allow you to take control of your own team's engagement.

    The roadmap

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    Get started

    Our concise executive brief shows you why engagement is critical to IT performance in your company. We'll show you our methodology and the ways we can help you in handling this.

    Measure your employee engagement

    You can use our full engagement surveys.

    • Improve Employee Engagement to Drive IT Performance – Phase 1: Measure Employee Engagement (ppt)
    • Engagement Strategy Record (doc)
    • Engagement Communication Template (doc)

    Analyze the results and brainstorm solutions

    Understand your employees' engagement drivers. Involve your team in brainstorming engagement initiatives.

    • Improve Employee Engagement to Drive IT Performance – Phase 2: Analyze Results and Ideate Solutions (ppt)
    • Engagement Survey Results Interpretation Guide (ppt)
    • Full Engagement Survey Focus Group Facilitation Guide (ppt)
    • Pulse Engagement Survey Focus Group Facilitation Guide (ppt)
    • Focus Group Facilitation Guide Driver Definitions (doc)
    • One-on-One Manager Meeting Worksheet (doc)

    Select and implement engagement initiatives

    Choose those initiatives that show the most promise with the most significant impact. Create your action plan and establish transparent and open, and ongoing communication with your team.

    • IT Knowledge Transfer Plan Template (xls)
    • IT Knowledge Identification Interview Guide Template (doc)

    Build your knowledge transfer roadmap

    Knowledge transfer is an ongoing effort. Prioritize and define your initiatives.

    • Improve Employee Engagement to Drive IT Performance – Phase 3: Select and Implement Engagement Initiatives (ppt)
    • Summary of Interdepartmental Engagement Initiatives (doc)
    • Engagement Progress One-Pager (ppt)

     

    Evaluate and Learn From Your Negotiation Sessions More Effectively

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Forty-eight percent of CIOs believe their budgets are inadequate.
    • CIOs and IT departments are getting more involved with negotiations to reduce costs and risk.
    • Confident negotiators tend to be more successful, but even confident negotiators have room to improve.
    • Skilled negotiators are in short supply.

    Our Advice

    Critical Insight

    • Improving your negotiation skills requires more than practice or experience (i.e. repeatedly negotiating).
    • Creating and updating a negotiations lessons-learned library helps negotiators improve and provides a substantial return for the organization.
    • Failure is a great teacher; so is success … but you have to pay attention to indicators, not just results.

    Impact and Result

    Addressing and managing the negotiation debriefing process will help you:

    • Improve negotiation skills.
    • Implement your negotiation strategy more effectively.
    • Improve negotiation results.

    Evaluate and Learn From Your Negotiation Sessions More Effectively Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create and follow a scalable process for preparing to negotiate with vendors, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Negotiations continuing

    This phase will help you debrief after each negotiation session and identify the parts of your strategy that must be modified before your next negotiation session.

    • Evaluate and Learn From Your Negotiation Sessions More Effectively – Phase 1: Negotiations Continuing

    2. Negotiations completed

    This phase will help you conduct evaluations at three critical points after the negotiations have concluded.

    • Evaluate and Learn From Your Negotiation Sessions More Effectively – Phase 2: Negotiations Completed
    [infographic]

    Workshop: Evaluate and Learn From Your Negotiation Sessions More Effectively

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 12 Steps to Better Negotiation Preparation

    The Purpose

    Improve negotiation skills and outcomes; share lessons learned.

    Understand the value of debriefing sessions during the negotiation process.

    Understand how to use the Info-Tech After Negotiations Tool.

    Key Benefits Achieved

    A better understanding of how and when to debrief during the negotiation process to leverage key insights.

    The After Negotiations Tool will be reviewed and configured for the customer’s environment (as applicable).

    Activities

    1.1 Debrief after each negotiation session

    1.2 Determine next steps

    1.3 Return to preparation phase

    1.4 Conduct Post Mortem #1

    1.5 Conduct Implementation Assessment

    1.6 Conduct Post Mortem #2

    Outputs

    Negotiation Session Debrief Checklist and Questionnaire

    Next Steps Checklist

    Discussion

    Post Mortem #1 Checklist & Dashboard

    Implementation Assessment Checklist and Questionnaire

    Post Mortem #2 Checklist & Dashboard

    Strengthen the SSDLC for Enterprise Mobile Applications

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    • Parent Category Name: Mobile Development
    • Parent Category Link: /mobile-development
    • CEOs see mobile for employees as their top mandate for upcoming technology innovation initiatives, making security a key competency for development.
    • Unsecure mobile applications can cause your employees to question the mobile applications’ integrity for handling sensitive data, limiting uptake.
    • Secure mobile development tends to be an afterthought, where vulnerabilities are tested for post-production rather than during the build process.
    • Developers lack the expertise, processes, and proper tools to effectively enhance applications for mobile security.

    Our Advice

    Critical Insight

    • Organizations currently react to security issues. Info-Tech recommends a proactive approach to ensure a secure software development life cycle (SSDLC) end-to-end.
    • Organizations currently lack the secure development practices to provide highly secure mobile applications that end users can trust.
    • Enable your developers with five key secure development techniques from Info-Tech’s development toolkit.

    Impact and Result

    • Embed secure development techniques into your SDLC.
    • Create a repeatable process for your developers to continually evaluate and optimize mobile application security for new threats and corresponding mitigation steps.
    • Build capabilities within your team based on Info-Tech’s framework by supporting ongoing security improvements through monitoring and metric analysis.

    Strengthen the SSDLC for Enterprise Mobile Applications Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should adopt secure development techniques for mobile application development, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess secure mobile development processes

    Determine the current security landscape of mobile application development.

    • Strengthen the SSDLC for Enterprise Mobile Applications – Phase 1: Assess Secure Mobile Development Practices
    • Systems Architecture Template
    • Mobile Application High-Level Design Requirements Template

    2. Implement and test secure mobile techniques

    Incorporate the various secure development techniques into current development practices.

    • Strengthen the SSDLC for Enterprise Mobile Applications – Phase 2: Implement and Test Secure Mobile Techniques

    3. Monitor and support secure mobile applications

    Create a roadmap for mobile optimization initiatives.

    • Strengthen the SSDLC for Enterprise Mobile Applications – Phase 3: Monitor and Support Secure Mobile Applications
    • Mobile Optimization Roadmap
    [infographic]

    Workshop: Strengthen the SSDLC for Enterprise Mobile Applications

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Assess Your Secure Mobile Development Practices

    The Purpose

    Identification of the triggers of your secure mobile development initiatives.

    Assessment of the security vulnerabilities in your mobile applications from an end-user perspective.

    Identification of the execution of your mobile environment.

    Assessment of the mobile threats and vulnerabilities to your systems architecture.

    Prioritization of your mobile threats.

    Creation of your risk register.

    Key Benefits Achieved

    Key opportunity areas where a secure development optimization initiative can provide tangible benefits.

    Identification of security requirements.

    Prioritized list of security threats.

    Initial mobile security risk register created. 

    Activities

    1.1 Establish the triggers of your secure mobile development initiatives.

    1.2 Assess the security vulnerabilities in your mobile applications from an end-user perspective.

    1.3 Understand the execution of your mobile environment with a systems architecture.

    1.4 Assess the mobile threats and vulnerabilities to your systems architecture.

    1.5 Prioritize your mobile threats.

    1.6 Begin building your risk register.

    Outputs

    Mobile Application High-Level Design Requirements Document

    Systems Architecture Diagram

    2 Implement and Test Your Secure Mobile Techniques

    The Purpose

    Discovery of secure development techniques to apply to current development practices.

    Discovery of new user stories from applying secure development techniques.

    Discovery of new test cases from applying secure development techniques.

    Key Benefits Achieved

    Areas within your code that can be optimized for improving mobile application security.

    New user stories created in relation to mitigation steps.

    New test cases created in relation to mitigation steps.

    Activities

    2.1 Gauge the state of your secure mobile development practices.

    2.2 Identify the appropriate techniques to fill gaps.

    2.3 Develop user stories from security development gaps identified.

    2.4 Develop test cases from user story gaps identified.

    Outputs

    Mobile Application High-Level Design Requirements Document

    3 Monitor and Support Your Secure Mobile Applications

    The Purpose

    Identification of key metrics used to measure mobile application security issues.

    Identification of secure mobile application and development process optimization initiatives.

    Identification of enablers and blockers of your mobile security optimization.

    Key Benefits Achieved

    Metrics for measuring application security.

    Modified triaging process for addressing security issues.

    Initiatives for development optimization.

    Enablers and blockers identified for mobile security optimization initiatives.

    Process for developing your mobile optimization roadmap.

    Activities

    3.1 List the metrics that would be gathered to assess the success of your mobile security optimization.

    3.2 Adjust and modify your triaging process to enhance handling of security issues.

    3.3 Brainstorm secure mobile application and development process optimization initiatives.

    3.4 Identify the enablers and blockers of your mobile security optimization.

    3.5 Define your mobile security optimization roadmap.

    Outputs

    Mobile Optimization Roadmap

    Jump Start Your Vendor Management Initiative

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Each year, IT organizations spend more money “outsourcing” tasks, activities, applications, functions, and other items.
    • The increased spend and associated outsourcing leads to less control, and more risk for IT organizations. Managing this becomes a higher priority for IT, but many IT organizations are ill-equipped to do this proactively.

    Our Advice

    Critical Insight

    • Vendor management is not “plug and play” – each organization’s vendor management initiative (VMI) needs to fit its culture, environment, and goals. There are commonalites among vendor management initiatives, but the key is to adapt vendor management principles to fit your needs, not the other way around.
    • All vendors are not of equal importance to an organization. Internal resources are a scarce commodity and should be deployed so that they provide the best return on the organization’s investment. Classifying or segmenting your vendors allows you to focus your efforts on the most important vendors first, allowing your VMI to have the greatest impact possible.
    • Having a solid foundation is critical to the VMI’s ongoing success. Whether you will be creating a formal vendor management office or using vendor management techniques, tools, and templates “informally,” starting with the basics is essential. Make sure you understand why the VMI exists and what it hopes to achieve, what is in and out of scope for the VMI, what strengths the VMI can leverage and the obstacles it will have to address, and how it will work with other areas within your organization.

    Impact and Result

    • Build and implement a vendor management initiative tailored to your environment.
    • Create a solid foundation to sustain your vendor management initiative as it evolves and matures.
    • Leverage vendor management-specific tools and templates to manage vendors more proactively and improve communication.
    • Concentrate your vendor management resources on the right vendors.
    • Build a roadmap and project plan for your vendor management journey to ensure you reach your destination.
    • Build collaborative relationships with critical vendors.

    Jump Start Your Vendor Management Initiative Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should jump start a vendor management initiative, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Plan

    Organize your VMI and document internal processes, relationships, roles, and responsibilities. The main outcomes from this phase are organizational documents, a baseline VMI maturity level, and a desired future state for the VMI.

    • Jump Start Your Vendor Management Initiative – Phase 1: Plan
    • Jump – Phase 1 Tools and Templates Compendium

    2. Build

    Configure and create the tools and templates that will help you run the VMI. The main outcomes from this phase are a clear understanding of which vendors are important to you, the tools to manage the vendor relationships, and an implementation plan.

    • Jump Start Your Vendor Management Initiative – Phase 2: Build
    • Jump – Phase 2 Tools and Templates Compendium
    • Jump – Phase 2 Vendor Classification Tool
    • Jump – Phase 2 Vendor Risk Assessment Tool

    3. Run

    Begin operating the VMI. The main outcomes from this phase are guidance and the steps required to implement your VMI.

    • Jump Start Your Vendor Management Initiative – Phase 3: Run

    4. Review

    Identify what the VMI should stop doing, start doing, and continue doing as it improves and matures. The main outcomes from this phase are ways to advance the VMI and maintain internal alignment.

    • Jump Start Your Vendor Management Initiative – Phase 4: Review

    Infographic

    Workshop: Jump Start Your Vendor Management Initiative

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Plan

    The Purpose

    Getting Organized

    Key Benefits Achieved

    Defined Roles and Goals for the VMI

    Activities

    1.1 Mission Statement and Goals

    1.2 Scope

    1.3 Strengths and Obstacles

    1.4 Roles and Responsibilities – OIC Chart

    1.5 Process Mapping

    1.6 Vendor Inventory Tool (Overview)

    Outputs

    Completed Mission Statement and Goals

    List of Items In Scope and Out of Scope for the VMI

    List of Strengths and Obstacles for the VMI

    Completed OIC Chart

    Sample Process Map for One Process

    Begun Using Vendor Inventory Tool

    2 Plan/Build/Run

    The Purpose

    Build VMI Tools and Templates

    Key Benefits Achieved

    Configured Tools and Templates for the VMI Based on Its Roles and Goals

    Activities

    2.1 Maturity Assessment

    2.2 Structure and Job Descriptions

    2.3 Attributes of a Valuable Vendor

    2.4 Classification Model

    2.5 Risk Assessment Tool

    2.6 Scorecards and Feedback

    2.7 Business Alignment Meeting Agenda

    Outputs

    Completed Maturity Assessment.

    Sample Job Descriptions and Phrases.

    List of Attributes of a Valuable Vendor.

    Configured Classification Model.

    Configured Risk Assessment Tool.

    Configured Scorecard and Feedback Questions.

    Configured Business Alignment Meeting Agenda.

    3 Build/Run

    The Purpose

    Continue Building VMI Tools and Templates

    Key Benefits Achieved

    Configured Tools and Templates for the VMI Based on Its Roles and Goals

    Activities

    3.1 Relationship Alignment Document

    3.2 Vendor Orientation

    3.3 Policies and Procedures

    3.4 3-Year Roadmap

    3.5 90-Day Plan

    3.6 Quick Wins

    3.7 Reports

    3.8 Kickoff Meeting

    Outputs

    Relationship Alignment Document Sample and Checklist

    Vendor Orientation Checklist

    Policies and Procedures Checklist

    Completed 3-Year Roadmap

    Completed 90-Day Plan

    List of Quick Wins

    List of Reports

    4 Review

    The Purpose

    Review the Past 12 Months of VMI Operations and Improve

    Key Benefits Achieved

    Keeping the VMI Aligned With the Organization’s Goals and Ensuring the VMI Is Leveraging Leading Practices

    Activities

    4.1 Develop/Improve Vendor Relationships.

    4.2 Assess Compliance.

    4.3 Incorporate Leading Practices.

    4.4 Leverage Lessons Learned.

    4.5 Maintain Internal Alignment.

    4.6 Update Governances.

    Outputs

    Further reading

    Jump Start Your Vendor Management Initiative

    Create and implement a vendor management framework to begin obtaining measurable results in 90 days.

    EXECUTIVE BRIEF

    Analyst Perspective

    What is vendor management?

    When you read the phrase “vendor management,” what comes to mind? This isn’t a rhetorical question. Take your time … I’ll wait.

    Unfortunately, those words conjure up a lot of different meanings, and much of that depends on whom you ask. Those who work in the vendor management field will provide a variety of answers. To complicate matters, those who are vendor management “outsiders” will have a totally different view of what vendor management is. Why is this important? Because we need a common definition to communicate more effectively, even if the definition is broad.

    Let’s start creating a working definition that is not circular. Vendor management is not simply managing vendors. That expression basically reorders the words and does nothing to advance our cause; it only adds to the existing confusion surrounding the concept.

    Vendor management is best thought of as a spectrum or continuum with many points rather than a specific discipline like accounting or finance. There are many functions and activities that fall under the umbrella term of vendor management: some of them will be part of your vendor management initiative (VMI), some will not, and some will exist in your organization but be outside the VMI. This is the unique part of vendor management – the part that makes it fun, but also the part that leads to the confusion. For example, accounts payable sits within the accounting department almost exclusively, but contract management can sit within or outside the VMI. The beauty of vendor management is its flexibility; your VMI can be created to meet your specific needs and goals while leveraging common vendor management principles.

    Every conversation around vendor management needs to begin with “What do you mean by that?” Only then can we home in on the scope and nature of what people are discussing. “Managing vendors” is too narrow because it often ignores many of the reasons organizations create VMIs in the first place: to reduce costs, to improve performance, to improve processes, to improve relationships, to improve communication, and to manage risk better.

    Vendor management is a strategic initiative that takes the big picture into account … navigating the cradle to grave lifecycle to get the most out of your interactions and relationships with your vendors. It is flexible and customizable; it is not plug and play or overly prescriptive. Tools, principles, templates, and concepts are adapted rather than adopted as is. Ultimately, you define what vendor management is for your organization.

    We look forward to helping you on your vendor management journey no matter what it looks like. But first, let’s have a conversation about how you want to define vendor management in your environment.

    This is a picture of Phil Bode, Principal Research Director, Vendor Management at Info-Tech Research Group.

    Phil Bode
    Principal Research Director, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Each year, IT organizations “outsource” tasks, activities, functions, and other items. During 2021:

    • Spend on as-a-service providers increased 38% over 2020.*
    • Spend on managed service providers increased 16% over 2020.*
    • IT service providers increased their merger and acquisition numbers by 47% over 2020.*

    *Source: Information Services Group, Inc., 2022.

    This leads to more spend, less control, and more risk for IT organizations. Managing this becomes a higher priority for IT, but many IT organizations are ill-equipped to do this proactively.

    Common Obstacles

    As new contracts are negotiated and existing contracts are renegotiated or renewed, there is a perception that the contracts will yield certain results, output, performance, solutions, or outcomes. The hope is that these will provide a measurable expected value to IT and the organization. Oftentimes, much of the expected value is never realized. Many organizations don’t have a VMI to help:

    • Ensure at least the expected value is achieved.
    • Improve on the expected value through performance management.
    • Significantly increase the expected value through a proactive VMI.

    Info-Tech’s Approach

    Vendor management is a proactive, cross-functional lifecycle. It can be broken down into four phases:

    • Plan
    • Build
    • Run
    • Review

    The Info-Tech process addresses all four phases and provides a step-by-step approach to configure and operate your VMI. The content in this blueprint helps you quickly establish your VMI and set a solid foundation for its growth and maturity.

    Info-Tech Insight

    Vendor management is not a one-size-fits-all initiative. It must be configured:

    • For your environment, culture, and goals.
    • To leverage the strengths of your organization and personnel.
    • To focus your energy and resources on your critical vendors.

    Executive Summary

    Your Challenge

    Spend on managed service providers and as-a-service providers continues to increase. In addition, IT services vendors continue to be active in the mergers and acquisitions arena. This increases the need for a VMI to help with the changing IT vendor landscape. In 2021, there was increases of:

    38%

    Spend on As-a-Service Providers

    16%

    Spend on Managed Services Providers

    47%

    IT Services Merger & Acquisition Growth (Transactions)

    Source: Information Services Group, Inc., 2022.

    Executive Summary

    Common Obstacles

    When organizations execute, renew, or renegotiate a contract, there is an “expected value” associated with that contract. Without a robust VMI, most of the expected value will never be realized. With a robust VMI, the realized value significantly exceeds the expected value during the contract term.

    A contract’s realized value with and without a vendor management initiative

    Two bars are depicted, showing that vendor collaboration and vendor performance management exceed expected value with a VMI, but without VMI, 75% of a contract's expected value can disappear within 18 months.

    Source: Based on findings from Geller & Company, 2003.

    Executive Summary

    Info-Tech’s Approach

    A sound, cyclical approach to vendor management will help you create a VMI that meets your needs and stays in alignment with your organization as they both change (i.e. mature and grow).

    This is an image of Info-Tech's approach to VMI. It includes the following four steps: 01 - Plan; 02 - Build; 03 - Run; 04 - Review

    Info-Tech’s Methodology for Creating and Operating Your VMI

    Phase 1: Plan Phase 2: Build Phase 3: Run Phase 4: Review

    Phase Steps

    		 1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    Phase Outcomes

    		 This phase helps you organize your VMI and document internal processes, relationships, roles, and responsibilities. The main outcomes from this phase are organizational documents, a baseline VMI maturity level, and a desired future state for the VMI. This phase helps you configure and create the tools and templates that will help you run the VMI. The main outcomes from this phase are a clear understanding of which vendors are important to you, the tools to manage the vendor relationships, and an implementation plan. This phase helps you begin operating the VMI. The main outcomes from this phase are guidance and the steps required to implement your VMI. This phase helps the VMI identify what it should stop doing, start doing, and continue doing as it improves and matures. The main outcomes from this phase are ways to advance the VMI and maintain internal alignment.

    Insight Summary

    Insight 1

    Vendor management is not “plug and play” – each organization’s vendor management initiative (VMI) needs to fit its culture, environment, and goals. While there are commonalities and leading practices associated with vendor management, your initiative won’t look exactly like another organization’s. The key is to adapt vendor management principles to fit your needs.

    Insight 2

    All vendors are not of equal importance to your organization. Internal resources are a scarce commodity and should be deployed so that they provide the best return on the organization’s investment. Classifying or segmenting your vendors allows you to focus your efforts on the most important vendors first, allowing your VMI to have the greatest impact possible.

    Insight 3

    Having a solid foundation is critical to the VMI’s ongoing success. Whether you will be creating a formal vendor management office or using vendor management techniques, tools, and templates “informally,” starting with the basics is essential. Make sure you understand why the VMI exists and what it hopes to achieve, what is in and out of scope for the VMI, what strengths the VMI can leverage and the obstacles it will have to address, and how it will work with other areas within your organization.

    Blueprint Deliverables

    The four phases of creating and running a vendor management initiative are supported with configurable tools, templates, and checklists to help you stay aligned internally and achieve your goals.

    VMI Tools and Templates

    This image contains two screenshots of Info-Tech's VMI Tools and Templates

    Build a solid foundation for your VMI and configure tools and templates to help you manage your vendor relationships.

    Key Deliverables:

    1. Jump – Phase 1 Tools and Templates Compendium
    2. Jump – Phase 2 Tools and Templates Compendium
    3. Jump – Phase 2 Vendor Classification Tool
    4. Jump – Phase 2 Vendor Risk Assessment Tool

    A suite of tools and templates to help you create and implement your vendor management initiative.

    Blueprint benefits

    IT Benefits

    • Identify and manage risk proactively.
    • Reduce costs and maximize value.
    • Increase visibility with your critical vendors.
    • Improve vendor performance.
    • Create a collaborative environment with key vendors.
    • Segment vendors to allocate resources more effectively and more efficiently.

    Business Benefits

    • Improve vendor accountability.
    • Increase collaboration between departments.
    • Improve working relationships with your vendors.
    • Create a feedback loop to address vendor or customer issues before they get out of hand or are more costly to resolve.
    • Increase access to meaningful data and information regarding important vendors.

    Establish Baseline Metrics

    Baseline metrics will be improved through:

    Using the Maturity Assessment and 90-Day Plan tools, track how well you are able to achieve your goals and objectives:

    • Did you meet the targeted maturity level for each maturity category as determined by the point system?
    • Did you finish each activity in the 90-Day Plan completely and on time?
    1-Year Maturity Roadmap(by Category) Target Maturity (Total Points) Actual Maturity (Total Points)
    Contracts 12 12
    Risk 8 7
    Vendor Selection 9 9
    Vendor Relationships 21 21
    VMI Operations 24 16
    90-Day Plan (by Activity) Activity Completed
    Finalize mission and goals; gain executive approval Yes
    Finalize OIC chart; gain buy-in from other departments Yes
    Classify top 40 vendors by spend Yes
    Create initial scorecard Yes
    Develop the business alignment meeting agenda Yes
    Conduct two business alignment meetings No
    Update job descriptions Yes
    Map two VMI processes No

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phases 2 & 3 Phase 4

    Call #1: Mission statement and goals, scope, and strengths and obstacles.

    Call #5: Classification model.

    Call #9: Policies and procedures and reports.

    Call #12: Assess compliance, incorporate leading practices, leverage lessons learned, maintain internal alignment, and update governances.

    Call #2: Roles and responsibilities and process mapping.

    Call #6: Risk assessment.

    Call #10: 3-year roadmap.

    Call #3: Charter and vendor inventory.

    Call #7: Scorecards and feedback and business alignment meetings.

    Call #11: 90-day plan and quick wins.

    Call #4: Maturity assessment and VMI structure.

    Call #8: Relationship alignment document, vendor orientation, and job descriptions.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4
    Plan Plan/Build/Run Build/Run Review

    Activities

    		 1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    Deliverables
    1. Completed Mission Statement and Goals
    2. List of Items In Scope and Out of Scope for the VMI
    3. List of Strengths and Obstacles for the VMI
    4. Completed OIC Chart
    5. Sample Process Map for One Process
    6. Vendor Inventory tab
    1. Completed Maturity Assessment
    2. Sample Job Descriptions and Phrases
    3. List of Attributes of a Valuable Vendor
    4. Configured Classification Model
    5. Configured Risk Assessment Tool
    6. Configured Scorecard and Feedback Questions
    7. Configured Business Alignment Meeting Agenda
    1. Relationship Alignment Document Sample and Checklist
    2. Vendor Orientation Checklist
    3. Policies and Procedures Checklist
    4. Completed 3-Year Roadmap
    5. Completed 90-Day Plan
    6. List of Quick Wins
    7. List of Reports

    Phase 1: Plan

    Get Organized

    1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    Phase 1 Phase 2 Phase 3 Phase 4
    1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Organize your VMI and document internal processes, relationships, roles, and responsibilities. The main outcomes from this phase are organizational documents, a baseline VMI maturity level, and a desired future state for the VMI.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Procurement/Sourcing
    • IT
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 1: Plan

    Get organized.

    Phase 1: Plan focuses on getting organized. Foundational elements (mission statement, goals, scope, strengths and obstacles, roles and responsibilities, and process mapping) will help you define your VMI. These and the other elements of this Phase will follow you throughout the process of standing up your VMI and running it.

    Spending time up front to ensure that everyone is on the same page will help avoid headaches down the road. The tendency is to skimp (or even skip) on these steps to get to “the good stuff.” To a certain extent, the process provided here is like building a house. You wouldn’t start building your dream home without having a solid blueprint. The same is true with vendor management. Leveraging vendor management tools and techniques without the proper foundation may provide some benefit in the short term, but in the long term it will ultimately be a house of cards waiting to collapse.

    Step 1.1: Mission statement and goals

    Identify why the VMI exists and what it will achieve.

    Whether you are starting your vendor management journey or are already down the path, it is important to know why the vendor management initiative exists and what it hopes to achieve. The easiest way to document this is with a written declaration in the form of a mission statement and goals. Although this is the easiest way to proceed, it is far from easy.

    The mission statement should identify at a high level the nature of the services provided by the VMI, who it will serve, and some of the expected outcomes or achievements. The mission statement should be no longer than one or two sentences.

    The complement to the mission statement is the list of goals for the VMI. Your goals should not be a reassertion of your mission statement in bullet format. At this stage it may not be possible to make them SMART (Specific, Measurable, Achievable/Attainable, Relevant, Time-Bound/Time-Based), but consider making them as SMART as possible. Without some of the SMART parameters attached, your goals are more like dreams and wishes. At a minimum, you should be able to determine the level of success achieved for each of the VMI goals.

    Although the VMI’s mission statement will stay static over time (other than for significant changes to the VMI or organization as a whole), the goals should be re-evaluated periodically using a SMART filter and adjusted as needed.

    1.1.1: Mission statement and goals

    20-40 minutes

    1. Meet with the participants and use a brainstorming activity to list on a whiteboard or flip chart the reasons why the VMI will exist.
    2. Review external mission statements for inspiration.
    3. Review internal mission statements from other areas to ensure consistency.
    4. Draft and document your mission statement in the Phase 1 Tools and Templates Compendium, Tab 1.1 Mission Statement and Goals.
    5. Continue brainstorming and identify the high-level goals for the VMI.
    6. Review the list of goals and make them as SMART (Specific, Measurable, Achievable/Attainable, Relevant, Time-Bound/Time-Based) as possible.
    7. Document your goals in the Phase 1 Tools and Templates Compendium, Tab 1.1 Mission Statement and Goals.
    8. Obtain sign-off on the mission statement and goals from stakeholders and executives as required.

    Input

    • Brainstorming results
    • Mission statements from other internal and external sources

    Output

    • Completed mission statement and goals

    Materials

    • Whiteboard/Flip Charts
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.1 Mission Statement and Goals

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.2: Scope

    Determine what is in scope and out of scope for the VMI

    Regardless of where your VMI resides or how it operates, it will be working with other areas within your organization. Some of the activities performed by the VMI will be new and not currently handled by other groups or individuals internally; at the same time, some of the activities performed by the VMI may be currently handled by other groups or individuals internally. In addition, executives, stakeholders, and other internal personnel may have expectations or make assumptions about the VMI. As a result, there can be a lot of confusion about what the VMI does and doesn’t do, and the answers cannot always be found in the VMI’s mission statement and goals.

    One component of helping others understand the VMI landscape is formalizing the VMI scope. The scope will define boundaries for the VMI. The intent is not to fence itself off and keep others out but provide guidance on where the VMI’s territory begins and ends. Ultimately, this will help clarify the VMI’s roles and responsibilities, improve workflow, and reduce errant assumptions.

    When drafting your VMI scoping document, make sure you look at both sides of the equation (similar to what you would do when following best practices for a statement of work): Identify what is in scope and what is out of scope. Be specific when describing the individual components of the VMI scope, and make sure executives and stakeholders are on board with the final version.

    1.2.1: Scope

    20-40 minutes

    1. Meet with the participants and use a brainstorming activity to list on a whiteboard or flip chart the activities and functions in scope and out of scope for the VMI.
      1. Be specific to avoid ambiguity and improve clarity.
      2. Go back and forth between in scope and out of scope as needed; it is not necessary to list all of the in-scope items and then turn your attention to the out-of-scope items.
    2. Review the lists to make sure there is enough specificity. An item may be in scope or out of scope but not both.
    3. Use the Phase 1 Tools and Templates Compendium, Tab 1.2 Scope, to document the results.
    4. Obtain sign-off on the scope from stakeholders and executives as required.

    Input

    • Brainstorming
    • Mission statement and goals

    Output

    • Completed list of items in and out of scope for the VMI

    Materials

    • Whiteboard/Flip Charts
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.2 Scope

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.3: Strengths and obstacles

    Pinpoint the VMI’s strengths and obstacles.

    A SWOT analysis (strengths, weaknesses, opportunities, and threats) is a valuable tool, but it is overkill for your VMI at this point. However, using a modified and simplified form of this tool (strengths and obstacles) will yield significant results and benefit the VMI as it grows and matures.

    Your output will be two lists: the strengths associated with the VMI and the obstacles facing the VMI. For example, strengths could include items such as smart people working within the VMI and executive support. Obstacles could include items such as limited headcount and training required for VMI staff.

    The goals are 1) to harness the strengths to help the VMI be successful and 2) to understand the impact of the obstacles and plan accordingly. The output can also be used to enlighten executives and stakeholders about the challenges associated with their directives or requests (e.g. human bandwidth may not be sufficient to accomplish some of the vendor management activities and there is a moratorium on hiring until the next budget year).

    For each strength identified, determine how you will or can leverage it when things are going well or when the VMI is in a bind. For each obstacle, list the potential impact on the VMI (e.g. scope, growth rate, and number of vendors that can actively be part of the VMI).

    As you do your brainstorming, be as specific as possible and validate your lists with stakeholders and executives as needed.

    1.3.1: Strengths and obstacles

    20-40 minutes

    1. Meet with the participants and use a brainstorming activity to list on a whiteboard or flip chart the VMI’s strengths and obstacles.
      1. Be specific to avoid ambiguity and improve clarity.
      2. Go back and forth between strengths and obstacles as needed; it is not necessary to list all of the strengths and then turn your attention to the obstacles.
      3. It is possible for an item to be a strength and an obstacle; when this happens, add details to distinguish the situations.
    2. Review the lists to make sure there is enough specificity.
    3. Determine how you will leverage each strength and how you will manage each obstacle.
    4. Use the Phase 1 Tools and Templates Compendium, Tab 1.3 Strengths and Obstacles, to document the results.
    5. Obtain sign-off on the strengths and obstacles from stakeholders and executives as required.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • Brainstorming
    • Mission statement and goals
    • Scope

    Output

    • Completed list of items impacting the VMI’s ability to be successful: strengths the VMI can leverage and obstacles the VMI must manage

    Materials

    • Whiteboard/Flip Charts
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.3 Strengths and Obstacles

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.4: Roles and responsibilities

    Obtain consensus on who is responsible for what.

    One crucial success factor for VMIs is gaining and maintaining internal alignment. There are many moving parts to an organization, and a VMI must be clear on the various roles and responsibilities related to the relevant processes. Some of this information can be found in the VMI’s scope, referenced in Step 1.2, but additional information is required to avoid stepping on each other’s toes since many of the processes require internal departments to work together. (For example, obtaining requirements for a request for proposal takes more than one person or one department to complete this process.) While it is not necessary to get too granular, it is imperative that you have a clear understanding of how the VMI activities will fit within the larger vendor management lifecycle (which is comprised of many sub processes) and who will be doing what.

    As we have learned through our workshops and guided implementations, a traditional RACI* or RASCI* chart does not work well for this purpose. These charts are not intuitive, and they lack the specificity required to be effective. For vendor management purposes, a higher-level view and a slightly different approach provide much better results.

    This step will lead your through the creation of an OIC* chart to determine vendor management lifecycle roles and responsibilities. Afterward, you’ll be able to say, “Oh, I see clearly who is involved in each part of the process and what their role is.”

    *RACI – Responsible, Accountable, Consulted, Informed
    *RASCI – Responsible, Accountable, Support, Consulted, Informed
    *OIC – Owner, Informed, Contributor

    This is an image of a table which shows an example of which role would be responsible for which step

    Step 1.4: Roles and responsibilities (cont.)

    Obtain consensus on who is responsible for what.

    To start, define the vendor management lifecycle steps or process applicable to your VMI. Next, determine who participates in the vendor management lifecycle. There is no need to get too granular – think along the lines of departments, subdepartments, divisions, agencies, or however you categorize internal operational units. Avoid naming individuals other than by title; this typically happens when a person oversees a large group (e.g. the CIO [chief information officer] or the CPO [chief procurement officer]). Be thorough, but the chart can get out of hand quickly. For each role and step of the lifecycle, ask whether the entry is necessary – does it add value to the clarity of understanding the responsibilities associated with the vendor management lifecycle? Consider two examples, one for roles and one for lifecycle steps: 1) Is IT sufficient or do you need IT Operations and IT Development? 2) Is “negotiate contract documents” sufficient or do you need “negotiate the contract” and “negotiate the renewal”? The answer will always depend on your culture and environment, but be wary of creating a spreadsheet that requires an 85-inch monitor to view it in its entirety.

    After defining the roles (departments, divisions, agencies) and the vendor management lifecycle steps or process, assign one of three letters to each box in your chart:

    • O – Owner – who owns the process; they may also contribute to it.
    • I – Informed – who is informed about the progress or results of the process.
    • C – Contributor – who contributes or works on the process; it can be tangible or intangible contributions.

    This activity can be started by the VMI or done as a group with representatives from each of the named roles. If the VMI starts the activity, the resulting chart should be validated by the each of the named roles.

    1.4.1: Roles and responsibilities

    1-6 hours

    1. Meet with the participants and configure the OIC Chart in the Jump – Phase 1 Tools and Templates Compendium, Tab 1.4 OIC Chart.
      1. Review the steps or activities across the top of the chart and modify as needed.
      2. Review the roles listed along the left side of the chart and modify as needed.
    2. For each activity or step across the top of the chart, assign each role a letter – O for owner of that activity or step; I for informed; or C for contributor. Use only one letter per cell.
    3. Work your way across the chart. Every cell should have an entry or be left blank if it is not applicable.
    4. Review the results and validate that every activity or step has an O assigned to it; there must be an owner for every activity or step.
    5. Obtain sign-off on the OIC chart from stakeholders and executives as required.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • A list of activities or steps to complete a project, starting with requirements gathering and ending with ongoing risk management
    • A list of internal areas (departments, divisions, agencies, etc.) and stakeholders that contribute to completing a project

    Output

    • Completed OCI chart indicating roles and responsibilities for the VMI and other internal areas

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.4 OIC Chart

    Participants

    • VMI team
    • Procurement/Sourcing
    • IT
    • Representatives from other areas as needed
    • Applicable stakeholders and executives as needed

    Step 1.5: Process mapping

    Diagram the workflow.

    Although policies and procedures are important, their nature can make it difficult to grasp how things work at a high level (or even at the detail level). To help bridge the gap, map the applicable processes (determined by how deep and wide you want to go) involving the VMI. To start, look at the OIC chart from Step 1.4. You can expand the breadth and depth of your mapping to include the VMI scope, the 3-year roadmap (see Step 2.9), and the processes driven by the day-to-day work within the VMI.

    Various mapping tools can be used. Three common approaches that can be mixed and matched are:

    • Traditional flowcharts.
    • Swimlane diagrams.
    • Work breakdown structures.
    This is an example of a Workflow Process Map

    Step 1.5: Process mapping (cont.)

    Diagram the workflow.

    Your goal is not to create an in-depth diagram for every step of the vendor management lifecycle. However, for steps owned by the VMI, the process map should include sufficient details for the owner and the contributors (see Step 1.4) to understand what is required of them to support that step in the lifecycle.

    For VMI processes that don’t interact with other departments, follow the same pattern as outlined above for steps owned by the VMI.

    Whatever methodology you use to create your process map, make sure it includes enough details so that readers and users can identify the following elements:

    • Input:
      • What are the inputs?
      • Where do the inputs originate or come from?
    • Process:
      • Who is involved/required for this step?
      • What happens to the inputs in this step?
      • What additional materials, tools, or resources are used or required during this step?
    • Output:
      • What are the outputs?
      • Where do the outputs go next?

    1.5.1: Process Mapping

    1-8 hours (or more)

    1. Meet with the participants and determine which processes you want to map.
      1. For processes owned by the VMI, map the entire process.
      2. For processes contributed to by the VMI, map the entire process at a high level and map the VMI portion of the process in greater detail.
    2. Select the right charts/diagrams for your output.
      1. Flowchart
      2. Swimlane diagram
      3. Modified SIPOC (Supplier, Input, Process, Output, Customer)
      4. WBS (work breakdown structure)
    3. Begin mapping the processes either in a tool or using sticky notes. You want to be able to move the steps and associated information easily; most people don’t map the entire process accurately or with sufficient detail the first time through. An iterative approach works best.
    4. Obtain signoff on the process maps from stakeholders and executives as required. A copy of the final output can be kept in the Jump – Phase 1 Tools and Templates Compendium, Tab 1.5 Process Mapping, if desired.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • Existing processes (formal, informal, documented, and undocumented)
    • OIC chart

    Output

    • Process maps for processes contributed to or owned by the VMI

    Materials

    • Sticky Notes
    • Flowchart/process mapping software or something similar
    • (Optional) Jump – Phase 1 Tools and Templates Compendium, Tab 1.5 Process Mapping

    Participants

    • VMI team
    • Procurement/Sourcing
    • IT
    • Representatives from other areas as needed
    • Applicable stakeholders and executives (as needed)

    Step 1.6: Charter

    Document how the VMI will operate.

    As you continue getting organized by working through steps 1.1-1.5, you may want to document your progress in a charter and add some elements. Basically, a charter is a written document laying out how the VMI will operate within the organization. It clearly states the VMI’s mission, goals, scope, roles and responsibilities, and vendor governance model. In addition, it can include a list of team members and sponsors.

    Whether you create a VMI charter will largely depend on:

    • Your organization’s culture.
    • Your organization’s formality.
    • The perceived value of creating a charter.

    If you decide to create a VMI charter, this is a good place in the process to create an initial draft. As you continue working through the blueprint and your VMI matures, update the VMI charter as needed.

    VMI Charter:

    • Purpose
    • Sponsors
    • Roles
    • Responsibilities
    • Governance

    1.6.1: Charter

    1-4 hours

    1. Meet with the participants and review the template in Jump – Phase 1 Tools and Templates Compendium, Tab 1.6 Charter.
    2. Determine whether the participants will use this template or add materials to your standard charter template.
    3. Complete as much of the charter as possible, knowing that some information may not be available until later.
    4. Return to the charter as needed until it is completed.
    5. Obtain sign-off on the charter from stakeholders and executives as required.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • Mission statement and goals
    • Scope
    • Strengths and obstacles
    • OIC chart
    • List of stakeholders and executives and their VMI roles and responsibilities

    Output

    • Completed VMI charter

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.6 Charter
    • Your organization’s standard charter document

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.7: Vendor inventory

    Compile a list of vendors and relevant vendor information.

    As you prepare your VMI for being operational, it’s critical to identify all of your current vendors providing IT products or services to the organization. This can be tricky and may depend on how you view things internally. For example, you may have traditional IT vendors that are managed by IT, and you may have IT vendors that are managed by other internal departments (shadow IT or out-in-the-open IT). If it wasn’t determined with the help of stakeholders and executives before now, make sure you establish the purview of the VMI at this point. What types of vendors are included and excluded from the VMI?

    You may find that a vendor can be included and excluded based on the product or service they provide. A vendor may provide a service that is managed by IT and a service that is managed/controlled by another department. In this instance, a good working relationship and clearly defined roles and responsibilities between the VMI and the other department will be required. But, it all starts with compiling a list of vendors and validating the VMI’s purview (and any limitations) for the vendors with stakeholders and executives.

    Step 1.7: Vendor inventory (cont.)

    Compile a list of vendors and relevant vendor information.

    At a minimum, the VMI should be able to quickly retrieve key information about each of “its” vendors:

    • Vendor Name
    • Classification (see Steps 2.1 and 3.1)
    • Categories of Service
    • Names of Products and Services Provided
    • Brief Descriptions of Products and Services Provided
    • Annualized Vendor Spend
    • Vendor Contacts
    • Internal Vendor Relationship Owner

    Not all of this information will be available at this point, but you can begin designing or configuring your tool to meet your needs. As your VMI enters Phase 3: Run and continues to mature, you will return to this tool and update the information. For example, the vendor classification category won’t be known until Phase 3, and it can change over time.

    1.7.1: Vendor inventory

    1-10 hours

    Meet with the participants and review the Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory. Determine whether the VMI wants to collect and/or monitor additional information and make any necessary modifications to the tool.

    Enter the “Annual IT Vendor Spend” amount in the appropriate cell toward the top of the spreadsheet. This is for IT spend for vendor-related activities within the VMI’s scope; include shadow IT spend and “non-shadow” IT spend if those vendors will be included in the VMI’s scope.

    Populate the data fields for your top 50 vendors by annual spend; you may need multiple entries for the same vendor depending on the nature of the products and services they provide.

    Ignore the “Classification” column for now; you will return to this later when classification information is available.

    Ignore the “Percentage of IT Budget” column as well; it uses a formula to calculate this information.

    Input

    • Data from various internal and external sources such as accounts payable, contracts, and vendor websites

    Output

    • List of vendors with critical information required to manage relationships with key vendors

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory

    Participants

    • VMI team (directly)
    • Other internal and external personnel (indirectly)

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Step 1.8: Maturity assessment

    Establish a VMI maturity baseline and set an ideal future state.

    Knowing where you are and where you want to go are essential elements for any journey in the physical world, and the same holds true for your VMI journey. Start by assessing your current-state VMI maturity. This will provide you with a baseline to measure progress against. Next, using the same criteria, determine the level of VMI maturity you would like to achieve one year in the future. This will be your future-state VMI maturity. Lastly, identify the gaps and plot your course.

    The maturity assessment provides three main benefits:

    1. Focus – you’ll know what is important to you moving forward.
    2. 3-Year Roadmap (discussed more fully in Step 2.9) – you’ll have additional input for your short-term and long-term roadmap (1, 2, and 3 years out).
    3. Quantifiable Improvement – you’ll be able to measure your progress and make midcourse corrections when necessary.

    Step 1.8: Maturity assessment (cont.)

    Establish a VMI maturity baseline and set an ideal future state.

    The Info-Tech VMI Maturity Assessment tool evaluates your maturity across several criteria across multiple categories. Once completed, the assessment will specify:

    • A current-state score by category and overall.
    • A target-state score by category and overall.
    • A quantifiable gap for each criterion.
    • A priority assignment for each criterion.
    • A level of effort required by criterion to get from the current state to the target state.
    • A target due date by criterion for achieving the target state.
    • A rank order for each criterion (note: limit your ranking to your top 7 or 9).

    Many organizations will be tempted to mature too quickly. Resource constraints and other items from Step 1.3 (Strengths and Obstacles) will impact how quickly you can mature. Being aggressive is fine, but it must be tempered with a dose of reality. Otherwise, morale, perception, and results can suffer.

    1.8.1: Maturity assessment

    45-90 minutes

    1. Meet with the participants and use Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Input, to complete the first part of this activity. Provide the required information indicated below.
      1. Review each statement in column B and enter a value in the “Current” column using the drop-down menus based on how much you disagree or agree (0-4) with the statement. This establishes a baseline maturity.
      2. Repeat this process for the “Future” column using a target date of one year from now to achieve this level. This is your desired maturity.
      3. Enter information regarding priority, level of effort, and target due date in the applicable columns using the drop-down menus. (Priority levels are critical, high, medium, low, and maintain; Levels of Effort are high, medium, and low; Target Due Dates are broken into timelines: 1-3 months, 4-6 months, 7-9 months, and 10-12 months.)
    2. Review the information on Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Output; use the Distribution Tables to help you rank your top priorities. Enter a unique number into the Priority (Rank) column. Limit your ranking to the top 7 to 9 activities to provide focus.

    Input

    • Knowledge of current VMI practices and desired future states

    Output

    • VMI maturity baseline
    • Desired VMI target maturity state (in one year)
    • Prioritized areas to improve and due dates
    • Graphs and tables to identify maturity deltas and track progress

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Input
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Output

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.9: Structure

    Determine the VMI’s organizational and reporting structure.

    There are two parts to the VMI structure:

    1. Organization Structure. Who owns the VMI – where does it fit on the organization chart?
    2. Reporting Structure. What is the reporting structure within the VMI – what are the job functions, titles, and solid and dotted lines of accountability?

    VMI Organization Structure

    The decision regarding who owns the VMI can follow one of two paths:

    1. The decision has already been made by the board of directors, executives, senior leadership, or stakeholders; OR
    2. The decision has not been made, and options will be reviewed and evaluated before it is implemented.

    Many organizations overlook the importance of this decision. The VMI’s position on the organization chart can aid or hinder its success. Whether the decision has already been made or not, this is the perfect time to evaluate the decision or options based on the following question: Why is the VMI being created and how will it operate? Review the documents you created during Steps 1.1-1.8 and other factors to answer this question.

    Step 1.9: Structure (cont.)

    Determine the VMI’s organizational and reporting structure.

    Based on your work product from Steps 1.1-1.8 and other factors, select where the VMI will be best located from the following areas/offices or their equivalent:

    • Chief Compliance Officer (CCO)
    • Chief Information Officer (CIO)
    • Chief Financial Officer (CFO)
    • Chief Procurement Officer (CPO)
    • Chief Operating Officer (COO)
    • Other area

    Without the proper support and placement in the organization chart, the VMI can fail. It is important for the VMI to find a suitable home with a direct connection to one of the sponsors identified above and for the VMI lead to have significant stature (aka title) within the organization. For example, if the VMI lead is a “manager” level who is four reporting layers away from the chief officer/sponsor, the VMI will have an image issue within and outside of the sponsor’s organization (as well as within the vendor community). While this is not to say that the VMI lead should be a vice president* or senior director, our experience and research indicate that the VMI and the VMI lead will be taken more seriously when the VMI lead is at least a director level reporting directly to a CXO.

    *For purposes of the example above, the reporting structure hierarchy used is manager, senior manager, director, senior director, vice president, CXO.

    Step 1.9: Structure (cont.)

    Determine the VMI’s organizational and reporting structure.

    VMI Reporting Structure

    As previously mentioned, the VMI reporting structure describes and identifies the job functions, titles, and lines of accountability. Whether you have a formal vendor management office or you are leveraging the principles of vendor management informally, your VMI reporting structure design will involve some solid lines and some dotted lines. In this instance, the dotted lines represent part-time participation or people/areas that will assist the VMI in some capacity. For example, if the VMI sits within IT, a dotted line to Procurement will show that a good working relationship is required for both parties to succeed; or a dotted line to Christina in Legal will indicate that Christina will be helping the VMI with legal issues.

    There is no one-size-fits-all reporting structure for VMIs, and your approach must leverage the materials from Steps 1.1-1.8, your culture, and your needs. By way of example, your VMI may include some or all of the following functions:

    • Contract Management
    • Relationship Management
    • Financial Management
    • Asset Management
    • Performance Management
    • Sourcing/Procurement
    • Risk Management

    Step 1.9: Structure (cont.)

    Determine the VMI’s organizational and reporting structure.

    Once you’ve identified the functional groups, you can assign titles, responsibilities, and reporting relationships. A good diagram goes a long way to helping others understand your organization. Traditional organization charts work well with VMIs, but a target diagram allows for rapid absorption of the dotted-line relationships. Review the two examples below and determine an approach that works best for you.

    An organizational Chart is depicted. At the top of the chart is: Office of the CIO. Below that is: VMI: Legal; Accounting & Finance; Corporate Procurement; below that are the following: Vendor Risk Management; Vendor Reporting and Analysis; Asset Management; Performance Management; Contract Management; IT Procurement Three concentric circles are depicted. In the inner circle is the term: VMI. In the middle circle are the terms: Reporting & Analysis; Asset Mgmt; Contract Mgmt; Performance Mgmt; It Proc; Vendor Risk. In the outer circle are the following terms: Compliance; Finance; HR; Accounting; Procurement; Business Units; Legal; IT

    1.9.1: Structure

    15-60 minutes

    1. Meet with the participants and review decisions that have been made or options that are available regarding the VMI’s placement in the organization chart.
      1. Common options include the Chief Information Officer (CIO), Chief Financial Officer (CFO), or Chief Procurement Officer (CPO).
      2. Less common but viable options include the Chief Compliance Officer (CCO), Chief Operating Officer (COO), or another area.
    2. Brainstorm and determine the job functions and titles
    3. Define the reporting structure within the VMI.
    4. Identify the “dotted line” relationships between the VMI and other internal areas.
    5. Using flowchart, org. chart, or other similar software, reduce your results to a graphic representation that indicates where the VMI resides, its reporting structure, and its dotted-line relationships.
    6. Obtain sign-off on the structure from stakeholders and executives as required. A copy of the final output can be kept in the Jump – Phase 1 Tools and Templates Compendium, Tab 1.9 Structure, if desired.

    Input

    • Mission statement and goals
    • Scope
    • Maturity assessment results (current and target state)
    • Existing org. charts
    • Brainstorming

    Output

    • Completed org. chart with job titles and reporting structure

    Materials

    • Whiteboard/flip chart
    • Sticky notes
    • Flowchart/org. chart software or something similar
    • (Optional) Jump – Phase 1 Tools and Templates Compendium, Tab 1.9 Structure

    Participants

    • VMI team
    • VMI sponsor
    • Stakeholders and executives

    Phase 2: Build

    Create and Configure Tools, Templates, and Processes

    Phase 1Phase 2Phase 3Phase 4
    1.1 Mission Statement and Goals


    1.2 Scope

    1.3 Strengths and Obstacles

    1.4 Roles and Responsibilities

    1.5 Process Mapping

    1.6 Charter

    1.7 Vendor Inventory

    1.8 Maturity Assessment

    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Configure and create the tools and templates that will help you run the VMI. The main outcomes from this phase are a clear understanding of which vendors are important to you, the tools to manage the vendor relationships, and an implementation plan.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Human Resources
    • Legal
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 2: Build

    Create and configure tools, templates, and processes.

    Phase 2: Build focuses on creating and configuring the tools and templates that will help you run your VMI. Vendor management is not a plug-and-play environment, and unless noted otherwise, the tools and templates included with this blueprint require your input and thought. The tools and templates must work in concert with your culture, values, and goals. That will require teamwork, insights, contemplation, and deliberation.

    During this Phase, you’ll leverage the various templates and tools included with this blueprint and adapt them for your specific needs and use. In some instances, you’ll be starting with mostly a blank slate; while in others, only a small modification may be required to make it fit your circumstances. However, it is possible that a document or spreadsheet may need heavy customization to fit your situation. As you create your VMI, use the included materials for inspiration and guidance purposes rather than as absolute dictates.

    Step 2.1: Classification model

    Configure the COST Vendor Classification Tool.

    One of the functions of a VMI is to allocate the appropriate level of vendor management resources to each vendor since not all vendors are of equal importance to your organization. While some people may be able intuitively to sort their vendors into vendor management categories, a more objective, consistent, and reliable model works best. Info-Tech’s COST model helps you assign your vendors to the appropriate vendor management category so that you can focus your vendor management resources where they will do the most good.

    COST is an acronym for Commodity, Operational, Strategic, and Tactical. Your vendors will occupy one of these vendor management categories, and each category helps you determine the nature of the resources allocated to that vendor, the characteristics of the relationship desired by the VMI, and the governance level used.

    The easiest way to think of the COST model is as a 2x2 matrix or graph. The model should be configured for your environment so that the criteria used for determining a vendor’s classification align with what is important to you and your organization. However, at this point in your VMI’s maturation, a simple approach works best. The Classification Model included with this blueprint requires minimal configuration to get you started and that is discussed on the activity slide associated with this Step 2.1.

    ↑
    Speed
    ↑    		 Operational Strategic
    Commodity Tactical
    →→→
    Criticality and Risk to the Organization

    Step 2.1: Classification model (cont.)

    Configure the COST Vendor Classification Tool.

    Common Characteristics by Vendor Management Category

    Operational Strategic
    • Low to moderate risk and criticality; moderate to high spend and switching costs
    • Product or service used by more than one area
    • Price is a key negotiation point
    • Product or service is valued by the organization
    • Quality or the perception of quality is a differentiator (i.e. brand awareness)
    • Moderate to high risk and criticality; moderate to high spend and switching costs
    • Few competitors and differentiated products and services
    • Product or service significantly advances the organization’s vision, mission, and success
    • Well-established in their core industry
    Commodity Tactical
    • Low risk and criticality; low spend and switching costs
    • Product or service is readily available from many sources
    • Market has many competitors and options
    • Relationship is transactional
    • Price is the main differentiator
    • Moderate to high risk and criticality; low to moderate spend and switching costs
    • Vendor offerings align with or support one or more strategic objectives
    • Often IT vendors “outside” of IT (i.e. controlled and paid for by other areas)
    • Often niche or new vendors

    Source: Compiled in part from Stephen Guth, “Vendor Relationship Management Getting What You Paid for (And More)”

    2.1.1: Classification Model

    15-30 minutes

    1. Meet with the participants to configure the spend ranges in Jump – Phase 2 Vendor Classification Tool, Tab 1. Configuration, for your environment.
    2. Sort the data from Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory, by spend; if you used multiple line items for a vendor in the Vendor Inventory tab, you will have to aggregate the spend data for this activity.
    3. Update cells F14-J14 in the Classification Model based on your actual data.
      1. Cell F14 – set the boundary at a point between the spend for your 10th and 11th ranked vendors. For example, if the 10th vendor by spend is $1,009,850 and the 11th vendor by spend is $980,763, the range for F14 would be $1,000,00+.
      2. Cell G14 – set the bottom of the range at a point between the spend for your 30th and 31st ranked vendors; the top of the range will be $1 less than the bottom of the range specified in F14.
      3. Cell H14 – set the bottom of the range slightly below the spend for your 50th ranked vendor; the top of the range will be $1 less than the bottom of the range specified in G14.
      4. Cells I14 and J14 – divide the remaining range in half and split it between the two cells; for J14 the range will be $0 to $1 less than the bottom range in I14.
    4. Ignore the other variables at this time.

    Download the Info-Tech Jump – Phase 2 Vendor Risk Assessment Tool

    Input

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory

    Output

    • Configured Vendor Classification Tool

    Materials

    • Jump – Phase 2 Vendor Classification Tool, Tab 1. Configuration

    Participants

    • VMI team

    Step 2.2: Risk assessment tool

    Identify risks to measure, monitor, and report on.

    One of the typical drivers of a VMI is risk management. Organizations want to get a better handle on the various risks their vendors pose. Vendor risks originate from many areas: financial, performance, security, legal, and many others. However, security risk is the high-profile risk and the one organizations often focus on almost exclusively, which leaves the organization vulnerable in other areas.

    Risk management is a program, not a project – there is no completion date. A proactive approach works best and requires continual monitoring, identification, and assessment. Reacting to risks after they occur can be costly and can have other detrimental effects on the organization. Any risk that adversely affects IT will adversely affect the entire organization.

    While the VMI won’t necessarily be quantifying or calculating the risk directly, it generally is the aggregator of risk information across the risk categories, which it then includes in its reporting function. (See Steps 2.12 and 3.8.)

    At a minimum, your risk management strategy should involve:

    • Identifying the risks you want to measure and monitor.
    • Identifying your risk appetite (the amount of risk you are willing to live with).
    • Measuring, monitoring, and reporting on the applicable risks.
    • Developing and deploying a risk management plan to minimize potential risk impact.

    Vendor risk is a fact of life, but you do have options for how you handle it. Be proactive and thoughtful in your approach, and focus your resources on what is important.

    2.2.1: Risk assessment tool

    30-90 minutes

    1. Meet with the participants to configure the risk indicators in Jump – Phase 2 Vendor Risk Assessment Tool, Tab 1. Set Parameters, for your environment.
    2. Review the risk categories and determine which ones you will be measuring and monitoring.
    3. Review the risk indicators under each risk category and determine whether the indicator is acceptable as written, is acceptable with modifications, should be replaced, or should be deleted.
    4. Make the necessary changes to the risk indicators; these changes will cascade to each of the vendor tabs. Limit the number of risk indicators to no more than seven per risk category.
    5. Gain input and approval as needed from sponsors, stakeholders, and executives as required.

    Download the Info-Tech Jump – Phase 2 Vendor Risk Assessment Tool

    Input

    • Scope
    • OIC Chart
    • Process Maps
    • Brainstorming

    Output

    • Configured Vendor Classification Tool

    Materials

    • Jump – Phase 2 Vendor Classification Tool, Tab 1. Configuration

    Participants

    • VMI team

    Step 2.3: Scorecards and feedback

    Design a two-way feedback loop with your vendors.

    A vendor management scorecard is a great tool for measuring, monitoring, and improving relationship alignment. In addition, it is perfect for improving communication between you and the vendor.

    Conceptually, a scorecard is similar to a report card you received when you were in school. At the end of a learning cycle, you received feedback on how well you did in each of your classes. For vendor management, the scorecard is also used to provide periodic feedback, but there are some different nuances and some additional benefits and objectives when compared to a report card.

    Although scorecards can be used in a variety of ways, the main focus here will be on vendor management scorecards – contract management, project management, and other types of scorecards will not be included in the materials covered in this Step 2.3 or in Step 3.4.

    Category 1 Score
    Vendor Objective A 4 ↓
    Objective B 3 ↓
    Objective C 5 ↑
    Objective D 4 !

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Anatomy

    The Info-Tech Scorecard includes five areas:

    • Measurement Categories. Measurement categories help organize the scorecard. Limit the number of measurement categories to three to five; this allows the parties to stay focused on what’s important. Too many measurement categories make it difficult for the vendor to understand the expectations.
    • Criteria. The criteria describe what is being measured. Create criteria with sufficient detail to allow the reviewers to fully understand what is being measured and to evaluate it. Criteria can be objective or subjective. Use three to five criteria per measurement category.
    • Measurement Category Weights. Not all of your measurement categories may be of equal importance to you; this area allows you to give greater weight to a measurement category when compiling the overall score.
    • Rating. Reviewers will be asked to assign a score to each criteria using a 1 to 5 scale.
    • Comments. A good scorecard will include a place for reviewers to provide additional information regarding the rating or other items that are relevant to the scorecard.

    An overall score is calculated based on the rating for each criteria and the measurement category weights.

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Goals and Objectives

    Scorecards can be used for a variety of reasons. Some of the common ones are listed below:

    • Improve vendor performance.
    • Convey expectations to the vendor.
    • Identify and recognize top vendors.
    • Increase alignment between the parties.
    • Improve communication with the vendor.
    • Compare vendors across the same criteria.
    • Measure items not included in contract metrics.
    • Identify vendors for “strategic alliance” consideration.
    • Help the organization achieve specific goals and objectives.
    • Identify and resolve issues before they impact performance or the relationship.

    Identifying your scorecard drivers first will help you craft a suitable scorecard.

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Info-Tech recommends starting with simple scorecards to allow you and the vendors to acclimate to the new process and information. As you build your scorecards, keep in mind that internal personnel will be scoring the vendors and the vendors will be reviewing the scorecard. Make your scorecard easy for your personnel to fill out and composed of meaningful content to drive the vendor in the right direction. You can always make the scorecard more complex in the future.

    Our recommendation of five categories is provided below. Choose three to five categories to help you accomplish your scorecard goals and objectives:

    1. Timeliness – responses, resolutions, fixes, submissions, completions, milestones, deliverables, invoices, etc.
    2. Cost – total cost of ownership, value, price stability, price increases/decreases, pricing models, etc.
    3. Quality – accuracy, completeness, mean time to failure, bugs, number of failures, etc.
    4. Personnel – skilled, experienced, knowledgeable, certified, friendly, trustworthy, flexible, accommodating, etc.
    5. Risk – adequate contractual protections, security breaches, lawsuits, finances, audit findings, etc.

    Some criteria may be applicable in more than one category. The categories above should cover at least 80% of the items that are important to your organization. The general criteria listed for each category is not an exhaustive list, but most things break down into time, money, quality, people, and risk issues.

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Additional Considerations

    • Even a good rating system can be confusing. Make sure you provide some examples or a way for reviewers to discern the differences between 1, 2, 3, 4, and 5. Don’t assume your “Rating Key” will be intuitive.
    • When assigning weights, don’t go lower than 10% for any measurement category. If the weight is too low, it won’t be relevant enough to have an impact on the total score. If it doesn’t “move the needle,” don’t include it.
    • Final sign-off on the scorecard template should occur outside of the VMI. The heavy lifting can be done by the VMI to create it, but the scorecard is for the benefit of the organization overall and those impacted by the vendors specifically. You may end up playing arbiter or referee, but the scorecard is not the exclusive property of the VMI. Try to reach consensus on your final template whenever possible.
    • You should notice improved ratings and total scores over time for your vendors. One explanation for this is the Pygmalion Effect: “The Pygmalion [E]ffect describes situations where someone’s high expectations improves our behavior and therefore our performance in a given area. It suggests that we do better when more is expected of us.”* Convey your expectations and let the vendors’ competitive juices take over.
    • While you’re creating your scorecard and materials to explain the process to internal personnel, identify those pieces that will help you explain it to your vendors as part of your vendor orientation (see steps 2.6 and 3.4). Leveraging pre-existing materials is a great shortcut.

    *Source: The Decision Lab, 2020

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Vendor Feedback

    After you’ve built your scorecard, turn your attention to the second half of the equation – feedback from the vendor. A communication loop cannot be successful without the dialogue flowing both ways. While this can happen with just a scorecard, a mechanism specifically geared toward the vendor providing you with feedback improves communication, alignment, and satisfaction.

    You may be tempted to create a formal scorecard for the vendor to use. Our recommendation is to avoid that temptation until later in your maturity or development of the VMI. You’ll be implementing a lot of new processes, deploying new tools and templates, and getting people to work together in new ways. Work on those things first.

    For now, implement an informal process for obtaining information from the vendor. Start by identifying information that you will find useful, information that will allow you to improve overall, to reduce waste or time, to improve processes, to identify gaps in skills. Incorporate these items into your business alignment meetings (see Steps 2.4 and 3.5). Create three to five good questions to ask the vendor and include these in the business alignment meeting agenda. The goal is to get meaningful feedback, and that starts with asking good questions.

    Keep it simple at first. When the time is right, you can build a more formal feedback form or scorecard. Don’t be in a rush though. So long as the informal method works, keep using it.

    2.3.1: Scorecards and feedback

    30-60 minutes

    1. Meet with the participants and brainstorm ideas for your scorecard measurement categories:
      1. What makes a vendor valuable to your organization?
      2. What differentiates a “good” vendor from a “bad” vendor?
      3. What items would you like to measure and provide feedback to the vendor to improve performance, the relationship, risk, and other areas?
    2. Select three, but no more than five, of the following measure categories: timeliness, cost, quality, personnel, and risk.
    3. Within each measurement category, list two or three criteria that you want to measure and track for your vendors; choose items that are as universal as possible rather than being applicable to one vendor or one vendor type.
    4. Assign a weight to each measurement category, ensuring that the total weight is 100% for all measurement categories.
    5. Document your results as you go in Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Scorecard.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming

    Output

    • Configured scorecard template

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Scorecard

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    2.3.2: Scorecards and feedback

    15-30 minutes

    1. Meet with the participants and brainstorm ideas for feedback to seek from your vendors during your business alignment meetings. During the brainstorming, identify questions to ask the vendor about your organization that will:
      1. Help you improve the relationship.
      2. Help you improve your processes or performance.
      3. Help you improve ongoing communication.
      4. Help you evaluate your personnel.
    2. Identify the top five questions you want to include in your business alignment meeting agenda. (Note: you may need to refine the actual questions from the brainstorming activity before they are ready to include in your business alignment meeting agenda.)
    3. Document both your brainstorming activity and your final results in Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback. The brainstorming questions can be used in the future as your VMI matures and your feedback transforms from informal to formal. The final results will be used in Steps 2.4 and 3.5.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming

    Output

    • Feedback questions to include with the business alignment meeting agenda

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.4: Business alignment meeting agenda

    Craft an agenda that meets the needs of the VMI.

    A business alignment meeting (BAM) is a great, multi-faceted tool to ensure the customer and the vendor stay focused on what is important to the customer at a high level. BAMs are not traditional “operational” meetings where the parties get into the details of the contracts, deal with installation problems, address project management issues, or discuss specific cost overruns. The main focus of the BAM is the scorecard (see Step 2.3), but other topics are discussed and other purposes are served. For example, you can use the BAM to develop the relationship with the vendor’s leadership team so that if escalation is ever needed, your organization is more than just a name on a spreadsheet or customer list; you can learn about innovations the vendor is working on (without the meeting turning into a sales call); you can address high-level performance trends and request corrective action as needed; you can clarify your expectations; you can educate the vendor about your industry, culture, and organization; and you can learn more about the vendor.

    As you build your BAM agenda, someone in your organization may say, “Oh, that’s just a quarterly business review (QBR) or top-to-top meeting.” However, in most instances, an existing QBR or top-to-top meeting is not the same as a BAM. Using the term QBR or top-to-top meeting instead of BAM can lead to confusion internally. The VMI may say to the business unit, Procurement, or another department, “We’re going to start running some QBRs for our strategic vendors.” The typical response is, “There’s no need to do that. We already run QBRs/top-to-top meetings with our important vendors.” This may be accompanied by an invitation to join their meeting, where you may be an afterthought, have no influence, and get five minutes at the end to talk about your agenda items. Keep your BAM separate so that it meets your needs.

    Step 2.4: Business alignment meeting agenda (cont.)

    Craft an agenda that meets the needs of the VMI.

    As previously noted, using the term BAM more accurately depicts the nature of the VMI meeting and prevents confusion internally with other meetings already occurring. In addition, hosting the BAM yourself rather than piggybacking onto another meeting ensures that the VMI’s needs are met. The VMI will set and control the BAM agenda and determine the invite list for internal personnel and vendor personnel. As you may have figured out by now, having the right customer and vendor personnel attend will be essential.

    BAMs are conducted at the vendor level … not the contract level. As a result, the frequency of the BAMs will depend on the vendor’s classification category (see Steps 2.1 and 3.1). General frequency guidelines are provided below, but they can be modified to meet your goals:

    • Commodity Vendors – Not applicable
    • Operational Vendors – Biannually or annually
    • Strategic Vendors – Quarterly
    • Tactical Vendors – Quarterly or biannually

    BAMs can help you achieve some additional benefits not previously mentioned:

    • Foster a collaborative relationship with the vendor.
    • Avoid erroneous assumptions by the parties.
    • Capture and provide a record of the relationship (and other items) over time.

    Step 2.4: Business alignment meeting agenda (cont.)

    Craft an agenda that meets the needs of the VMI.

    As with any meeting, building the proper agenda will be one of the keys to an effective and efficient meeting. A high-level BAM agenda with sample topics is set out below:

    BAM Agenda

    • Opening Remarks
      • Welcome and introductions
      • Review of previous minutes
    • Active Discussion
      • Review of open issues
      • Scorecard and feedback
      • Current status of projects to ensure situational awareness by the vendor
      • Roadmap/strategy/future projects
      • Accomplishments
    • Closing Remarks
      • Reinforce positives (good behavior, results, and performance, value added, and expectations exceeded)
      • Recap
    • Adjourn

    2.4.1: Business alignment meeting agenda

    20-45 minutes

    1. Meet with the participants and review the sample agenda in Jump – Phase 2 Tools and Templates Compendium, Tab 2.4 BAM Agenda.
    2. Using the sample agenda as inspiration and brainstorming activities as needed, create a BAM agenda tailored to your needs.
      1. Select the items from the sample agenda applicable to your situation.
      2. Add any items required based on your brainstorming.
      3. Add the feedback questions identified during Activity 2.3.2 and documented in Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback.
    3. Gain input and approval from sponsors, stakeholders, and executives as required or appropriate.
    4. Document the final BAM agenda in Jump – Phase 2 Tools and Templates Compendium, Tab 2.4 BAM Agenda.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback

    Output

    • Configured BAM agenda

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.4 BAM Agenda

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.5: Relationship alignment document

    Draft a document to convey important VMI information to your vendors.

    Throughout this blueprint, alignment is mentioned directly (e.g. business alignment meetings [Steps 2.4 and 3.5]) or indirectly implied. Ensuring you and your vendors are on the same page, have clear and transparent communication, and understand each other’s expectations is critical to fostering strong relationships. One component of gaining and maintaining alignment with your vendors is the relationship alignment document (RAD). Depending upon the scope of your VMI and what your organization already has in place, your RAD will fill in the gaps on various topics.

    Early in the VMI’s maturation, the easiest approach is to develop a short document (i.e. 1 page) or a pamphlet (i.e. the classic trifold) describing the rules of engagement when doing business with your organization. The RAD can convey expectations, policies, guidelines, and other items. The scope of the document will depend on 1) what you believe is important for the vendors to understand, and 2) any other similar information already provided to the vendors.

    The first step to drafting a RAD is to identify what information vendors need to know to stay on your good side. For example, you may want vendors to know about your gift policy (e.g. employees may not accept gifts from vendors above a nominal value such as a pen or mousepad). Next, compare your list of what vendors need to know and determine if the content is covered in other vendor-facing documents such as a vendor code of conduct or your website’s vendor portal. Lastly, create your RAD to bridge the gap between what you want and what is already in place. In some instances, you may want to include items from other documents to reemphasize them with the vendor community.

    Info-Tech Insight

    The RAD can be used with all vendors regardless of classification category. It can be sent directly to the vendors or given to them during vendor orientation (see Step 3.3)

    2.5.1: Relationship alignment document

    1-4 hours

    1. Meet with the participants and review the RAD sample and checklist in Jump – Phase 2 Tools and Templates Compendium, Tab 2.5 Relationship Alignment Doc.
    2. Determine:
      1. Whether you will create one RAD for all vendors or one RAD for strategic vendors and another RAD for tactical and operational vendors; whether you will create a RAD for commodity vendors.
      2. The concepts you want to include in your RAD(s).
      3. The format for your RAD(s) – traditional, pamphlet, or other.
      4. Whether signoff or acknowledgement will be required by the vendors.
    3. Draft your RAD(s) and work with other internal areas such as Marketing to create a consistent brand for the RADS and Legal to ensure consistent use and preservation of trademarks or other intellectual property rights and other legal issues.
    4. Review other vendor-facing documents (e.g. supplier code of conduct, onsite safety and security protocols) for consistencies between them and the RAD(s).
    5. Obtain signoff on the RAD(s) from stakeholders, sponsors, executives, Legal, Marketing, and others as needed.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Vendor-facing documents, policies, and procedures

    Output

    • Completed relationship alignment document(s)

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.5 Relationship Alignment Doc

    Participants

    • VMI team
    • Marketing, as needed
    • Legal, as needed

    Step 2.6: Vendor orientation

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 01 - Orientation; 02 - Reorientation; 03 - Debrief

    Your organization is unique. It may have many similarities with other organizations, but your culture, risk tolerance, mission, vision, and goals, finances, employees, and “customers” (those that depend on you) make it different. The same is true of your VMI. It may have similar principles, objectives, and processes to other organizations’ VMIs, but yours is still unique. As a result, your vendors may not fully understand your organization and what vendor management means to you.

    Vendor orientation is another means to helping you gain and maintain alignment with your important vendors, educate them on what is important to you, and provide closure when/if the relationship with the vendor ends. Vendor orientation is comprised of three components, each with a different function:

    • Orientation
    • Reorientation
    • Debrief

    Vendor orientation focuses on the vendor management pieces of the puzzle (e.g. the scorecard process) rather than the operational pieces (e.g. setting up a new vendor in the system to ensure invoices are processed smoothly).

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 01 - Orientation

    Orientation

    Orientation is conceptually similar to new hire orientation for employees at your organization. Generally conducted as a meeting, orientation provides your vendors with the information they need to be successful when working with your organization. Sadly, this is often overlooked by customers; it can take months or years for vendors to figure it out by themselves. By controlling the narrative and condensing the timeline, vendor relationships and performance improve more rapidly.

    A partial list of topics for orientation is set out below:

    • Your organization’s structure
    • Your organization’s culture
    • Your relationship expectations
    • Your governances (VMI and other)
    • Their vendor classification designation (commodity, operational, strategic, or tactical)
    • The scorecard process
    • Business alignment meetings
    • Relationship alignment documents

    In short, this is the first step toward building (or continuing to build) a robust, collaborative, mutually beneficial relationship with your important vendors.

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 02 - Reorientation

    Reorientation

    Reorientation is either identical or similar to orientation, depending upon the circumstances. Reorientation occurs for a number of reasons, and each reason will impact the nature and detail of the reorientation content. Reorientation occurs whenever:

    • There is a significant change in the vendor’s products or services.
    • The vendor has been through a merger, acquisition, or divestiture.
    • A significant contract renewal/renegotiation has recently occurred.
    • Sufficient time has passed from orientation; commonly 2 to 3 years.
    • The vendor has been placed in a “performance improvement plan” or “relationship improvement plan” protocol.
    • Significant turnover has occurred within your organization (executives, key stakeholders, and/or VMI personnel).
    • Substantial turnover has occurred at the vendor at the executive or account management level.
    • The vendor has changed vendor classification categories after the most current classification.

    As the name implies, the goal is to refamiliarize the vendor with your current VMI situation, governances, protocols, and expectations. The drivers for reorientation will help you determine its scope, scale, and frequency.

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 03 - Debrief

    Debrief

    To continue the analogy from orientation, debrief is similar to an exit interview for an employee when their employment is terminated. In this case, debrief occurs when the vendor is no longer an active vendor with your organization – all contracts have terminated or expired, and no new business with the vendor is anticipated within the next three months.

    Similar to orientation and reorientation, debrief activities will be based on the vendor’s classification category within the COST model. Strategic vendors don’t go away very often; usually, they transition to operational or tactical vendors first. However, if a strategic vendor is no longer providing products or services to you, dig a little deeper into their experiences and allocate extra time for the debrief meeting.

    The debrief should provide you with feedback on the vendor’s experience with your organization and their participation in your VMI. In addition, it can provide closure for both parties since the relationship is ending. Be careful that the debrief does not turn into a finger-pointing meeting or therapy session for the vendor. It should be professional and productive; if it is going off the rails, terminate the meeting before more damage can occur.

    End the debrief on a high note if possible. Thank the vendor, highlight its key contributions, and single out any personnel who went above and beyond. You never know when you will be doing business with this vendor again – don’t burn bridges!

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    • As you create your vendor orientation materials, focus on the message you want to convey.
    • For orientation and reorientation:
      • What is important to you that vendors need to know?
      • What will help the vendors understand more about your organization … your VMI?
      • What and how are you different from other organizations overall … in your “industry”?
      • What will help them understand your expectations?
      • What will help them be more successful?
      • What will help you build the relationship?
    • For debrief:
      • What information or feedback do you want to obtain?
      • What information or feedback to you want to give?
    • The level of detail you provide strategic vendors during orientation and reorientation may be different from the information you provide tactical and operational vendors. Commodity vendors are not typically involved in the vendor orientation process. The orientation meetings can be conducted on a one-to-one basis for strategic vendors and a one-to-many basis for operational and tactical vendors; reorientation and debrief are best conducted on a one-to-one basis. Lastly, face-to-face or video meetings work best for vendor orientation; voice-only meetings, recorded videos, or distributing only written materials seldom hit their mark or achieve the desired results.

    2.6.1: Vendor orientation

    1 to several hours

    1. Meet with the participants and review the Phase Tools and Templates Compendium, Tab 2.6 Vendor Orientation.
      1. Use the orientation checklist to identify the materials you want to create for your orientation meetings.
      2. Use the reorientation checklist to identify the materials you want to create for your reorientation meetings.
    2. The selections can be made by classification category (i.e. different items can apply to strategic, operational, and tactical vendors).
    3. Create the materials and seek input and/or approval from sponsors, stakeholders, and executives as needed.
    4. Use the debrief section of the tool to create an agenda, list the questions you want to ask vendors, and list information you want to provide to vendors. The agenda, questions, and information can be segregated by classification category.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming

    Output

    • Agendas and materials for orientation, reorientation, and debrief

    Materials

    • Phase Tools and Templates Compendium, Tab 2.6 Vendor Orientation

    Participants

    • VMI team

    Step 2.7: Job descriptions

    Ensure new and existing job descriptions are up to date.

    Based on your work product from Steps 1.1-1.9, it’s time to start drafting new or modifying existing job descriptions applicable to the VMI team members. Some of the VMI personnel may be dedicated full-time to the VMI, while others may be supporting the VMI on a part-time basis. At a minimum, create or modify your job descriptions based on the categories set out below. Remember to get the internal experts involved so that you stay true to your environment and culture.

    01 Title

    This should align overall with what the person will be doing and what the person will be responsible for. Your hands may be tied with respect to titles, but try to make them intuitively descriptive if possible.

    02 Duties

    This is the main portion of the job description. List the duties, responsibilities, tasks, activities, and results expected. Again, there may be some limitations imposed by your organization, but be as thorough as possible.

    03 Qualifications

    This tends to be a gray area for many organizations, with the qualifications, certifications, and experience desired expressed in “ranges” so that good candidates are not eliminated from consideration unnecessarily.

    2.7.1: Job descriptions

    1 to several hours

    1. Meet with the participants and review the VMI structure from Step 1.9.
      1. List the positions that require new job descriptions.
      2. List the positions that require updated job descriptions.
    2. Review the other Phase 1 work product and list the responsibilities, tasks, and functions that need to be incorporated into the new and updated job descriptions.
    3. Review the sample VMI job descriptions and sample VMI job description language in Jump – Phase 2 Tools and Templates Compendium, Tab 2.7 Job Descriptions, and identify language and concepts you want to include in the new and revised job descriptions.
    4. Using your template, draft the new job descriptions and modify the existing job descriptions to synchronize with the VMI structure. Work with other internal areas such as Human Resources to ensure cultural fit and compliance.
    5. Obtain input and signoff on the job descriptions from stakeholders, sponsors, executives, Human Resources, and others as needed.
    6. Document your final job descriptions in Jump – Phase 2 Tools and Templates Compendium, Tab 2.7 Job Descriptions.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Existing job descriptions
    • Work product from Phase 1

    Output

    • Job descriptions for new positions
    • Updated job descriptions for existing positions

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.7 Job Descriptions

    Participants

    • VMI team
    • Human Resources (as needed)
    • Applicable stakeholders and executives (as needed)

    Step 2.8: Policies and procedures

    Prepare policies and procedures for VMI functions.

    Policies and procedures are often thought of as boring documents that are 1) tedious to create, 2) seldom read after creation, and 3) only used to punish people when they do something “wrong.” However, when done well, these documents:

    • Communicate expectations.
    • Capture institutional knowledge.
    • Provide guidance for decision making.
    • Help workers avoid errors and minimize risk.
    • Ensure regulatory and organizational compliance.
    • List the steps required to achieve consistent results.

    Definitions of Policies and Procedures

    Policies and procedures are essential, but they are often confused with each other. A policy is a rule, guideline, or framework for making decisions. For example, in the vendor management space, you may want a policy indicating your organization’s view on gifts from vendors. A procedure is a set of instructions for completing a task or activity. For example, staying in the vendor management space, you may want a procedure to outline the process for classifying vendors.

    Step 2.8: Policies and procedures (cont.)

    Prepare policies and procedures for VMI functions.

    Start With Your Policy/Procedure Template or Create One for Consistency

    When creating policies and procedures, follow your template. If you don’t have one (or want to see if anything is missing from your template) the following list of potential components for your governance documents is provided.* Not every concept is required. Use your judgment and err on the side of caution when drafting; balance readability and helpfulness against over documenting and over complicating.

    • Descriptive Title
    • Policy Number
    • Brief Overview
    • Purpose
    • Scope
    • The Policy or Procedure
    • Definitions
    • Revision Date
    • History
    • Related Documents
    • Keywords

    Step 2.8: Policies and procedures (cont.)

    Prepare policies and procedures for VMI functions.

    Although they are not ever going to be compared to page-turning novels, policies and procedures can be improved by following a few basic principles. By following the guidelines set out below, your VMI policies and procedures will contribute to the effectiveness of your initiative.*

    • Use short sentences.
    • Organize topics logically.
    • Use white space liberally.
    • Use mandatory language.
    • Use gender-neutral terms.
    • Write with an active voice.
    • Avoid jargon when possible.
    • Use a consistent “voice” and tone.
    • Use pictures or diagrams when they will help.
    • Write in the same tense throughout the document.
    • Use icons and colors to designate specific elements.
    • Make sure links to other policies and procedures work.
    • Define all acronyms and jargon (when it must be used).
    • Avoid a numbering scheme with more than three levels.

    *Adapted in part from smartsheet.com

    Info-Tech Insight

    Drafting policies and procedures is an iterative process that requires feedback from the organization’s leadership team.

    2.8.1: Policies and procedures

    Several hours

    1. Meet with the participants and review the sample policies and procedures topics in Jump – Phase 2 Tools and Templates Compendium, Tab 2.8 Policies and Procedures.
    2. Determine:
      1. The concepts you want to include in your policies and procedures; brainstorm for any additional concepts you want to include.
      2. The format/template for your policies and procedures.
    3. Draft your policies and procedures based on the sample topics and your brainstorming activity. Work with other internal areas such as Legal and Human Resources to ensure cultural and environmental fit within your organization.
    4. Obtain input and signoff on the policies and procedures from stakeholders, sponsors, executives, Legal, Human Resources, and others as needed.
    5. Document your final policies and procedures in Jump – Phase 2 Tools and Templates Compendium, Tab 2.8 Policies and Procedures.
    6. Publish your policies and procedures and conduct training sessions or awareness sessions as needed.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Existing policies and procedures (if any)
    • Existing policies and procedures template (if any)
    • Scope
    • OIC chart
    • Process maps
    • Brainstorming

    Output

    • VMI policies and procedures

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.8 Policies and Procedures

    Participants

    • VMI team
    • Legal and Human Resources (as needed)
    • Applicable stakeholders and executives (as needed)

    Step 2.9: 3-year roadmap

    Plot your path at a high level.

    The VMI exists in many planes concurrently: 1) it operates both tactically and strategically, and 2) it focuses on different timelines or horizons (e.g. the past, the present, and the future). Creating a 3-year roadmap facilitates the VMI’s ability to function effectively across these multiple landscapes.

    The VMI roadmap will be influenced by many factors. The work product from Phase 1: Plan, input from executives, stakeholders, and internal clients, and the direction of the organization as a whole are great sources of information as you begin to build your roadmap.

    To start, identify what you would like to accomplish in Year 1. This is arguably the easiest year to complete: budgets are set (or you have a good idea what the budget will look like), personnel decisions have been made, resources have been allocated, and other issues impacting the VMI are known with a higher degree of certainty than any other year. This does not mean things won’t change during the first year of the VMI, but expectations are usually lower and the short event horizon makes things more predictable during the Year-1 ramp-up period.

    Years 2 and 3 are more tenuous, but the process is the same: identify what you would like to accomplish or roll out in each year. Typically, the VMI maintains the Year 1 plan into subsequent years and adds to the scope or maturity. For example, you may start Year 1 with BAMs and scorecards for three of your strategic vendors; during Year 2, you may increase that to five vendors; and during Year 3, you may increase that to nine vendors. Or, you may not conduct any market research during Year 1, waiting to add it to your roadmap in Year 2 or 3 as you mature.

    Breaking things down by year helps you identify what is important and the timing associated with your priorities. A conservative approach is recommended. It is easy to overcommit, but the results can be disastrous and painful.

    2.9.1: 3-year roadmap

    45-90 minutes

    1. Meet with the participants and decide how to coordinate Year 1 of your 3-year roadmap with your existing fiscal year or reporting year. Year 1 may be shorter or longer than a calendar year.
    2. Review the VMI activities listed in Jump – Phase 2 Tools and Templates Compendium, Tab 2.9 3-Year Roadmap. Use brainstorming and your prior work product from Phase 1 and Phase 2 to identify additional items for the roadmap and add them at the bottom of the spreadsheet.
    3. Starting with the first activity, determine when that activity will begin and put an X in the corresponding column; if the activity is not applicable, leave it blank or insert N/A.
    4. Go back to the top of the list and add information as needed.
      1. For any Year-1 or Year-2 activities, add an X in the corresponding columns if the activity will be expanded/continued in subsequent periods (e.g. if a Year 2 activity will continue in Year 3, put an X in Year 3 as well).
      2. Use the comments column to provide clarifying remarks or additional insights related to your plans or “X’s.” For example, “Scorecards begin in Year 1 with three vendors and will roll out to five vendors in Year 2 and nine vendors in Year 3.”
    5. Obtain signoff from stakeholders, sponsors, and executives as needed.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Phase 1 work product
    • Steps 2.1-2.8 work product
    • Brainstorming

    Output

    • High level 3-year roadmap for the VMI

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.9 3-Year Roadmap

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.10: 90-day plan

    Pave your short-term path with a series of detailed quarterly plans.

    Now that you have prepared a 3-year roadmap, it’s time to take the most significant elements from the first year and create action plans for each three-month period. Your first 90-day plan may be longer or shorter if you want to sync to your fiscal or calendar quarters. Aligning with your fiscal year can make it easier for tracking and reporting purposes; however, the more critical item is to make sure you have a rolling series of four 90-day plans to keep you focused on the important activities and tasks throughout the year.

    The 90-day plan is a simple project plan that will help you measure, monitor, and report your progress. Use the Info-Tech tool to help you track:

    • Activities
    • Tasks comprising each activity
    • Who will be performing the tasks
    • An estimate of the time required per person per task
    • An estimate of the total time to achieve the activity
    • A due date for the activity
    • A priority of the activity

    The first 90-day plan will have the greatest level of detail and should be as thorough as possible; the remaining three 90-day plans will each have less detail for now. As you approach the middle of the first 90-day plan, start adding details to the next 90-day plan; toward the end of the first quarter add a high-level 90-day plan to the end of the chain. Continue repeating this cycle each quarter and consult the 3-year roadmap and the leadership team as necessary.

    		90 Days

    2.10.1: 90-day plan

    45-90 minutes

    1. Meet with the participants and decide how to coordinate the first 90-day plan with your existing fiscal year or reporting cycles. Your first plan may be shorter or longer than 90 days.
    2. Looking at the Year 1 section of the 3-year roadmap, identify the activities that will be started during the next 90 days.
    3. Using the Jump – Phase 2 Tools and Templates Compendium, Tab 2.10 90-Day Plan, enter the following information into the spreadsheet for each activity to be accomplished during the next 90 days:
      1. Activity description
      2. Tasks required to complete the activity (be specific and descriptive)
      3. The people who will be performing each task
      4. The estimated number of hours required to complete each task
      5. The start date and due date for each task or the activity
    4. Validate the tasks are a complete list for each activity and the people performing the tasks have adequate time to complete the tasks by the due date(s).
    5. Assign a priority to each activity.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • 3-year roadmap
    • Phase 1 work product
    • Steps 2.1-2.9 work product
    • Brainstorming

    Output

    • Detailed plan for the VMI for the next quarter or 90 days

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.10 90-Day Plan

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.11: Quick wins

    Identify potential short-term successes to gain momentum and show value immediately.

    As the final step in the timeline trilogy, you are ready to identify some quick wins for the VMI. Using the first 90-day plan and a brainstorming activity, create a list of things you can do in 15 to 30 days that add value to your initiative and build momentum.

    As you evaluate your list of potential candidates, look for things that:

    • Are achievable within the stated timeline.
    • Don’t require a lot of effort.
    • Involve stopping a certain process, activity, or task; this is sometimes known as a “stop doing stupid stuff” approach.
    • Will reduce or eliminate inefficiencies; this is sometimes known as the war on waste.
    • Have a moderate to high impact or bolster the VMI’s reputation.

    As you look for quick wins, you may find that everything you identify does not meet the criteria. That’s ok … don’t force the issue. Return your focus to the 90-day plan and 3-year roadmap, and update those documents if the brainstorming activity associated with this Step 2.11 identified anything new.

    2.11.1: Quick wins

    15-30 minutes

    1. Meet with the participants and review the 3-year roadmap and 90-day plan. Determine if any item on either document can be completed:
      1. Quickly (30 days or less)
      2. With minimal effort
      3. To provide or show moderate to high levels of value or provide the VMI with momentum
    2. Brainstorm to identify any other items that meet the criteria in step 1 above.
    3. Compile a comprehensive list of these items and select up to five to pursue.
    4. Document the list in the Jump – Phase 2 Tools and Templates Compendium, Tab 2.11 Quick Wins.
    5. Manage the quick wins list and share the results with the VMI team and applicable stakeholders and executives.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • 3-year roadmap
    • 90-day plan
    • Brainstorming

    Output

    • A list of activities that require low levels of effort to achieve moderate to high levels of value in a short period

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.11 Quick Wins

    Participants

    • VMI team

    Step 2.12: Reports

    Construct your reports to resonate with your audience.

    Issuing reports is a critical piece of the VMI since the VMI is a conduit of information for the organization. It may be aggregating risk data from internal areas, conducting vendor research, compiling performance data, reviewing market intelligence, or obtaining relevant statistics, feedback, comments, facts, and figures from other sources. Holding onto this information minimizes the impact a VMI can have on the organization; however, the VMI’s internal clients, stakeholders, and executives can drown in raw data and ignore it completely if it is not transformed into meaningful, easily-digested information.

    Before building a report, think about your intended audience:

    • What information are they looking for … what will help them understand the big picture?
    • What level of detail is appropriate, keeping in mind the audience may not be like-minded?
    • What items are universal to all of the readers and what items are of interest to one or two readers?
    • How easy or hard will it be to collect the data … who will be providing it, how time consuming will it be?
    • How accurate, valid, and timely will the data be?
    • How frequently will each report need to be issued?

    Step 2.12: Reports (cont.)

    Construct your reports to resonate with your audience.

    Use the following guidelines to create reports that will resonate with your audience:

    • Value information over data, but sometimes data does have a place in your report.
    • Use pictures, graphics, and other representations more than words, but words are often necessary in small, concise doses.
    • Segregate your report by user; for example, general information up top, CIO information below that on the right, CFO information to the left of CIO information, etc.
    • Send a draft report to the internal audience and seek feedback, keeping in mind you won’t be able to cater to or please everyone.

    Step 2.12: Reports (cont.)

    Construct your reports to resonate with your audience.

    The report’s formatting and content display can make or break your reports.*

    • Make the report look inviting and easy to read. Use:
      • Short paragraphs and bullet points.
      • A simple layout and uncluttered, wide margins.
      • Minimal boldface, underline, or italics to attract the readers’ attention.
      • High contrast between text and background.
    • Charts, graphs, and infographics should be intuitive and tell the story on their own.
    • Make it easy to peruse the report for topics of interest.
      • Maintain consistent design features.
      • Use impactful, meaningful headings and subheadings.
      • Include callouts to draw attention to important high-level information.
    • Demonstrate the impact of the accomplishments or success stories when appropriate.
    • Finish with a simple concise summary when appropriate. Consider adding:
      • Key points for the reader to takeaway.
      • Action items or requests.
      • Plans for next reporting period.

    *Sources: Adapted and compiled in part from: designeclectic.com, ahrq.gov, and 60secondmarketer.com.

    2.12.1: Reports

    15-45 minutes

    1. Meet with the participants and review the applicable work product from Phases 1 and 2; identify qualitative and quantitative items the VMI measures, monitors, tracks, or aggregates.
    2. Determine which items will be reported and to whom (by category):
      1. Internally to personnel within the VMI
      2. Internally to personnel outside the VMI
      3. Externally to vendors
    3. Within each category above, determine your intended audiences/recipients. For example, you may have a different list of recipients for a risk report than you do a scorecard summary report. This will help you identify the number of reports required.
    4. Create a draft structure for each report based on the audience and the information being conveyed. Determine the frequency of each report and person responsible for creating for each report.
    5. Document your final choices in Jump – Phase 2 Tools and Templates Compendium, Tab 2.12 Reports.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Phase 1 work product
    • Steps 2.1-2.11 work product

    Output

    • A list of reports used by the VMI
    • For each report:
    • The conceptual content
    • A list of who will receive or have access
    • A creation/distribution frequency

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.12 Reports

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Phase 3: Run

    Implement Your Processes and Leverage Your Tools and Templates

    Phase 1 Phase 2 Phase 3 Phase 4
    1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Begin operating the VMI. The main outcomes from this phase are guidance and the steps required to implement your VMI.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 3: Run

    Implement your processes and leverage your tools and templates.

    All of the hard work invested in Phase 1: Plan and Phase 2: Build begins to pay off in Phase 3: Run. It’s time to stand up your VMI and ensure that the proper level of resources is devoted to your vendors and the VMI itself. There’s more hard work ahead, but the foundational elements are in place. This doesn’t mean there won’t be adjustments and modifications along the way, but you are ready to use the tools and templates in the real world; you are ready to begin reaping the fruits of your labor.

    Phase 3: Run guides you through the process of collecting data, monitoring trends, issuing reports, and conducting effective meetings to:

    • Manage risk better.
    • Improve vendor performance.
    • Improve vendor relationships.
    • Identify areas where the parties can improve.
    • Improve communication between the parties.
    • Increase the value proposition with your vendors.

    Step 3.1: Classify vendors

    Begin classifying your top 25 vendors by spend.

    Step 3.1 sets the table for many of the subsequent steps in Phase 3: Run. The results of your classification process will determine: which vendors go through the scorecarding process (Step 3.4); which vendors participate in BAMs (Step 3.5); the nature and content of the vendor orientation activities (Step 3.3); which vendors will be part of the risk measurement and monitoring process (Step 3.8); which vendors will be included in the reports issued by the VMI (Step 3.9); and which vendors you will devote relationship-building resources to (Step 3.10).

    As you begin classifying your vendors, Info-Tech recommends using an iterative approach initially to validate the results from the classification model you configured in Step 2.1.

    1. Using the information from the Vendor Inventory tab (Step 1.7), identify your top 25 vendors by spend.
    2. Run your top 10 vendors by spend through the classification model and review the results.
      1. If the results are what you expected and do not contain any significant surprises, go to next page.
      2. If the results are not what you expected or contain significant surprises, look at the configuration page of the tool (Tab 1) and adjust the weights or the spend categories slightly. Be cautious in your evaluation of the results before modifying the configuration page – some legitimate results are unexpected or surprising based on bias. If you modify the weighting, review the new results and repeat your evaluation. If you modify the spend categories, review the answers on the vendor tabs to ensure that the answers are still accurate; review the new results and repeat your evaluation.

    Step 3.1: Classify vendors (cont.)

    Review your results and adjust the classification tool as needed.

    1. Run your top 11 through 25 vendors by spend through the classification model and review the results. Identify any unexpected results or surprises. Determine if further configuration makes sense and repeat the process outlined in 2.b, previous page, as necessary. If no further modifications are required, continue to 4, below.
    2. Share the preliminary results with the leadership team, executives, and stakeholders to obtain their approval or adjustments to the results.
      1. They may have questions and want to understand the process before approving the results.
      2. They may request that you move a vendor from one quadrant to another based on your organization’s roadmap, the vendor’s roadmap, or other information not available to you.
    3. Identify the vendors that will be part of the VMI at this stage – how many and which ones. Based on this number and the VMI’s scope (Step 1.2), make sure you have the resources necessary to accommodate the number of vendors participating in the VMI. Proceed cautiously and gradually increase the number of vendors participating in the VMI.

    Step 3.1: Classify vendors (cont.)

    Finalize the results and update VMI tools and templates.

    1. Update the Vendor Inventory tab (Step 1.7) to indicate the current classification status for the top 25 vendors by spend. Once your vendors have been classified, you can sort the Vendor Inventory tab by classification status to see all the vendors in that category at once.
    2. Review your 3-year roadmap (Step 2.9) and 90-day plans (Step 2.10) to determine if any modifications are needed to the activities and timelines.

    Additional classification considerations:

    • You should only have a few vendors that fit in the strategic category. As a rough guideline, no more than 5% to 10% of your IT vendors should end up in the strategic category. If you have a large number of vendors, even 5% may be too many. The classification model is an objective start to the classification process, but common sense must prevail over the “math” at the end of the day.
    • At this point, there is no need to go beyond the top 25 by spend. Most VMIs starting out can’t handle more than three to five strategic vendors initially. Allow the VMI to run a pilot program with a small sample size, work out any bugs, make adjustments, and then ramp up the VMI’s rollout in waves. Vendors can be added quarterly, biannually, or annually, depending upon the desired goals and available resources.

    Step 3.1: Classify vendors (cont.)

    Align your vendor strategy to your classification results.

    As your VMI matures, additional vendors will be part of the VMI. Review the table below and incorporate the applicable strategies into your deployment of vendor management principles over time. Stay true to your mission, goals, and scope, and remember that not all of your vendors are of equal importance.

    Operational Strategic
    • Focus on spend containment
    • Concentrate on lowering total cost of ownership
    • Invest moderately in cultivating the relationship
    • Conduct BAMs biannually or annually
    • Compile scorecards quarterly or biannually
    • Identify areas for performance and cost improvement
    • Focus on value, collaboration, and alignment
    • Review market intelligence for the vendor’s industry
    • Invest significantly in cultivating the relationship
    • Initiate executive-to-executive relationships
    • Conduct BAMs quarterly
    • Compile scorecards quarterly
    • Understand how the vendors view your organization

    Commodity

    Tactical
    • Investigate vendor rationalization and consolidation
    • Negotiate for the best-possible price
    • Leverage competition during negotiations
    • Streamline the purchasing and payment process
    • Allocate minimal VMI resources
    • Assign the lowest priority for vendor management metrics
    • Conduct risk assessments biannually or annually
    • Cultivate a collaborative relationship based on future growth plans or potential with the vendor
    • Conduct BAMs quarterly or biannually
    • Compile scorecards quarterly
    • Identify areas of performance improvement
    • Leverage innovation and creative problem solving

    Step 3.1: Classify vendors (cont.)

    Be careful when using the word “partner” with your strategic and other vendors.

    For decades, vendors have used the term “partner” to refer to the relationship they have with their clients and customers. In many regards, this is often an emotional ploy used by the vendors to get the upper hand. To fully understand the terms “partner” and “partnership” let’s evaluate them through two more-objective, less-cynical lenses.

    If you were to talk to your in-house or outside legal counsel, you may be told that partners share in profits and losses, and they have a fiduciary obligation to each other. Unless there is a joint venture between the parties, you are unlikely to have a partnership with a vendor from this perspective.

    What about a “business” partnership … one that doesn’t involve sharing profits and losses? What would that look like? Here are some indicators of a business partnership (or preferably a strategic alliance):

    • Trust and transparent communication exist.
    • You have input into the vendor’s roadmap for products and services.
    • The vendor is aligned with your desired outcomes and helps you achieve success.
    • You and the vendor are accountable for actions and inactions, with both parties being at risk.
    • There is parity in the peer-to-peer relationships between the organizations (e.g. C-Level to C-Level).
    • The vendor provides transparency in pricing models and proactively suggests ways for you to reduce costs.
    • You and the vendor work together to make each party better, providing constructive feedback on a regular basis.
    • The vendor provides innovative suggestions for you to improve your processes, performance, the bottom line, etc.
    • Negotiations are not one-sided; they are meaningful and productive, resulting in an equitable distribution of money and risk.

    Step 3.1: Classify vendors (cont.)

    Understand the implications and how to leverage the words “partner” and “partnership.”

    By now you might be thinking, “What’s all the fuss? Why does it matter?” At Info-Tech, we’ve seen firsthand how referring to the vendor as a partner can have the following impact:

    • Confidences are disclosed unnecessarily.
    • Negotiation opportunities and leverage are lost.
    • Vendors no longer have to earn the customer’s business.
    • Vendor accountability is missing due to shared responsibilities.
    • Competent skilled vendor resources are assigned to other accounts.
    • Value erodes over time since contracts are renewed without being competitively sourced.
    • One-sided relationships are established, and false assurances are provided at the highest levels within the customer organization.

    Proceed with caution when using partner or partnership with your vendors. Understand how your organization benefits from using these terms and mitigate the negatives outlined above by raising awareness internally to ensure people understand the psychology behind the terms. Finally, use the term to your advantage when warranted by referring to the vendor as a partner when you want or need something that the vendor is reluctant to provide. Bottom line: Be strategic in how you refer to vendors and know the risks.

    Step 3.2: Conduct internal “kickoff” meeting

    Raise awareness about the VMI and its mission, vision, and goals.

    To be effective, your VMI needs executive support, a clear vision, appropriate governances and tools, personnel with the right skills, and other items discussed in this blueprint. However, the VMI doesn’t exist in a vacuum … it can’t sit back and be reactive. As part of being proactive, the VMI must be aware of its brand and “market” its services. An effective way to market the VMI is to conduct an internal kickoff meeting. There are at least a couple of ways to do this:

    • Host a meeting for stakeholders, executives, and others who will be contributing to the VMI processes (but are not part of the VMI). The meeting can be part of a townhall or standalone meeting; it can be done live or via a recorded video.
    • Attend appropriate staff meetings and make your presentation.

    With either approach above or one of your choosing, keep in mind the following objectives for your kickoff meeting:

    • Make sure you provide a way for those in attendance to ask questions at that time and later. You want to create and foster a communication loop with the people who will be impacted by the VMI or participating with it.
    • Raise awareness of your existence and personnel. Tell the VMI’s story by sharing your mission statement, goals, and scope; this will help dispel (or confirm) rumors about the VMI that often lead to confusion and faulty assumptions.
    • As you share the VMI’s vision, connect the story to how the VMI will impact the organization and individuals and to how they can help. The VMI tends to be the least autonomous area within an organization; it needs the assistance of others to be successful. Convey an atmosphere of collaboration and appreciation for their help.

    Host a kickoff meeting annually to kickoff the new year. Remind people of your story, announce successes from the past year, and indicate what the future year holds. Keep it brief, make it personal for the audience, and help them connect the names of VMI personnel to faces.

    Step 3.3: Conduct vendor orientation

    Introduce your VMI to your top vendors.

    Based on the results from your vendor classification (Step 3.1) and your VMI deployment timeline, identify the vendors who will participate in the initial orientation meetings. Treat the orientation as a formal, required meeting for the vendors to attend. Determine the attendee list for your organization and the vendors, and send out invites. Ideally, you will want the account manager, a sales director or vice president, the “delivery” director or vice president, and an executive from the vendor in the meeting. From the customer side, you may need more than one or two people from the VMI to entice the vendor’s leadership team to attend; you may need attendance from your own leadership team to add weight or credibility to the meeting (unfortunately).

    Before going into the meeting, make sure everyone on your side knows their roles and responsibilities, and review the agenda. Control the agenda or the meeting is likely to get out of hand and turn into a sales call.

    Conduct orientation meetings even if the participating vendors have been doing business with you for several years. Don’t assume they know all about your organization and your VMI (even if their other clients have a VMI).

    Run two or three orientation meetings and then review the “results.” What needs to be modified? What lessons have you learned? Make any necessary adjustments and continue rolling out the orientation meetings.

    Early in the VMI’s deployment, reorientation and debrief may not be in play. As time passes, it is important to remember them! Use them when warranted to help with vendor alignment.

    Step 3.4: Compile scorecards

    Begin scoring your top vendors.

    The scorecard process typically is owned and operated by the VMI, but the actual rating of the criteria within the measurement categories is conducted by those with day-to-day interactions with the vendors, those using or impacted by the services and products provided by the vendors, and those with the skills to research other information on the scorecard (e.g. risk). Chances are one person will not be able to complete an entire scorecard by themselves. As a result, the scorecard process is a team sport comprising sub-teams where necessary.

    The VMI will compile the scores, calculate the final results, and aggregate all of the comments into one scorecard. There are two common ways to approach this task:

    1. Send out the scorecard template to those who will be scoring the vendor and ask them to return it when completed, providing them with a due date a few days before you actually need it; you’ll need time to compile, calculate, and aggregate.
    2. Invite those who will be scoring the vendor to a meeting and let the contributors use that time to score the vendors; make VMI team members available to answer questions and facilitate the process.

    Step 3.4: Compile scorecards (cont.)

    Gather input from stakeholders and others impacted by the vendors.

    Since multiple people will be involved in the scorecarding process or have information to contribute, the VMI will have to work with the reviewers to ensure that the right mix of data is provided. For example:

    • If you are tracking lawsuits filed by or against the vendor, one person from Legal may be able to provide that, but they may not be able to evaluate any other criteria on the scorecard.
    • If you are tracking salesperson competencies, multiple people from multiple areas may have valuable insights.
    • If you are tracking deliverable timeliness, several project managers may want to contribute across several projects.

    Where one person is contributing exclusively to limited criteria, make it easy for the person to identify the criteria they are to evaluate. When multiple people from the same functional area will provide insights, they can contribute individually (and the VMI will average their responses) or they can respond collectively after reaching consensus among themselves.

    After the VMI has compiled, calculated, and aggregated, share the results with executives, impacted stakeholders, and others who will be attending the BAM for that vendor. Depending upon the comments provided by internal personnel, you may need to create a sanitized version of the scorecard for the vendor.

    Make sure your process timeline has a buffer built in. You’ll be sending the final scorecard to the vendor three to five days before the BAM, and you’ll need some time to assemble the results. The scorecarding process can be perceived as a low-priority activity for people outside of the VMI, and other “priorities” will arise for them. Without a timeline buffer, the VMI may find itself behind schedule and unprepared due to things beyond its control.

    Step 3.5: Conduct business alignment meetings

    Determine which vendors will participate and how long the meetings will last.

    At their core, BAMs aren’t that different from any other meeting. The basics of running a meeting still apply, but there are a few nuances that apply to BAMs Set out below are leading practices for conducing your BAMs; adapt them to meet your needs and suit your environment.

    Who

    Initially, BAMs are conducted with the strategic vendors in your pilot program. Over time, you’ll add vendors until all of your strategic vendors are meeting with you quarterly. After that, roll out the BAMs to those tactical and operational vendors located close to the strategic quadrant in the classification model (Steps 2.1 and 3.1) and as VMI resources allow. It may take several years before you are holding regular BAMs with all of your strategic, tactical, and operational vendors.

    Duration

    Keep the length of your meetings reasonable. The first few with a vendor may need to be 60 to 90 minutes long. After that, you should be able to trim them to 45 to 60 minutes. The BAM does not have to fill the entire time. When you are done, you are done.

    Step 3.5: Conduct business alignment meetings (cont.)

    Identify who will be invited and send out invitations.

    Invitations

    Set up a recurring meeting whenever possible. Changes will be inevitable, but keeping the timeline regular works to your advantage. Also, the vendors included in your initial BAMs won’t change for twelve months. For the first BAM with a vendor, provide adequate notice; four weeks is sufficient in most instances, but calendars will fill up quickly for the main attendees from the vendor. Treat the meeting as significant and make sure your invitation reflects this. A simple meeting request will often be rejected, treated as optional, or ignored completely by the vendor’s leadership team (and maybe yours as well!).

    Invitees

    Internal invitees should include those with a vested interest in the vendor’s performance and the relationship. In addition, other functional areas may be invited based on need or interest. Be careful the attendee list doesn’t get too big. Based on this, internal BAM attendees often include representatives from IT, Sourcing/Procurement, and the applicable business units. At times, Finance and Legal are included.

    From the vendor’s side, strive to have decision makers and key leaders attend. The salesperson/account manager is often included for continuity, but a director or vice president of sales will have more insights and influence. The project manager is not needed at this meeting due to the nature of the meeting and its agenda; however, a director or vice president from the “product or service delivery” area is a good choice. Bottom line: get as high into the vendor’s organization as possible whenever possible; look at the types of contracts you have with that vendor to provide guidance on the type of people to invite.

    Step 3.5: Conduct business alignment meetings (cont.)

    Prepare for the meetings and maintain control.

    Preparation

    Send the scorecard and agenda to the vendor five days prior to the BAM. The vendor should provide you with any information you require for the meeting five days prior as well.

    Decide who will run the meeting. Some customers like to lead and others let the vendor present. How you craft the agenda and your preferences will dictate who runs the show.

    Make sure the vendor knows what materials it should bring to the meeting or have access to. This will relate to the agenda and any specific requests listed under the discussion points. You don’t want the vendor to be caught off guard and unable to discuss a matter of importance to you.

    Running the BAM

    Regardless of which party leads, make sure you manage the agenda to stay on topic. This is your meeting – not the vendor’s, not IT’s, not Procurement’s or Sourcing’s. Don’t let anyone hijack it.

    Make sure someone is taking notes. If you are running this virtually, consider recording the meeting. Check with your legal department first for any concerns, notices, or prohibitions that may impact your recording the session.

    As a reminder, this is not a sales call, and this is not a social activity. Innovation discussions are allowed and encouraged, but that can quickly devolve into a sales presentation. People can be friendly toward one another, but the relationship building should not overwhelm the other purposes.

    Step 3.5: Conduct business alignment meetings (cont.)

    Follow these additional guidelines to maximize your meetings.

    More Leading Practices

    • Remind everyone that the conversation may include items covered by various confidentiality provisions or agreements.
    • Publish the meeting minutes on a timely basis (within 48 hours).
    • Focus on the bigger picture by looking at trends over time; get into the details only when warranted.
    • Meet internally immediately beforehand to prepare – don’t go in cold; review the agenda and the roles and responsibilities for the attendees.
    • Physical meetings are better than virtual meetings, but travel constraints, budgets, and pandemics may not allow for physical meetings.

    Final Thoughts

    • When performance or the relationship is suffering, be constructive in your feedback and conversations rather than trying to assign blame; lead with the carrot rather than the stick.
    • Look for collaborative solutions whenever possible and avoid referencing the contract if possible. Communicate your willingness to help resolve outstanding issues.
    • Use inclusive language and avoid language that puts the vendor on the defensive.
    • Make sure that your meetings are not focused exclusively on the negative, but don’t paint a rosy picture where one doesn’t exist.
    • A vendor that is doing well should be commended. This is an important part of relationship building.

    Step 3.6: Work the 90-day plan

    Monitor your progress and share your results.

    Having a 90-day plan is a good start, but assuming the tasks on the plan will be accomplished magically or without any oversight can lead to failure. While it won’t take a lot of time to work the plan, following a few basic guidelines will help ensure the 90-day plan gets results and wasn’t created in vain.

    90-Day Plan: Activity 1; Activity 2; Activity 3; Activity 4; Activity 5
    1. Measure and track your progress against the initial/current 90-day plan at least weekly; with a short timeline, any delay can have a huge impact.
    2. If adjustments are needed to any elements of the plan, understand the cause and the impact of those adjustments before making them.
    3. Make adjustments ONLY when warranted. The temptation will be to push activities and tasks further out on the timeline (or to the next 90-day plan!) when there is any sort of “hiccup” along the way, especially when personnel outside the VMI are involved. Hold true to the timeline whenever possible; once you start slipping, it often becomes a habit.
    4. Report on progress every week and hold people accountable for their assignments and contributions.
    5. Take the 90-day plan seriously and treat it as you would any significant project – this is part of the VMI’s branding and image.

    Step 3.7: Manage the 3-year roadmap

    Keep an eye on the future since it will feed the present.

    The 3-year roadmap is a great planning tool, but it is not 100% reliable. There are inherent flaws and challenges. Essentially, the roadmap is a set of three “crystal balls” attempting to tell you what the future holds. The vision for Year 1 may be fairly clear, but for each subsequent year, the crystal ball becomes foggier. In addition, the timeline is constantly changing; before you know it, tomorrow becomes today and Year 2 becomes Year 1.

    To help navigate through the roadmap and maximize its potential, follow these principles:

    • Manage each year of the roadmap differently.
      • Review the Year 1 map each quarter to update your 90-day plans (See steps 2.10 and 3.6).
      • Review the Year 2 map every six months to determine if any changes are necessary. As you cycle through this, your vantage point of Year 2 will be 6 months or 12 months away from the beginning of Year 2, and time moves quickly.
      • Review the Year 3 map annually, and determine what needs to be added, changed, or deleted. Each time you review Year 3, it will be a “new” Year 3 that needs to be built.
    • Analyze the impact on the proposed modifications from two perspectives: 1) What is the impact if a requested modification is made? 2) What is the impact if a requested modification is not made?
    • Validate all modifications with leadership and stakeholders before updating the 3-year roadmap to ensure internal alignment.

    Step 3.8: Measure and monitor risk

    Understand and manage risk levels.

    Using the configured Vendor Risk Assessment Tool (Step 2.2), confirm which risks you will be measuring and monitoring and identify the vendors that will be part of the initial risk management process. Generally, organizations start measuring and monitoring risk in two to five risk categories for two or three strategic vendors. Over time, additional risk categories and/or vendors can be added in waves. Resist the temptation to add risk categories or vendors into the mix too quickly. Expanding requires resources inside and outside of the VMI.

    The VMI will rely heavily on other areas to provide input or the risk data, and the VMI needs to establish good working relationships with those areas. For example, if legal risk is something being measured and monitored, the VMI will need data from Legal on the number and nature of any lawsuits filed by or against the applicable vendors; the VMI will need data from Legal, Contract Management, or Procurement/Sourcing on the number and nature of any agreed upon deviations from your organization’s preferred contract terms that increase legal risk.

    With respect to risk, the VMI’s main role is threefold: 1) take the data obtained from others (or in some instances the VMI may have the data) and turn it into useful information, 2) monitor the risk categories over time and periodically issue reports, and 3) work with other areas to manage the risk.

    Step 3.9: Issue reports

    Inform internal personnel and vendors about trends, issues, progress, and results.

    Issuing the reports created in Step 2.12 is one of the main ways the VMI 1) will communicate with internal and external personnel and 2) track trends and information over time. Even with input from the potential reviewers of the reports, you’ll still want to seek their feedback and input periodically. It may take a few iterations until the reports are hitting their mark. You may find that a metric is no longer required, that a metric is missing completely or it is missing a component, or a formatting change would improve the report’s readability. Once a report has been “finalized,” try not to change it until you are engaged in Phase 4: Review activities. It can be unsettling for the reviewers when reports change constantly.

    Whenever possible, find ways to automate the reports. While issuing reports is critical, the function should not consume more time than necessary. Automation can remove some of the manual and repetitive tasks.

    Internal reports may need to be kept confidential. An automated dashboard or reporting tool can help lock down who has access to the information. At a minimum, the internal reports should contain a “Confidential” stamp, header, watermark, or other indicator that the materials are sensitive and should not be disclosed outside of your organization without approval.

    Reports for vendors may not need to be sent as often as reports are generated or prepared for internal personnel. Establish a cadence by classification model category and stick to it. Letting each vendor choose the frequency will make it more difficult for you to manage. The vendors can choose to ignore the report if they so choose.

    This is an image of an example of a bar graph showing ROI and Benchmark for Categories 1-6

    Step 3.10: Develop/improve vendor relationships

    Drive better performance through better relationships.

    One of the key components of a VMI is relationship management. Good relationships with your vendors provide many benefits for both parties, but they don’t happen by accident. Do not assume the relationship will be good or is good merely because your organization is buying products and services from a vendor.

    In many respects, the VMI should mirror a vendor’s sales organization by establishing relationships at multiple levels within the vendor organizations – not just with the salesperson or account manager. Building and maintaining relationships is hard work, but the return on investment makes it worthwhile.

    Business relationships are comprised of many components, not all of which have to be present to have a great relationship. However, there are some essential components. Whether you are trying to develop, improve, or maintain a relationship with a vendor, make sure you are conscious of the following:*

    • Focus your energies on strategic vendors first and then tactical and operational vendors.
    • Be transparent and honest in your communications.
    • Continue building trust by being responsive and honoring commitments (timely).
    • Create a collaborative environment and build upon common ground.
    • Thank the vendor when appropriate.
    • Resolve disputes early, avoid the “blame game,” and be objective when there are disagreements.

    Step 3.11: Contribute to other processes

    Continue assisting others and managing roles and responsibilities outside of the VMI.

    The VMI has processes that it owns and processes that it contributes to. Based on the VMI scope (Step 1.2), the OIC chart (Step 1.4), and the process mapping activities (Step 1.5), ensure that the VMI is honoring its contribution commitments. This is often easier said than done though. A number of factors can make it difficult to achieve the balance required to handle VMI processes and contribute to other processes associated with the VMI’s mission and vision. Understanding the issues is half the battle. If you see signs of these common “vampires,” take action quickly to address the situation.

    • The VMI’s first focus is often internal, and the tendency is to operate in a bubble. Classifying vendors, running BAMs, coordinating the risk process, and other inward-facing processes can consume all of the VMI’s energy. As a result, there is little time, effort, or let’s be honest, desire to participate in other processes outside of the VMI.
    • It is easy for VMI personnel to get dragged into processes and situations that are outside of its scope. This often happens when personnel join the VMI from other internal areas or departments and have good relationships with their former teammates. The relationships make it hard to say “No” when out-of-scope assistance is being requested.
    • The VMI may have “part-time” personnel who have responsibilities across internal departments, divisions, agencies, or teams. When the going gets tough and time is at a premium, people gravitate toward the easiest or most comfortable work. That work may not be VMI work.

    Phase 4: Review

    Keep Your VMI Up to Date and Running Smoothly

    Phase 1Phase 2Phase 3Phase 4
    1.1 Mission Statement and Goals


    1.2 Scope

    1.3 Strengths and Obstacles

    1.4 Roles and Responsibilities

    1.5 Process Mapping

    1.6 Charter

    1.7 Vendor Inventory

    1.8 Maturity Assessment

    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Identify what the VMI should stop doing, start doing, and continue doing as it improves and matures. The main outcomes from this phase are ways to advance the VMI and maintain internal alignment.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 4: Review

    Keep your VMI up to date and running smoothly.

    As the old adage says, “The only thing constant in life is change.” This is particularly true for your VMI. It will continue to mature; people inside and outside of the VMI will change; resources will expand or contract from year to year; your vendor base will change. As a result, your VMI needs the equivalent of a physical every year. In place of bloodwork, x-rays, and the other paces your physician may put you through, you’ll assess compliance with your policies and procedures, incorporate leading practices, leverage lessons learned, maintain internal alignment, and update governances.

    Be thorough in your actions during this Phase to get the most out of it. It requires more than the equivalent of gauging a person’s health by taking their temperature, measuring their blood pressure, and determining their body mass index. Keeping your VMI up to date and running smoothly takes hard work.

    Some of the items presented in this Phase require an annual review; others may require quarterly review or timely review (i.e. when things are top of mind and current). For example, collecting lessons learned should happen on a timely basis rather than annually, and classifying your vendors should occur annually rather than every time a new vendor enters the fold.

    Ultimately, the goal is to improve over time and stay aligned with other areas internally. This won’t happen by accident. Being proactive in the review of your VMI further reinforces the nature of the VMI itself – proactive vendor management, NOT reactive!

    Step 4.1: Assess compliance

    Determine what is functionally going well and not going well.

    Whether you have a robust set of vendor management-related policies and procedures or they are the bare minimum, gathering data each quarter and conducting an assessment each year will provide valuable feedback. The scope of your assessment should focus on two concepts: 1) are the policies and procedures being followed and 2) are the policies and procedures accurate and relevant. This approach requires parallel thinking, but it will help you understand the complete picture and minimize the amount of time required.

    Use the steps listed below (or modify them for your culture) to conduct your assessment:

    • Determine the type of assessment – formal or informal.
    • Determine the scale of the assessment – which policies and procedures will be reviewed and how many people will be interviewed.
    • Determine the compliance levels, and seek feedback on the policies and procedures – what is going well and what can be improved?
    • Review the compliance deviations.
    • Conduct a root cause analysis for the deviations.
    • Create a list of improvements and gain approval.
    • Create a plan for minimizing noncompliance in the future.
      • Improve/increase education and awareness.
      • Clarify/modify policies and procedures.
      • Add resources, tools, and people (as necessary and as allowed).

    Step 4.2: Incorporate leading practices

    Identify and evaluate what external VMIs are doing.

    The VMI’s world is constantly shifting and evolving. Some changes will take place slowly, while others will occur quickly. Think about how quickly the cloud environment has changed over the past five years versus the 15 years before that; or think about issues that have popped up and instantly altered the landscape (we’re looking at you COVID-19 and ransomware). As a result, the VMI needs to keep pace, and one of the best ways to do that is to incorporate leading practices.

    At a high level, a leading practice is a way of doing something that is better at producing a particular outcome or result or performing a task or activity than other ways of proceeding. The leading practice can be based on methodologies, tools, processes, procedures, and other items. Leading practices change periodically due to innovation, new ways of thinking, research, and other factors. Consequently, a leading practice is to identify and evaluate leading practices each year.

    Step 4.2: Incorporate leading practices (cont.)

    Update your VMI based on your research.

    • A simple approach for incorporating leading practices into your regular review process is set out below:
    • Research:
      • What other VMIs in your industry are doing.
      • What other VMIs outside your industry are doing.
      • Vendor management in general.
    • Based on your results, list specific leading practices others are doing that would improve your VMI (be specific – e.g. other VMIs are incorporating risk into their classification process).
    • Evaluate your list to determine which of these potential changes fit or could be modified to fit your culture and environment.
    • Recommend the proposed changes to leadership (with a short business case or explanation/justification, as needed) and gain approval.

    Remember: Leading practices or best practices may not be what is best for you. In some instances, you will have to modify them to fit your culture and environment; in other instances, you will elect not to implement them at all (in any form).

    Step 4.3: Leverage lessons learned

    Tap into the collective wisdom and experience of your team members.

    There are many ways to keep your VMI running smoothly, and creating a lessons learned library is a great complement to the other ways covered in this Phase 4: Review. By tapping into the collective wisdom of the team and creating a safe feedback loop, the VMI gains the following benefits:

    • Documented institutional wisdom and knowledge normally found only in the team members’ brains.
    • The ability for one team member to gain insights and avoid mistakes without having to duplicate the events leading to the insights or mistakes.
    • Improved methodologies, tools, processes, procedures, skills, and relationships.

    Many of the processes raised in this Phase can be performed annually, but a lessons learned library works best when the information is “deposited” in a timely manner. How you choose to set up your lessons learned process will depend on the tools you select and your culture. You may want to have regular “input” meetings to share the lessons as they are being deposited, or you may require team members to deposit lessons learned on a regular basis (within a week after they happen, monthly, or quarterly). Waiting too long can lead to vague or lost memories and specifics – timeliness of the deposits is a crucial element.

    Step 4.3: Leverage lessons learned (cont.)

    Create a library to share valuable information across the team.

    Lessons learned are not confined to identifying mistakes or dissecting bad outcomes. You want to reinforce good outcomes as well. When an opportunity for a lessons-learned deposit arises, identify the following basic elements:

    • A brief description of the situation and outcome.
    • What went well (if anything) and why did it go well?
    • What didn't go well (if anything) and why didn't it go well?
    • What would/could you do differently next time?
    • A synopsis of the lesson(s) learned.

    Info-Tech Insights

    The lessons learned library needs to be maintained. Irrelevant material needs to be culled periodically, and older or duplicate material may need to be archived.

    The lessons learned process should be blameless. The goal is to share insightful information … not to reward or punish people based on outcomes or results.

    Step 4.4: Maintain internal alignment

    Review the plans of other internal areas to stay in sync.

    Maintaining internal alignment is essential for the ongoing success of the VMI. Over time, it is easy to lose sight of the fact that the VMI does not operate in a vacuum; it is an integral component of a larger organization whose parts must work well together to function optimally. Focusing annually on the VMI’s alignment within the enterprise helps reduce any breakdowns that could derail the organization.

    To ensure internal alignment:

    • Review the key components of the applicable materials from Phase 1: Plan and Phase 2: Build with the appropriate members of the leadership team (e.g. executives, sponsors, and stakeholders). Not every item from those Phases and Steps needs to be reviewed, but err on the side of caution for the first set of alignment discussions, and be prepared to review each item. You can gauge the audience’s interest on each topic and move quickly when necessary or dive deeper when needed. Identify potential changes required to maintain alignment.
    • Review the strategic plans (e.g. 1-, 3-, and 5- year plans) for various portions of the organization if you have access to them or gather insights if you don’t have access.
      • If the VMI is under the IT umbrella, review the strategic plans for IT and its departments.
      • Review the strategic plans for the areas the VMI works with (e.g. Procurement, Business Units).
      • The organization itself.
    • Create and vet a list of modifications to the VMI and obtain approval.
    • Develop a plan for making the necessary changes.

    Step 4.5: Update governances

    Revise your protocols and return to the beginning of cyclical processes.

    You’re at the final Step and ready to update governances. This is comprised of two sequential paths.

    • First, use the information from Steps 4.1-4.4 to make any required modifications to the items in Phase 1: Plan, Phase 2: Build, and Phase 3: Run. For example, you may need to update your policies and procedures (Step 2.8) based on your findings in Step 4.1; or you may need to update the VMI’s scope (Step 1.2) to ensure internal alignment issues identified in Step 4.4. are accounted for.
    • Second, return to Phase 3: Run to perform the activities below; they tend to be performed annually, but use your discretion and perform them on an as-needed basis:
      • Reclassify vendors.
      • Complete a new maturity assessment.
      • Run reorientation sessions for vendors.
      • Conduct a kickoff meeting to update internal personnel.

    Other activities and tasks (e.g. scorecards and BAMs) may be impacted by the modifications made above, but the nature of their performance follows a shorter cadence. As a result, they are not specifically called out here in this Step 4.5 since they are performed on an ongoing basis. However, don’t overlook them as part of your update.

    Summary of Accomplishment

    Problem Solved

    Vendor management is a broad, often overwhelming, comprehensive spectrum that encompasses many disciplines. By now, you should have a great idea of what vendor management can or will look like in your organization. Focus on the basics first: Why does the VMI exist and what does it hope to achieve? What is its scope? What are the strengths you can leverage, and what obstacles must you manage? How will the VMI work with others? From there, the spectrum of vendor management will begin to clarify and narrow.

    Leverage the tools and templates from this blueprint and adapt them to your needs. They will help you concentrate your energies in the right areas and on the right vendors to maximize the return on your organization’s investment in the VMI of time, money, personnel, and other resources. You may have to lead by example internally and with your vendors at first, but they will eventually join you on your path if you stay true to your course.

    At the heart of a good VMI is the relationship component. Don’t overlook its value in helping you achieve your vendor management goals. The VMI does not operate in a vacuum, and relationships (internal and external) will be critical.

    Lastly, seek continual improvement from the VMI and from your vendors. Both parties should be held accountable, and both parties should work together to get better. Be proactive in your efforts, and you, the VMI, and the organization will be rewarded.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop

    Contact your account representative for more information

    workshops@infotech.com

    1-888-670-8889

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    Calculating the impact or value of a vendor management office (VMO) can be difficult without the right framework and tools. Let Info-Tech’s tools and templates help you account for the contributions made by your VMO.

    Bibliography

    “Best Practices for Writing Corporate Policies and Procedures.” PowerDMS, 29 Dec. 2020. Accessed 11 January 2022.

    Duncan. “Top 10 Tips for Creating Compelling Reports.” Design Eclectic, 11 October 2019. Accessed 29 March 2022.

    Eby, Kate. “Master Writing Policies, Procedures, Processes, and Work Instructions.” 1 June 2018, updated 19 July 2021. Accessed 11 January 2022.

    “Enterprise Risk Management.” Protiviti, n.d. Accessed 16 Feb. 2017.

    Geller & Company. “World-Class Procurement — Increasing Profitability and Quality.” Spend Matters, 2003. Accessed 4 March 2019.

    Guth, Stephen. “Vendor Relationship Management Getting What You Paid for (And More).” Citizens, 26 Feb. 2015. Web.

    Guth, Stephen. The Vendor Management Office: Unleashing the Power of Strategic Sourcing. Lulu.com, 2007. Print.

    “ISG Index 4Q 2021.” Information Services Group, Inc., 2022. Web.

    “Six Tips for Making a Quality Report Appealing and Easy To Skim.” AHRQ, Oct. 2019. Accessed 29 March 2022.

    Tucker, Davis. “Marketing Reporting: Tips to Create Compelling Reports.” 60 Second Marketer, 28 March 2020. Accessed 29 March 2022.

    “Why Do We Perform Better When Someone Has High Expectations of Us?” The Decision Lab, 9 Sept. 2020. Accessed 31 January 2022.

    Data Architecture

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    Enable the business to achieve operational excellence, client intimacy, and product leadership with an innovative, agile, and fit-for-purpose data architecture practice

    Diagnose and Optimize Your Lead Gen Engine

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    88% of marketing professionals are unsatisfied with their ability to convert leads (Convince & Convert), but poor lead conversion is just a symptom of much deeper problems.

    Globally, B2B SaaS marketers without a well-running lead gen engine will experience:

    • A low volume of quality leads from their website.
    • A low conversion rate from their website visitors.
    • A long lead conversion time compared to competitors.
    • A low volume of organic website visitors.

    If treated without a root cause analysis, these symptoms often result in higher-than-average marketing spend and wasted resources. Without an accurate lead gen engine diagnostic tool and a strategy to fix the misfires, marketers will continue to waste valuable time and resources.

    Our Advice

    Critical Insight

    The lead gen engine is foundational in building profitable long-term customer relationships. It is the process through which marketers build awareness, trust, and loyalty. Without the ability to continually diagnose lead gen engine flaws, marketers will fail to optimize new customer relationship creation and long-term satisfaction and loyalty.

    Impact and Result

    With a targeted set of diagnostic tools and an optimization strategy, you will:

    • Uncover the critical weakness in your lead generation engine.
    • Develop a best-in-class lead gen engine optimization strategy that builds relationships, creates awareness, and establishes trust and loyalty with prospects.
    • Build profitable long-term customer relationships.

    Organizations who activate the findings from their lead generation diagnostic and optimization strategy will decrease the time and budget spent on lead generation by 25% to 50%. They will quickly uncover inefficiencies in their lead gen engine and develop a proven lead generation optimization strategy based on the diagnostic findings.

    Diagnose and Optimize Your Lead Gen Engine Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Diagnose and Optimize Your Lead Gen Engine Deck – A deck to help you diagnose what’s not working in your lead gen engine so that you can remedy issues and get back on track, building new customer relationships and driving loyalty.

    Organizations who activate the findings from their lead generation diagnostic and optimization strategy will decrease the time and budget spent on lead generation by 25% to 50%. They will quickly uncover inefficiencies in their lead gen engine and develop a proven lead generation optimization strategy based on the diagnostic findings.

    • Diagnose and Optimize Your Lead Gen Engine Storyboard

    2. Lead Gen Engine Diagnostic Tool – An easy-to-use diagnostic tool that will help you pinpoint weakness within your lead gen engine.

    The diagnostic tool allows digital marketers to quickly and easily diagnose weakness within your lead gen engine.

    • Lead Gen Engine Diagnostic Tool

    3. Lead Gen Engine Optimization Strategy Template – A step-by-step document that walks you through how to properly optimize the performance of your lead gen engine.

    Develop a best-in-class lead gen engine optimization strategy that builds relationships, creates awareness, and establishes trust and loyalty with prospects.

    • Lead Gen Engine Optimization Strategy Template

    Infographic

    Further reading

    Diagnose and Optimize Your Lead Gen Engine

    Quickly and easily pinpoint any weakness in your lead gen engine so that you stop wasting money and effort on ineffective advertising and marketing.

    EXECUTIVE BRIEF

    Analyst Perspective

    Quickly and easily pinpoint any weakness in your lead gen engine so that you stop wasting money and effort on ineffective advertising and marketing.

    The image contains a photo of Terra Higginson.

    Senior digital marketing leaders are accountable for building relationships, creating awareness, and developing trust and loyalty with website visitors, thereby delivering high-quality, high-value leads that Sales can easily convert to wins. Unfortunately, many marketing leaders report that their website visitors are low-quality and either disengage quickly or, when they engage further with lead gen engine components, they just don’t convert. These marketing leaders urgently need to diagnose what’s not working in three key areas in their lead gen engine to quickly remedy the issue and get back on track, building new customer relationships and driving loyalty. This blueprint will provide you with a tool to quickly and easily diagnose weakness within your lead gen engine. You can use the results to create a strategy that builds relationships, creates awareness, and establishes trust and loyalty with prospects.

    Terra Higginson

    Marketing Research Director

    SoftwareReviews

    Executive Summary

    Your Challenge

    Globally, business-to-business (B2B) software-as-a-service (SaaS) marketers without a well-running lead gen engine will experience:

    • A low volume of quality leads from their website.
    • A low conversion rate from their website visitors.
    • A long lead conversion time compared to competitors.
    • A low volume of organic website visitors.

    88% of marketing professionals are unsatisfied with their ability to convert leads (Convince & Convert), but poor lead conversion is just a symptom of a much larger problem with the lead gen engine. Without an accurate lead gen engine diagnostic tool and a strategy to fix the leaks, marketers will continue to waste valuable time and resources.

    Common Obstacles

    Even though lead generation is a critical element of marketing success, marketers struggle to fix the problems with their lead gen engine due to:

    • A lack of resources.
    • A lack of budget.
    • A lack of experience in implementing effective lead generation strategies.

    Most marketers spend too much on acquiring leads and not enough on converting and keeping them. For every $92 spent acquiring customers, only $1 is spent converting them (Econsultancy, cited in Outgrow). Marketers are increasingly under pressure to deliver high-quality leads to sales but work under tight budgets with inadequate or inexperienced staff who don’t understand the importance of optimizing the lead generation process.

    SoftwareReviews’ Approach

    With a targeted set of diagnostic tools and an optimization strategy, you will:

    • Uncover the critical weakness in your lead generation engine.
    • Develop a best-in-class lead gen engine optimization strategy that builds relationships, creates awareness, and establishes trust and loyalty with prospects.
    • Build profitable long-term customer relationships.

    Organizations who activate the findings from their lead generation diagnostic and optimization strategy will decrease the time and budget spent on lead generation by 25% to 50%. They will quickly uncover inefficiencies in their lead gen engine and develop a proven lead generation optimization strategy based on the diagnostic findings.

    SoftwareReviews Insight

    The lead gen engine is foundational in building profitable long-term customer relationships. It is the process through which marketers build awareness, trust, and loyalty. Without the ability to continually diagnose lead gen engine flaws, marketers will fail to optimize new customer relationship creation and long-term satisfaction and loyalty.

    Your Challenge

    88% of marketing professionals are unsatisfied with their ability to convert leads, but poor lead conversion is just a symptom of much deeper problems.

    Globally, B2B SaaS marketers without a well-running lead gen engine will experience:

    • A low volume of organic website visitors.
    • A low volume of quality leads from their website.
    • A low conversion rate from their website visitors.
    • A longer lead conversion time than competitors in the same space.

    If treated without a root-cause analysis, these symptoms often result in higher-than-average marketing spend and wasted resources. Without an accurate lead gen engine diagnostic tool and a strategy to fix the misfires, marketers will continue to waste valuable time and resources.

    88% of marketers are unsatisfied with lead conversion (Convince & Convert).

    The image contains a diagram that demonstrates a flowchart of the areas where visitors fail to convert. It incorporates observations, benchmarks, and uses a flowchart to diagnose the root causes.

    Benchmarks

    Compare your lead gen engine metrics to industry benchmarks.

    For every 10,000 people that visit your website, 210 will become leads.

    For every 210 leads, 101 will become marketing qualified leads (MQLs).

    For every 101 MQLs, 47 will become sales qualified leads (SQLs).

    For every 47 SQLs, 23 will become opportunities.

    For every 23 opportunities, nine will become customers.

    .9% to 2.1%

    36% to 48%

    28% to 46%

    39% to 48%

    32% to 40%

    Leads Benchmark

    MQL Benchmark

    SQL Benchmark

    Opportunity Benchmark

    Closing Benchmark

    The percentage of website visitors that convert to leads.

    The percentage of leads that convert to marketing qualified leads.

    The percentage of MQLs that convert to sales qualified leads.

    The percentage of SQLs that convert to opportunities.

    The percentage of opportunities that are closed.

    Midmarket B2B SaaS Industry

    Source: “B2B SaaS Marketing KPIs,” First Page Sage, 2021

    Common obstacles

    Why do most organizations improperly diagnose a misfiring lead gen engine?

    Lack of Clear Starting Point

    The lead gen engine is complex, with many moving parts, and marketers and marketing ops are often overwhelmed about where to begin diagnosis.

    Lack of Benchmarks

    Marketers often call out metrics such as increasing website visitors, contact-to-lead conversions, numbers of qualified leads delivered to Sales, etc., without a proven benchmark to compare their results against.

    Lack of Alignment Between Marketing and Sales

    Definitions of a contact, a marketing qualified lead, a sales qualified lead, and a marketing influenced win often vary.

    Lack of Measurement Tools

    Integration gaps between the website, marketing automation, sales enablement, and analytics exist within some 70% of enterprises. The elements of the marketing (and sales) tech stack change constantly. It’s hard to keep up.

    Lack of Understanding of Marketing ROI

    This drives many marketers to push the “more” button – more assets, more emails, more ad spend – without first focusing on optimization and effectiveness.

    Lack of Resources

    Marketers have an endless list of to-dos that drive them to produce daily results. Especially among software startups and mid-sized companies, there are just not enough staff with the right skills to diagnose and fix today’s sophisticated lead gen engines.

    Implications of poor diagnostics

    Without proper lead gen engine diagnostics, marketing performs poorly

    • The lead gen engine builds relationships and trust. When a broken lead gen engine goes unoptimized, customer relationships are at risk.
    • When the lead gen engine isn’t working well, customer acquisition costs rise as more expensive sales resources are charged with prospect qualification.
    • Without a well-functioning lead gen engine, marketers lack the foundation they need to create awareness among prospects – growth suffers.
    • Marketers will throw money at content or ads to generate more leads without any real understanding of engine leakage and misfires – your cost per lead climbs and reduces marketing profitability.

    Most marketers are spending too much on acquiring leads and not enough on converting and keeping them. For every $92 spent acquiring customers, only $1 is spent converting them.

    Source: Econsultancy, cited in Outgrow

    Lead gen engine optimization increases the efficiency of your marketing efforts and has a 223% ROI.

    Source: WordStream

    Benefits of lead gen engine diagnostics

    Diagnosing your lead gen engine delivers key benefits:

    • Pinpoint weakness quickly. A quick and accurate lead gen engine diagnostic tool saves Marketing 50% of the effort spent uncovering the reason for low conversion and low-quality leads.
    • Optimize more easily. Marketing executives will save 70% of the time spent creating a lead gen optimization marketing strategy based upon the diagnostic findings.
    • Maximize marketing ROI. Build toward and maintain the golden 3:1 LTV:CAC (lifetime value to customer acquisition cost) ratio for B2B SaaS marketing.
    • Stop wasting money on ineffective advertising and marketing. Up to 75% of your marketing budget is being inefficiently spent if you are running on a broken lead gen engine.

    “It’s much easier to double your business by doubling your conversion rate than by doubling your traffic. Correct targeting and testing methods can increase conversion rates up to 300 percent.” – Jeff Eisenberg, IterateStudio

    Source: Lift Division

    True benefits of fixing the lead gen engine

    These numbers add up to a significant increase in marketing influenced wins.

    175%
    Buyer Personas Increase Revenue
    Source: Illumin8

    202%
    Personalized CTAs Increase Conversions
    Source: HubSpot

    50%
    Lead Magnets Increase Conversions
    Source: ClickyDrip

    79%
    Lead Scoring Increases Conversions
    Source: Bloominari

    50%
    Lead Nurturing Increases Conversions
    Source: KevinTPayne.com

    80%
    Personalized Landing Pages Increase Conversions
    Source: HubSpot

    Who benefits from an optimized lead gen engine?

    This Research Is Designed for:

    • Senior digital marketing leaders who are:
      • Looking to increase conversions.
      • Looking to increase the quality of leads.
      • Looking to increase the value of leads.

    This Research Will Help You:

    • Diagnose issues with your lead gen engine.
    • Create a lead gen optimization strategy and a roadmap.

    This Research Will Also Assist:

    • Digital marketing leaders and product marketing leaders who are:
      • Looking to decrease the effort needed by Sales to close leads.
      • Looking to increase leadership’s faith in Marketing’s ability to generate high-quality leads and conversions.

    This Research Will Help Them:

    • Align the Sales and Marketing teams.
    • Receive the necessary buy-in from management to increase marketing spend and headcount.
    • Avoid product failure.
    The image contains a screenshot of the thought model that is titled: Diagnose and Optimize your Lead Gen Engine. The image contains the screenshot of the previous image shown on Where Lead Gen Engines Fails, and includes new information. The flowchart connects to a box that says: STOP, Your engine is broken. It then explains phase 1, the diagnostic, and then phase 2 Optimization strategy.

    SoftwareReviews’ approach

    1. Diagnose Misfires in the Lead Gen Engine

      2. Identifying any areas of weakness within your lead gen engine is a fundamental first step in improving conversions, ROI, and lead quality.

    2. Create a Lead Gen Optimization Strategy

      3. Optimize your lead gen strategy with an easily customizable template that will provide your roadmap for future growth.

    The SoftwareReviews Methodology to Diagnose and Optimize Your Lead Gen Engine

    1. Lead Gen Engine Diagnostic

    2. Lead Gen Engine Optimization Strategy

    Phase Steps

    1. Select lead gen engine optimization steering committee & working team
    2. Gather baseline metrics
    3. Run the lead gen engine diagnostic
    4. Identify low-scoring areas & prioritize lead gen engine fixes
    1. Define the roadmap
    2. Create lead gen engine optimization strategy
    3. Present strategy to steering committee

    Phase Outcomes

    • Identify weakness within the lead gen engine.
    • Prioritize the most important fixes within the lead gen engine.
    • Create a best-in-class lead gen engine optimization strategy and roadmap that builds relationships, creates awareness, and develops trust and loyalty with website visitors.
    • Increase leadership’s faith in Marketing’s ability to generate high-quality leads and conversions.

    Insight Summary

    The lead gen engine is the foundation of marketing

    The lead gen engine is critical to building relationships. It is the foundation upon which marketers build awareness, trust, and loyalty.

    Misalignment between Sales and Marketing is costly

    Digital marketing leaders need to ensure agreement with Sales on the definition of a marketing qualified lead (MQL), as it is the most essential element of stakeholder alignment.

    Prioritization is necessary for today’s marketer

    By prioritizing the fixes within the lead gen engine that have the highest impact, a marketing leader will be able to focus their optimization efforts in the right place.

    Stop, your engine is broken

    Any advertising or effort expended while running marketing on a broken lead gen engine is time and money wasted. It is only once the lead gen engine is fixed that marketers will see the true results of their efforts.

    Tactical insight

    Without a well-functioning lead gen engine, marketers risk wasting valuable time and money because they aren’t creating relationships with prospects that will increase the quality of leads, conversion rate, and lifetime value.

    Tactical insight

    The foundational lead relationship must be built at the marketing level, or else Sales will be entirely responsible for creating these relationships with low-quality leads, risking product failure.

    Blueprint Deliverable:

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    Lead Gen Engine Diagnostic

    An efficient and easy-to-use diagnostic tool that uncovers weakness in your lead gen engine.

    The image contains a screenshot of the Lead Gen Engine Diagnostic is shown.

    Key Deliverable:

    Lead Gen Engine Optimization Strategy Template

    The image contains a screenshot of the Lead Gen Engine Optimization Strategy.

    A comprehensive strategy for optimizing conversions and increasing the quality of leads.

    SoftwareReviews Offers Various Levels of Support to Meet Your Needs

    Included within Advisory Membership:

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Optional add-ons:

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Guided Implementation

    What does a typical GI on lead gen engine diagnostics look like?

    Diagnose Your Lead Gen Engine

    Call #1: Scope requirements, objectives, and specific challenges with your lead gen engine.

    Call #2: Gather baseline metrics and discuss the steering committee and working team.

    Call #3: Review results from baseline metrics and answer questions.

    Call #4: Discuss the lead gen engine diagnostic tool and your steering committee.

    Call #5: Review results from the diagnostic tool and answer questions.

    Develop Your Lead Gen Engine Optimization Strategy

    Call #6: Identify components to include in the lead gen engine optimization strategy.

    Call #7: Discuss the roadmap for continued optimization.

    Call #8: Review final lead gen engine optimization strategy.

    Call #9: (optional) Follow-up quarterly to check in on progress and answer questions.

    A Guided Implementation (GI) is series of calls with a SoftwareReviews Advisory analyst to help implement our best practices in your organization. For guidance on marketing applications, we can arrange a discussion with an Info-Tech analyst. Your engagement managers will work with you to schedule analyst calls.

    Workshop Overview

    Day 1

    Day 2

    Activities

    Complete Lead Gen Engine Diagnostic

    1.1 Identify the previously selected lead gen engine steering committee and working team.

    1.2 Share the baseline metrics that were gathered in preparation for the workshop.

    1.3 Run the lead gen engine diagnostic.

    1.4 Identify low-scoring areas and prioritize lead gen engine fixes.

    Create Lead Gen Engine Optimization Strategy

    2.1 Define the roadmap.

    2.2 Create a lead gen engine optimization strategy.

    2.3 Present the strategy to the steering committee.

    Deliverables

    1. Lead gen engine diagnostic scorecard

    1. Lead gen engine optimization strategy

    Contact your account representative for more information.

    workshops@infotech.com1-888-670-8889

    Phase 1

    Lead Gen Engine Diagnostic

    Phase 1

    Phase 2

    1.1 Select lead gen engine steering committee & working team

    1.2 Gather baseline metrics

    1.3 Run the lead gen engine diagnostic

    1.4 Identify & prioritize low-scoring areas

    2.1 Define the roadmap

    2.2 Create lead gen engine optimization strategy

    2.3 Present strategy to steering committee

    This phase will walk you through the following activities:

    The diagnostic tool will allow you to quickly and easily identify the areas of weakness in the lead gen engine by answering some simple questions. The steps include:

    • Select the lead gen engine optimization committee and team.
    • Gather baseline metrics.
    • Run the lead gen engine diagnostic.
    • Identify and prioritize low-scoring areas.

    This phase involves the following participants:

    • Marketing lead
    • Lead gen engine steering committee

    Step 1.1

    Identify Lead Gen Engine Optimization Steering Committee & Working Team

    Activities

    1.1.1 Identify the lead gen engine optimization steering committee and document in the Lead Gen Engine Optimization Strategy Template

    1.1.2 Identify the lead gen engine optimization working team document in the Lead Gen Engine Optimization Strategy Template

    This step will walk you through the following activities:

    Identify the lead gen engine optimization steering committee.

    This step involves the following participants:

    • Marketing director
    • Leadership

    Outcomes of this step

    An understanding of who will be responsible and who will be accountable for accomplishing the lead gen engine diagnostic and optimization strategy.

    1.1.1 Identify the lead gen engine optimization steering committee

    1-2 hours

    1. The marketing lead should meet with leadership to determine who will make up the steering committee for the lead gen engine optimization.
    2. Document the steering committee members in the Lead Gen Engine Optimization Strategy Template slide entitled “The Steering Committee.”

    Input

    Output

    • Stakeholders and leaders across the various functions outlined on the next slide
    • List of the lead gen engine optimization strategy steering committee members

    Materials

    Participants

    • Lead Gen Engine Optimization Strategy Template
    • Marketing director
    • Executive leadership

    Download the Lead Gen Engine Optimization Strategy Template

    Lead gen engine optimization steering committee

    Consider the skills and knowledge required for the diagnostic and the implementation of the strategy. Constructing a cross-functional steering committee will be essential for the optimization of the lead gen engine. At least one stakeholder from each relevant department should be included in the steering committee.

    Required Skills/Knowledge

    Suggested Functions

    • Target Buyer
    • Product Roadmap
    • Brand
    • Competitors
    • Campaigns/Lead Gen
    • Sales Enablement
    • Media/Analysts
    • Customer Satisfaction
    • Data Analytics
    • Ad Campaigns
    • Competitive Intelligence
    • Product Marketing
    • Product Management
    • Creative Director
    • Competitive Intelligence
    • Field Marketing
    • Sales
    • PR/AR/Corporate Comms
    • Customer Success
    • Analytics Executive
    • Campaign Manager

    For small and mid-sized businesses (SMB), because employees wear many different hats, assign people that have the requisite skills and knowledge, not the role title.

    The image contains examples of small and mid-sized businesses, and the different employee recommendations.

    1.1.2 Identify the lead gen engine optimization working team

    1-2 hours

    1. The marketing director should meet with leadership to determine who will make up the working team for the lead gen engine optimization.
    2. Finalize selection of team members and fill out the slide entitled “The Working Team” in the Lead Gen Engine Optimization Strategy Template.

    Input

    Output

    • Executives and analysts responsible for execution of tasks across Marketing, Product, Sales, and IT
    • The lead gen engine optimization working team

    Materials

    Participants

    • The Lead Gen Engine Optimization Strategy Template
    • Marketing director
    • Executive leadership

    Download the Lead Gen Engine Optimization Strategy Template

    Lead gen engine working team

    Consider the working skills required for the diagnostic and implementation of the strategy and assign the working team.

    Required Skills/Knowledge

    Suggested Titles

    • SEO
    • Inbound Marketing
    • Paid Advertising
    • Website Development
    • Content Creation
    • Lead Scoring
    • Landing Pages
    • A/B Testing
    • Email Campaigns
    • Marketing and Sales Automation
    • SEO Analyst
    • Content Marketing Manager
    • Product Marketing Manager
    • Website Manager
    • Website Developer
    • Sales Manager
    • PR
    • Customer Success Manager
    • Analytics Executive
    • Campaign Manager

    Step 1.2

    Gather Baseline Metrics

    Activities

    1.2.1 Gather baseline metrics and document in the Lead Gen Engine Optimization Strategy Template

    This step will walk you through the following activities:

    Gather baseline metrics.

    This step involves the following participants:

    • Marketing director
    • Analytics lead

    Outcomes of this step

    Understand and document baseline marketing metrics.

    1.2.1 Gather baseline metrics and document in the Lead Gen Engine Optimization Strategy Template

    1-2 hours

    1. Use the example on the next slide to learn about the B2B SaaS industry-standard baseline metrics.
    2. Meet with the analytics lead to analyze and record the data within the “Baseline Metrics” slide of the Lead Gen Engine Optimization Strategy Template. The baseline metrics will include:
      • Unique monthly website visitors
      • Visitor to lead conversion rate
      • Lead to MQL conversion rate
      • Customer acquisition cost (CAC)
      • Lifetime customer value to customer acquisition cost (LTV to CAC) ratio
      • Campaign ROI

    Recording the baseline data allows you to measure the impact your lead gen engine optimization strategy has over the baseline.

    Input

    		Output
    • Marketing and analytics data
    • Documentation of baseline marketing metrics

    Materials

    Participants

    • The lead gen engine optimization strategy
    • Marketing director
    • Analytics lead

    B2B SaaS baseline metrics

    Industry standard metrics for B2B SaaS in 2022

    Unique Monthly Visitors

    Industry standard is 5% to 10% growth month over month.

    Visitor to Lead Conversion

    Industry standard is between 0.9% to 2.1%.

    Lead to MQL Conversion

    Industry standard is between 36% to 48%.

    CAC

    Industry standard is a cost of $400 to $850 per customer acquired.

    LTV to CAC Ratio

    Industry standard is an LTV:CAC ratio between 3 to 6.

    Campaign ROI

    Email: 201%

    Pay-Per-Click (PPC): 36%

    LinkedIn Ads: 94%

    Source: “B2B SaaS Marketing KPIs,” First Page Sage, 2021

    Update the Lead Gen Optimization Strategy Template with your company’s baseline metrics.

    Download the Lead Gen Engine Optimization Strategy Template

    Step 1.3

    Run the Lead Gen Engine Diagnostic

    Activities

    1.3.1 Gather steering committee and working team to complete the Lead Gen Engine Diagnostic Tool

    This step will walk you through the following activities:

    Gather the steering committee and answer the questions within the Lead Gen Engine Diagnostic Tool.

    This step involves the following participants:

    • Lead gen engine optimization working team
    • Lead gen engine optimization steering committee

    Outcomes of this step

    Lead gen engine diagnostic and scorecard

    1.3.1 Gather the committee and team to complete the Lead Gen Engine Diagnostic Tool

    2-3 hours

    1. Schedule a two-hour meeting with the steering committee and working team to complete the Lead Gen Engine Diagnostic Tool. To ensure the alignment of all departments and the quality of results, all steering committee members must participate.
    2. Answer the questions within the tool and then review your company’s results in the Results tab.

    Input

    Output

    • Marketing and analytics data
    • Diagnostic scorecard for the lead gen engine

    Materials

    Participants

    • Lead Gen Engine Diagnostic Tool
    • Marketing director
    • Analytics lead

    Download the Lead Gen Engine Diagnostic Tool

    Step 1.4

    Identify & Prioritize Low-Scoring Areas

    Activities

    1.4.1 Identify and prioritize low-scoring areas from the diagnostic scorecard

    This step will walk you through the following activities:

    Identify and prioritize the low-scoring areas from the diagnostic scorecard.

    This step involves the following participants:

    • Marketing director

    Outcomes of this step

    A prioritized list of the lead gen engine problems to include in the Lead Gen Engine Optimization Strategy Template

    1.4.1 Identify and prioritize low-scoring areas from the diagnostic scorecard

    1 hour

    1. Transfer the results from the Lead Gen Engine Diagnostic Scorecard Results tab to the Lead Gen Engine Optimization Strategy Template slide entitled “Lead Gen Engine Diagnostic Scorecard.”
      • Results between 0 and 2 should be listed as high-priority fixes on the “Lead Gen Engine Diagnostic Scorecard” slide. You will use these areas for your strategy.
      • Results between 2 and 3 should be listed as medium-priority fixes on “Lead Gen Engine Diagnostic Scorecard” slide. You will use these areas for your strategy.
      • Results between 3 and 4 are within the industry standard and will require no fixes or only small adjustments.

    Input

    Output

    • Marketing and analytics data
    • Documentation of baseline marketing metrics

    Materials

    Participants

    • Lead Gen Engine Optimization Strategy Template
    • Marketing director
    • Analytics lead

    Download the Lead Gen Engine Diagnostic Tool

    Phase 2

    Lead Gen Engine Optimization Strategy

    Phase 1

    Phase 2

    1.1 Select lead gen engine steering committee & working team

    1.2 Gather baseline metrics

    1.3 Run the lead gen engine diagnostic

    1.4 Identify & prioritize low-scoring areas

    2.1 Define the roadmap

    2.2 Create lead gen engine optimization strategy

    2.3 Present strategy to steering committee

    This phase will walk you through the following activities:

    Create a best-in-class lead gen optimization strategy and roadmap based on the weaknesses found in the diagnostic tool. The steps include:

    • Define the roadmap.
    • Create a lead gen engine optimization strategy.
    • Present the strategy to the steering committee.

    This phase involves the following participants:

    • Marketing director

    Step 2.1

    Define the Roadmap

    Activities

    2.1.1 Create the roadmap for the lead gen optimization strategy

    This step will walk you through the following activities:

    Create the optimization roadmap for your lead gen engine strategy.

    This step involves the following participants:

    • Marketing director

    Outcomes of this step

    Strategy roadmap

    2.1.1 Create the roadmap for the lead gen optimization strategy

    1 hour

    1. Copy the results from "The Lead Gen Engine Diagnostic Scorecard" slide to the "Value, Resources & Roadmap Matrix" slide in the Lead Gen Engine Optimization Strategy Template. Adjust the Roadmap Quarter column after evaluating the internal resources of your company and expected value generated.
    2. Using these results, create your strategy roadmap by updating the slide entitled “The Strategy Roadmap” in the Lead Gen Engine Optimization Strategy Template.

    Input

    Output

    • Diagnostic scorecard
    • Strategy roadmap

    Materials

    Participants

    • Lead Gen Engine Optimization Strategy Template
    • Marketing Director

    Download the Lead Gen Engine Optimization Strategy Template

    Step 2.2

    Create the Lead Gen Engine Optimization Strategy

    Activities

    2.2.1 Customize your lead gen engine optimization strategy using the template

    This step will walk you through the following activities:

    Create a lead gen engine optimization strategy based on the results of your diagnostic scorecard.

    This step involves the following participants:

    Marketing director

    Outcomes of this step

    A leadership-facing lead gen optimization strategy

    2.2.1 Customize your lead gen engine optimization strategy using the template

    2-3 hours

    Review the strategy template:

    1. Use "The Strategy Roadmap" slide to organize the remaining slides from the Q1, Q2, and Q3 sections.
      1. Fixes listed in "The Strategy Roadmap" under Q1 should be placed within the Q1 section.
      2. Fixes listed in "The Strategy Roadmap" under Q2 should be placed within the Q2 section.
      3. Fixes listed in "The Strategy Roadmap" under Q3 should be placed within the Q3 section.

    Input

    Output

    • The strategy roadmap
    • Your new lead gen engine optimization strategy

    Materials

    Participants

    • Lead Gen Engine Optimization Strategy Template
    • Marketing director

    Download the Lead Gen Engine Optimization Strategy Template

    Step 2.3

    Present the strategy to the steering committee

    Activities

    2.3.1 Present the findings of the diagnostic and the lead gen optimization strategy to the steering committee.

    This step will walk you through the following activities:

    Get executive buy-in on the lead gen engine optimization strategy.

    This step involves the following participants:

    • Marketing director
    • Steering committee

    Outcomes of this step

    • Buy-in from leadership on the strategy

    2.3.1 Present findings of diagnostic and lead gen optimization strategy to steering committee

    1-2 hours

    1. Schedule a presentation to present the findings of the diagnostic, the lead gen engine optimization strategy, and the roadmap to the steering committee.
    InputOutput
    • Your company’s lead gen engine optimization strategy
    • Official outline of strategy and buy-in from executive leadership

    Materials

    Participants

    • Lead Gen Engine Optimization Strategy Template
    • Marketing director
    • Executive leadership
    • Steering committee

    Download the Lead Gen Engine Optimization Strategy Template

    Related SoftwareReviews Research

    Create a Buyer Persona and Journey

    Make it easier to market, sell, and achieve product-market fit with deeper buyer understanding.

    • Reduce time and treasure wasted chasing the wrong prospects.
    • Improve product-market fit.
    • Increase open and click-through rates in your lead gen engine.
    • Perform more effective sales discovery and increase eventual win rates.

    Optimize Lead Generation With Lead Scoring

    In today’s competitive environment, optimizing Sales’ resources by giving them qualified leads is key to B2B marketing success.

    • Lead scoring is a must-have capability for high-tech marketers.
    • Without lead scoring, marketers will see increased costs of lead generation and decreased SQL-to-opportunity conversion rates.
    • Lead scoring increases sales productivity and shortens sales cycles.

    Build a More Effective Go-to-Market Strategy

    Creating a compelling go-to-market strategy and keeping it current is a critical software company function – as important as financial strategy, sales operations, and even corporate business development – given its huge impact on the many drivers of sustainable growth.

    • Align stakeholders on a common vision and execution plan.
    • Build a foundation of buyer and competitive understanding.
    • Deliver a team-aligned launch plan that enables commercial success.

    Bibliography

    “11 Lead Magnet Statistics That Might Surprise You.” ClickyDrip, 28 Dec. 2020. Accessed April 2022.

    “45 Conversion Rate Optimization Statistics Every Marketer Should Know.” Outgrow, n.d. Accessed April 2022.

    Bailyn, Evan. “B2B SaaS Funnel Conversion Benchmarks.” First Page Sage, 24 Feb. 2021. Accessed April 2022.

    Bailyn, Evan. “B2B SaaS Marketing KPIs: Behind the Numbers.” First Page Sage, 1 Sept. 2021. Accessed April 2022.

    Conversion Optimization.” Lift Division, n.d. Accessed April 2022.

    Corson, Sean. “LTV:CAC Ratio [2022 Guide] | Benchmarks, Formula, Tactics.” Daasity, 3 Nov. 2021. Accessed April 2022.

    Dudley, Carrie. “What are personas?” Illumin8, 26 Jan. 2018. Accessed April 2022.

    Godin, Seth. “Permission Marketing.” Accenture, Oct. 2009. Accessed April 2022.

    Lebo, T. “Lead Conversion Statistics All B2B Marketers Need to Know.” Convince & Convert, n.d. Accessed April 2022.

    Lister, Mary. “33 CRO & Landing Page Optimization Stats to Fuel Your Strategy.” WordStream, 24 Nov. 2021. [Accessed April 2022].

    Nacach, Jamie. “How to Determine How Much Money to Spend on Lead Generation Software Per Month.” Bloominari, 18 Sept. 2018. Accessed April 2022.

    Needle, Flori. “11 Stats That Make a Case for Landing Pages.” HubSpot, 10 June 2021. Accessed April 2022.

    Payne, Kevin. “10 Effective Lead Nurturing Tactics to Boost Your Sales.” Kevintpayne.com, n.d. Accessed April 2022.

    Tam, Edwin. “ROI in Marketing: Lifetime Value (LTV) & Customer Acquisition Cost (CAC).” Construct Digital, 19 Jan. 2016. Accessed April 2022.

    Set a Strategic Course of Action for the PMO in 100 Days

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    • Parent Category Name: Project Management Office
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    • As a new PMO director, you’ve been thrown into the middle of an unfamiliar organizational structure and a chaotic project environment.
    • The expectations are that the PMO will help improve project outcomes, but beyond that your mandate as PMO director is opaque.
    • You know that the statistics around PMO longevity aren’t good, with 50% of new PMOs closing within the first three years. As early in your tenure as possible, you need to make sure that your stakeholders understand the value that your role could provide to the organization with the right level of buy-in and support.
    • Whether you’re implementing a new PMO or taking over an already existing one, you need to quickly overcome these challenges by rapidly assessing your unfamiliar tactical environment, while at the same time demonstrating confidence and effective leadership to project staff, business stakeholders, and the executive layer.

    Our Advice

    Critical Insight

    • The first 100 days are critical. You have a window of influence where people are open to sharing insights and opinions because you were wise enough to seek them out. If you don’t reach out soon, people notice and assume you’re not wise enough to seek them out, or that you don’t think they are important enough to involve.
    • PMOs most commonly stumble when they shortsightedly provide project management solutions to what are, in fact, more complex, systemic challenges requiring a mix of project management, portfolio management, and organizational change management capabilities. If you fail to accurately diagnose pain points and needs in your first days, you could waste your tenure as PMO leader providing well-intentioned solutions to the wrong project problems.
    • You have diminishing value on your time before skepticism and doubt start to erode your influence. Use your first 100 days to define an appropriate mandate for your PMO, get the right people behind you, and establish buy-in for long-term PMO success.

    Impact and Result

    • Develop an action plan to help leverage your first 100 days on the job. Hit the ground running in your new role with an action plan to achieve realistic goals and milestones in your first 100 days. A results-driven first three months will help establish roots throughout the organization that will continue to feed and grow the PMO beyond your first year.
    • Get to know what you don’t know quickly. Use Info-Tech’s advice and tools to perform a triage of every aspect of PMO accountability as well as harvest stakeholder input to ensure that your PMO meets or exceeds expectations and establishes the right solutions to the organization’s project challenges.
    • Solidify the PMO’s long-term mission. Adopt our stakeholder engagement best practices to ensure that you knock on the right doors early in your tenure. Not only do you need to clarify expectations, but you will ultimately need buy-in from key stakeholders as you move to align the mandate, authority, and resourcing needed for long-term PMO success.

    Set a Strategic Course of Action for the PMO in 100 Days Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how capitalizing on your first 100 days as PMO leader can help ensure the long-term success of your PMO.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Survey the project landscape

    Get up-to-speed quickly on key PMO considerations by engaging PMO sponsors, assessing stakeholders, and taking stock of your PMO inventory.

    • Set a Strategic Course of Action for the PMO in 100 Days – Phase 1: Survey the Project Landscape
    • Mission Identification and Inventory Tool
    • PMO Director First 100 Days Timeline - MS Project
    • PMO Director First 100 Days Timeline - MS Excel

    2. Gather PMO requirements

    Make your first major initiative as PMO director be engaging the wider pool of PMO stakeholders throughout the organization to determine their expectations for your office.

    • Set a Strategic Course of Action for the PMO in 100 Days – Phase 2: Gather PMO Requirements
    • PMO Requirements Gathering Tool
    • PMO Course of Action Stakeholder Interview Guide

    3. Solidify your PPM goals

    Review the organization’s current PPM capabilities in order to identify your ability to meet stakeholder expectations and define a sustainable mandate.

    • Set a Strategic Course of Action for the PMO in 100 Days – Phase 3: Solidify Your PPM Goals
    • Project Portfolio Management Maturity Assessment Workbook
    • Project Management Maturity Assessment Workbook
    • Organizational Change Management Maturity Assessment Workbook
    • PMO Strategic Expectations Glossary

    4. Formalize the PMO’s mandate

    Communicate your strategic vision for the PMO and garner stakeholder buy-in.

    • Set a Strategic Course of Action for the PMO in 100 Days – Phase 4: Formalize the PMO's Mandate
    • PMO Mandate and Strategy Roadmap Template
    • PMO Director Peer Feedback Evaluation Template
    • PMO Director First 100 Days Self-Assessment Tool
    [infographic]

    Workshop: Set a Strategic Course of Action for the PMO in 100 Days

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Assess the Current Project Ecosystem

    The Purpose

    Quickly develop an on-the-ground view of the organization’s project ecosystem and the PMO’s abilities to effectively serve.

    Key Benefits Achieved

    A comprehensive and actionable understanding of the PMO’s tactical environment

    Activities

    1.1 Perform a PMO SWOT analysis.

    1.2 Assess the organization’s portfolio management, project management, and organizational change management capability levels.

    1.3 Take inventory of the PMO’s resourcing levels, project demand levels, and tools and artifacts.

    Outputs

    Overview of current strengths, weaknesses, opportunities, and threats

    Documentation of your current process maturity to execute key portfolio management, project management, and organizational change management functions

    Stock of the PMO’s current access to PPM personnel relative to total project demand

    2 Analyze PMO Stakeholders

    The Purpose

    Determine stakeholder expectations for the PMO.

    Key Benefits Achieved

    An accurate understanding of others’ expectations to help ensure the PMO’s course of action is responsive to organizational culture and strategy

    Activities

    2.1 Conduct a PMO Mission Identification Survey with key stakeholders.

    2.2 Map the PMO’s stakeholder network.

    2.3 Analyze key stakeholders for influence, interest, and support.

    Outputs

    An understanding of expected PMO outcomes

    A stakeholder map and list of key stakeholders

    A prioritized PMO requirements gathering elicitation plan

    3 Determine Strategic Expectations and Define the Tactical Plan

    The Purpose

    Develop a process and method to turn stakeholder requirements into a strategic vision for the PMO.

    Key Benefits Achieved

    A strategic course of action for the PMO that is responsive to stakeholders’ expectations.

    Activities

    3.1 Assess the PMO’s ability to support stakeholder expectations.

    3.2 Use Info-Tech’s PMO Strategic Expectations glossary to turn raw process and service requirements into specific strategic expectations.

    3.3 Define an actionable tactical plan for each of the strategic expectations in your mandate.

    Outputs

    An understanding of PMO capacity and limits

    A preliminary PMO mandate

    High-level statements of strategy to help support your mandate

    4 Formalize the PMO’s Mandate and Roadmap

    The Purpose

    Establish a final PMO mandate and a process to help garner stakeholder buy-in to the PMO’s long-term vision.

    Key Benefits Achieved

    A viable PMO course of action complete with stakeholder buy-i

    Activities

    4.1 Finalize the PMO implementation timeline.

    4.2 Finalize Info-Tech’s PMO Mandate and Strategy Roadmap Template.

    4.3 Present the PMO’s strategy to key stakeholders.

    Outputs

    A 3-to-5-year implementation timeline for key PMO process and staffing initiatives

    A ready-to-present strategy document

    Stakeholder buy-in to the PMO’s mandate

    Applications Priorities 2023

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    • Economic, social, and regulatory conditions have changed livelihoods, businesses, and marketplaces. Modern tools and technologies have acted as lifelines by minimizing operating and delivery costs, and in the process, establishing a strong foundation for growth and maturity.
    • These tools and technologies must meet the top business goals of CXOs: ensure service continuity, improve customer experience, and make data-driven decisions.
    • While today’s business applications are good and well received, there is still room for improvement. The average business application satisfaction score among IT leadership was 72% (n=1582, CIO Business Vision).

    Our Advice

    Critical Insight

    • Applications are critical components in any business strategic plan. They can directly influence an organization’s internal and external brand and reputation, such as their uniqueness, competitiveness and innovativeness in the industry
    • Business leaders are continuously looking for innovative ways to better position their application portfolio to satisfy their goals and objectives, i.e., application priorities. Given the scope and costs often involved, these priorities must be carefully crafted to clearly state achievable business outcomes that satisfies the different needs very different customers, stakeholders, and users.
    • Unfortunately, expectations on your applications team have increased while the gap between how stakeholders and applications teams perceive effectiveness remains wide. This points to a need to clarify the requirements to deliver valuable and quality applications and address the pressures challenging your teams.

    Impact and Result

    Learn and explore the technology and practice initiatives in this report to determine which initiatives should be prioritized in your application strategy and align to your business organizational objectives:

    • Optimize the effectiveness of the IT organization.
    • Boost the productivity of the enterprise.
    • Enable business growth through technology.

    Applications Priorities 2023 Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Applications Priorities Report 2023 – A report that introduces and describes five opportunities to prioritize in your 2023 application strategy.

    In this report, we explore five priorities for emerging and leading-edge technologies and practices that can improve on capabilities needed to meet the ambitions of your organization.

    • Applications Priorities 2023 Report

    Infographic

    Further reading

    Applications Priorities 2023

    Applications are the engine of the business: keep them relevant and modern

    What we are facing today is transforming the ways in which we work, live, and relate to one another. Applications teams and portfolios MUST change to meet this reality.

    Economic, social, and regulatory conditions have changed livelihoods, businesses, and marketplaces. Modern tools and technologies have acted as lifelines by minimizing operating and delivery costs, and in the process, establishing a strong foundation for growth and maturity.

    As organizations continue to strengthen business continuity, disaster recovery, and system resilience, activities to simply "keep the lights on" are not enough. Be pragmatic in the prioritization and planning of your applications initiatives, and use your technologies as a foundation for your growth.

    Your applications must meet the top business goals of your CXOs

    • Ensure service continuity
    • Improve customer experience
    • Make data-driven decisions
    • Maximize stakeholder value
    • Manage risk

    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022, n=568.

    Select and align your applications priorities to your business goals and objectives

    Applications are critical components in any business strategic plan. They can directly influence an organization's internal and external brand and reputation, such as their:

    • Uniqueness, competitiveness, and innovativeness in the industry.
    • Ability to be dynamic, flexible, and responsive to changing expectations, business conditions, and technologies.

    Therefore, business leaders are continuously looking for innovative ways to better position their application portfolios to satisfy their goals and objectives, i.e. applications priorities. Given the scope and costs often involved, these priorities must be carefully crafted to clearly state achievable business outcomes that satisfy
    the different needs of very different customers, stakeholders, and users.

    Today's business applications are good but leave room for improvement

    72%
    Average business application satisfaction score among IT leadership in 1582 organizations.

    Source: CIO Business Vision, August 2021 to July 2022, N=190.

    Five Applications Priorities for 2023

    In this report, we explore five priorities for emerging and leading-edge technologies and practices that can improve on capabilities needed to meet the Ambitions of your organization.

    this is an image of the Five Applications Priorities for which will be addressed in this blueprint.

    Strengthen your foundations to better support your applications priorities

    These key capabilities are imperative to the success of your applications strategy.

    KPI and Metrics

    Easily attainable and insightful measurements to gauge the progress of meeting strategic objectives and goals (KPIs), and the performance of individual teams, practices and processes (metrics).

    BUSINESS ALIGNMENT

    Gain an accurate understanding and interpretation of stakeholder, end-user, and customer expectations and priorities. These define the success of business products and services considering the priorities of individual business units and teams.

    EFFICIENT DELIVERY & SUPPORT PRACTICE

    Software delivery and support roles, processes, and tools are collaborative, well equipped and resourced, and optimized to meet changing stakeholder expectations.

    Data Management & Governance

    Ensuring data is continuously reliable and trustworthy. Data structure and integrations are defined, governed, and monitored.

    Product & Service Ownership

    Complete inventory and rationalization of the product and service portfolio, prioritized backlogs, roadmaps, and clear product and service ownership with good governance. This helps ensure this portfolio is optimized to meet its goals and objectives.

    Strengthen your foundations to better support your applications priorities (cont'd)

    These key capabilities are imperative to the success of your applications strategy.

    Organizational Change Management

    Manage the adoption of new and modified processes and technologies considering reputational, human, and operational concerns.

    IT Operational Management

    Continuous monitoring and upkeep of products and services to assure business continuity, and system reliability, robustness and disaster recovery.

    Architectural Framework

    A set of principles and standards that guides the consistent, sustainable and scalable growth of enterprise technologies. Changes to the architecture are made in collaboration with affected parties, such as security and infrastructure.

    Application Security

    The measures, controls, and tactics at the application layer that prevent vulnerabilities against external and internal threats and ensure compliance to industry and regulatory security frameworks and standards.

    There are many factors that can stand in your team's way

    Expectations on your applications team have increased, while the gap between how stakeholders and applications teams perceive effectiveness remains wide. This points to a need to clarify the requirements to deliver valuable and quality applications and address the pressures challenging your teams.

    1. Attracting and retaining talent
    2. Maximizing the return on technology
    3. Confidently shifting to digital
    4. Addressing competing priorities
    5. Fostering a collaborative culture
    6. Creating high-throughput teams

    CIOs agree that at least some improvement is needed across key IT activities

    A bar graph is depicted which shows the proportion of CIOs who believe that some, or significant improvement is necessary for the following categories: Measure IT Project Success; Align IT Budget; Align IT Project Approval Process; Measure Stakeholder Satisfaction With IT; Define and Align IT Strategy; Understand Business Goals

    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022, n=568.

    Pressure Point 1:
    Attracting and Retaining Talent

    Recent environmental pressures impacted traditional working arrangements and showed more workplace flexibility is often possible. At the same time, many employees' expectations about how, when, and where they choose to work have also evolved. Recruitment and retention are reflections of different sides of the same employee value proposition coin. Organizations that fail to reinvent their approach to attracting and retaining talent by focusing on candidate and employee experience risk turnover, vacancies, and lost opportunities that can negatively impact the bottom line.

    Address the underlying challenges

    • Lack of employee empowerment and few opportunities for learning and development.
    • Poor coworker and manager relationships.
    • Compensation and benefits are inadequate to maintain desired quality of life.
    • Unproductive work environment and conflicting balance of work and life.
    • Unsatisfactory employee experience, including lack of employee recognition
      and transparency of organizational change.

    While workplace flexibility comes with many benefits, longer work hours jeopardize wellbeing.
    62% of organizations reported increased working hours, while 80% reported an increase in flexibility.
    Source: McLean & Company, 2022; n=394.

    Be strategic in how you fill and train key IT skills and capabilities

    • Cybersecurity
    • Big Data/Analytics
    • Technical Architecture
    • DevOps
    • Development
    • Cloud

    Source: Harvey Nash Group, 2021; n=2120.

    Pressure Point 2:
    Maximizing the Return of Technology

    Recent environmental pressures impacted traditional working arrangements and showed more workplace flexibility is often possible. At the same time, many employees' expectations about how, when, and where they choose to work have also evolved. Recruitment and retention are reflections of different sides of the same employee value proposition coin. Organizations that fail to reinvent their approach to attracting and retaining talent by focusing on candidate and employee experience risk turnover, vacancies, and lost opportunities that can negatively impact the bottom line.

    Address the underlying challenges

    • Inability to analyze, propose, justify, and communicate modernization solutions in language the stakeholders understand and in a way that shows they clearly support business priorities and KPIs and mitigate risks.
    • Little interest in documenting and rationalizing products and services through business-IT collaboration.
    • Lack of internal knowledge of the system and loss of vendor support.
    • Undefined, siloed product and service ownership and governance, preventing solutions from working together to collectively deliver more value.
    • Little stakeholder appetite to invest in activities beyond "keeping the lights on."

    Only 64% of applications were identified as effective by end users.
    Effective applications are identified as at least highly important and have high feature and usability satisfaction.
    Source: Application Portfolio Assessment, August 2021 to July 2022; N=315.

    "Regardless of the many definitions of modernization floating around, the one characteristic that we should be striving for is to ensure our applications do an outstanding job of supporting the users and the business in the most effective and efficient manner possible."
    Source: looksoftware.

    Pressure Point 3:
    Confidently Shifting to Digital

    "Going digital" reshapes how the business operates and drives value by optimizing how digital and traditional technologies and tactics work together. This shift often presents significant business and technical risks to business processes, enterprise data, applications, and systems which stakeholders and teams are not aware of or prepared to accommodate.

    Address the underlying challenges

    • Differing perspectives on digital can lead to disjointed transformation initiatives, oversold benefits, and a lack of synergy among digital technologies and processes.
    • Organizations have difficulty adapting to new technologies or rethinking current business models, processes, and ways of working because of the potential human, ethical, and reputational impacts and restrictions from legacy systems.
    • Management lacks a framework to evaluate how their organization manages and governs business value delivery.
    • IT is not equipped or resourced to address these rapidly changing business, customer, and technology needs.
    • The wrong tools and technologies were chosen to support the shift to digital.

    The shift to digital processes is starting, but slowly.
    62% of respondents indicated that 1-20% of their processes were digitized during the past year.
    Source: Tech Trends and Priorities 2023; N=500

    Resistance to change and time/budget constraints are top barriers preventing companies from modernizing their applications.
    Source: Konveyor, 2022; n=600.

    Pressure Point 4:
    Addressing Competing Priorities

    Enterprise products and services are not used, operated, or branded in isolation. The various parties involved may have competing priorities, which often leads to disagreements on when certain business and technology changes should be made and how resources, budget, and other assets should be allocated. Without a broader product vision, portfolio vision, and roadmap, the various dependent or related products and services will not deliver the same level of value as if they were managed collectively.

    Address the underlying challenges

    • Undefined product and service ownership and governance, including escalation procedures when consensus cannot be reached.
    • Lack of a unified and grounded set of value and quality definitions, guiding principles, prioritization standards, and broad visibility across portfolios, business capabilities, and business functions.
    • Distrust between business units and IT teams, which leads to the scaling of unmanaged applications and fragmented changes and projects.
    • Decisions are based on opinions and experiences without supporting data.

    55% of CXOs stated some improvement is necessary in activities to understand business goals.
    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022; n=568.

    CXOs are moderately satisfied with IT's performance as a business partner (average score of 69% among all CXOs). This sentiment is similarly felt among CIOs (64%).
    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022; n=568.

    Pressure Point 5:
    Fostering a Collaborative Culture

    Culture impacts business results, including bottom-line revenue and productivity metrics. Leaders appreciate the impact culture can have on applications initiatives and wish to leverage this. How culture translates from an abstract concept to something that is measurable and actionable is not straightforward. Executives need to clarify how the desired culture will help achieve their applications strategy and need to focus on the items that will have the most impact.

    Address the underlying challenges

    • Broad changes do not consider the unique subcultures, personalities, and behaviors of the various teams and individuals in the organization.
    • Leaders mandate cultural changes without alleviating critical barriers and do not embody the principles of the target state.
    • Bureaucracy and politics restrict changes and encourage the status quo.
    • Industry standards, technologies, and frameworks do not support or cannot be tailored to fit the desired culture.
    • Some teams are deliberately excluded from the scoping, planning, and execution of key product and service delivery and management activities.

    Agile does not solve team culture challenges.
    43% of organizations cited organizational culture as a significant barrier to adopting and scaling Agile practices.
    Source: Digital.ai, 2021.

    "Providing a great employee experience" as the second priority (after recruiting) highlights the emphasis organizations are placing on helping employees adjust after having been forced to change the way work gets done.
    Source: McLean & Company, 2022; N=826.

    Use your applications priorities to help address your pressure points

    Success can be dependent on your ability to navigate around or alleviate your pressure points. Design and market your applications priorities to bring attention to your pressure points and position them as key risk factors to their success.

    Applications Priorities
    Digital Experience (DX) Intelligent Automation Proactive Application Management Multisource Systems Digital Organization as a Platform
    Attracting and Retaining Talent Enhance the employee experience Be transparent and support role changes Shift focus from maintenance to innovation Enable business-managed applications Promote and showcase achievements and successes
    Maximizing the Return on Technology Modernize or extend the use of existing investments Automate applications across multiple business functions Improve the reliability of mission-critical applications Enhance the functionality of existing applications Increase visibility of underused applications
    Confidently Shifting to Digital Prioritize DX in your shift to digital Select the capabilities that will benefit most from automation Prepare applications to support digital tools and technologies Use best-of-breed tools to meet specific digital needs Bring all applications up to a common digital standard
    Addressing Competing Priorities Ground your digital vision, goals, and objectives Recognize and evaluate the architectural impact Rationalize the health of the applications Agree on a common philosophy on system composition Map to a holistic platform vision, goals, and objectives
    Fostering a Collaborative Culture Involve all perspectives in defining and delivering DX Involve the end user in the delivery and testing of the automated process Include the technical perspective in the viability of future applications plans Discuss how applications can work together better in an ecosystem Ensure the platform is configured to meet the individual needs of the users
    Creating High-Throughput Teams Establish delivery principles centered on DX Remove manual, error-prone, and mundane tasks Simplify applications to ease delivery and maintenance Alleviate delivery bottlenecks and issues Abstract the enterprise system to expedite delivery

    Digital Experience (DX)

    PRIORITY 1

    • Deliver Valuable User, Customer, Employee, and Brand Experiences

    Delivering valuable digital experiences requires the adoption of good management, governance, and operational practices to accommodate stakeholder, employee, customer, and end-user expectations of digital experiences (e.g. product management, automation, and iterative delivery). Technologies are chosen based on what best enables, delivers, and supports these expectations.

    Introduction

    Digital transformation is not just about new tools and technologies. It is also about delivering a valuable digital experience

    What is digital experience (DX)?

    Digital experience (DX) refers to the interaction between a user and an organization through digital products and services. Digital products and services are tools, systems, devices, and resources that gather, store, and process data; are continuously modernized; and embody eight key attributes that are described on the following slide. DX is broken down into four distinct perspectives*:

    • Customer Experience – The immediate perceptions of transactions and interactions experienced through a customer's journey in the use of the organization's digital
      products and services.
    • End-User Experience – Users' emotions, beliefs, and physical and psychological responses
      that occur before, during, or after interacting with a digital product or service.
    • Brand Experience – The broader perceptions, emotions, thoughts, feelings and actions the public associate with the organization's brand and reputation or its products and services. Brand experience evolves over time as customers continuously engage with the brand.
    • Employee Experience – The satisfaction and experience of an employee through their journey with the organization, from recruitment and hiring to their departure. How an employee embodies and promotes the organization brand and culture can affect their performance, trust, respect, and drive to innovate and optimize.
    Digital Products and Services
    Customer Experience Brand Experience Employee Experience End-User Experience

    Digital products and services have a common set of attributes

    Digital transformation is not just about new tools and technologies. It is also about delivering a valuable digital experience

    • Digital products and services must keep pace with changing business and end-user needs as well as tightly supporting your maturing business model with continuous modernization. Focus your continuous modernization on the key characteristics that drive business value.
    • Fit for purpose: Functionalities are designed and implemented for the purpose of satisfying the end user's needs and solving their problems.
    • User-centric: End users see the product as rewarding, engaging, intuitive, and emotionally satisfying. They want to come back to it.
    • Adaptable: The product can be quickly tailored to meet changing end-user and technology needs with reusable and customizable components.
    • Accessible: The product is available on demand and on the end user's preferred interface.
      End users have a seamless experience across all devices.
    • Private and secured: The end user's activity and data are protected from unauthorized access.
    • Informative and insightful: The product delivers consumable, accurate, and trustworthy real-time data that is important to the end user.
    • Seamless application connection: The product facilitates direct interactions with one or more other products through an uninterrupted user experience.
    • Relationship and network building: The product enables and promotes the connection and interaction of people.

    The Business Value cycle of continuous modernization.

    Signals

    DX is critical for business growth and maturity, but the organization may not be ready

    A good DX has become a key differentiator that gives organizations an advantage over their competition and peers. Shifts in working environments; employee, customer, and stakeholder expectations; and the advancements in modern technologies have raised the importance of adopting and transitioning to digital processes and tools to stay relevant and responsive to changing business and technology conditions.

    Applications teams are critical to ensuring the successful delivery and operation of these digital processes and tools. However, they are often under-resourced and challenged to meet their DX goals.

    • 7% of both business and IT respondents think IT has the resources needed to keep up with digital transformation initiatives and meet deadlines (Cyara, 2021).
    • 43% of respondents said that the core barrier to digital transformation is a lack of skilled resources (Creatio, 2021).
    A circle graph is shown with 91% of the circle coloured in dark blue, with the number 91% in the centre.

    of organizations stated that at least 1% of processes were shifted from being manually completed to digitally completed in the last year. 29% of organizations stated at least 21% were shifted.

    Source: Tech Trends and Priorities 2023; N=500.

    A circle graph is shown with 98% of the circle coloured in dark blue, with the number 98% in the centre.

    of organizations recognized digital transformation is important for competitive advantage. 94% stated it is important to enhance customer experience, and 91% stated it will have a positive impact on revenue.

    Source: Cyara, 2021.

    Drivers

    Brand and reputation

    Customers are swayed by the innovations and advancements in digital technologies and expect your applications team to deliver and support them. Your leaders recognize the importance of these expectations and are integrating them into their business strategy and brand (how the organization presents itself to its customers, employees and the public). They hope that their actions will improve and shape the company's reputation (public perception of the company) as effective, customer-focused, and forward-thinking.

    Worker productivity

    As you evolve and adopt more complex tools and technology, your stakeholders will expect more from business units and IT teams. Unfortunately, teams employing manual processes and legacy systems will struggle to meet these expectations. Digital products and services promote the simplification of complex operations and applications and help the business and your teams better align operational practices with strategic goals and deliver valuable DX.

    Organization modernization

    Legacy processes, systems, and ways of working are no longer suitable for meeting the strategic digital objectives and DX needs stakeholders expect. They drive up operational costs without increased benefits, impede business growth and innovation, and consume scarce budgets that could be used for other priorities. Shifting to digital tools and technologies will bring these challenges to light and demonstrate how modernization is an integral part of DX success.

    Benefits & Risks

    Benefits

    • Flexibility & Satisfaction
    • Adoption
    • Reliability

    Employees and customers can choose how they want to access, modify, and consume digital products and services. They can be tailored to meet the specific functional needs, behaviors, and habits of the end user.

    The customer, end user, brand, and employee drive selection, design, and delivery of digital products and services. Even the most advanced technologies will fail if key roles do not see the value in their use.

    Digital products and services are delivered with technical quality built into them, ensuring they meet the industry, regulatory, and company standards throughout their lifespan and in various conditions.

    Risks

    • Legacy & Lore
    • Bureaucracy & Politics
    • Process Inefficiencies
    • No Quality Standards

    Some stakeholders may not be willing to change due to their familiarity and comfort of business practices.

    Competing and conflicting priorities of strategic products and services undermine digital transformation and broader modernization efforts.

    Business processes are often burdened by wasteful activities. Digital products and services are only as valuable as the processes they support.

    The performance and support of your digital products and services are hampered due to unmanageable technical debt because of a deliberate decision to bypass or omit quality good practices.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Enhance the employee experience.

    Design the digital processes, tools, and technologies to meet the individual needs of the employee.

    Maximizing the Return on Technology

    Modernize or extend the use of existing investments.

    Drive higher adoption of applications and higher user value and productivity by implementing digital capabilities to the applications that will gain the most.

    Confidently Shifting to Digital

    Prioritize DX in your shift to digital. Include DX as part of your definition of success.

    Your products and services are not valuable if users, customers, and employees do not use them.

    Addressing Competing Priorities

    Ground your digital vision, goals, and objectives

    Establish clear ownership of DX and digital products and services with a cross-functional prioritization framework.

    Fostering a Collaborative Culture

    Involve all perspectives in defining and delivering DX.

    Maintain a committee of owners, stakeholders, and delivery teams to ensure consensus and discuss how to address cross-functional opportunities and risks.

    Creating High-Throughput Teams

    Establish delivery principles centered on DX.

    Enforce guiding principles to streamline and simplify DX delivery, such as plug-and-play architecture and quality standards.

    Recommendations

    Build a digital business strategy

    A digital business strategy clearly articulates the goals and ambitions of the business to adopt digital practices, tools, and technologies. This document:

    • Looks for ways to transform the business by identifying what technologies to embrace, what processes to automate, and what new business models to create.
    • Unifies digital possibilities with your customer experiences.
    • Establishes accountability with the executive leadership.
    • States the importance of cross-functional participation from senior management across the organization.

    Related Research:

    Learn, understand, and empathize with your users, employees, and customers

    • To create a better product, solution, or service, understanding those who use it, their needs, and their context is critical.
    • A great experience design practice can help you balance those goals so that they are in harmony with those of your users.
    • IT leaders must find ways to understand the needs of the business and develop empathy on a much deeper level. This empathy is the foundation for a thriving business partnership.

    Related Research:

    Recommendations

    Center product and service delivery decisions and activities on DX and quality

    User, customer, employee, and brand are integral perspectives on the software development lifecycle (SDLC) and the management and governance practices supporting digital products and services. It ensures quality standards and controls are consistently upheld while maintaining alignment with various needs and priorities. The goal is to come to a consensus on a universal definition and approach to embed quality and DX-thinking throughout the delivery process.

    Related Research:

    Instill collaborative delivery practices

    Today's rapidly scaling and increasingly complex digital products and services create mounting pressure on delivery teams to release new features and changes quickly and with sufficient quality. This pressure is further compounded by the competing priorities of individual stakeholders and the nuances among different personas of digital products and services.

    A collaborative delivery practice sets the activities, channels, and relationships needed to deliver a valuable and quality product or service with cross-functional awareness, accountability, and agreement.

    Related Research:

    Recommendations

    Continuously monitor and modernize your digital products and services

    Today's modern digital products and services are tomorrow's shelfware. They gradually lose their value, and the supporting technologies will become obsolete. Modernization is a continuous need.

    Data-driven insights help decision makers decide which products and services to retire, upgrade, retrain on, or maintain to meet the demands of the business.

    Enhancements focusing on critical business capabilities strengthen the case for investment and build trust with all stakeholders.

    Related Research:

    CASE STUDY
    Mastercard in Asia

    Focus on the customer journey

    Chief Marketing Officer M.V. Rajamannar (Raja) wanted to change Mastercard's iconic "Priceless" ad campaign (with the slogan "There are some things money can't buy. For everything else there's Mastercard."). The main reasons were that the campaign relied on one-way communication and targeted end customers, even though Mastercard doesn't issue cards directly to customers; partner banks do. To drive the change in campaign, Raja and his team created a digital engine that leveraged digital and social media. Digital engine is a seven-step process based on insights gleaned from data and real-time optimization.

    1. Emotional spark: Using data to understand customers' passion points, Mastercard builds videos and creatives to ignite an emotional spark and give customers a reason to engage. For example, weeks before New Year's Eve, Mastercard produced a video with Hugh Jackman to encourage customers to submit a story about someone who deeply mattered to them. The authors of the winning story would be flown to reunite with those both distant and dear.
    2. Engagement: Mastercard targets the right audience with a spark video through social media to encourage customers to share their stories.
    3. Offers: To help its partner banks and merchants in driving their business, the company identifies the best offers to match consumers' interests. In the above campaign, Mastercard's Asia-Pacific team found that Singapore was a favorite destination for Indian customers, so they partnered with Singapore's Resorts World Sentosa with an attractive offer.
    4. Real-time optimization: Mastercard optimizes, in real time, a portfolio of several offers through A/B testing and other analysis.
    5. Amplification: Real-time testing provides confidence to Mastercard about the potential success of these offers and encourages its bank and merchant partners to co-market and co-fund these campaigns.
    6. Network effects: A few weeks after consumers submitted their stories about distant loved ones, Mastercard selected winners, produced videos of them surprising their friends and families, and used these videos in social media to encourage sharing.
    7. Incremental transactions: These programs translate into incremental business for banks who issue cards, for merchants where customers spend money, and for Mastercard, which gets a portion of every transaction.

    Source: Harvard Business Review Press

    CASE STUDY
    Mastercard in Asia (cont'd)

    Focus on the customer journey

    1. Emotional Spark
      Drives genuine personal stories
    2. Engagement
      Through Facebook
      and social media
    3. Offers
      From merchants
      and Mastercard assets
    4. Optimization
      Real-time testing of offers and themes
    5. Amplification
      Paid and organic programmatic buying
    6. Network Effects
      Sharing and
      mass engagement
    7. Incremental Transactions
      Win-win for all parties

    CASE STUDY
    Mastercard in Asia (cont'd)

    The Mastercard case highlights important lessons on how to engage customers:

    • Have a broad message. Brands need to connect with consumers over how they live and spend their time. Organizations need to go beyond the brand or product message to become more relevant to consumers' lives. Dove soap was very successful in creating a conversation among consumers with its "Real Beauty" campaign, which focused not on the brand or even the product category, but on how women and society view beauty.
    • Shift from storytelling to story making. To break through the clutter of advertising, companies need to move from storytelling to story making. A broader message that is emotionally engaging allows for a two-way conversation.
    • Be consistent with the brand value. The brand needs to stand for something, and the content should be relevant to and consistent with the image of the brand. Pepsi announced an award of $20 million in grants to individuals, businesses, and nonprofits that promote a new idea to make a positive impact on community. A large number of submissions were about social causes that had nothing to do with Pepsi, and some, like reducing obesity, were in conflict with Pepsi's product.
    • Create engagement that drives business. Too much entertainment in ads may engage customers but detract from both communicating the brand message and increasing sales. Simply measuring the number of video views provides only a partial picture of a program's success.

    Intelligent Automation

    PRIORITY 2

    • Extend Automation Practices with AI and ML

    AI and ML are rapidly growing. Organizations see the value of machines intelligently executing high-performance and dynamic tasks such as driving cars and detecting fraud. Senior leaders see AI and ML as opportunities to extend their business process automation investments.

    Introduction

    Intelligent automation is the next step in your business process automation journey

    What is intelligent automation (IA)?

    Intelligent automation (IA) is the combination of traditional automation technologies, such as business process management (BPM) and robotic process automation (RPA), with AI and ML. The goal is to further streamline and scale decision making across various business processes by:

    • Removing human interactions.
    • Addressing decisions that involve complex variables.
    • Automatically adapting processes to changing conditions.
    • Bridging disparate automation technologies into an integrated end-to-end value delivery pipeline.

    "For IA to succeed, employees must be involved in the transformation journey so they can experience firsthand the benefits of a new way of working and creating business value," (Cognizant).

    What is the difference between IA and hyperautomation?

    "Hyperautomation is the act of automating everything in an organization that can be automated. The intent is to streamline processes across an organization using intelligent automation, which includes AI, RPA and other technologies, to run without human intervention. … Hyperautomation is a business-driven, disciplined approach that organizations use to rapidly identify, vet, and automate as many business and IT processes as possible" (IBM, 2021).

    Note that hyperautomation often enables IA, but teams solely adopting IA do not need to abide to its automation-first principles.

    IA is a combination of various tools and technologies

    What tools and technologies are involved in IA?

    • Artificial intelligence (AI) & Machine Learning (ML) – AI systems perform tasks mimicking human intelligence such as learning from experience and problem solving. AI is making its own decisions without human intervention. Machine learning systems learn from experience and without explicit instructions. They learn patterns from data then analyze and make predictions based on past behavior and the patterns learned. AI is a combination of technologies and can include machine learning.
    • Intelligent Business Process Management System (iBPMS) – Combination of BPM tools with AI and other intelligence capabilities.
    • Robotic Process Automation (RPA) – Robots leveraging an application's UI rather than programmatic access. Automate rules-based, repetitive tasks performed by human workers with AI/ML.
    • Process Mining & Discovery – Process mining involves reading system event logs and application transactions and applying algorithmic analysis to automatically identify and map inferred business processes. Process discovery involves unintrusive virtual agents that sit on a user's desktop and record and monitor how they interact with applications to perform tasks and processes. Algorithms are then used to map and analyze the processes.
    • Intelligent Document Processing – The conversion of physical or unstructured documents into a structured, digital format that can be used in automation solutions. Optical character recognition (OCR) and natural language processing (NPL) are common tools used to enable this capability.
    • Advanced Analytics – The gathering, synthesis, transformation, and delivery of insightful and consumable information that supports data-driven decision making. Data is queried from various disparate sources and can take on a variety of structured and unstructured formats.

    The cycle of IA technologies

    Signals

    Process automation is an executive priority and requires organizational buy-in

    Stakeholders recognize the importance of business process automation and AI and are looking for ways to deliver more value using these technologies.

    • 90% of executives stated automating business workflows post-COVID-19 will ensure business continuity (Kofax, 2022).
    • 88% of executives stated they need to fast-track their end-to-end digital transformation (Kofax, 2022).

    However, the advertised benefits to vendors of enabling these desired automations may not be easily achievable because of:

    • Manual and undocumented business processes.
    • Fragmented and inaccessible systems.
    • Poor data quality, insights, and security.
    • The lack of process governance and management practice.
    A circle graph is shown with 49% of the circle coloured in dark blue, with the number 49% in the centre.

    of CXOs stated staff sufficiency, skill and engagement issues as a minor IT pain point compared to 51% of CIOs stated this issue as a major pain point.

    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022; n=568.

    A circle graph is shown with 36% of the circle coloured in dark blue, with the number 36% in the centre.

    of organizations have already invested in AI or machine learning.

    Source: Tech Trends and Priorities 2023; N=662

    Drivers

    Quality & throughput

    Products and services delivered through an undefined and manual process risk the creation of preventable and catchable defects, security flaws and holes, missing information, and other quality issues. IA solutions consistently reinforce quality standards the same way across all products and services while tailoring outputs to meet an individual's specific needs. Success is dependent on the accurate interpretation and application of quality standards and the user's expectations.

    Worker productivity

    IA removes the tedious, routine, and mundane tasks that distract and restrict employees from doing more valuable, impactful, and cognitively focused activities. Practical insights can also be generated through IA tools that help employees make data-driven decisions, evaluate problems from different angles, and improve the usability and value of the products and services they produce.

    Good process management practices

    Automation magnifies existing inefficiencies of a business process management practice, such as unclear and outdated process documentation and incorrect assumptions. IA reinforces the importance of good business process optimization practices, such as removing waste and inefficiencies in a thoughtful way, choosing the most appropriate automation solution, and configuring the process in the right way to maximize the solution's value.

    Benefits & Risks

    Benefits

    • Documentation
    • Hands-Off
    • Reusability

    All business processes must be mapped and documented to be automated, including business rules, data entities, applications, and control points.

    IA can be configured and orchestrated to automatically execute when certain business, process, or technology conditions are met in an unattended or attended manner.

    IA is applicable in use cases beyond traditional business processes, such as automated testing, quality control, audit, website scraping, integration platform, customer service, and data transfer.

    Risks

    • Data Quality & Bias
    • Ethics
    • Recovery & Security
    • Management

    The accuracy and relevance of the decisions IA makes are dependent on the overall quality of the data
    used to train it.

    Some decisions can have significant reputational, moral, and ethical impacts if made incorrectly.
    The question is whether it is appropriate for a non-human to make that decision.

    IA is composed of technologies that can be compromised or fail. Without the proper monitoring, controls,
    and recovery protocols, impacted IA will generate significant business and IT costs and can potentially harm customers, employees, and the organization.

    Low- and no-code capabilities ease and streamline IA development, which makes it susceptible to becoming unmanageable. Discipline is needed to ensure IA owners are aware of the size and health of the IA portfolio.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Be transparent and support role changes.

    Plan to address the human sentiment with automation (e.g. job security) and the transition of the role to other activities.

    Maximizing the Return on Technology

    Automate applications across multiple business functions.

    Recognize the value opportunities of improving and automating the integration of cross-functional processes.

    Confidently Shifting to Digital

    Maximize the learning of automation fit.

    Select the right capabilities to demonstrate the value of IA while using lessons learned to establish the appropriate support.

    Addressing Competing Priorities

    Recognize automation opportunities with capability maps.

    Use a capability diagram to align strategic IA objectives with tactical and technical IA initiatives.

    Fostering a Collaborative Culture

    Involve the user in the delivery process.

    Maximize automation adoption by ensuring the user finds value in its use before deployment.

    Creating High-Throughput Teams

    Remove manual, error-prone, and mundane tasks.

    Look for ways to improve team throughput by removing wasteful activities, enforcing quality, and automating away tasks driving down productivity.

    Recommendations

    Build your business process automation playbook and practice

    Formalize your business process automation practice with a good toolkit and a repeatable set of tactics and techniques.

    • Clarify the problem being solved with IA.
    • Optimate your processes. Apply good practices to first optimize (opti-) and then automate (-mate) key business processes.
    • Deliver minimum viable automations (MVAs). Maximize the learning of automation solutions and business operational changes through small, strategic automation use cases.

    Related Research:

    Explore the various IA tooling options

    Each IA tool will address a different problem. Which tool to choose is dependent on a variety of factors, such as functional suitability, technology suitability, delivery and support capabilities, alignment to strategic business goals, and the value it is designed to deliver.

    Related Research:

    Recommendations

    Introduce AI and ML thoughtfully and with a plan

    Despite the many promises of AI, organizations are struggling to fully realize its potential. The reasons boil down to a lack of understanding of when these technologies should and shouldn't be used, as well as a fear of the unknown. The plan to adopt AI should include:

    • Understanding of what AI really means in practice.
    • Identifying specific applications of AI in the business.
    • Understanding the type of AI applicable for the situation.

    Related Research:

    Mitigate AI and ML bias

    Biases can be introduced into an IA system at any stage of the development process, from the data you collect, to the way you collect it, to which algorithms are used and what assumptions were made. In most cases, AI and ML bias is a is a social, political, and business problem.

    While bias may not be intentional nor completely prevented or eliminated, early detection, good design, and other proactive preventative steps can be taken to minimize its scope and impact.

    Related Research:

    CASE STUDY
    University Hospitals

    Challenge

    University Hospitals Cleveland (UH) faces the same challenge that every major hospital confronts regarding how to deliver increasingly complex, high-quality healthcare to a diverse population efficiently and economically. In 2017, UH embarked on a value improvement program aiming to improve quality while saving $400 million over a five-year period.

    In emergency department (ED) and inpatient units, leaders found anticipating demand difficult, and consequently units were often over-staffed when demand was low and under-staffed when demand was high. Hospital leaders were uncertain about how to reallocate resources based on capacity needs.

    Solution

    UH turned to Hospital IQ's Census Solution to proactively manage capacity, staff, and flow in the ED and inpatient areas.

    By applying AI, ML, and external data (e.g. weather forecasts) to the hospital's own data (including EMR data and hospital policies), the solution helped UH make two-day census forecasts that managers used to determine whether to open or close in-patient beds and, when necessary, divert low-acuity patients to other hospitals in the system to handle predicted patient volume.

    Source: University Hospitals

    Results

    ED boarding hours have declined by 10% and the hospital has seen a 50% reduction in the number of patients who leave the hospital without
    being seen.

    UH also predicts in advance patients ready for discharge and identifies roadblocks, reducing the average length of stay by 15%. UH is able to better manage staff, reducing overtime and cutting overall labor costs.

    The hospital has also increased staff satisfaction and improved patient safety by closing specific units on weekends and increasing the number of rooms that can be sterilized.

    Proactive Application Management

    PRIORITY 3

    • Strengthen Applications to Prevent and Minimize the Impact of Future Issues

    Application management is often viewed as a support function rather than an enabler of business growth. Focus and investments are only placed on application management when it becomes a problem. The lack of governance and practice accountability leaves this practice in a chaotic state: politics take over, resources are not strategically allocated, and customers are frustrated. As a result, application management is often reactive and brushed aside for new development.

    Introduction

    What is application management?

    Application management ensures valuable software is successfully delivered and is maintained for continuous and sustainable business operations. It contains a repeatable set of activities needed to rationalize and roadmap products and services while balancing priorities of new features and maintenance tasks.

    Unfortunately, application management is commonly perceived as a practice that solely addresses issues, updates, and incidents. However, application management teams are also tasked with new value delivery that was not part of the original release.

    Why is an effective application maintenance (reactive) practice not good enough?

    Application maintenance is the "process of modifying a software system or its components after delivery to correct faults, improve performance or other attributes, or adapt to a changed environment or business process," (IEEE, 1998). While it is critical to quickly fix defects and issues when they occur, reactively addressing them is more expensive than discovering them early and employing the practices to prevent them.

    Even if an application is working well, its framework, architecture, and technology may not be compatible with the possible upcoming changes stakeholders and vendors may want to undertake. Applications may not be problems now, but they soon can be.

    What motivates proactive application changes?

    This image shows the motivations for proactive application changes, sorted by external and internal sources.

    Proactive application management must be disciplined and applied strategically

    Proactive application management practices are critical to maintaining business continuity. They require continuous review and modification so that applications are resilient and can address current and future scenarios. Depending on the value of the application, its criticality to business operations, and its susceptibility to technology change, a more proactive management approach may be warranted. Stakeholders can then better manage resources and budget according to the needs of specific products.

    Reactive Management

    Run-to-Failure

    Fix and enhance the product when it breaks. In most cases, a plan is in place ahead of a failure, so that the problem can be addressed without significant disruption and costs.

    Preventive

    Regularly inspect and optimize the product to reduce the likelihood that it will fail in the future. Schedule inspections based on a specific timeframe or usage threshold.

    Predictive

    Predict failures before they happen using performance and usage data to alert teams when products are at risk of failure according to specified conditions.

    Reliability and Risk Based

    Analyze all possible failure scenarios for each component of the product and create tailored delivery plans to improve the stability, reliability, and value of each product.

    Proactive Management

    Signals

    Applications begin to degrade as soon as they are used

    Today's applications are tomorrow's shelfware. They gradually lose their value, stability, robustness, and compatibility with other enterprise technologies. The longer these applications are left unattended or simply "keeping the lights on," the more risks they will bring to the application portfolio, such as:

    • Discovery and exploitation of security flaws and gaps.
    • Increasing the lock-in to specific vendor technologies.
    • Inconsistent application performance across various workloads.

    These impacts are further compounded by the continuous work done on a system burdened with technical debt. Technical debt describes the result of avoided costs that, over time, cause ongoing business impacts. Left unaddressed, technical debt can become an existential threat that risks your organization's ability to effectively compete and serve its customers. Unfortunately, most organizations have a significant, growing, unmanageable technical debt portfolio.

    A circle graph is shown with 60% of the circle coloured in dark green, with the number 60% in the centre.

    of respondents stated they saw an increase in perceived change in technical debt during the past three years. A quarter of respondents indicated that it stayed the same.

    Source: McKinsey Digital, 2020.

    US
    $4.35
    Million

    is the average cost of a data breach in 2022. This figure represents a 2.6% increase from last year. The average cost has climbed 12.7% since 2020.

    Source: IBM, 2022; N=537.

    Drivers

    Technical debt

    Historical decisions to meet business demands by deferring key quality, architectural, or other software delivery activities often lead to inefficient and incomplete code, fragile legacy systems, broken processes, data quality problems, and the other contributors to technical debt. The impacts for this challenge is further heightened if organizations are not actively refactoring and updating their applications behind the scenes. Proactive application management is intended to raise awareness of application fragility and prioritize comprehensive refactoring activities alongside new feature development.

    Long-term application value

    Applications are designed, developed, and tested against a specific set of parameters which may become less relevant over time as the business matures, technology changes, and user behaviors and interactions shift. Continuous monitoring of the application system, regular stakeholder and user feedback, and active technology trend research and vendor engagement will reveal tasks to prepare an application for future value opportunities or stability and resilience concerns.

    Security and resiliency

    Innovative approaches to infiltrating and compromising applications are becoming prevailing stakeholder concerns. The loopholes and gaps in existing application security protocols, control points, and end-user training are exploited to gain the trust of unsuspecting users and systems. Proactive application management enforces continuous security reviews to determine whether applications are at risk. The goal is to prevent an incident from happening by hardening or complementing measures already in place.

    Benefits & Risks

    Benefits

    • Consistent Performance
    • Robustness
    • Operating Costs

    Users expect the same level of performance and experience from their applications in all scenarios. A proactive approach ensures the configurations meet the current needs of users and dependent technologies.

    Proactively managed applications are resilient to the latest security concerns and upcoming trends.

    Continuous improvements to the underlying architecture, codebase, and interfaces can minimize the cost to maintain and operate the application, such as the transition to a loosely coupled architecture and the standardization of REST APIs.

    Risks

    • Stakeholder Buy-In
    • Delayed Feature Releases
    • Team Capacity
    • Discipline

    Stakeholders may not see the association between the application's value and its technical quality.

    Updates and enhancements are system changes much like any application function. Depending
    on the priority of these changes, new functions may be pushed off to a future release cycle.

    Applications teams require dedicated capacity to proactively manage applications, but they are often occupied meeting other stakeholder demands.

    Overinvesting in certain application management activities (such as refactoring, re-architecture, and redesign) can create more challenges. Knowing how much to do is important.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Shift focus from maintenance to innovation.

    Work on the most pressing and critical requests first, with a prioritization framework reflecting cross-functional priorities.

    Maximizing the Return on Technology

    Improve the reliability of mission-critical applications.

    Regularly verify and validate applications are up to date with the latest patches and fixes and comply with industry good practices and regulations.

    Confidently Shifting to Digital

    Prepare applications to support digital tools and technologies.

    Focus enhancements on the key components required to support the integration, performance, and security needs of digital.

    Addressing Competing Priorities

    Rationalize the health of the applications.

    Use data-driven, compelling insights to justify the direction and prioritization of applications initiatives.

    Fostering a Collaborative Culture

    Include the technical perspective in the viability of future applications plans.

    Demonstrate how poorly maintained applications impede the team's ability to deliver confidently and quickly.

    Creating High-Throughput Teams

    Simplify applications to ease delivery and maintenance.

    Refactor away application complexities and align the application portfolio to a common quality standard to reduce the effort to deliver and test changes.

    Recommendations

    Reinforce your application maintenance practice

    Maintenance is often viewed as a support function rather than an enabler of business growth. Focus and investments are only placed on maintenance when it becomes a problem.

    • Justify the necessity of streamlined maintenance.
    • Strengthen triaging and prioritization practices.
    • Establish and govern a repeatable process.

    Ensure product issues, incidents, defects, and change requests are promptly handled to minimize business and IT risks.

    Related Research:

    Build an application management practice

    Apply the appropriate management approaches to maintain business continuity and balance priorities and commitments among maintenance and new development requests.

    This practice serves as the foundation for creating exceptional customer experience by emphasizing cross-functional accountability for business value and product and service quality.

    Related Research:

    Recommendations

    Manage your technical debt

    Technical debt is a type of technical risk, which in turn is business risk. It's up to the business to decide whether to accept technical debt or mitigate it. Create a compelling argument to stakeholders as to why technical debt should be a business priority rather than just an IT one.

    • Define and identify your technical debt.
    • Conduct a business impact analysis.
    • Identify opportunities to better manage technical debt.

    Related Research:

    Gauge your application's health

    Application portfolio management is nearly impossible to perform without an honest and thorough understanding of your portfolio's alignment to business capabilities, business value, total cost of ownership, end-user reception and satisfaction, and technical health.

    Develop data-driven insights to help you decide which applications to retire, upgrade, retrain on, or maintain to meet the demands of the business.

    Related Research:

    Recommendations

    Adopt site reliability engineering (SRE) and DevOps practices

    Site reliability engineering (SRE) is an operational model for running online services more reliably by a team of dedicated reliability-focused engineers.

    DevOps, an operational philosophy promoting development and operations collaboration, can bring the critical insights to make application management practices through SRE more valuable.

    Related Research:

    CASE STUDY
    Government Agency

    Goal

    A government agency needed to implement a disciplined, sustainable application delivery, planning, and management process so their product delivery team could deliver features and changes faster with higher quality. The goal was to ensure change requests, fixes, and new features would relieve requester frustrations, reduce regression issues, and allow work to be done on agreeable and achievable priorities organization-wide. The new model needed to increase practice efficiency and visibility in order to better manage technical debt and focus on value-added solutions.

    Solution

    This organization recognized a number of key challenges that were inhibiting its team's ability to meet its goals:

    • The product backlog had become too long and unmanageable.
    • Delivery resources were not properly allocated to meet the skills and capabilities needed to successfully meet commitments.
    • Quality wasn't defined or enforced, which generated mounting technical debt.
    • There was a lack of clear metrics and defined roles and responsibilities.
    • The business had unrealistic and unachievable expectations.

    Source: Info-Tech Workshop

    Key practices implemented

    • Schedule quarterly business satisfaction surveys.
    • Structure and facilitate regular change advisory board meetings.
    • Define and enforce product quality standards.
    • Standardize a streamlined process with defined roles.
    • Configure management tools to better handle requests.

    Multisource Systems

    PRIORITY 4

    • Manage an Ecosystem Composed of In-House and Outsourced Systems

    Various market and company factors are motivating a review on resource and system sourcing strategies. The right sourcing model provides key skills, resources, and capabilities to meet innovation, time to market, financial, and quality goals of the business. However, organizations struggle with how best to support sourcing partners and to allocate the right number of resources to maximize success.

    Introduction

    A multisource system is an ecosystem of integrated internally and externally developed applications, data, and infrastructure. These technologies can be custom developed, heavily configured vendor solutions, or they may be commercial off-the-shelf (COTS) solutions. These systems can also be developed, supported, and managed by internal staff, in partnership with outsourced contractors, or be completely outsourced. Multisource systems should be configured and orchestrated in a way that maximizes the delivery of specific value drivers for the targeted audience.

    Successfully selecting a sourcing approach is not a simple RFP exercise to choose the lowest cost

    Defining and executing a sourcing approach can be a significant investment and risk because of the close interactions third-party services and partners will have with internal staff, enterprise applications and business capabilities. A careful selection and design is necessary.

    The selection of a sourcing partner is not simple. It involves the detailed inspection and examination of different candidates and matching their fit to the broader vision of the multisource system. In cases where control is critical, technology stack and resource sourcing consolidation to a few vendors and partners is preferred. In other cases, where worker productivity and system flexibility are highly prioritized, a plug-and-play best-of-breed approach is preferred.

    Typical factors involved in sourcing decisions.

    Sourcing needs to be driven by your department and system strategies

    How does the department want to be perceived?

    The image that your applications department and teams want to reflect is frequently dependent on the applications they deliver and support, the resources they are composed of, and the capabilities they provide.

    Therefore, choosing the right sourcing approach should be driven by understanding who the teams are and want to be (e.g. internal builder, an integrator, a plug-in player), what they can or want to do (e.g. custom-develop or implement), and what they can deliver or support (e.g. cloud or on-premises) must be established.

    What value is the system delivering?

    Well-integrated systems are the lifeblood of your organization. They provide the capabilities needed to deliver value to customers, employees, and stakeholders. However, underlying system components may not be sourced under a unified strategy, which can lead to duplicate vendor services and high operational costs.

    The right sourcing approach ensures your partners address key capabilities in your system's delivery and support, and that they are positioned to maximize the value of critical and high-impact components.

    Signals

    Business demand may outpace what vendors can support or offer

    Outsourcing and shifting to a buy-over-build applications strategy are common quick fixes to dealing with capacity and skills gaps. However, these quick fixes often become long-term implementations that are not accounted for in the sourcing selection process. Current application and resource sourcing strategies must be reviewed to ensure that vendor arrangements meet the current and upcoming demands and challenges of the business, customers, and enterprise technologies, such as:

    • Pressure from stakeholders to lower operating costs while maintaining or increasing quality and throughput.
    • Technology lock-in that addresses short-term needs but inhibits long-term growth and maturity.
    • Team capacity and talent acquisition not meeting the needs of the business.
    A circle graph is shown with 42% of the circle coloured in dark brown, with the number 42% in the centre.

    of respondents stated they outsourced software development fully or partly in the last 12 months (2021).

    Source: Coding Sans, 2021.

    A circle graph is shown with 65% of the circle coloured in dark brown, with the number 65% in the centre.

    of respondents stated they were at least somewhat satisfied with the result of outsourcing software development.

    Source: Coding Sans, 2021.

    Drivers

    Business-managed applications

    Employees are implementing and building applications without consulting, notifying, or heeding the advice of IT. IT is often ill-equipped and under-resourced to fight against shadow IT. Instead, organizations are shifting the mindset of "fight shadow IT" to "embrace business-managed applications," using good practices in managing multisource systems. A multisource approach strikes the right balance between user empowerment and centralized control with the solutions and architecture that can best enable it.

    Unique problems to solve

    Point solutions offer features to address unique use cases in uncommon technology environments. However, point solutions are often deployed in siloes with limited integration or overlap with other solutions. The right sourcing strategy accommodates the fragmented nature of point solutions into a broader enterprise system strategy, whether that be:

    • Multisource best of breed – integrate various technologies that provide subsets of the features needed for supporting business functions.
    • Multisource custom – integrate systems built in-house with technologies developed by external organizations.
    • Vendor add-ons and integrations – enhance an existing vendor's offering by using their system add-ons as upgrades, new add-ons, or integrations.

    Vendor services

    Some vendor services in a multisource environment may be redundant, conflicting, or incompatible. Given that multisource systems are regularly changing, it is difficult to identify what services are affected, what would be needed to fill the gap of the removed solution, or which redundant services should be removed.

    A multisource approach motivates the continuous rationalization of your vendor services and partners to determine the right mixture of in-house and outsourced resources, capabilities, and technologies.

    Benefits & Risks

    Benefits

    • Business-Focused Solution
    • Flexibility
    • Cost Optimization

    Multisource systems can be designed to support an employee's ability to select the tools they want and need.

    The environment is architected in a loosely coupled approach to allow applications to be easily added, removed, and modified with minimized impact to other integrated applications.

    Rather than investing in large solutions upfront, applications are adopted when they are needed and are removed when little value is gained. Disciplined application portfolio management is necessary to see the full value of this benefit.

    Risks

    • Manageable Sprawl
    • Policy Adherence
    • Integration & Compatibility

    The increased number and diversity of applications in multisource system environments can overwhelm system managers who do not have an effective application portfolio management practice.

    Fragmented application implementations risk inconsistent adherence to security and other quality policies, especially in situations where IT is not involved.

    Application integration can quickly become tangled, untraceable, and unmanageable because of varying team and vendor preferences for specific integration technologies and techniques.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Enable business-managed applications.

    Create the integrations to enable the easy connection of desired tools to enterprise systems with the appropriate guardrails.

    Maximizing the Return on Technology

    Enhance the functionality of existing applications.

    Complement current application capability gaps with data, features, and services from third-party applications.

    Confidently Shifting to Digital

    Use best-of-breed tools to meet specific digital needs.

    Select the best tools to meet the unique and special functional needs of the digital vision.

    Addressing Competing Priorities

    Agree on a common philosophy on system composition.

    Establish an owner of the multisource system to guide how the system should mature as the organization grows.

    Fostering a Collaborative Culture

    Discuss how applications can work together better in an ecosystem.

    Build committees to discuss how applications can better support each other and drive more value.

    Creating High-Throughput Teams

    Alleviate delivery bottlenecks and issues.

    Leverage third-party sources to fill skills and capacity gaps until a long-term solution can be implemented.

    Recommendations

    Define the goals of your applications department and product vision

    Understanding the applications team's purpose and image is critical in determining how the system they are managing and the skills and capacities they need should be sourced.

    Changing and conflicting definitions of value and goals make it challenging to convey an agreeable strategy of the multisource system. An achievable vision and practical tactics ensure all parties in the multisource system are moving in the same direction.

    Related Research:

    Develop a sourcing partner strategy

    Almost half of all sourcing initiatives do not realize projected savings, and the biggest reason is the choice of partner (Zhang et al., 2018). Making the wrong choice means inferior products, higher costs and the loss of both clients and reputation.

    Choosing the right sourcing partner involves understanding current skills and capacities, finding the right matching partner based on a desired profile, and managing a good working relationship that sees short-term gains and supports long-term goals.

    Related Research:

    Recommendations

    Strengthen enterprise integration practices

    Integration strategies that are focused solely on technology are likely to complicate rather than simplify because little consideration is given on how other systems and processes will be impacted. Enterprise integration needs to bring together business process, applications, and data – in that order.

    Kick-start the process of identifying opportunities for improvement by mapping how applications and data are coordinated to support business activities.

    Related Research:

    Manage your solution architecture and application portfolio

    Haphazardly implementing and integrating applications can generate significant security, performance, and data risks. A well-thought-through solution architecture is essential in laying the architecture quality principles and roadmap on how the multisource system can grow and evolve in a sustainable and maintainable way.

    Good application portfolio management complements the solution architecture as it indicates when low-value and unused applications should be removed to reduce system complexity.

    Related Research:

    Recommendations

    Embrace business-managed applications

    Multisource systems bring a unique opportunity to support the business and end users' desire to implement and develop their own applications. However, traditional models of managing applications may not accommodate the specific IT governance and management practices required to operate business-managed applications:

    • A collaborative and trusting business-IT relationship is key.
    • The role of IT must be reimagined.
    • Business must be accountable for its decisions.

    Related Research:

    CASE STUDY
    Cognizant

    Situation

    • Strives to be primarily an industry-aligned organization that delivers multiple service lines in multiple geographies.
    • Cognizant seeks to carefully consider client culture to create a one-team environment.
    • Value proposition is a consultative approach bringing thought leadership and mutually adding value to the relationship vs. the more traditional order-taker development partner.
    • Wants to share in solution development to facilitate shared successes. Geographic alignment drives knowledge of the client and their challenges, not just about time zone and supportability.
    • Offers one of the largest offshore capabilities in the world, supported by local and nearshore resources to drive local knowledge.
    • Today's clients don't typically want a black box, they are sophisticated and want transparency around the process and solution, to have a partner.
    • Clients do want to know where the work is being delivered from, how it's being done.

    Source: interview with Jay MacIsaac, Cognizant.

    Approach

    • Best relationship comes where teams operate as one.
    • Clients are seeking value, not a development black box.
    • Clients want to have a partner they can engage with, not just an order taker.
    • Want to build a one-team culture with shared goals and deliver business value.
    • Seek a partner that will add to their thinking not echo it.

    Results

    • Cognizant is continuing to deliver double-digit growth and continues to strive for top quartile performance.
    • Growth in the client base has seen the company grow to over 340,000 associates worldwide.

    Digital Organization as a Platform

    PRIORITY 5

    • Create a Common Digital Interface to Access All Products and Services

    A digital platform enables organizations to leverage a flexible, reliable, and scalable foundation to create a valuable DX, ease delivery and management efforts, maximize existing investments, and motivate the broader shift to digital. This approach provides a standard to architect, integrate, configure, and modernize the applications that compose the platform.

    Introduction

    What is digital organization as a platform (DOaaP)?

    Digital organization as a platform (DOaaP) is a collection of integrated digital services, products, applications, and infrastructure that is used as a vehicle to meet and exceed an organization's digital strategies. It often serves as an accessible "place for exchanges of information, goods, or services to occur between producers and consumers as well as the community that interacts
    with said platform" (Watts, 2020).

    DOaaP involves a strategy that paves the way for organizations to be digital. It helps organizations use their assets (e.g. data, processes, products, services) in the most effective ways and become more open to cooperative delivery, usage, and management. This opens opportunities for innovation and cross-department collaborations.

    How is DOaaP described?

    1. Open and Collaborative
      • Open organization: open data, open APIs, transparency, and user participation.
      • Collaboration, co-creation, crowdsourcing, and innovation
    2. Accessible and Connected
      • Digital inclusion
      • Channel ubiquity
      • Integrity and interoperability
      • Digital marketplace
    3. Digital and Programmable
      • Digital identity
      • Policies and processes as code
      • Digital products and services
      • Enabling digital platforms

    Digital organizations follow a common set of principles and practices

    Customer-centricity

    Digital organizations are driven by customer focus, meeting and exceeding customer expectations. It must design its services with a "digital first" principle, providing access through every expected channel and including seamless integration and interoperability with various departments, partners, and third-party services. It also means creating trust in its ability to provide secure services and to keep privacy and ethics as core pillars.

    Leadership, management, and strategies

    Digital leadership brings customer focus to the enterprise and its structures and organizes efficient networks and ecosystems. Accomplishing this means getting rid of silos and a siloed mentality and aligning on a digital vision to design policies and services that are efficient, cost-effective, and provide maximum benefit to the user. Asset sharing, co-creation, and being open and transparent become cornerstones of a digital organization.

    Infrastructure

    Providing digital services across demographics and geographies requires infrastructure, and that in turn requires long-term vision, smart investments, and partnerships with various source partners to create the necessary foundational infrastructure upon which to build digital services.

    Digitization and automation

    Automation and digitization of processes and services, as well as creating digital-first products, lead to increased efficiency and reach of the organization across demographics and geographies. Moreover, by taking a digital-first approach, digital organizations future-proof their services and demonstrate their commitment to stakeholders.

    Enabling platforms

    DOaaP embraces open standards, designing and developing organizational platforms and ecosystems with a cloud-first mindset and sound API strategies. Developer experience must also take center stage, providing the necessary tools and embracing Agile and DevOps practices and culture become prerequisites. Cybersecurity and privacy are central to the digital platform; hence they must be part of the design and development principles and practices.

    Signals

    The business expects support for digital products and services

    Digital transformation continues to be a high-priority initiative for many organizations, and they see DOaaP as an effective way to enable and exploit digital capabilities. However, DOaaP unleashes new strategies, opportunities, and challenges that are elusive or unfamiliar to business leaders. Barriers in current business operating models may limit DOaaP success, such as:

    • Department and functional silos
    • Dispersed, fragmented and poor-quality data
    • Ill-equipped and under-skilled resources to support DOaaP adoption
    • System fragmentation and redundancies
    • Inconsistent integration tactics employed across systems
    • Disjointed user experience leading to low engagement and adoption

    DOaaP is not just about technology, and it is not the sole responsibility of either IT or business. It is the collective responsibility of the organization.

    A circle graph is shown with 47% of the circle coloured in dark blue, with the number 47% in the centre.

    of organizations plan to unlock new value through digital. 50% of organizations are planning major transformation over the next three years.

    Source: Nash Squared, 2022.

    A circle graph is shown with 70% of the circle coloured in dark blue, with the number 70% in the centre.

    of organizations are undertaking digital expansion projects focused on scaling their business with technology. This result is up from 57% in 2021.

    Source: F5 Inc, 2022.

    Drivers

    Unified brand and experience

    Users should have the same experience and perception of a brand no matter what product or service they use. However, fragmented implementation of digital technologies and inconsistent application of design standards makes it difficult to meet this expectation. DOaaP embraces a single design and DX standard for all digital products and services, which creates a consistent perception of your organization's brand and reputation irrespective of what products and services are being used and how they are accessed.

    Accessibility

    Rapid advancement of end-user devices and changes to end-user behaviors and expectations often outpace an organization's ability to meet these requirements. This can make certain organization products and services difficult to find, access and leverage. DOaaP creates an intuitive and searchable interface to all products and services and enables the strategic combination of technologies to collectively deliver more value.

    Justification for modernization

    Many opportunities are left off the table when legacy systems are abstracted away rather than modernized. However, legacy systems may not justify the investment in modernization because their individual value is outweighed by the cost. A DOaaP initiative motivates decision makers to look at the entire system (i.e. modern and legacy) to determine which components need to be brought up to a minimum digital state. The conversation has now changed. Legacy systems should be modernized to increase the collective benefit of the entire DOaaP.

    Benefits & Risks

    Benefits

    • Look & Feel
    • User Adoption
    • Shift to Digital

    A single, modern, customizable interface enables a common look and feel no matter what and how the platform is being accessed.

    Organizations can motivate and encourage the adoption and use of all products and services through the platform and increase the adoption of underused technologies.

    DOaaP motivates and supports the modernization of data, processes, and systems to meet the goals and objectives outlined in the broader digital transformation strategy.

    Risks

    • Data Quality
    • System Stability
    • Ability to Modernize
    • Business Model Change

    Each system may have a different definition of commonly used entities (e.g. customer), which can cause data quality issues when information is shared among these systems.

    DOaaP can stress the performance of underlying systems due to the limitations of some systems to handle increased traffic.

    Some systems cannot be modernized due to cost constraints, business continuity risks, vendor lock-in, legacy and lore, or other blocking factors.

    Limited appetite to make the necessary changes to business operations in order to maximize the value of DOaaP technologies.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent Promote and showcase achievements and successes. Share the valuable and innovative work of your teams across the organization and with the public.
    Maximizing the Return on Technology Increase visibility of underused applications. Promote the adoption and use of all products and services through the platform and use the lessons learned to justify removal, updates or modernizations.
    Confidently Shifting to Digital Bring all applications up to a common digital standard. Define the baseline digital state all applications, data, and processes must be in to maximize the value of the platform.
    Addressing Competing Priorities Map to a holistic platform vision, goals and objectives. Work with relevant stakeholders, teams and end users to agree on a common directive considering all impacted perspectives.
    Fostering a Collaborative Culture Ensure the platform is configured to meet the individual needs of the users. Tailor the interface and capabilities of the platform to address users' functional and personal concerns.
    Creating High-Throughput Teams Abstract the enterprise system to expedite delivery. Use the platform to standardize application system access to simplify platform changes and quicken development and testing.

    Recommendations

    Define your platform vision

    Organizations realize that a digital model is the way to provide more effective services to their customers and end users in a cost-effective, innovative, and engaging fashion. DOaaP is a way to help support this transition.

    However, various platform stakeholders will have different interpretations of and preferences for what this platform is intended to solve, what benefits it is supposed to deliver, and what capabilities it will deliver. A grounded vision is imperative to steer the roadmap and initiatives.

    Related Research:

    Assess and modernize your applications

    Certain applications may not sufficiently support the compatibility, flexibility, and efficiency requirements of DOaaP. While workaround technologies and tactics can be employed to overcome these application challenges, the full value of the DOaaP may not be realized.

    Reviewing the current state of the application portfolio will indicate the functional and value limitations of what DOaaP can provide and an indication of the scope of investment needed to bring applications up to a minimum state.

    Related Research:

    Recommendations

    Understand and evaluate end-user needs

    Technology has reached a point where it's no longer difficult for teams to build functional and valuable digital platforms. Rather, the difficulty lies in creating an interface and platform that people want to use and use frequently.

    While it is important to increase the access and promotion of all products and services, orchestrating and configuring them in a way to deliver a satisfying experience is even more important. Applications teams must first learn about and empathize with the needs of end users.

    Related Research:

    Architect your platform

    Formalizing and constructing DOaaP just for the sake of doing so often results in an initiative that is lengthy and costly and ends up being considered a failure.

    The build and optimization of the platform must be predicated on a thorough understanding of the DOaaP's goals, objectives, and priorities and the business capabilities and process they are meant to support and enable. The appropriate architecture and delivery practices can then be defined and employed.

    Related Research:

    CASE STUDY
    e-Estonia

    Situation

    The digital strategy of Estonia resulted in e-Estonia, with the vision of "creating a society with more transparency, trust, and efficiency." Estonia has addressed the challenge by creating structures, organizations, and a culture of innovation, and then using the speed and efficiency of digital infrastructure, apps, and services. This strategy can reduce or eliminate bureaucracy through transparency and automation.

    Estonia embarked on its journey to making digital a priority in 1994-1996, focusing on a committed investment in infrastructure and digital literacy. With that infrastructure in place, they started providing digital services like an e-banking service (1996), e-tax and mobile parking (2002), and then went full steam ahead with a digital information interoperability platform in 2001, digital identity in 2002, e-health in 2008, and e-prescription in 2010. The government is now strategizing for AI.

    Results

    This image contains the results of the e-Estonia case study results

    Source: e-Estonia

    Practices employed

    The e-Estonia digital government model serves as a reference for governments across the world; this is acknowledged by the various awards it has received, like #2 in "internet freedom," awarded by Freedom House in 2019; #1 on the "digital health index," awarded by the Bertelsmann Foundation in 2019; and #1 on "start-up friendliness," awarded by Index Venture in 2018.

    References

    "15th State of Agile Report." Digital.ai, 2021. Web.
    "2022 HR Trends Report." McLean & Company, 2022.
    "2022: State of Application Strategy Report." F5 Inc, 2022.
    "Are Executives Wearing Rose-Colored Glasses Around Digital Transformation?" Cyara, 2021. Web.
    "Cost of a Data Breach Report 2022." IBM, 2022. Web.
    Dalal, Vishal, et al. "Tech Debt: Reclaiming Tech Equity." McKinsey Digital, Oct. 2020. Web.
    "Differentiating Between Intelligent Automation and Hyperautomation." IBM, 15 October 2021. Web.
    "Digital Leadership Report 2021." Harvey Nash Group, 2021.
    "Digital Leadership Report 2022: The State of Digital." Nash Squared, 2022. Web.
    Gupta, Sunil. "Driving Digital Strategy: A Guide to Reimagining Your Business." Harvard Business Review Press, 2018. Web.
    Haff, Gordon. "State of Application Modernization Report 2022." Konveyor, 2022. Web.
    "IEEE Standard for Software Maintenance: IEEE Std 1219-1998." IEEE Standard for Software Maintenance, 1998. Accessed Dec. 2015.
    "Intelligent Automation." Cognizant, n.d. Web.
    "Kofax 2022: Intelligent Automation Benchmark Study". Kofax, 2021. Web.
    McCann, Leah. "Barco's Virtual Classroom at UCL: A Case Study for the Future of All University Classrooms?" rAVe, 2 July 2020, Web.
    "Proactive Staffing and Patient Prioritization to Decompress ED and Reduce Length of Stay." University Hospitals, 2018. Web.
    "Secrets of Successful Modernization." looksoftware, 2013. Web.
    "State of Software Development." Coding Sans, 2021. Web.
    "The State of Low-Code/No-Code." Creatio, 2021. Web.
    "We Have Built a Digital Society and We Can Show You How." e-Estonia. n.d. Web.
    Zanna. "The 5 Types of Experience Series (1): Brand Experience Is Your Compass." Accelerate in Experience, 9 February 2020. Web.
    Zhang, Y. et al. "Effects of Risks on the Performance of Business Process Outsourcing Projects: The Moderating Roles of Knowledge Management Capabilities." International Journal of Project Management, 2018, vol. 36 no. 4, 627-639.

    Research Contributors and Experts

    This is a picture of Chris Harrington

    Chris Harrington
    Chief Technology Officer
    Carolinas Telco Federal Credit Union

    Chris Harrington is Chief Technology Officer (CTO) of Carolinas Telco Federal Credit Union. Harrington is a proven leader with over 20 years of experience developing and leading information technology and cybersecurity strategies and teams in the financial industry space.

    This is a picture of Benjamin Palacio

    Benjamin Palacio
    Senior Information Technology Analyst County of Placer

    Benjamin Palacio has been working in the application development space since 2007 with a strong focus on system integrations. He has seamlessly integrated applications data across multiple states into a single reporting solution for management teams to evaluate, and he has codeveloped applications to manage billions in federal funding. He is also a CSAC-credentialed IT Executive (CA, USA).

    This is a picture of Scott Rutherford

    Scott Rutherford
    Executive Vice President, Technology
    LGM Financial Services Inc.

    Scott heads the Technology division of LGM Financial Services Inc., a leading provider of warranty and financing products to automotive OEMs and dealerships in Canada. His responsibilities include strategy and execution of data and analytics, applications, and technology operations.

    This is a picture of Robert Willatts

    Robert Willatts
    IT Manager, Enterprise Business Solutions and Project Services
    Town of Newmarket

    Robert is passionate about technology, innovation, and Smart City Initiatives. He makes customer satisfaction as the top priority in every one of his responsibilities and accountabilities as an IT manager, such as developing business applications, implementing and maintaining enterprise applications, and implementing technical solutions. Robert encourages communication, collaboration, and engagement as he leads and guides IT in the Town of Newmarket.

    This is a picture of Randeep Grewal

    Randeep Grewal
    Vice President, Enterprise Applications
    Red Hat

    Randeep has over 25 years of experience in enterprise applications, advanced analytics, enterprise data management, and consulting services, having worked at numerous blue-chip companies. In his most recent role, he is the Vice President of Enterprise Applications at Red Hat. Reporting to the CIO, he is responsible for Red Hat's core business applications with a focus on enterprise transformation, application architecture, engineering, and operational excellence. He previously led the evolution of Red Hat into a data-led company by maturing the enterprise data and analytics function to include data lake, streaming data, data governance, and operationalization of analytics for decision support.

    Prior to Red Hat, Randeep was the director of global services strategy at Lenovo, where he led the strategy using market data to grow Lenovo's services business by over $400 million in three years. Prior to Lenovo, Randeep was the director of advanced analytics at Alliance One and helped build an enterprise data and analytics function. His earlier work includes seven years at SAS, helping SAS become a leader in business analytics, and at KPMG consulting, where he managed services engagements at Fortune 100 companies.

    Create a Horizontally Optimized SDLC to Better Meet Business Demands

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    • Parent Category Name: Development
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    • While teams are used to optimizing their own respective areas of responsibility, there is lack of clarity on the overall core SDLC process resulting in applications being released that are of poor quality.
    • Software development teams are struggling to release on time and within budget.
    • Teams do not understand the overall process, are not communicating well, and traceability is hard to achieve.
    • Each team claims to be optimized yet the final deliverable doesn’t reflect the expected quality.

    Our Advice

    Critical Insight

    • Optimizing can make you worse. One cannot just optimize locally – the SDLC must be optimized in its entirety to ensure traceability across the process.
    • Separate process from framework.
      You don’t need to “Go Agile” or follow other industry jargon to effectively optimize your SDLC.
    • SDLC process improvement is ongoing.
      Start with your team’s current capabilities and optimize. You should set expectations that new improvements will always come in the future.

    Impact and Result

    • Use a systematic framework to bring out local optimizations as potential candidates for SDLC optimization.
    • Prioritize those candidates that will aid in optimizing the overall core SDLC process.
    • Create the necessary governance and control structures to sustain the changes.
    • Use Info-Tech tools and templates to accelerate your process optimization.

    Create a Horizontally Optimized SDLC to Better Meet Business Demands Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand Info-Tech's approach to SDLC optimization and why the SDLC must be optimized in its entirety to ensure traceability across the process.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Document the current state of the SDLC

    This phase of the blueprint will help in understanding the organization's business priorities, documenting the current SDLC process, and identifing current SDLC challenges.

    • Create a Horizontally Optimized SDLC to Better Meet Business Demands – Phase 1: Document the Current State of the SDLC
    • SDLC Optimization Playbook

    2. Define root causes, determine optimization initiatives, and define target state

    This phase of the blueprint, will help with defining root causes, determining potential optimization initiatives, and defining the target state of the SDLC.

    • Create a Horizontally Optimized SDLC to Better Meet Business Demands – Phase 2: Define Root Causes, Determine Optimization Initiatives, and Define Target State

    3. Develop a rollout strategy for SDLC optimization

    This phase of the blueprint will help with prioritizing initiatives in order to develop a rollout strategy, roadmap, and communication plan for the SDLC optimization.

    • Create a Horizontally Optimized SDLC to Better Meet Business Demands – Phase 3: Develop a Rollout Strategy for SDLC Optimization
    • SDLC Communication Template
    [infographic]

    Workshop: Create a Horizontally Optimized SDLC to Better Meet Business Demands

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Document Your Current SDLC

    The Purpose

    Understand SDLC current state.

    Key Benefits Achieved

    Understanding of your current SDLC state and metrics to measure the success of your SDLC optimization initiative.

    Activities

    1.1 Document the key business objectives that your SDLC delivers upon.

    1.2 Document your current SDLC process using a SIPOC process map.

    1.3 Identify appropriate metrics in order to track the effectiveness of your SDLC optimization.

    1.4 Document the current state process flow of each SDLC phase.

    1.5 Document the control points and tools used within each phase.

    Outputs

    Documented business objectives

    Documented SIPOC process map

    Identified metrics to measure the effectiveness of your SDLC optimization

    Documented current state process flows of each SDLC phase

    Documented control points and tools used within each SDLC phase

    2 Assess Challenges and Define Root Causes

    The Purpose

    Understand current SDLC challenges and root causes.

    Key Benefits Achieved

    Understand the core areas of your SDLC that require optimization.

    Activities

    2.1 Identify the current challenges that exist within each SDLC phase.

    2.2 Determine the root cause of the challenges that exist within each SDLC phase.

    Outputs

    Identified current challenges

    Identified root causes of your SDLC challenges

    3 Determine Your SDLC Optimization Initiatives

    The Purpose

    Understand common best practices and the best possible optimization initiatives to help optimize your current SDLC.

    Key Benefits Achieved

    Understand the best ways to address your SDLC challenges.

    Activities

    3.1 Define optimization initiatives to address the challenges in each SDLC phase.

    Outputs

    Defined list of potential optimization initiatives to address SDLC challenges

    4 Define SDLC Target State

    The Purpose

    Define your SDLC target state while maintaining traceability across your overall SDLC process.

    Key Benefits Achieved

    Understand what will be required to reach your optimized SDLC.

    Activities

    4.1 Determine the target state of your SDLC.

    4.2 Determine the people, tools, and control points necessary to achieve your target state.

    4.3 Assess the traceability between phases to ensure a seamlessly optimized SDLC.

    Outputs

    Determined SDLC target state

    Identified people, processes, and tools necessary to achieve target state

    Completed traceability alignment map and prioritized list of initiatives

    5 Prioritize Initiatives and Develop Rollout Strategy

    The Purpose

    Define how you will reach your target state.

    Key Benefits Achieved

    Create a plan of action to achieve your desired target state.

    Activities

    5.1 Gain the full scope of effort required to implement your SDLC optimization initiatives.Gain the full scope of effort required to implement your SDLC optimization initiatives.

    5.2 Identify the enablers and blockers of your SDLC optimization.

    5.3 Define your SDLC optimization roadmap.

    5.4 Create a communication plan to share initiatives with the business.

    Outputs

    Level of effort required to implement your SDLC optimization initiatives

    Identified enablers and blockers of your SDLC optimization

    Defined optimization roadmap

    Completed communication plan to present your optimization strategy to stakeholders

    Build a Zero Trust Roadmap

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    • Parent Category Name: Security Strategy & Budgeting
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    • Many IT and security leaders struggle to understand zero trust and how best to deploy it with their existing IT resources.
    • The need to move from a perimeter-based approach to security toward an “Always Verify” approach is clear. The path to getting there is complex and expensive.
    • Zero trust as a principle is a moving target due to competing definitions and standards. A strategy that adapts evolving best practices must be supported by business stakeholders.
    • Full zero trust includes many components. Performing an accurate assessment of readiness and benefits to adopt zero trust can be extremely difficult when you don’t know where to start.

    Our Advice

    Critical Insight

    Apply zero trust to key protect surfaces. A successful zero trust strategy should evolve through an iterative and repeatable process by assessing the full spectrum of available technologies to apply zero trust principles to the most relevant protect surfaces.

    Impact and Result

    Every organization should have a zero trust strategy and the roadmap to deploy it must always be tested and refined. Our unique approach:

    • Assess resources and determine zero trust readiness.
    • Prioritize initiatives and build out roadmap.
    • Deploy zero trust and monitor with zero trust progress metrics.

    Build a Zero Trust Roadmap Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build a Zero Trust Roadmap Deck – The purpose of the storyboard is to provide a detailed description of the steps involving in building a roadmap for implementing zero trust.

    The storyboard contains five easy-to-follow steps on building a roadmap for implementing zero trust, from aligning initiatives to business goals to establishing metrics for measuring the progress and effectiveness of a zero trust implementation.

    • Build a Zero Trust Roadmap – Phases 1-5

    2. Zero Trust Protect Surface Mapping Tool – A tool to identify key protect surfaces and map them to business goals.

    Use this tool to develop your zero trust strategy by having it focus on key protect surfaces that are aligned to the goals of the business.

    • Zero Trust Protect Surface Mapping Tool

    3. Zero Trust Program Gap Analysis Tool – A tool to perform a gap analysis between the organization's current implementation of zero trust controls and its desired target state and to build a roadmap to achieve the target state.

    Use this tool to develop your zero trust strategy by creating a roadmap that is aligned with the current state of the organization when it comes to zero trust and its desired target state.

    • Zero Trust Program Gap Analysis Tool

    4. Zero Trust Candidate Solutions Selection Tool – A tool to identify and evaluate solutions for identified zero trust initiatives.

    Use this tool to develop your zero trust strategy by identifying the best solutions for zero trust initiatives.

    • Zero Trust Candidate Solutions Selection Tool

    5. Zero Trust Progress Monitoring Tool – A tool to identify metrics to measure the progress and efficiency of the zero trust implementation.

    Use this tool to develop your zero trust strategy by identifying metrics that will allow the organization to monitor how the zero trust implementation is progressing, and whether it is proving to be effective.

    • Zero Trust Progress Monitoring Tool

    6. Zero Trust Communication Deck – A template to present the zero trust template to key stakeholders.

    Use this template to present the zero trust strategy and roadmap to ensure all key elements are captured.

    • Zero Trust Communication Deck

    Infographic

    Workshop: Build a Zero Trust Roadmap

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Define Business Goals and Protect Surfaces

    The Purpose

    Align business goals to protect surfaces.

    Key Benefits Achieved

    A better understanding of how business goals can map to key protect surfaces and their associated DAAS elements.

    Activities

    1.1 Understand business and IT strategy and plans.

    1.2 Define business goals.

    1.3 Identify five critical protect surfaces and their associated DAAS elements.

    1.4 Map business goals and protect surfaces.

    Outputs

    Mapping of business goals to key protect surfaces and their associated DAAS elements.

    2 Begin Gap Analysis

    The Purpose

    Identify and define zero trust initiatives.

    Key Benefits Achieved

    A list of zero trust initiatives to be prioritized and set into a roadmap.

    Activities

    2.1 Assess current security capabilities and define the zero trust target state for a set of controls.

    2.2 Identify tasks to close maturity gaps.

    2.3 Assign tasks to zero trust initiatives.

    Outputs

    Security capabilities current state assessment

    Zero trust target state

    Tasks to address maturity gaps

    3 Complete Gap Analysis

    The Purpose

    Complete the zero trust gap analysis and prioritize zero trust initiatives.

    Key Benefits Achieved

    A prioritized list of zero trust initiatives aligned to business goals and key protect surfaces.

    Activities

    3.1 Align initiatives to business goals and key protect surfaces.

    3.2 Conduct cost/benefit analysis on zero trust initiatives.

    3.3 Prioritize initiatives.

    Outputs

    Zero trust initiative list mapped to business goals and key protect surfaces

    Prioritization of zero trust initiatives

    4 Finalize Roadmap and Formulate Policies

    The Purpose

    Finalize the zero trust roadmap and begin to formulate zero trust policies for roadmap initiatives.

    Key Benefits Achieved

    A zero trust roadmap of prioritized initiatives.

    Activities

    4.1 Define solution criteria.

    4.2 Identify candidate solutions.

    4.3 Evaluate candidate solutions.

    4.4 Finalize roadmap.

    4.5 Formulate policies for critical DAAS elements.

    4.6 Establish metrics for high-priority initiatives.

    Outputs

    Zero trust roadmap

    Zero trust policies for critical protect surfaces

    Method for defining zero trust policies for candidate solutions

    Metrics for high-priority initiatives

    Further reading

    Build a Zero Trust Roadmap

    Leverage an iterative and repeatable process to apply zero trust to your organization.

    EXECUTIVE BRIEF

    Analyst Perspective

    Internet is the new corporate network.

    For the longest time we have focused on reducing the attack surface to deter malicious actors from attacking organizations, but I dare say that has made these actors scream “challenge accepted.” With sophisticated tools, time, and money in their hands, they have embarrassed even the finest of organizations. A popular hybrid workforce and rapid cloud adoption have introduced more challenges for organizations, as the security and network perimeter have shifted and the internet is now the corporate network. Suffice it to say that a new mindset needs to be adopted to stay on top of the game.

    The success of most attacks is tied to denial of service, data exfiltration, and ransom. A shift from focusing on the attack surface to the protect surface will help organizations implement an inside-out architecture that protects critical infrastructure, prevents the success of any attack, makes it difficult to gain access, and links directly to business goals.

    Zero trust principles aid that shift across several pillars (Identity, Device, Application, Network, and Data) that make up a typical infrastructure; hence, the need for a zero trust roadmap to accomplish that which we desire for our organization.

    Victor Okorie
    Senior Research Analyst, Security and Privacy
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Many IT and security leaders struggle to understand zero trust and how best to deploy it with their existing IT resources.
    • The need to move from a perimeter-based approach to security toward an “Always Verify” approach is clear. The path to getting there is complex and expensive.

    Common Obstacles

    • Zero trust as a principle is a moving target due to competing definitions and standards. A strategy that adapts evolving best practices must be supported by business stakeholders.
    • Full zero trust includes many components. Performing an accurate assessment of readiness and benefits to adopt zero trust can be extremely difficult when you don’t know where to start.

    Info-Tech’s Approach

    • Every organization should have a zero trust strategy and the roadmap to deploy it must always be tested and refined.
    • Our unique approach:
      • Assess resources and determine zero trust readiness.
      • Address barriers and identify enablers.
      • Prioritize initiatives and build out roadmap.
      • Identify most appropriate vendors via vendor selection framework.
      • Deploy zero trust and monitor with zero trust progress metrics.

    Info-Tech Insight

    A successful zero trust strategy should evolve through an iterative and repeatable process by assessing the full spectrum of available technologies to apply zero trust principles to the most relevant protect surfaces.

    Your challenge

    This research is designed to help organizations:

    • Understand what zero trust is and decide how best to deploy it with their existing IT resources. Zero trust is a set of principles that defaults to the highest level of security; a failed implementation can easily disrupt the business. A pragmatic zero trust implementation must be flexible and adaptable yet maintain a consistent level of protection.
    • Move from a perimeter-based approach to security toward an “Always Verify” approach. The path to getting there is complex without a clear understanding of desired outcomes. Focusing efforts on key protection gaps and leveraging capable controls in existing architecture allows for a repeatable process that carries IT, security, and the business along on the journey.

    On this zero trust journey, identify your valuable assets and zero trust controls to protect them.

    Top three reasons for building a zero trust strategy

    44%

    Reduce attacker’s ability to move laterally

    44%

    Enforce least privilege access to critical resources

    41%

    Reduce enterprise attack surface

    Common obstacles

    These barriers make this challenge difficult to address for many organizations:

    • Due to zero trust’s many components, performing an accurate assessment of readiness and benefits to adopt zero trust can be extremely difficult when you don’t know where to start.
      • To feel ready to implement and to understand the benefits of zero trust, IT must first understand what zero trust means to the organization.
    • Zero trust as a set of principles is a moving target, with many developing standards and competing technology definitions. A strategy built around evolving best practices must be supported by related business stakeholders.
      • To ensure support, IT must be able to “sell” zero trust to business stakeholders by illustrating the value zero trust can bring to business objectives.

    43%

    Organizations with a full implementation of zero trust saved 43% on the costs of data breaches.
    (Source: Teramind, 2021)

    96%

    Zero trust is considered key to the success of 96% of organizations in a survey conducted by Microsoft.
    (Source: Microsoft, 2021)

    What is zero trust?

    It depends on who you ask…

    • Vendors use zero trust as a marketing buzzword.
    • Organizations try to comprehend zero trust in their own limited views.
    • Zero trust regulations/standards are still developing.

    “A cybersecurity paradigm focused on resource protection and the premise that trust is never granted implicitly but must be continually evaluated.”

    Source: NIST, SP 800-207: Zero Trust Architecture, 2020

    “An evolving set of cybersecurity paradigms that move defenses from static, network-based perimeters to focus on users, assets, and resources.”

    Source: DOD, Zero Trust Reference Architecture, 2021

    “A security model, a set of system design principles, and a coordinated cybersecurity and system management strategy based on an acknowledgement that threats exist both inside and outside traditional network boundaries.”

    Source: NSA, Embracing a Zero Trust Security Model, 2021

    “Zero trust provides a collection of concepts and ideas designed to minimize uncertainty in enforcing accurate, least privilege per-request access decisions in information systems and services in the face of a network viewed as compromised.”

    Source: CISA, Zero Trust Maturity Model, 2021

    “The foundational tenet of the zero trust model is that no actor, system, network, or service operating outside or within the security perimeter is trusted.”

    Source: OMB, Moving the U.S. Government Toward Zero Trust Cybersecurity Principles, 2022

    What is zero trust?

    From Theoretical to Practical

    Zero trust is an ideal in the literal sense of the word, because it is a standard defined by its perfection. Just as nothing in life is perfect, there is no measure that determines an organization is absolutely zero trust. The best organizations can do is improve their security iteratively and get as close to ideal as possible.

    In the most current application of zero trust in the enterprise, a zero trust strategy applies a set of principles, including least-privilege access and per-request access enforcement, to minimize compromise to critical assets. A zero trust roadmap is a plan that leverages zero trust concepts, considers relationships between technical elements as well as security solutions, and applies consistent access policies to minimize areas of exposure.

    Zero Trust; Identity; Workloads & Applications; Network; Devices; Data

    Info-Tech Insight

    Solutions offering zero trust often align with one of five pillars. A successful zero trust implementation may involve a combination of solutions, each protecting the various data, application, assets, and/or services elements in the protect surface.

    Zero trust business benefits

    Reduce business and organizational risk

    Reduced business risks as continuous verification of identity, devices, network, applications, and data is embedded in the organizations practice.

    36% of data breaches involved internal actors.
    Source: Verizon, 2021

    Reduce CapEx and OpEx

    Reduced CapEx and OpEx due to the scalability, low staffing requirement, and improved time-to-respond to threats.
    Source: SecurityBrief - Australia, 2020.

    Reduce scope and cost of compliance

    Helps achieve compliance with several privacy standards and regulations, improves maturity for cyber insurance premium, and fewer gaps during audits.

    Scope of compliance reduced due to segmentation.

    Reduce risk of data breach

    Reduced risk of data breach in any instance of a malicious attack as there’s no lateral movement, secure segment, and improved visibility.

    10% Increase in data breach costs; costs went from $3.86 million to $4.24 million.
    Source: IBM, 2021

    This is an image of a thought map detailing Info-Tech's Build A Zero Trust Roadmap. The main headings are: Define; Design; Develop; Monitor

    Info-Tech’s methodology for Building a Zero Trust Roadmap

    1. Define Business Goals and Protect Surfaces

    2. Assess Key Capabilities and Identify Zero Trust Initiatives

    3. Evaluate Candidate Solutions and Finalize Roadmap

    4. Formulate Policies for Roadmap Initiatives

    5. Monitor the Zero Trust Roadmap Deployment

    Phase Steps

    Define business goals

    Identify critical DAAS elements

    Map business goals to critical DAAS elements
    1. Review the Info-Tech framework
    2. Assess current capabilities and define the zero trust target state
    3. Identify tasks to close gaps
    4. Define tasks and initiatives
    5. Align initiatives to business goals and protect surfaces
    1. Define solution criteria
    2. Identify candidate solutions
    3. Evaluate candidate solutions
    4. Perform cost/benefit analysis
    5. Prioritize initiatives
    6. Finalize roadmap
    1. Formulate policies for critical DAAS elements
    2. Formulate policies to secure a path to access critical DAAS elements
    1. Establish metrics for roadmap tasks
    2. Track and report metrics
    3. Build a communication deck

    Phase Outcomes

    Mapping of business goals to protect surfaces

    Gap analysis of security capabilities

    Evaluation of candidate solutions and a roadmap to close gaps

    Method for defining zero trust policies for candidate solutions

    Metrics for measuring the progress and efficiency of the zero trust implementation

    Protect what is relevant

    Apply zero trust to key protect surfaces

    A successful zero trust strategy should evolve through an iterative and repeatable process by assessing the full spectrum of available technologies to apply zero trust principles to the most relevant protect surfaces.

    Align protect surfaces to business objectives

    Developing a zero trust roadmap collaboratively with business stakeholders enables alignment with upcoming business priorities and industry trends.

    Identify zero trust capabilities

    Deriving protect surface elements from business goals reframes how security controls are applied. Assess control effectiveness in this context and identify zero trust capabilities to close any gaps.

    Roadmap first, not solution first

    Don’t let your solution dictate your roadmap. Define your zero trust solution criteria before engaging in vendor selection.

    Create enforceable policies

    The success of a zero trust implementation relies on consistent enforcement. Applying the Kipling methodology to each protect surface is the best way to design zero trust policies.

    Success should benefit the organization

    To measure the efficacy of a zero trust implementation, ensure you know what a successful zero trust implementation means for your organization, and define metrics that demonstrate whether that success is being realized.

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    Key deliverable:

    Zero Trust Communication Deck

    Present your zero trust strategy in a prepopulated document that summarizes the work you have completed as a part of this blueprint.

    Zero Trust Protect Surface Mapping Tool

    Identify critical and vulnerable DAAS elements to protect and align them to business goals.

    Zero Trust Program Gap Analysis Tool

    Perform a gap analysis between current and target states to build a zero trust roadmap.

    Zero Trust Candidate Solutions Selection Tool

    Determine and evaluate candidate solutions based on defined criteria.

    Zero Trust Progress Monitoring Tool

    Develop metrics to track the progress and efficiency of the organization’s zero trust implementation.

    Blueprint benefits

    IT Benefits

    • A mapped transaction flow of critical and vulnerable assets and visibility of where to implement security controls that aligns with the principle of zero trust.
    • Improved security posture across the digital attack surface while focusing on the protect surface.
    • An inside-out architecture that leverages current existing architecture to tighten security controls, is automated, and gives granular visibility.

    Business Benefits

    • Reduced business risks as continuous verification of identity, devices, network, applications, and data is embedded in the organization’s practice.
    • Reduced CapEx and OpEx due to the scalability, low staffing requirement, and improved time-to-respond to threats.
    • Helps achieve compliance with several privacy standards and regulations, improves maturity for cyber insurance premium, and fewer gaps during audits.
    • Reduced risk of data breach in any instance of a malicious attack.

    Measure the value of this blueprint

    Save an average of $1.76 million dollars in the event of a data breach

    • This research set seeks to help organizations develop a mature zero trust implementation which, according to IBM’s “Cost of a Data Breach 2021 Report,” saves organizations an average of $1.76 million in the event of a data breach.
    • Leverage phase 5 of this research to develop metrics to track the implementation progress and efficacy of zero trust tasks.

    43%

    Organizations with a mature implementation of zero trust saved 43%, or $1.76 million, on the costs of data breaches.
    Source: IBM, 2021

    In phase 2 of this blueprint, we will help you establish zero trust implementation tasks for your organization.

    In phase 3, we will help you develop a game plan and a roadmap for implementing those tasks.

    This image contains a screenshot info-tech's methodology for building a zero-trust roadmap, discussed earlier in this blueprint

    Executive Brief Case Study

    National Aeronautics and Space Administration (NASA)

    INDUSTRY: Government

    SOURCE: Zero Trust Architecture Technical Exchange Meeting

    NASA recognized the potential benefits of both adopting a zero trust architecture (including aligning with OMB FISMA and DHS CDM DEFEND) and improving NASA systems, especially those related to user experience with dynamic access, application security with sole access from proxy, and risk-based asset management with trust score. The trust score is continually evaluated from a combination of static factors, such as credential and biometrics, and dynamic factors, such as location and behavior analytics, to determine the level of access. The enhanced access mechanism is projected on use-case flows of users and external partners to analyze the required initiatives.

    The lessons learned in adapting zero trust were:

    • Focus on access to data, assets, applications, and services; and don’t select solutions or vendors too early.
    • Provide support for mobile and external partners.
    • Complete zero trust infrastructure and services design with holistic risk-based management, including network access control with software-defined networking and an identity management program.
    • Develop a zero trust strategy that aligns with mission objectives.

    Results

    NASA implemented zero trust architecture by leveraging the agency existing components on a roadmap with phases related to maturity. The initial development includes privileged access management, security user behavior analytics, and a proof-of-concept lab for evaluating the technologies.
    Case Study Source: NASA, “Planning for a Zero Trust Architecture Target State,” 2019

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
    Call #1:
    Scope requirements, objectives, and your specific challenges.

    Call #3:
    Define current security capabilities and zero trust target state.

    Call #5:

    Identify and evaluate solution criteria.

    Call #7:
    Create a process for formulating zero trust policies.

    Call #8:
    Establish metrics for assessing the implementation and effectiveness of zero trust.

    Call #2:
    Identify business goals and protect surfaces.

    Call #4:
    Identify gap-closing tasks and assign to zero trust initiatives.

    Call #6:
    Prioritize zero trust initiatives.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.
    A typical GI is between 8 to 12 calls over the course of 2 to 4 months.

    Workshop Overview

    Contact your account representative for more information.workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4 Day 5

    Define Business Goals and Protect Surfaces

    Begin Gap Analysis

    Complete Gap Analysis

    Finalize Roadmap and Formulate Policies

    Next Steps and
    Wrap-Up (offsite)
    Activities

    1.1 Understand business and IT strategy and plans.

    1.2 Define business goals.

    1.3 Identify five critical protect surfaces and their associated DAAS elements.

    1.4 Map business goals and protect surfaces.

    2.1 Assess current security capabilities and define the zero Trust target state for a set of controls.

    2.2 Identify tasks to close maturity gaps.

    2.3 Assign tasks to zero trust initiatives.

    3.1 Align initiatives to business goals and key protect surfaces.

    3.2 Conduct cost/benefit analysis on zero trust initiatives.

    3.3 Prioritize initiatives.

    4.1 Define solution criteria.

    4.2 Identify candidate solutions.

    4.3 Evaluate candidate solutions.

    4.4 Finalize roadmap.

    4.5 Formulate policies for critical DAAS elements.

    4.6 Establish metrics for high-priority initiatives.

    5.1 Complete in-progress deliverables from previous four days.

    5.2 Set up review time for workshop deliverables and to discuss next steps.
    Deliverables
    1. 1.Mapping of business goals to key protect surfaces and their associated DAAS elements
    1. Security capabilities current state assessment
    2. Zero trust target state
    3. Tasks to address maturity gaps
    1. Zero trust initiative list mapped to business goals and key protect surfaces
    2. Prioritization of zero trust initiatives
    1. Zero trust roadmap
    2. Zero trust policies for critical protect surfaces
    3. Method for defining zero trust policies for candidate solutions
    4. Metrics for high-priority initiatives
    1. Zero trust roadmap documentation
    2. Mapping of Info-Tech resources against individual initiatives

    Phase 1

    Define Business Objectives and Protect Surfaces

    Build a Zero Trust Roadmap

    This phase will walk you through the following activities:

    • Identify and define the business goals.
    • Identify the critical DAAS elements and protect surface.
    • Align the business goals to the protect surface and critical DAAS elements.

    This phase involves the following participants:

    • Security Team
    • Business Executives
    • Subject Matter Experts From IT, Finance, HR, Legal, Facilities, Compliance, Audit, Risk Management

    Analyze your business goals

    Identifying business goals is the first step in aligning your zero trust roadmap with your business’ vision.

    • Security leaders need to understand the direction the business is headed in.
    • Wise security investments depend on aligning your security initiatives to business objectives.
    • Zero trust, and information security at large, should contribute to your organization’s business objectives by supporting operational performance, ensuring brand protection and shareholder value.
      • For example, if the organization is working on a new business initiative that requires the handling of credit card payments, the security organization needs to know as soon as possible to ensure the zero trust architecture will be extended to protect the PCI data and enable the organization to be PCI compliant.

      Info-Tech Insight

      Security and the business need to be in alignment when implementing zero trust. Defining the business goal helps rationalize the need for a zero trust implementation.

    1.1 Define your organization’s business goals

    Estimated time 1-3 hours

    1. As a group, brainstorm the business goals of the organization.
    2. Review relevant business and IT strategies.
    3. Review the business goal definitions in tab “2. Business Objectives” of the Zero Trust Protect Surface Mapping Tool, including the key goal indicator metrics.
    4. Record the most important business goals in the Business Goal column on tab “3. Protect Surfaces” of the Zero Trust Protect Surface Mapping Tool. Try to limit the number of business goals to no more than five primary goals. This limitation will be critical to help map the protect surface and the zero trust roadmap later.

    Input

    • Business and IT strategies

    Output

    • Prioritized list of business objectives

    Materials

    • Whiteboard/Flip Charts
    • Zero Trust Protect Surface Mapping Tool

    Participants

    • Security Team
    • IT Leadership
    • Business Stakeholders
    • Risk Management
    • Compliance
    • Legal

    Download the Zero Trust Protect Surface Mapping Tool

    Info-Tech Insight

    Developing a zero trust roadmap collaboratively with business stakeholders enables alignment with upcoming business priorities and industry trends.

    What does zero trust mean for you?

    For a successful implementation, focus on your zero trust outcome.

    This image describes the Who, What, When, Where, Why, and How for Zero Trust.

    Regardless of whether the user is accessing resources internally or externally, zero trust is posed to authenticate, authorize, and continuously verify the security policies and posture before access is granted or denied. Many network architecture can be local, cloud based, or hybrid and with users working from any location, there is no network perimeter as we knew it and the internet is now the corporate network.

    Zero trust framework seeks to extend the perimeter-less security to the present digital transformation.

    Understand protect surface

    Data, Application, Asset, and Services

    A protect surface can be described as what’s critical, most vulnerable, or most valuable to your organization. This protect surface could include at least one of the following – data, assets, applications, and services (DAAS) – that requires protection. This is also the area that zero trust policy is aimed to protect. Understanding what your protect surface is can help channel the required energy into protecting that which is crucial to the business, and this aligns with the shift from focusing on the attack surface to narrowing it down to a smaller and achievable area of protection.

    Anything and everything that connects to the internet is a potential attack surface and pursuing every loophole will leave us one step behind due to lack of resources. Since a protect surface contains one or more DAAS element, the micro-perimeter is created around it and the appropriate protection is applied around it. As a team, we can ask ourselves this question when thinking of our protect surface: to what degree does my organization want me to secure things? The knowledge of the answer to this question can be tied to the risk tolerance level of the organization and it is only fair for us to engage the business in identifying what the protect surface should be.

    Components of a protect surface

    • Data
    • Application
    • Asset
    • Services

    Info-Tech Insight

    The protect surface is a shift from focusing on the attack surface. DAAS elements show where the initiatives and controls associated with the zero trust pillars (Identity, Devices, Network, Application, and Data) need to be applied.

    Sample Scenario

    INDUSTRY: Healthcare

    SOURCE: Info-Tech Research Group

    Illustration

    A healthcare provider would consider personal health information a critical resource worthy of being protected against data exfiltration due to a host of reasons including but not limited to privacy regulations, loss of revenue, legal, and reputational loss; hence, this would be considered a protect surface.

    • What is the data that can’t be risked exfiltrated?
    • What application(s) is used to access this data?
    • What assets are used to generate and store the data?
    • What are the services we rely on to be able to access the data?

    DAAS Element

    • The data here is the patient information.
    • The application used to access the personal health information would be EPIC, OR list, and any other application used in that organization.
    • The assets used to store the data and generate the PHI would include physical workstations, medical scanners, etc.
    • The services that can be exploited to disrupt the operation or used to access the data would include active directory, single sign-on, etc.

    DAAS and Zero Trust Pillar

    This granular identification provides an opportunity to not only see what the protect surface and DAAS elements are but also understand where to apply security controls that align with the principle of zero trust as well as how the transaction flows. The application pillar initiatives will provide protection to the EPIC application and the device pillar initiatives will provide protection to the workstations and physical scanners. The identity pillar initiatives will apply protection to the active directory, and single sign-on services. The zero trust pillar initiatives align with the protection of the DAAS elements.

    Shift from attack surface to protect surface

    This image contains a screenshot of the thought map: Shift from attack surface to protect surface. Go from complex to a micro perimeter approach.

    Info-Tech Insight

    The protect surface is a shift from focusing on the attack surface as it creates a micro-perimeter for the application of zero trust policies on the system. This drastically reduces the success of an attack whether internally or externally, reduces the attack surface, and is also repeatable.

    1.2 Identify critical DAAS elements

    Estimated time 1-3 hours

    1. As a group, brainstorm and identify critical, valuable, sensitive assets or resources requiring high availability in the organization. Each DAAS element is part of a protect surface, or sometimes, the DAAS element itself is a protect surface.
    • Data – The sensitive data that poses the greatest risk if exfiltrated or misused. What data needs to be protected?
    • Applications – The applications that use sensitive data or control critical assets. Which applications are critical for your business functions?
    • Assets – Physical or virtual assets, including an organization’s information technology (IT), operational technology (OT), or Internet of Things devices.
    • Services – The services an organization most depends on. Services that can be exploited to disrupt normal IT or business operations.
  • Record the critical DAAS elements and protect surface in their respective columns of the Zero Trust Protect Surface Mapping Tool. Try to limit the number of business goals to no more than five primary protect surfaces to match with the business goals.

    • Download the Zero Trust Protect Surface Mapping Tool

    Input

    • Critical resources to protect
    • Understanding of how they interoperate or connect

    Output

    • Protect surfaces

    Materials

    • Whiteboard/Flip Charts
    • Zero Trust Protect Surface Mapping Tool

    Participants

    • Security Team
    • IT Leadership
    • Business Stakeholders

    1.3 Map business goals to critical DAAS elements

    Estimated time 1-2 hours

    1. The protect surface will be generated from the critical DAAS elements as a standalone protect surface or a group of interconnected DAAS elements merged into one.
    • Each protect surface can be tied back to a business objective.
  • Select from the drop-down list of business objectives the option that fits the identified protect surface as it relates to the organization.
    • Type in your business objectives if the drop-down list does not apply.

    Download the Zero Trust Protect Surface Mapping Tool

    This image contains a screenshot from the Zero Trust Protect Surface Mapping Tool, with the following columns highlighted: Business Goal Name; Protect Surface Name

    Phase 2

    Assess Key Capabilities and Identify Zero Trust Initiatives

    Build a Zero Trust Roadmap

    This phase will walk you through the following activities:

    • Assess the organization’s current capabilities.
    • Define the zero trust target state.
    • Identify tasks to close gaps
    • Define zero trust initiatives and align zero trust initiatives to business goals and protect surfaces.

    This phase involves the following participants:

    • Security Team
    • Subject Matter Experts From IT, Finance, HR, Legal, Facilities, Compliance, Audit, Risk Management
    • Project Management Office

    The Info-Tech Zero Trust Framework

    Info-Tech’s Zero Trust Framework aligns with zero trust references, including:

    • ACT Zero Trust Cybersecurity Current Trends. 2019
    • NIST SP 800-207: Zero Trust Architecture. 2020
    • DOD Zero Trust Reference Architecture. 2021
    • NSA Embracing a Zero Trust Security Model. 2021
    • CISA Zero Trust Maturity Model. 2021
    • Executive Order (EO) 14028: Improving the Nation’s Cybersecurity, The White House. 2021
    • OMB Moving the U.S. Government Toward Zero Trust Cybersecurity Principles. 2022
    • NSTAC Zero Trust and Trusted Identity Management. 2022
    • NIST SP 800-53 r5: Security and Privacy Controls for Information Systems and Organizations

    Identity

    • Authentication
    • Authorization
    • Privileged Access Management

    Applications

    • Software Defined Compute
    • DevSecOps
    • Software Supply Chain

    Devices

    • Authentication
    • Authorization
    • Compliance

    Networks

    • Software Defined Networking
    • Macro Segmentations
    • Micro Segmentation

    Data

    • Software Defined Storage
    • Data Loss Prevention
    • Data Rights Management

    Info-Tech Insight

    A best-of-breed approach ensures holistic coverage of your zero trust program while refraining from locking you into a specific reference.

    2.1 Review the Info-Tech framework

    Estimated time 30-60 minutes

    1. As a group, have the team review the framework within the Zero Trust Program Gap Analysis Tool.
    2. Customize the tool as required using the instructions in tab “2. Setup”:
    • Define costing criteria
    • Define benefits criteria
    • Configure full-time equivalent hours and start year
    • Input business goals as mapped to protect surfaces (see next slide)

    Download the Zero Trust Program Gap Analysis Tool

    Input

    • Protect surfaces mapped to business objectives

    Output

    • Customized framework

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT

    2.1.1 Input business goals as mapped to protect surfaces

    Refer to the Protect Surface Mapping Tool, copy the following elements from the Protect Surface tab.

    1. Enter Business Goals.
    2. Enter Protect Surfaces.
    3. Enter Data.
    4. Enter Application.
    5. Enter Assets.
    6. Enter Services.

    This image contains a screenshot from Info-Tech's Zero Trust Program Gap Analysis Tool. The Column headings are labeled as follows: 1: Business Goal Name; 2: Protect Surface; 3: DATA; 4: APPLICATION; 5: ASSETS; 6: SERVICES

    Info-Tech Insight

    Deriving protect surface elements from business goals reframes how security controls are applied. Assess control effectiveness in this context and identify zero trust capabilities to close any gaps.

    2.2 Assess current capabilities and define zero trust target state

    Estimated time 6-12 hours

    1. Using the Zero Trust Program Gap Analysis Tool, review each of the controls in the Gap Analysis tab.
    2. Follow the instructions on the next slides to complete your current-state and target-state assessment.
    3. For most organizations, multiple internal subject matter experts will need to be consulted to complete the assessment.

    Download the Zero Trust Program Gap Analysis Tool

    Input

    • Protect surfaces mapped to business objectives
    • Information on current state of controls, including sources such as audit findings, vulnerability and penetration test results, and risk registers

    Output

    • Current-state and target-state assessment for gap analysis

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, Facilities, Audit, Risk Management

    Understanding security target states

    Maturity models are very effective for determining target states. This table provides general descriptions for each maturity level. As a group, consider which description most accurately reflects the ideal target state in your organization.

    AD HOC 01

    Initial/ad hoc security programs are reactive. Lacking strategic vision, these programs are less effective and less responsive to the needs of the business.

    DEVELOPING 02

    Developing security programs can be effective at what they do but are not holistic. Governance is largely absent. These programs tend to rely on the talents of individuals rather than a cohesive plan.

    DEFINED 03

    A defined security program is holistic, documented, and proactive. At least some governance is in place; however, metrics are often rudimentary and operational in nature. These programs still often rely on best practices rather than strong risk management.

    MANAGED 04

    Managed security programs have robust governance and metrics processes. Management and board-level metrics for the overall program are produced. These are reviewed by business leaders and drive security decisions. More mature risk management practices take the place of best practices.

    OPTIMIZED 05

    An optimized security program is based on strong risk management practices, including the production of key risk indicators (KRIs). Individual security services are optimized using key performance indicators (KPIs) that continually measure service effectiveness and efficiency.

    2.2.1 Conduct current-state assessment

    1. Carefully review each of the controls in the Gap Analysis tab that are needed for the protect surfaces. For each control, indicate the current maturity level of the organization. The tool uses the maturity levels of the CMMI model to score maturity.
    • Only use “N/A” if you are confident that the control is not required in your protect surfaces. For example, if the protect surfaces do not require or use software-defined computing, select “N/A” for any controls related to software-defined computing.
  • Provide comments to describe your current state. This step is optional but recommended as it may be important to record this information for future reference.
  • Select the target maturity for the control.
    • This image contains a screenshot from Info-Tech's Zero Trust Program Gap Analysis Tool, with the following column headings highlighted and numbered: 1: Current Maturity; 2: Current State Comments (optional); Target Maturity

    Make sure that the gap between target state and current state is achievable for the current zero trust roadmap. For instance, if you set your current maturity to 1 – Ad Hoc, then having a target maturity of 4 – Managed or 5 – Optimized is not recommended due to the big jump.

    2.2.2 Review the Gap Analysis Dashboard

    1. Use the Dashboard to map your progress on assessing current- and future-state maturities. As you fill out the Zero Trust Program Gap Analysis Tool, check with the Dashboard to see the difference between your current and target state.
    2. Use the color-coded legend to see the size of the gap between your current and target state.
    3. Zero trust processes that appear white have not yet been assessed or are rated as “N/A.”
    this image contains a screenshot of Info-tech's Zero-Trust framework discussed earlier in this blueprint, with the addition of a legend demonstrating how to use the gap analysis tool to identify the size of the gap between current and target states

    2.3 Identify tasks to close gaps

    Estimated time 5 hours

    1. Using the Zero Trust Program Gap Analysis Tool, review each of the controls in the Gap Analysis tab.
    2. Follow the instructions on the next slides to identify gap closure tasks for each control that requires improvement.
    3. For most organizations, multiple internal subject matter experts will need to be consulted to complete the assessment.

    Download the Zero Trust Program Gap Analysis Tool

    Input

    • Zero trust controls gap information

    Output

    • Gap closure task list

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, Facilities, Audit, Risk Management

    2.3 Identify tasks to close gaps (cont.)

    1. For each of the controls where there is a gap between the current and target state, a gap closure task should be identified:
    • Review the example tasks and copy one or more of them if appropriate. Otherwise, enter your own gap closure task.
  • Considerations for identifying gap closure tasks:
    • In small groups, have participants ask, “what would we have to do to achieve the target state?” Document these in the Gap Closure Tasks column.
    • The example gap closure tasks may be appropriate for your organization, but do not simply copy them without considering whether they are right for you.
    • Not all gaps require their own task. You can enter one task that may address multiple gaps.
    • Be aware that tasks that are along the lines of “investigate and make recommendations” may not fully close maturity gaps.
    this image contains a screenshot from Info-Tech's Zero Trust Program Gap Analysis Tool, with the following column heading highlighted and numbered: 1: Gap Closure Tasks

    Make sure that the Gap Closure Tasks are SMART (Specific, Measurable, Achievable, Realistic, Timebound).

    2.4 Define tasks and initiatives

    Estimated time 2-4 hours

    1. As a group, review the gap tasks identified in the Gap Analysis tab.
    2. Using the instructions on the following slides, finalize your tab “5. Task List.”
    3. Using the instructions on the following slides, review and consolidate your tab “6. Initiative List.”

    Download the Zero Trust Program Gap Analysis Tool

    Input

    • Gap analysis

    Output

    • Refined list of tasks
    • List of zero trust initiatives

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, Facilities, Audit, Risk Management
    • Project Management Office

    2.4.1 Finalize your task list

    1. Define the gap closure task list in tab “5. Task List”:
      1. Obtain a list of all your tasks from Gap Closure Tasks column in tab “3. Gap Analysis.”
      2. Paste the list into the table in tab “5. Task List,” Task column.
    • Use Paste Values to retain the table formatting.
  • Consolidate tasks into initiatives when:
      • They have costs associated with them.
      • They require initial effort to implement and ongoing effort to maintain.
      • They must be accomplished dependently of other tasks.
    1. For each new initiative, create the initiative name on Initiative Name column in the tab “6. Initiative List.”
  • For tasks which are not incorporated into initiatives, enter a task owner and due date for each task.
    • this image contains a screenshot from Info-Tech's Zero Trust Gap analysis Tool with the following column headings highlighted and numbered: 1: Task; 2: Initiative Name; 3: (Task Owner; Due Date)

    Example: Initiative consolidation

    In the example below, we see three gap closure tasks within the Authentication process for the Identity pillar being consolidated into a single initiative “IAM modernization.”

    We can also see three gap closure tasks within the Micro Segmentation process for the Network pillar being grouped into another initiative “Network segmentation.”

    This image contains an example of Initiative Consolidation

    Info-Tech Insight

    As you go through this exercise, you may find that some tasks that you previously defined could be consolidated into an initiative.

    2.4.2 Finalize your initiative list

    1. As you go through this exercise, you may find that some tasks that you previously defined could be consolidated into an initiative.
    2. Review your final list of initiatives in tab “6. Initiative List” and make any required updates.
      1. Optionally, add a description or paste in a list of the individual gap closure actions that are associated with the initiative. This will make it easier to perform the cost and benefit analysis.
    3. Obtain a list of all gap closure tasks associated with an initiative by filtering the Initiative Name column in the Task List tab.
    4. Indicate the most appropriate pillar alignment for each initiative using the drop-down list.
      1. Refer to tab “5. Task List” for the pillar associated with an initiative under the Initiative Name column.

    This image contains a screenshot from Info-Tech's Zero Trust Program Gap Analysis Tool, the following column headings are numbered and highlighted: 1: Initiative Name; 2: Description; 3: Pillar

    If the list of tasks is too long for the Description column, then you can also shorten the name of the tasks or group several tasks to a more general task.

    2.5 Align initiatives to business goals and protect surfaces

    Estimated time 30-60 minutes

    1. Using the instructions on the following slides, align initiatives to business goals in tab “6. Initiative List.”
    2. Using the instructions on the following slides, align initiatives to protect surfaces in tab “6. Initiative List.”

    Download the Zero Trust Program Gap Analysis Tool

    Input

    • List of zero trust initiatives
    • Protect surfaces mapped to business objectives

    Output

    • List of zero trust initiatives aligned to business goals and protect surfaces

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, Facilities, Audit, Risk Management
    • Project Management Office

    2.5.1 Align initiatives to business goals

    1. Indicate the most appropriate business goal(s) alignment for each initiative using the drop-down list in “Selection for Business Goal(s)” column.
      1. Use the legend to determine the most appropriate business goal(s).
    2. After that copy the selected business goal(s) to Business Goal(s) Alignment column.
    3. Then reset the selection using the blank cell in Selection for Business Goal(s) column.
    This image contains a screenshot from the Zero Trust Program Gap Analysis Tool, with the following column headings numbered: 1: Selection for Business Goal(s); Business Goals Alignment; 3: Selection for Business Goals

    2.5.2 Align initiatives to protect surfaces

    1. Indicate the most appropriate protect surface(s) for each initiative using the drop-down list in Selection for Protect Surface(s) column.
      1. Use the legend to determine the most appropriate protect surface(s).
    2. After that copy the selected protect surface(s) to Protect Surface(s) Coverage column.
    3. Reset the selection using the blank cell in Selection for Protect Surface(s) column.
    This image contains a screenshot from the Zero Trust Program Gap Analysis Tool, with the following column headings numbered: 1: Description; 2: Protect Surfaces Covered; 3: Selection for Protect Surfaces

    Phase 3

    Evaluate Candidate Solutions and Finalize Roadmap

    Build a Zero Trust Roadmap

    This phase will walk you through the following activities:

    • Define solution criteria.
    • Identify candidate solutions.
    • Evaluate candidate solutions.
    • Perform cost/benefit analysis.
    • Prioritize initiatives and build roadmap.

    This phase involves the following participants:

    • Security Team
    • Subject Matter Experts From IT, Finance, HR, Legal, Facilities, Compliance, Audit, Risk Management
    • Project Management Office

    3.1 Define solution criteria

    Estimated time 30-60 minutes

    1. As a group, review the scoring system within the Zero Trust Candidate Solutions Selection Tool.
    2. Customize the tool as required using the instructions on the following slides.

    Info-Tech Insight

    Don’t let your solution dictate your roadmap. Define your zero trust solution criteria before engaging in vendor selection.

    Download the Zero Trust Candidate Solutions Selection Tool

    Input

    • Zero trust initiative list

    Output

    • Zero trust candidate solutions

    Materials

    • Zero Trust Program Gap Analysis Tool
    • Zero Trust Candidate Solutions Selection Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT

    3.1.1 Define compliance and solution evaluation criteria

    On the Setup tab, provide a weight for each evaluation criterion to evaluate the candidate solutions. You can use “0%” weight if that criterion is not required in your solution selection.

    1. Verify that the Description for each criterion is accurate.
    2. Provide weights for the compliance score and the solution score, which are the overall evaluation:
    • Compliance score consists of tenets score, pillar score, threat protection score, and trust algorithm score.
    • Solution score consists of features score, usability score, affordability score, and architecture score.
    This image contains a screenshot from the Zero Trust Candidate Solutions Selection Tool, which demonstrates how to define compliance and solution evaluation criteria.

    3.1.2 Define remaining evaluation criteria

    On the Setup tab, provide a weight for each evaluation criterion to evaluate the candidate solutions. You can use “0%” weight if that criterion is not required in your solution selection.

    1. Verify that the Description for each criterion is accurate.
    2. Provide weights for the remaining evaluation criteria:
    • Tenets: Considers how well each initiative aligns with zero trust principles.
    • Pillars: Considers how well each initiative aligns with zero trust pillars.
    • Threats: Considers what zero trust threats are relevant with the candidate solution.
    • Trust Algorithm: Considers trust evaluation factors, trust evaluation process score, and input coverage.
    • Cost Estimation: Considers initial costs, which are one-time, upfront capital investments (e.g. hardware and software costs), and ongoing cost, which is any annually recurring operating expenses that are new budgetary costs (e.g. licensing, maintenance, subscription fees).
    • Deployment Architecture: Considers the solutions deployment architecture capabilities.

    This image contains a screenshot from the Zero Trust Candidate Solutions Selection Tool, and demonstrates where to define additional evaluation data

    Review available candidate solutions

    this image contains a list of available candidate Solutions. This list includes: Zero Trust Identity; Zero-Trust Application & Workloads; Zero-Trust Networks; Zero-Trust Devices; and Zero-Trust Data

    The Rapid Application Selection Framework is a comprehensive yet fast-moving approach to help you select the right software for your organization

    Five key phases sequentially add rigor to your selection efforts while giving you a clear, swift-flowing methodology to follow.

    Awareness Education & Discovery Evaluation Selection Negotiation & Configuration
    1.1 Proactively Lead Technology Optimization & Prioritization 2.1 Understand Marketplace Capabilities & Trends 3.1 Gather & Prioritize Requirements & Establish Key Success Metrics 4.1 Create a Weighted Vendor Selection Decision Model 5.1 Initiate Price Negotiation With Top
    1.2 Scope & Define the Selection Process for Each Selection Request Action 2.2 Discover Alternative Solutions & Conduct Market Education 3.2 Conduct a Data-Driven Comparison of Vendor Features & Capabilities 4.2 Conduct Investigative Interviews Focused on Mission Critical Priorities With Top 2-4 Vendors 5.2 Negotiate Contract Terms & Product Configuration Two Vendors Selected
    1.3 Conduct an Accelerated Business Needs Assessment 2.3 Evaluate Enterprise Architecture & Application Portfolio 3.3 Narrow the Field to Four Top Contenders 4.3 Validate Key Issues With Deep Technical Assessments, Trial Configuration & Reference Checks 5.3 Finalize Budget Approval & Project Implementation Timeline
    1.4 Align Stakeholder Calendars to Reduce Elapsed Time & Asynchronous Evaluation 2.4 Validate the Business Case 5.4 Invest in Training & Onboarding Assistance

    Download the Rapid Application Selection Framework research

    Evaluate software category leaders through vendor rankings and awards

    SoftwareReviews

    The Data Quadrant is a thorough evaluation and ranking of all software in an individual category to compare platforms across multiple dimensions.

    The Data Quadrant Report

    Vendors are ranked by their Composite Score, based on individual feature evaluations, user satisfaction rankings, vendor capability comparisons, and likeliness to recommend the platform.

    Vendors ranked by their Composite Score

    The Emotional Footprint is a powerful indicator of overall user sentiment toward the relationship with the vendor, capturing data across five dimensions.

    Emotional Footprint

    Vendors are ranked by their Customer Experience (CX) Score, which combines the overall Emotional Footprint rating with a measure of the value delivered by the solution.

    Vendors ranked by their Customer Experience (CX) Score

    Sample whiteboard activity

    • Place sticky notes on the zero trust tenet that matches with the identified candidate solution to produce “solution requirements” that can be used to develop an RFP.
    • A sample sticky note is provided below for privileged access management.

    This image contains a screenshot of a sample whiteboard activity which can be done using sticky notes.

    • The PAM solution should support MFA
    • Live session monitoring, audit, and reporting
    • Should have password vaulting to prevent privileged users from knowing the passwords to critical systems and resources

    3.2 Identify candidate solutions

    Estimated time 2 hours

    1. As a group, have the team review the candidate solutions within the Zero Trust Program Gap Analysis Tool.
    2. On tab 3 in the Zero Trust Candidate Solutions Selection Tool:
    • Review the candidate solutions within the Zero Trust Program Gap Analysis Tool. For example, the candidate solutions with multifactor authentication (MFA) options are authenticators with SMS, mobile application, smartcard, or token.

    Input

    • Candidate solutions for zero trust tasks and initiatives

    Output

    • Suitability evaluation of candidate solutions

    Materials

    • Zero Trust Program Gap Analysis Tool
    • Zero Trust Candidate Solutions Selection Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT

    Info-Tech Insight

    Add a description associated with the candidate solution, e.g. reference link to vendors or manufacturers. This will make it easier to perform the evaluation.

    Download the Zero Trust Candidate Solutions Selection Tool

    3.2.1 Review candidate solutions

    1. Review the candidate solutions within the Zero Trust Program Gap Analysis Tool. For example, the candidate solutions with multifactor authentication (MFA) options are authenticators with SMS, mobile application, smartcard, or token.
    2. Enter candidate solutions to the Compliance Data Entry tab on the Solution column within the Zero Trust Candidate Solutions Selection Tool.
    3. Optionally, add a description associated with the candidate solution, e.g. reference link to vendors or manufacturers. This will make it easier to perform the evaluation.
    this image contains a screenshot of a sample candidate solution, which can be done using Info-Tech's Zero Trust Program Gap Analysis Tool

    3.3 Evaluate candidate solutions

    Estimated time 3 hours

    On the Scoring tab, evaluate solution features, usability, affordability, and architecture using the instructions on the following slides. This activity will produce a solution score that can be used to identify the suitability of a solution.

    Input

    • Candidate solutions

    Output

    • Candidate solutions scored

    Materials

    • Zero Trust Program Gap Analysis Tool
    • Zero Trust Candidate Solutions Selection Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT

    Download the Zero Trust Candidate Solutions Selection Tool

    3.3.3 Evaluate solution scores

    After all candidate solutions are evaluated, the Solution Score column can be sorted to rank the candidate solutions. After sorting, the top solutions can be used on prioritization of initiatives on Zero Trust Program Gap Analysis Tool.

    1. On Features
      1. Enter Coverage.
      2. Enter Quality.
    2. Enter Usability.
    3. On Affordability
      1. Enter Initial Cost.
      2. Enter Ongoing Cost (annual).
    4. Enter Architecture.
    this image contains a screenshot of how you can sort the solution score column in Info-Tech's Zero Trust Program Gap Analysis Tool

    3.4 Perform cost/benefit analysis

    Estimated time 1-2 hours

    1. Assign costing and benefits information for each initiative, following the instructions on the next slide.
    2. Define dependencies or business impacts if they will help with prioritization.

    Input

    • Ranked candidate solutions
    • Gap analysis
    • Initiative list

    Output

    • Completed cost/benefit analysis for initiative list

    Materials

    • Zero Trust Program Gap Analysis Tool
    • Zero Trust Candidate Solutions Selection Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, Facilities, Audit, Risk Management
    • Project Management Office

    Download the Zero Trust Program Gap Analysis Tool

    3.4.1 Complete the cost/benefit analysis

    Use Zero Trust Program Gap Analysis Tool.

    1. On the Prioritization tab, use the drop-down lists to enter the estimated costs and efforts for each initiative, using the criteria defined earlier.
    • Use the result from candidate selection to define the estimated costs.
    • If you have actual costs available, you can optionally enter them under the Detailed Cost Estimates columns.
  • Enter the estimated benefits, also using the criteria defined earlier.

    • This image contains a screenshot of a cost/benefit analysis table which can be found in the Zero Trust Program Gap Analysis Tool

    The Cost / Effort Rating is calculated based on the weight defined on step 2.1.1. The Benefit Rating is calculated based on the weight defined on step 2.1.2.

    3.4.2 Optionally enter detailed cost estimates

    Use Zero Trust Program Gap Analysis Tool.

    1. For each initiative, the tool will automatically populate the Detailed Cost Estimates and Detailed Staffing Estimates columns using the averages that you provided in step 2.1.1. However, if you have more detailed data about the costs and effort requirements for an initiative, you can override the calculated data by manually entering it into these columns. For example:
    • You are planning to subscribe to a security awareness vendor, and you have a quote from them specifying that the initial cost will be $75,000.
    • You have defined your “Medium” cost range as being “$10-100K,” so you select medium as your initial cost for this initiative in step 3.4.1. As you defined the average for medium costs as being $50,000, this is what the tool will put into the detailed cost estimate.
    • You can override this average by entering $75,000 as the initial cost in the detailed cost estimate column.

    This image contains a screenshot of a sample cost/benefit table found in the Zero Trust Program Gap Analysis Tool.

    The Benefits-Cost column will give results after comparing the cost and the benefit. Negative value means that the cost outweighs the benefit. Positive value means that the benefit outweighs the cost. Zero value means that the cost equals the benefit.

    3.5 Prioritize initiatives

    Estimated time 2-3 hours

    1. As a group, review the results of the cost/benefit analysis. Optionally, complete the Other Considerations columns in the Prioritization tab:
    • Dependencies can refer to other initiatives on the list or any other dependency that relates to activities or projects within the organization.
    • Business impacts can be helpful to document as they may require additional planning and communication that could impact initiative timelines.
  • Follow step 3.5.1 to create a visual effort map for your organization.
  • Follow step 3.5.2 and 3.5.3 to refine the effort map’s visual output.

    • Input

    • Gap analysis
    • Initiative list
    • Cost/benefit analysis

    Output

    • Prioritized list of initiatives

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • IT Leadership
    • Project Management Office

    Download the Zero Trust Program Gap Analysis Tool

    3.5.1 Create a visual effort map for your organization

    1 hour

    An effort map is a tool used for the visualization of a cost and benefit analysis. It is a quadrant output that visually shows how your gap initiatives were prioritized based on tab 7 in the Zero Trust Program Gap Analysis Tool.

    1. Establish the axes and colors for your effort map:
      1. X-axis represents the Benefit value from column J
      2. Y-axis represents the Cost/Effort value from column H
      3. Sticky note color is determined using the Alignment to Business value from column I
    2. Create sticky notes for each initiative and place them on the effort map or whiteboard based on the axes you have created with the help of your team.
    3. As you place initiatives on the visual effort map, discuss and modify rankings based on team member input.

    this image contains a sample visual effort map which can be found in the Zero Trust Program Gap Analysis Tool.

    Input

    • Outputs from activities 3.4.1 and 3.4.2

    Output

    • High-level prioritization for each of the gap-closing initiatives
    • Visual representation of quantitative values

    Materials

    • Zero Trust Program Gap Analysis Tool (tab 7)
    • Sticky notes
    • Markers
    • Whiteboard

    Participants

    • Security Team
    • IT Leadership
    • Project Management Office

    3.5.2 Refine the effort map’s visual output

    1 hour

    Once the effort map is complete, work to further simplify the visual output by categorizing initiatives based on the quadrant in which they have been placed.

    1. Before moving forward with the initiative wave prioritization (activity 3.7), identify any initiatives listed across all quadrants that are required as a part of compliance and mark with a sticky dot.
    2. Document these initiatives as Execution Wave 1.

    this image contains a screenshot of a refined visual effort map, which can be done by following the instructions in this section.

    Input

    • Outputs from activity 3.5.1

    Output

    • Prioritization for each of the gap-closing initiatives
    • First execution wave of gap-closing initiatives

    Materials

    • Zero Trust Program Gap Analysis Tool (tab 7)
    • Sticky notes
    • Sticky dots
    • Markers
    • Whiteboard

    Participants

    • Security Team
    • IT Leadership
    • Project Management Office

    3.5.3 Refine the effort map’s visual output

    30 minutes

    1. Use a separate area of the whiteboard to draw out four to five Execution Wave columns.
    2. Group initiatives into each Execution Wave column based on their placement within the quadrant from activities 3.5.1 and 3.5.2.
      1. Ensure that all identified mandatory activities as per governing privacy law fall within the first wave.
      2. Leverage the following 0-4 Execution Wave scale:
        1. Underway –Initiatives that are already underway
        2. Must Do – Initiatives that must happen right away
        3. Should Do – Initiatives that should happen but need more time/support
        4. Could Do – Initiatives that are not a priority
        5. Won’t Do – Initiatives that likely won’t be carried out
    3. Indicate the granular level for each execution wave using the a-z scale.
    • Use the lettering to track dependencies between initiatives.
      • If one must take place before another, ensure that its letter comes first alphabetically.
      • If multiple initiatives must take place at the same time, use the same letter to show they will take place in tandem.

    This image depicts the sample output for a refined visual effort map

    Input

    • Outputs from activity 3.5.2

    Output

    • Prioritization for each of the gap-closing initiatives
    • First execution wave of gap-closing initiatives

    Materials

    • Zero Trust Program Gap Analysis Tool (tab 7)
    • Sticky notes
    • Sticky dots
    • Markers
    • Whiteboard

    Participants

    • Security Team
    • IT Leadership
    • Project Management Office

    Wave assignment example

    In the example below, we see “IAM modernization” was assessed as 9 on cost/effort rating and 5 on benefit rating and its Benefits-Cost has a positive value of 1. We can label this as SHOULD DO (wave 2).

    We can also see “Network segmentation” was assessed as 6 on cost/effort rating and 4 on benefit rating and its Benefits-Cost has a positive value of 2. We can label this as MUST DO (wave 1).

    We can also see “Unified Endpoints Management” was assessed as 8 on cost/effort rating and 2 on benefit rating and its Benefits-Cost has a negative value of -4. We can label this as WON’T DO (no wave).

    We can also see “Data Protection” was assessed as 4 on cost/effort rating and 2 on benefit rating and its Benefits-Cost has a zero value. We can label this as COULD DO (wave 3).

    This image depicts a sample wave assignment output, discussed in this section.

    It is recommended to define the threshold of each wave based on the value of Benefits-Cost before assigning waves.

    3.6 Build roadmap

    Estimated time 2-3 hours

    1. As a group, follow step 3.6.1 to create your roadmap by scheduling initiatives into the Gantt chart within the Zero Trust Program Gap Analysis Tool.
    2. Review the roadmap for resourcing conflicts and adjust as required.
    3. Review the final cost and effort estimates for the roadmap.

    Input

    • Gap analysis
    • Cost/benefit analysis
    • Prioritized initiative list

    Output

    • Zero trust roadmap

    Materials

    • Zero Trust Program Gap Analysis Tool

    Participants

    • Security Team
    • IT Leadership
    • Project Management Office

    Download the Zero Trust Program Gap Analysis Tool

    3.6.1 Schedule initiatives using the Gantt chart

    1. On the Gantt Chart tab for each initiative, enter an owner (the role who will be primarily responsible for execution).
    2. Additionally, enter a start month and year for the initiative and the expected duration in months.
    • You can filter the Wave column to only see specific waves at any one time to assist with the scheduling.
    • You do not need to schedule Wave 4 initiatives as the expectation is that these initiatives will not be done.
    • This Image contains a screenshot of the Gantt Chart, with the following column headings highlighted and numbered: 1: Owner; 2: Expected Duration

    3.6.2 Review your roadmap

    1. When you have completed the Gantt chart, as a group review the overall roadmap to ensure that it is reasonable for your organization. Consider the following:
    • Do you have other IT or business projects planned during this time frame that may impact your resourcing or scheduling?
    • Does your organization have regular change freezes throughout the year that will impact the schedule?
    • Do you have over-subscribed resources? You can filter the list on the Owner column to identify potential over-subscription of resources.
    • Have you considered any long vacations, sabbaticals, parental leaves, or other planned longer-term absences?
    • Are your initiatives adequately aligned to your budget cycle? For instance, if you have an initiative that is expected to make recommendations for capital expenditure, it must be completed prior to budget planning.

    This image depicts an example roadmap which can be created following the use of the Gantt Chart

    3.6.3 Review your cost/effort estimates table

    1. Once you have completed your roadmap, review the total cost/effort estimates. This can be found in a table on the Results tab. This table will provide initial and ongoing costs and staffing requirements for each wave. This also includes the total three-year investment. In your review consider:
    • Is this investment realistic? Will completion of your roadmap require adding more staff or funding than you otherwise expected?
    • If the investment seems unrealistic, you may need to revisit some of your assumptions, potentially reducing target levels or increasing the amount of time to complete the strategy.

    This table provides you with the information to have important conversations with management and stakeholders.

    This image contains an example of the Zero Trust Roadmap Cost/Effort Estimates. The column headings are as follows: Wave; Number of Initiatives; Initial Implementation - Cost; Initial Implementation - Effort; Ongoing Maintenance - Cost; Ongoing Maintenance - Effort. A separate table is shown with the column heading: Estimated Total Three Year Investment

    Phase 4

    Formulate Policies for Roadmap Initiatives

    Build a Zero Trust Roadmap

    This phase will walk you through the following activities:

    • Formulate zero trust policies for critical DAAS elements.
    • Formulate zero trust policies to secure a path to access critical DAAS elements.

    This phase involves the following participants:

    • CIO
    • CISO
    • Business Executives
    • IT Manager
    • Security Team

    Understand the zero trust policy

    Use the Kipling methodology as a vendor agnostic approach to identify appropriate allow list elements when deploying multiple zero trust solutions.
    The policies help to prevent lateral movement.

    Who Who should access a resource? Here, the user ID that identifies the users through the principle of least privilege is allowed access to a particular resource. The authentication policy will be used to verify identity of a user when access request to a resource is made. Who requires MFA?
    What What application is used to access the resource? Application ID to identify applications that are only allowed on the network. Port control policies can be used for the application service.
    When When do users access the resource? Policy that identifies and enforces time schedule when an application accessed by users is used.
    Where Where is the resource located? The location of the destination resource should be added to the policy and, where possible, restrict the source of the traffic either by zone and/or IP address.
    Why Why is the data accessed? Data classification should be done to know why the data needs protection and the type of protection (data filtering).
    How How should you allow access to the resource? This covers the protection of the application traffic. Principle of least privilege access, log all traffic, configure security profiles, NGFW, decryption and encryption, consistent application of policy and threat prevention across all locations for all local and remote users on managed and unmanaged endpoints are ways to apply content-ID.

    Info-Tech Insight

    The success of a zero trust implementation relies on enforcing policies consistently. Applying the Kipling methodology to the protect surface is the best way to design zero trust policies.

    4.1.1 Formulate policy

    Estimated time 1-2 hours

    1. As a group, review the protect surface(s) identified in phase one, and using the Kipling methodology from the previous slide, formulate a policy. Each policy can be reviewed repeatedly until we are sure it satisfies the goal.
    2. The policy created should be consistent for both cloud and on-prem environments.
    3. As an example, let's use the healthcare scenario found in tab 3 of the Zero Trust Protect Surface Mapping Tool. The protect surface used is "Automated Medication Dispensing." Another example will be "Salesforce" accessed via the cloud.
    Who What When Where Why How
    Method User-ID App-ID Time limit System Object Classification Content-ID
    On-Prem Pyxis_Users Pyxis Any Pyxis_server Severe (high value data) Decrypt, Inspect, log traffic
    Cloud Sales Salesforce Working hours Canada Severe (high value data) Decrypt, Inspect, log traffic

    Input

    • Kipling methodology
    • Protect surface

    Output

    • Zero trust policy

    Materials

    • Whiteboard/Flip Charts
    • Zero Trust Protect Surface Mapping Tool

    Participants

    • CIO
    • CISO
    • Business Executives
    • IT Manager
    • Security Team

    4.1.2 Apply policy

    1-2 hours

    1. Place each protect surface in its own microperimeter. Each microperimeter should be segmented by a next-generation firewall or authentication broker that will serve as a segmentation gateway.
    2. Name the microperimeter and place it on a firewall.

    Input

    • Kipling methodology
    • Protect surface

    Output

    • Zero trust policy

    Materials

    • Whiteboard/Flip Charts
    • Sticky Notes
    • Zero Trust Protect Surface Mapping Tool

    Participants

    • CIO
    • CISO
    • Business Executives
    • IT Manager
    • Security Team

    Microperimeter A
    Protect Surface:
    DAAS Elements:

    Who What When Where Why How
    Method User-ID App-ID Time limit System Object Classification Content-ID

    Microperimeter B
    Protect Surface:
    DAAS Elements:

    Who What When Where Why How
    Method User-ID App-ID Time limit System Object Classification Content-ID

    Microperimeter C
    Protect Surface:
    DAAS Elements:

    Who What When Where Why How
    Method User-ID App-ID Time limit System Object Classification Content-ID

    4.2 Secure a path to access critical DAAS elements

    How should you allow access to the resource?

    This component makes up the final piece of formulating the policies as it applies the protection of the application traffic.

    The principle of least privilege is applied to the security policy to only allow access requests and restrict the access to the purpose it serves. This access request is then logged as well as the traffic (both internal and external). Most firewalls (NGFW) have policy rules that, by default, enable logging.

    Segmentation gateways (NGFW, VM-series firewalls, agent-based and clientless VPN solutions), are used to apply zero trust policy (Kipling methodology) in the network, cloud, and endpoint (managed and unmanaged) for all local and remote users.

    These policies need to be applied to security profiles on all allowed traffic. Some of these profiles include but are not limited to the following: URL filtering profile for web access and protect against phishing attacks, vulnerability protection profile intrusion prevention systems, anti spyware profiles to protect against command-and-control threats, malware and antivirus profile to protect against malware, and a file blocking profile to block and/or alert suspicious file types.

    Good visibility on your network can also be tied to decryption as you can inspect traffic and data to the lowest level possible that is generally accepted by your organization and in compliance with regulation.

    Conceptualized flow

    With users working from anywhere on managed and unmanaged devices, access to the internet, SAAS, public cloud, and the data center will have consistent policies applied regardless of their location.

    The policy is validating that the user is who they say they are based on the role profile, what they are trying to access to make sure their role or attribute profile has the appropriate permission to the application, and within the stipulated time limit. Where the data or application is located is also verified and the why needs to be satisfied before the requested access is granted. Based on the mentioned policies, the how element is then applied throughout the lifecycle of the access.

    Who

    (Internet)

    What

    (SAAS)

    		 When

    Where

    (Public Cloud)

    		 Why

    How

    (Data Center)
    Method User-ID App-ID Time limit System Object Classification Content-ID
    On-Prem Pyxis_Users Pyxis Any Pyxis_server Severe (high value data) Decrypt, Inspect, log traffic
    Cloud Sales Salesforce Working hours Canada Severe (high value data) Decrypt, Inspect, log traffic

    Phase 5

    Monitor Zero Trust Roadmap Deployment

    Build a Zero Trust Roadmap

    This phase will walk you through the following activities:

    • Establish metrics for roadmap tasks.
    • Track metrics for roadmap tasks.

    This phase involves the following participants:

    • Security Team
    • Subject Matter Experts From IT, HR, Legal, Facilities, Compliance, Audit, Risk Management
    • Project Management Office

    5.1 Establish metrics for roadmap tasks

    Estimated time 2 hours

    1. On tab “2. Task & Metric Register” of the Zero Trust Progress Monitoring Tool, identify metrics to measure implementation and efficacy of tasks
    2. On tab “2. Task & Metric Register” of the Zero Trust Progress Monitoring Tool, document metric metadata.
    3. On the Prioritization tab, use the drop-down lists to enter the estimated costs and efforts for each initiative, using the criteria defined earlier.
    • If you have actual costs available, you can optionally enter them under the Detailed Cost Estimates columns.
  • Enter the estimated benefits, also using the criteria defined earlier.

    • Input

    • Zero trust roadmap task list

    Output

    • Metrics for measuring zero trust task implementation and efficacy

    Materials

    • Zero Trust Progress Monitoring Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, HR, Legal, Facilities, Compliance, Audit, Risk Management
    • Project Management Office

    Download the Zero Trust Progress Monitoring Tool

    5.1.1 Identify metrics to measure implementation and efficacy of tasks

    Estimated time 3-4 hours

    1. On tab “2. Task & Metric Register” of the Zero Trust Progress Monitoring Tool, for each section defined in columns C and D, enter zero trust implementation tasks into column E. If you completed the Zero Trust Program Gap Analysis Tool, use the tasks identified there to populate column E.
    2. For each task, identify in column F any metrics that will communicate implementation progress and/or implementation efficacy.
    • If multiple metrics are needed for a single task, we recommend expanding the size of the row and adding additional metrics onto a new line in the same row. A sample is provided in the tool.

    this image contains a screenshot of tab 2 in the Zero Trust Progress Monitoring Tool

    Info-Tech Insight

    To measure the efficacy of a zero trust implementation, ensure you know what a successful zero trust implementation means for your organization, and define metrics that demonstrate whether that success is being realized.

    5.1.2 Document metric metadata

    Estimated time 1-2 hours

    For each metric defined in step 4.1.1:

    1. Identify in column G whether the metric can be measured now (Phase 1), measured in a few months’ time (Phase 2), or measured in a few years’ time (Phase 3).
    2. Identify in columns H through M who is responsible for collecting the metric (Person Source), who/what is consulted to collect the metric (Technology Source), who compiles the collected metric into dashboards and presentations (Compiler), and who is informed of the measurement of the metric (Audience).
    • Add more columns under the Audience category if needed.
    • Use “X” to identify if an audience group will be informed of the measurement of the metric.
  • Identify in columns N through P the target for the metric (Metric Target), the effort it takes to collect the metric (Effort to Collect), the frequency with which the organizations plans to collect the metric (Frequency of Collection), and any comments that people should know when collecting, compiling, or presenting metrics.
    • This image contains a screenshot from the Zero Trust Progress Monitoring Tool, with the following column headings numbered: 1: Priority; 2: Roles and Responsibilities; 3: effort to collect; frequency of collection; Metric Target; Comments

    5.2 Track and report metrics

    Estimated time 2 hours

    1. In the Zero Trust Progress Monitoring Tool, copy and paste metrics you plan to track in the tool from column F on tab 2 to column B on tab 3.
    2. Use tab 3 to identify collection frequency, metric target, and measurements collected for each metric. Add notes or comments to each metric or measurement to track contextual elements that could affect metric measurements.
    3. Leverage the graphs on tab 4 to communicate metrics to the appropriated audience groups, as defined in tab 2.

    Input

    • Metrics for measuring zero trust task implementation and efficacy

    Output

    • Metric data and graphs for presenting zero trust implementation metrics to audience groups

    Materials

    • Zero Trust Progress Monitoring Tool

    Participants

    • Security Team
    • Subject Matter Experts From IT, HR, Legal, Facilities, Compliance, Audit, Risk Management
    • Project Management Office

    Download the Zero Trust Progress Monitoring Tool

    5.2.1 Record baseline measurements for metrics

    Estimated time 1-2 hours

    On tab “3. Track Metrics” of the Zero Trust Progress Monitoring Tool:

    1. Copy and paste the metrics from Column F on tab “2. Task & Metric Register” that you want to track into Column B of this tab.
    2. For each metric, record the frequency of collection (Collection Frequency) and the metric target (Target) by referencing columns O and P on tab “2. Task & Metric Register.”
    3. Begin to record baseline/initial values for each metric in column E. Rename columns to match your highest frequency of collection.
      (e.g. if any metric is being measured monthly, there should be one column per month)
    4. Over time, conduct measurements of your metrics and store them in the table below.
    5. Add notes, as necessary.

    this image contains a screenshot of tab 3 of the Zero Trust Progress Monitoring Tool, with the following column headings numbered: 1: Your Metrics; 2: Collection Frequency; Target; 3: Jan; 4: Metric Measurements; 5: Notes

    5.2.2 Report metric health to audience groups

    Estimated time 1-2 hours

    On tab “4. Graphs” of the Zero Trust Progress Monitoring Tool:

    1. The Overall Metric Health gauge at the top of this tab presents the average percentage away from meeting metric targets for all metrics being tracked. To calculate this value, the differences between the most recent measurements and target values for each metric are averaged.
    2. Below the Overall Metric Health gauge, use the drop-down list in cell D9 to select one of the metrics from tab “3. Track Metrics.”
    3. Six different graphic representations of the tracked data for the selected metric will populate.

    Copy and paste desired graphs into presentations for audience members identified in step 5.1.2.

    This image contains a screenshot from tab “4. Graphs” of the Zero Trust Progress Monitoring Tool:

    5.3 Build a communication deck

    Estimated time 2 hours

    Leverage the Zero Trust Communication Deck to showcase the work that you have done in the tools and activities associated with this research.

    In this communication deck template, you will find the following sections:

    • Introduction
    • Protect Surfaces
    • Zero Trust Gap Analysis
    • Zero Trust Initiatives & Tasks

    Input

    • Protect surfaces mapped to business goals
    • Zero trust program gap analysis
    • Zero trust roadmap initiatives and tasks
    • Zero trust metrics

    Output

    • Communication deck for zero trust strategy

    Materials

    • Zero Trust Communication Deck

    Participants

    • Security Team
    • Subject Matter Experts From IT, HR, Legal, Facilities, Compliance, Audit, Risk Management
    • Project Management Office

    Download the Zero Trust Communication Deck

    Summary of Accomplishment

    Knowledge Gained

    • Knowledge of protect surfaces and the business goals protecting them supports
    • Comprehensive knowledge of zero trust current state and summary initiatives required to achieve zero trust objectives
    • Assessment of which solutions for zero trust tasks and initiatives are the most appropriate for the organization
    • A defined set of security metrics assessing zero trust implementation progress and efficacy

    Deliverables Completed

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop

    Contact your account representative for more information

    workshops@infotech.com

    1-888-670-8889

    Additional Support

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop

    To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.

    Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.

    Contact your account representative for more information.

    This is a picture of an Info-Tech Account Representative
    workshops@infotech.com 1-888-670-8889

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    Zero Trust Program Gap Analysis Tool

    This is a screenshot from the Zero Trust Program Gap Analysis Tool

    Assess current security capabilities and build a roadmap of tasks and initiatives that close maturity gaps.

    Zero Trust Progress Monitoring Tool

    This is a screenshot from the Zero Trust Progress Monitoring Tool

    Identify and track metrics for zero trust tasks and initiatives.

    Research Contributors

    • Aaron Benson, CME Group, Director of IAM Governance
    • Brad Mateski, Zones, Solutions Architect for CyberSecurity
    • Bob Smock, Info-Tech Research Group, Vice President of Consulting
    • Dr. Chase Cunningham, Ericom Software, Chief Strategy Officer
    • John Kindervag, ON2IT Cybersecurity, Senior Vice President, Cybersecurity Strategy and ON2IT Group Fellow
    • John Zhao, Fonterra, Enterprise Security Architect
    • Rongxing Lu, University of New Brunswick, Associate Professor
    • Sumanta Sarkar, University of Warwick, Assistant Professor
    • Tim Malone, J.B. Hunt Transport, Senior Director Information Security
    • Vana Matte, J.B. Hunt Transport, Senior Vice President of Technology Services

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    • Assess identity and access requirements
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    Bibliography

    • “2021 Data Breach Investigations Report.” Verizon, 2021. Web.
    • “A Zero-Trust Strategy Has 3 Needs - Identify, Authenticate, and Monitor Users and Devices On and Off The Network.” Fortinet, 15 July 2021. Web.
    • “Applying Zero Trust Principles to Enterprise Mobility.” CISA, March 2022. Web.
    • Biden Jr., Joseph R. “Executive Order on Improving the Nation’s Cybersecurity.” The White House, 12 May 2021. Web.
    • “CISA Zero Trust Maturity Model.” CISA - Cybersecurity Division, June 2021. Web.
    • “Continuous Diagnostics and Mitigation Program Overview.” CISA, Jan. 2022. Web.
    • Contributor. “The Five Business Benefits of a Zero Trust Approach to Security.” Security Brief - Australia, 19 Aug. 2020. Web.
    • “Cost of a Data Breach Report 2021.” IBM, July 2021. Web.
    • English, Melanie. “5 Stats That Show The Cost Saving Effect of Zero Trust.” Teramind, 29 Sept. 2021. Web.
    • “Improve Application Access and Security With Fortinet Zero Trust Network Access.” Fortinet, 2 March 2021. Web.
    • “Incorporating Zero-trust Strategies for Secure Network and Application Access.” Fortinet, 21 July 2021. Web.
    • Jakkal, Vasu. “Zero Trust Adoption Report: How Does Your Organization Compare?” Microsoft, 28 July 2021. Web.
    • “Jericho Forum™ Commandments.” The Open Group, Jericho Forum, May 2007. Web.
    • Johnson, Derrick. “Zero Trust vs. SASE - Here's What You Need to Know.” Security Magazine, 23 July 2021. Web.
    • Joint Defense Information Systems Agency (DISA) and National Security Agency (NSA) Zero Trust Engineering Team. “Department of Defense (DOD) Zero Trust Reference Architecture.” DoD CIO, Feb. 2021. Web.
    • Kay, Dennis. “Planning for a Zero Trust Architecture Target State.” NASA, NIST, 13 Nov. 2019. Web.
    • National Security Agency. “Embracing a Zero Trust Security Model.” U.S. Department of Defense, Feb. 2021. Web.
    • NSTAC. “Draft Report to the President - Zero Trust and Trusted Identity Management.” CISA, NSTAC, n.d. Web.
    • Rose, Scott W., et al. “Zero Trust Architecture.” NIST, 10 Aug. 2020. Web.
    • “Securing Digital Innovation Demands Zero-Trust Access.” Fortinet, 15 July 2021. Web.
    • Shackleford, Dave. “How to Create a Comprehensive Zero Trust Strategy.” SANS, Cisco, 2 Sept. 2020. Web.
    • “The CISO’s Guide to Effective Zero-Trust Access.” Fortinet, 28 April 2021. Web.
    • “The State of Zero Trust Security 2021.” Okta, June 2021. Web.
    • Kerman, Alper, et al. “Implementing a Zero Trust Architecture.” NIST - National Cybersecurity Center of Excellence, March 2020. Web.
    • Kindervag, John. “Keynote - John KINDERVAG - 021622.” Vimeo, VIRTUAL Eastern | CyberSecurity Conference, 16 Feb. 2022. Web.
    • Lodewijkx, Koos. “IBM CISO Perspective: Zero Trust Changes Security From Something You Do to Something You Have.” SecurityIntelligence, IBM, 19 Nov. 2020. Web.
    • VB Staff. “Report: Only 21% of Enterprises Use Zero Trust Architecture.” VentureBeat, 15 Feb. 2022. Web.
    • Young, Shalanda D. “Moving the U.S. Government Toward Zero Trust Cybersecurity Principles.” The White House, EXECUTIVE OFFICE OF THE PRESIDENT - OFFICE OF MANAGEMENT AND BUDGET, 26 Jan. 2022. Web.
    • “Zero Trust Access.” Fortinet, n.d. Web.
    • “Zero Trust Architecture Technical Exchange Meeting.” NIST - National Cybersecurity Center of Excellence, 12 Nov. 2019. Web.
    • “Zero Trust Cybersecurity Current Trends.” ACT-IAC, 18 April 2019. Web.
    • “Zero-Trust Access for Comprehensive Visibility and Control.” Fortinet, 24 Sep. 2020. Web.

    Explore the Secrets of SAP Digital Access Licensing

    • Buy Link or Shortcode: {j2store}143|cart{/j2store}
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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • SAP’s licensing rules surrounding use and indirect access are vague, making it extremely difficult to purchase with confidence and remain compliant.
    • SAP has released nine document-type licenses that can be used in digital access licensing scenarios, but this model has its own challenges.
    • Whether you decide to remain “as is” or proactively change licensing over to the document model, either option can be costly and confusing.
    • Indirect static read can be a cause of noncompliance when data is exported but the processing capability of SAP ERP is used in real time.

    Our Advice

    Critical Insight

    • Examine all indirect access possibilities. Understanding how in-house or third-party applications may be accessing and utilizing the SAP digital core is critical to be able to correctly address issues.
    • Know what’s in your contract. Each customer agreement is different, and older agreements may provide both benefits and challenges when evaluating your SAP license position.
    • Understand the intricacies of document licensing. While it may seem digital access licensing will solve compliance concerns, there are still questions to address and challenges SAP must resolve.

    Impact and Result

    • Conduct an internal analysis to examine where digital access licensing may be needed to mitigate risk, as SAP will be speaking with all customers in due course. Indirect access can be a costly audit settlement.
    • Conduct an analysis to remove inactive and duplicate users, as multiple logins may exist and could end up costing the organization license fees when audited.
    • Adopt a cyclical approach to reviewing your SAP licensing and create a reference document to track your software needs, planned licensing, and purchase negotiation points.
    • Learn the SAP way of conducting business, which includes a best-in-class sales structure and unique contracts and license use policies, combined with a hyper-aggressive compliance function. Conducting business with SAP is not a typical vendor experience, and you will need different tools to emerge successfully from a commercial transaction.

    Explore the Secrets of SAP Digital Access Licensing Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you need to understand and document your SAP digital access licensing strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand, assess, and decide on digital access licensing

    Begin your SAP digital access licensing journey by evaluating licensing changes and options, and then make contractual changes to ensure compliance.

    • Explore the Secrets of SAP Digital Access Licensing – Phase 1: Understand, Assess, and Decide on Digital Access Licensing
    • SAP License Summary and Analysis Tool
    • SAP Digital Access Licensing Pricing Tool
    [infographic]

    Into the Metaverse

    • Buy Link or Shortcode: {j2store}95|cart{/j2store}
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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • Define the metaverse.
    • Understand where Meta and Microsoft are going and what their metaverse looks like today.
    • Learn about other solution providers implementing the enterprise metaverse.
    • Identify risks in deploying metaverse solutions and how to mitigate them.

    Our Advice

    Critical Insight

    • A metaverse experience must combine the three Ps: user presence is represented, the world is persistent, and data is portable.

    Impact and Result

    • Understand how Meta and Microsoft define the Metaverse and the coming challenges that enterprises will need to solve to harness this new digital capability.

    Into the Metaverse Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Into the Metaverse – A deck that examines how IT can prepare for the new digital world

    Push past the hype and understand what the metaverse really means for IT.

    • Into the Metaverse Storyboard

    Infographic

    Further reading

    Into the Metaverse

    How IT can prepare for the new digital world.

    Analyst Perspective

    The metaverse is still a vision of the future.

    Photo of Brian Jackson, Research Director, CIO, Info-Tech Research Group.

    On October 28, 2021, Mark Zuckerberg got up on stage and announced Facebook's rebranding to Meta and its intent to build out a new business line around the metaverse concept. Just a few days later, Microsoft's CEO Satya Nadella put forward his own idea of the metaverse at Microsoft Ignite. Seeing two of Silicon Valley's most influential companies pitch a vision of avatar-driven virtual reality collaboration sparked our collective curiosity. At the heart of it lies the question, "What is the metaverse, anyway?“

    If you strip back the narrative of the companies selling you the solutions, the metaverse can be viewed as technological convergence. Years of development on mixed reality, AI, immersive digital environments, and real-time communication are culminating in a totally new user experience. The metaverse makes the digital as real as the physical. At least, that's the vision.

    It will be years yet before the metaverse visions pitched to us from Silicon Valley stages are realized. In the meantime, understanding the individual technologies contributing to that vision can help CIOs realize business value today. Join me as we delve into the metaverse.

    Brian Jackson
    Research Director, CIO
    Info-Tech Research Group

    From pop culture to Silicon Valley

    Sci-fi visionaries are directly involved in creating the metaverse concept

    The term “metaverse” was coined by author Neal Stephenson in the 1992 novel “Snow Crash.” In the novel, main character Hiro Protagonist interacts with others in a digitally defined space. Twenty-five years after its release, the cult classic is influential among Silicon Valley's elite. Stephenson has played some key roles in Silicon Valley firms. He became the first employee at Blue Origin, the space venture founded by Jeff Bezos, in 2006, and later became chief futurist at augmented reality firm Magic Leap in 2014. Stephenson also popularized the Hindu concept "avatar" in his writing, paving the way for people to embody digitally rendered models to participate in the metaverse (Vanity Fair, 2017).

    Even earlier concepts of the metaverse were examined in the 1980s, with William Gibson’s “Neuromancer” exploring the same idea as cyberspace. Gibson's novel was influenced by his time in Seattle, where friend and Microsoft executive Eileen Gunn took him to hacker bars where he'd eavesdrop on "the poetics of the technological subculture" (Medium, 2022). Other visions of a virtual reality mecca were brought to life in the movies, including the 1982 Disney release “Tron,” the 1999 flick “The Matrix,” and 2018’s “Ready Player One.”

    There's a common set of traits among these sci-fi narratives that help us understand what Silicon Valley tech firms are now set to commercialize: users interact with one another in a digitally rendered virtual world, with a sense of presence provided through the use of a head-mounted display.

    Cover of the book Snow Crash by Neal Stephenson.

    Image courtesy nealstephenson.com

    Meta’s view of the metaverse

    CEO Mark Zuckerberg rebranded Facebook to make his intent clear

    Mark Zuckerberg is all in on the metaverse, announcing October 28, 2021, that Facebook would be rebranded to Meta. The new brand took effect on December 1, and Facebook began trading under the new stock ticker MVRS on certain exchanges. On February 15, 2022, Zuckerberg announced at a company meeting that his employees will be known as Metamates. The company's new values are to live in the future, build awesome things, and focus on long-term impact. Its motto is simply "Meta, Metamates, me" (“Out With the Facebookers. In With the Metamates,” The New York Times, 2022).

    Meta's Reality Labs division will be responsible for developing its metaverse product, using Meta Quest, its virtual reality head-mounted displays. Meta's early metaverse environment, Horizon Worlds, rolled out to Quest users in the US and Canada in early December 2021. This drove a growth in its monthly user base by ten times, to 300,000 people. The product includes Horizon Venues, tailored to attending live events in VR, but not Horizon Workrooms, a VR conferencing experience that remains invite-only. Horizon Worlds provides users tools to construct their own 3D digital environments and had been used to create 10,000 separate worlds by mid-February 2022 (“Meta’s Social VR Platform Horizon Hits 300,000 Users,“ The Verge, 2022).

    In the future, Meta plans to amplify the building tools in its metaverse platform with generative AI. For example, users can give speech commands to create scenes and objects in VR. Project CAIRaoke brings a voice assistant to an augmented reality headset that can help users complete tasks like cooking a stew. Zuckerberg also announced Meta is working on a universal speech translator across all languages (Reuters, 2022).

    Investment in the metaverse:
    $10 billion in 2021

    Key People:
    CEO Mark Zuckerberg
    CTO Andrew Bosworth
    Chief Product Officer Chris Cox

    (Source: “Meta Spent $10 Billion on the Metaverse in 2021, Dragging Down Profit,” The New York Times, 2022)

    Microsoft’s view of the metaverse

    CEO Satya Nadella showcased a mixed reality metaverse at Microsoft Ignite

    In March 2021 Microsoft announced Mesh, an application that allows organizations to build out a metaverse environment. Mesh is being integrated into other Microsoft hardware and software, including its head-mounted display, the HoloLens, a mixed reality device. The Mesh for HoloLens experience allows users to collaborate around digital content projected into the real world. In November, Microsoft announced a Mesh integration with Microsoft Teams. This integration brings users into an immersive experience in a fully virtual world. This VR environment makes use of AltspaceVR, a VR application Microsoft first released in May 2015 (Microsoft Innovation Stories, 2021).

    Last Fall, Microsoft also announced it is rebranding its Dynamics 365 Connected Store solution to Dynamics 365 Connected Spaces, signaling its expansion from retail to all spaces. The solution uses cognitive vision to create a digital twin of an organization’s physical space and generate analytics about people’s behavior (Microsoft Dynamics 365 Blog, 2021).

    In the future, Microsoft wants to make "holoportation" a part of its metaverse experience. Under development at Microsoft Research, the technology captures people and things in photorealistic 3D to be projected into mixed reality environments (Microsoft Research, 2022). It also has plans to offer developers AI-powered tools for avatars, session management, spatial rendering, and synchronization across multiple users. Open standards will allow Mesh to be accessed across a range of devices, from AR and VR headsets, smartphones, tablets, and PCs.

    Microsoft has been developing multi-user experiences in immersive 3D environments though its video game division for more than two decades. Its capabilities here will help advance its efforts to create metaverse environments for the enterprise.

    Investment in the metaverse:
    In January 2022, Microsoft agreed to acquire Activision Blizzard for $68.7 billion. In addition to acquiring several major gaming studios for its own gaming platforms, Microsoft said the acquisition will play a key role in the development of its metaverse.

    Key People:
    CEO Satya Nadella
    CEO of Microsoft Gaming Phil Spencer
    Microsoft Technical Research Fellow Alex Kipman

    Current state of metaverse applications from Meta and Microsoft

    Meta

    • Horizon Worlds (formerly Facebook Horizon). Requires an Oculus Rift S or Quest 2 headset to engage in an immersive 3D world complete with no-code building tools for users to construct their own environments. Users can either interact in the space designed by Meta or travel to other user-designed worlds through the plaza.
    • Horizon Workrooms (beta, invite only). An offshoot of Horizon Worlds but more tailored for business collaboration. Users can bring in their physical desks and keyboards and connect to PC screens from within the virtual setting. Integrates with Facebook’s Workplace solution.

    Microsoft

    • Dynamics 365 Connected Spaces (preview). Cognitive vision combined with surveillance cameras provide analytics on people's movement through a facility.
    • Mesh for Microsoft Teams (not released). Collaborate with your colleagues in a virtual reality space using personalized avatars. Use new 2D and 3D meeting experiences.
    • Mesh App for HoloLens (preview). Interact with colleagues virtually in a persistent digital environment that is overlaid on top of the real world.
    • AltspaceVR. A VR space accessible via headset or desktop computer that's been available since 2015. Interact through use of an avatar to participate in daily events

    Current providers of an “enterprise metaverse”

    Other providers designing mixed reality or digital twin tools may not have used the “metaverse” label but provide the same capabilities via platforms

    Logo for NVIDIA Omniverse. Logo for TeamViewer.
    NVIDIA Omniverse
    “The metaverse for engineers,” Omniverse is a developer toolset to allow organizations to build out their own unique metaverse visions.
    • Omniverse Nucleus is the platform database that allows clients to publish digital assets or subscribe to receive changes to them in real-time.
    • Omniverse Connectors are used to connect to Nucleus and publish or subscribe to individual assets and entire worlds.
    • NVIDIA’s core physics engine provides a scalable and physically accurate world simulation.
    		 TeamViewer’s Remote as a Service Platform
    Initially focusing on providing workers remote connectivity to work desktops, devices, and robotics, TeamViewer offers a range of software as a service products. Recent acquisitions to this platform see it connecting enterprise workflows to frontline workers using mixed reality headsets and adding more 3D visualization development tools to create digital twins. Clients include Coca-Cola and BMW.

    “The metaverse matters in the future. TeamViewer is already making the metaverse tangible in terms of the value that it brings.” (Dr. Hendrik Witt, Chief Product Officer, TeamViewer)

    The metaverse is a technological convergence

    The metaverse is a platform combining multiple technologies to enable social and economic activity in a digital world that is connected to the physical world.

    A Venn diagram with four circles intersecting and one circle unconnected on the side, 'Blockchain, Emerging'. The four circles, clock-wise from top, are 'Artificial Intelligence', 'Real-Time Communication', 'Immersive Digital Space', and 'Mixed Reality'. The two-circle crossover sections, clock-wise from top-right are AI + RTC: 'Smart Agent-Facilitated Communication', RTC + IDS: 'Avatar-Based Social Interaction', IDS + MR: 'Digital Immersive UX', and MR + AI: 'Perception AI'. There are only two three-circle crossover sections labelled, AI + RTC + MR: 'Generative Sensory Environments' and RTC + IDS + MR: 'Presence'. The main cross-section is 'METAVERSE'.

    Info-Tech Insight

    A metaverse experience must combine the three P’s: user presence is represented, the world is persistent, and data is portable.

    Mixed reality provides the user experience (UX) for the metaverse

    Both virtual and augmented reality will be part of the picture

    Mixed reality encompasses both virtual reality and augmented reality. Both involve allowing users to immerse themselves in digital content using a head-mounted device or with a smartphone for a less immersive effect. Virtual reality is a completely digital world that is constructed as separate from the physical world. VR headsets take up a user's entire field of vision and must also have a mechanism to allow the user to interact in their virtual environment. Augmented reality is a digital overlay mapped on top of the real world. These headsets are transparent, allowing the user to clearly see their real environment, and projects digital content on top of it. These headsets must have a way to map the surrounding environment in 3D in order to project digital content in the right place and at the right scale.

    Meta’s Plans

    Meta acquired virtual reality developer Oculus VR Inc. and its set of head-mounted displays in 2014. It continues to develop new hardware under the Oculus brand, most recently releasing the Oculus Quest 2. Oculus Quest hardware is required to access Meta's early metaverse platform, Horizon Worlds.

    Microsoft’s Plans

    Microsoft's HoloLens hardware is a mixed reality headset. Its visor that can project digital content into the main portion of the user's field of vision and speakers capable of spatial audio. The HoloLens has been deployed at enterprises around the world, particularly in scenarios where workers typically have their hands busy. For example, it can be used to view digital schematics of a machine while a worker is performing maintenance or to allow a remote expert to "see through the eyes" of a worker.

    Microsoft's Mesh metaverse platform, which allows for remote collaboration around digital content, was demonstrated on a HoloLens at Microsoft Ignite in November 2021. Mesh is also being integrated into AltspaceVR, an application that allows companies to hold meetings in VR with “enterprise-grade security features including secure sign-ins, session management and privacy compliance" (Microsoft Innovation Stories, 2021).

    Immersive digital environments provide context in the metaverse

    The interactive environment will be a mix of digital and physical worlds

    If you've played a video game in the past decade, you've experienced an immersive 3D environment, perhaps even in a multiplayer environment with many other users at the same time. The video game industry grew quickly during the pandemic, with users spending more time and money on video games. Massive multiplayer online games like Fortnite provide more than a gaming environment. Users socialize with their friends and attend concerts featuring famous performers. They also spend money on different appearances or gestures to express themselves in the environment. When they are not playing the game, they are often watching other players stream their experience in the game. In many ways, the consumer metaverse already exists on platforms like Fortnite. At the same time, gaming developers are improving the engines for these experiences and getting closer to approximating the real world both visually and in terms of physics.

    In the enterprise space, immersive 3D environments are also becoming more popular. Manufacturing firms are building digital twins to represent entire factories, modeling their real physical environments in digital space. For example, BMW’s “factory of the future” uses NVIDIA Omniverse to create a digital twin of its assembly system, simulated down to the detail of digital workers. BMW uses this simulation to plan reconfiguration of its factory to accommodate new car models and to train robots with synthetic data (“NVIDIA Omniverse,” NVIDIA, 2021).

    Meta’s Plans

    Horizon Workrooms is Meta's business-focused application of Horizon Worlds. It facilitates a VR workspace where colleagues can interact with others’ avatars, access their computer, use videoconferencing, and sketch out ideas on a whiteboard. With the Oculus Quest 2 headset, passthrough mode allows users to add their physical desk to the virtual environment (Oculus, 2022).

    Microsoft’s Plans

    AltspaceVR is Microsoft's early metaverse environment and it can be accessed with Oculus, HTC Vive, Windows Mixed Reality, or in desktop mode. Separately, Microsoft Studios has been developing digital 3D environments for its Xbox video game platform for yeas. In January 2022, Microsoft acquired games studio Activision Blizzard for $68.7 billion, saying the games studio would play a key role in the development of the metaverse.

    Real-time communications allow for synchronous collaboration

    Project your voice to a room full of avatars for a presentation or whisper in someone’s ear

    If the metaverse is going to be a good place to collaborate, then communication must feel as natural as it does in the real world. At the same time, it will need to have a few more controls at the users’ disposal so they can focus in on the conversation they choose. Audio will be a major part of the communication experience, augmented by expressive avatars and text.

    Mixed reality headsets come with integrated microphones and speakers to enable voice communications. Spatial audio will also be an important component of voice exchange in the metaverse. When you are in a videoconference conversation with 50 participants, every one of those people will sound as though they are sitting right next to you. In the metaverse, each person will sound louder or quieter based on how distant their avatar is from you. This will allow large groups of people to get together in one digital space and have multiple conversations happening simultaneously. In some situations, there will also be a need for groups to form a “party” as they navigate the metaverse, meaning they would stay linked through a live audio connection even if their avatars were not in the same digital space. Augmented reality headsets also allow remote users to “see through the eyes” of the person wearing the headset through a front-facing camera. This is useful for hands-on tasks where expert guidance is required.

    People will also need to communicate with people not in the metaverse. More conventional videoconference windows or chat boxes will be imported into these environments as 2D panels, allowing users to integrate them into the context of their digital space.

    Meta’s Plans

    Facebook Messenger is a text chat and video chat application that is already integrated into Facebook’s platform. Facebook also owns WhatsApp, a messaging platform that offers group chat and encrypted messaging.

    Microsoft’s Plans

    Microsoft Teams is Microsoft’s application that combines presence-based text chat and videoconferencing between individuals and groups. Dynamics 365 Remote Assist is its augmented reality application designed for HoloLens wearers or mobile device users to share their real-time view with experts.

    Generative AI will fill the metaverse with content at the command of the user

    No-code and low-code creation tools will be taken to the next level in the metaverse

    Metaverse platforms provide users with no-code and low-code options to build out their own environments. So far this looks like playing a game of Minecraft. Users in the digital environment use native tools to place geometric shapes and add textures. Other metaverse platforms allow users to design models or textures with tools outside the platform, often even programming behaviors for the objects, and then import them into the metaverse. These tools can be used effectively, but it can be a tedious way to create a customized digital space.

    Generative AI will address that by taking direction from users and quickly generating content to provide the desired metaverse setting. Generative AI can create content that’s meaningful based on natural inputs like language or visual information. For example, a user might give voice commands to a smart assistant and have a metaverse environment created or take photos of a real-world object from different angles to have its likeness digitally imported.

    Synthetic data will also play a role in the metaverse. Instead of relying only on people to create a lot of relevant data to train AI, metaverse platform providers will also use simulated data to provide context. NVIDIA’s Omniverse Replicator engine provides this capability and can be used to train self-driving cars and manipulator robots for a factory environment (NVIDIA Newsroom, 2021).

    Meta’s Plans

    Meta is planning to use generative AI to allow users to construct their VR environments. It will allow users to describe a world to a voice assistant and have it created for them. Users could also speak to each other in different languages with the aid of a universal translator. Separately, Project CAIRaoke combines cognitive vision with a voice assistant to help a user cook dinner. It keeps track of where the ingredients are in the kitchen and guides the user through the steps (Reuters, 2022).

    Microsoft’s Plans

    Microsoft Mesh includes AI resources to help create natural interactions through speech and vision learning models. HoloLens 2 already uses AI models to track users’ hands and eye movements as well as map content onto the physical world. This will be reinforced in the cloud through Microsoft Azure’s AI capabilities (Microsoft Innovation Stories, 2021).

    Blockchain will provide a way to manage digital identity and assets across metaverse platforms

    Users will want a way to own their metaverse identity and valued digital possessions

    Blockchain technology provides a decentralized digital ledger that immutably records transactions. A specific blockchain can either be permissioned, with one central party determining who gets access, or permissionless, in which anyone with the means can transact on the blockchain. The permissionless variety emerged in 2008 as the foundation of Bitcoin. It's been a disruptive force in the financial industry, with Bitcoin inspiring a long list of offshoot cryptocurrencies, and now even central banks are examining moving to a digital currency standard.

    In the past couple of years, blockchain has spurred a new economy around digital assets. Smart contracts can be used to create a token on a blockchain and bind it to a specific digital asset. These assets are called non-fungible tokens (NFTs). Owners of NFTs can prove their chain of ownership and sell their tokens to others on a variety of marketplaces.

    Blockchain could be useful in the metaverse to track digital identity, manage digital assets, and enable data portability. Users could register their own avatars as NFTs to prove they are the real person behind their digital representation. They may also want a way to verify they own a virtual plot of land or demonstrate the scarcity of the digital clothing they are wearing in the metaverse. If users want to leave a certain metaverse platform, they could export their avatar and digital assets to a digital wallet and transfer them to another platform that supports the same standards.

    In the past, centralized platforms that create economies in a virtual world were able to create digital currencies and sell specific assets to users without the need for blockchain. Second Life is a good example, with Linden Labs providing a virtual token called Linden Dollars that users can exchange to buy goods and services from each other within the virtual world. Second Life processes 345 million transactions a year for virtual goods and reports a GDP of $650 million, which would put it ahead of some countries (VentureBeat, 2022). However, the value is trapped within Second Life and can't be exported elsewhere.

    Meta’s Plans

    Meta ended its Diem project in early 2022, winding down its plan to offer a digital currency pegged to US dollars. Assets were sold to Silvergate Bank for $182 million. On February 24, blockchain developer Atmos announced it wanted to bring the project back to life. Composed of many of the original developers that created Diem while it was still a Facebook project, the firm plans to raise funds based on the pitch that the new iteration will be "Libra without Facebook“ (CoinDesk, 2022).

    Microsoft’s Plans

    Microsoft expanded its team of blockchain developers after its lead executive in this area stated the firm is closely watching cryptocurrencies and NFTs. Blockchain Director York Rhodes tweeted on November 8, 2021, that he was expanding his team and was interested to connect with candidates "obsessed with Turing complete, scarce programmable objects that you can own & transfer & link to the real world through a social contract.”

    The enterprise metaverse holds implications for IT across several functional areas

    Improve maturity in these four areas first

    • Infrastructure & Operations
      • Lay the foundation
    • Security & Risk
      • Mitigate the risks
    • Apps
      • Deploy the precursors
    • Data & BI
      • Prepare to integrate
    		 Info-Tech and COBIT5's IT Management & Governance Framework with processes arranged like a periodic table. Highlighted process groups are 'Infrastructure & Operations', 'Security & Risk', 'Apps', and 'Data & BI'.

    Infrastructure & Operations

    Make space for the metaverse

    Risks

    • Network congestion: Connecting more devices that will be delivering highly graphical content will put new pressures on networks. Access points will have more connections to maintain and transit pathways more bandwidth to accommodate.
    • Device fragmentation: Currently many different vendors are selling augmented reality headsets used in the enterprise, including Google, Epson, Vuzix, and RealWear. More may enter soon, creating various types of endpoints that have different capabilities and different points of failure.
    • New workflows: Enterprises will only be able to benefit from deploying mixed reality devices if they're able to make them very useful to workers. Serving up relevant information in the context of a hands-free interface will become a new competency for enterprises to master.

    Mitigations

    • Dedicated network: Some companies are avoiding the congestion issue by creating a separate network for IoT devices on different infrastructure. For example, they might complement the Wi-Fi network with a wireless network on 5G or LoRaWAN standards.
    • Partner with systems integrators: Solutions vendors bringing metaverse solutions to the enterprise are already working with systems integrator partners to overcome integration barriers. These vendors are solving the problems of delivering enterprise content to a variety of new mixed reality touchpoints and determining just the right information to expose to users, at the right time.

    Security & Risk

    Mitigate metaverse risks before they take root

    Risks

    • Broader attack surface: Adding new mixed reality devices to the enterprise network will create more potential points of ingress for a cyberattack. Previous enterprise experiences with IoT in the enterprise have seen them exploited as weak points and used to create botnets or further infiltrate company networks.
    • More data in transit: Enterprise data will be flowing between these new devices and sometimes outside the company firewall to remote connections. Data from industrial IoT could also be integrated into these solutions and exposed.
    • New fraud opportunities: When Web 1.0 was first rolling out, not every company was able to secure the rights to the URL address matching its brand. Those not quick enough on the draw saw "domain squatters" use their brand equity to negotiate for a big pay day or, worse yet, to commit fraud. With blockchain opening up similar new digital real estate in Web3, the same risk arises.

    Mitigations

    • Mobile device management (MDM): New mixed reality headsets can be secured using existing MDM solutions on the market.
    • Encryption: Encrypting data end to end as it flows between IoT devices ensures that even if it does leak, it's not likely to be useful to a hacker.
    • Stake your claim: Claiming your brand's name in new Web3 domains may seems tedious, but it is likely to be cheap and might save you a headache down the line.

    Apps

    Deploy to your existing touchpoints

    Risks

    • Learning curves: Using new metaverse applications to complete tasks and collaborate with colleagues won’t be a natural progression for everyone. New headsets, gesture-based controls, and learning how to navigate the metaverse will present hurdles for users to overcome before they can be productive.
    • Is there a dress code in the metaverse? Avatars in the metaverse won’t necessarily look like the people behind the controls. What new norms will be needed to ensure avatars are appropriate for a work setting?
    • Fragmentation: Metaverse experiences are already creating islands. Users of Horizon Worlds can’t connect with colleagues using AltspaceVR. Similar to the challenges around different videoconferencing software, users could find they are divided by applications.

    Mitigations

    • Introduce concepts over time: Ask users to experiment with meeting in a VR context in a small group before expanding to a companywide conference event. Or have them use a headset for a simple video chat before they use it to complete a task in the field.
    • Administrative controls: Ensure that employees have some boundaries when designing their avatars, enforced either through controls placed on the software or through policies from HR.
    • Explore but don’t commit: It’s early days for these metaverse applications. Explore opportunities that become available through free trials and new releases to existing software suites but maintain flexibility to pivot should the need arise.

    Data & BI

    Deploy to your existing touchpoints

    Risks

    • Interoperability: There is no established standard for digital objects or behaviors in the metaverse. Meta and Microsoft say they are committed to open standards that will ensure portability of data across platforms, but how that will be executed isn’t clear yet.
    • Privacy: Sending data to another platform carries risks that it will be exfiltrated and stored elsewhere, presenting some challenges for companies that need to be compliant with legislation such as GDPR.
    • High-fidelity models: 3D models with photorealistic textures will come with high CPU requirements to render properly. Some head-mounted displays will run into limitations.

    Mitigations

    • Adopt standard interfaces: Using open APIs will be the most common path to integrating enterprise systems to metaverse applications.
    • Maintain compliance: The current approach enterprises take to creating data lakes and presenting them to platforms will extend to the metaverse. Building good controls and anonymizing data that resides in these locations will enable firms to interact in new platforms and remain compliant.
    • Right-sized rendering: Providing enough data to a device to make it useful without overburdening the CPU will be an important consideration. For example, TeamViewer uses polygon reduction to display 3D models on lower-powered head-mounted displays.

    More Info-Tech research to explore

    CIO Priorities 2022
    Priorities to compete in the digital economy.

    Microsoft Teams Cookbook
    Recipes for best practices and use cases for Microsoft Teams.

    Run Better Meetings
    Hybrid, virtual, or in person – set meeting best practices that support your desired meeting norms.

    Double Your Organization’s Effectiveness With a Digital Twin
    Digital twin: A living, breathing reflection.

    Contributing experts

    Photo of Dr. Hendrik Witt, Chief Product Officer, TeamViewer

    Dr. Hendrik Witt
    Chief Product Officer,
    TeamViewer

    		 Photo of Kevin Tucker, Principal Research Director, Industry Practice, INFO-TECH RESEARCH GROUP

    Kevin Tucker
    Principal Research Director, Industry Practice,
    INFO-TECH RESEARCH GROUP

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    Embrace the Inevitability of Multicloud

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    It used to be easy: pick your cloud, build out your IT footprint, and get back to business. But the explosion of cloud adoption has also led to an explosion of options for cloud providers, platforms, and deployment options. And that’s just when talking about infrastructure as a service!

    Our Advice

    Critical Insight

    • Multicloud isn’t good or bad; it’s inevitable.
    • Embracing multicloud in your organization is an opportunity to gain control while enabling choice. Although it increases complexity for both IT operations and governance, with the right tools and principles in place you can reduce the IT burden and increase business agility at the same time.

    Impact and Result

    • Understand what multicloud is, what it isn’t, and why you need to accept it in your organization.
    • Keep your cloud strategy but adapt your approach and tools.
    • Leverage best practices and principles that will help you keep control of the volatility and complexity that comes with multicloud.

    Embrace the Inevitability of Multicloud Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Embrace the Inevitability of Multicloud Storyboard – A deck that helps you implement best practices for your multicloud strategy.

    Use this research to understand the risks and benefits that come with a multicloud posture.

    • Embrace the Inevitability of Multicloud Storyboard

    Infographic

    Further reading

    Embrace the Inevitability of Multicloud

    The heterogeneous ecosystem is worth it; you just need a cohesive strategy.

    Executive summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    It used to be easy: pick your cloud, build out your IT footprint, and get back to business. But the explosion of cloud adoption has also led to an explosion of options for cloud providers, platforms, and deployment. And that’s just when talking about infrastructure as a service!

    For many businesses, one of the key benefits of the cloud ecosystem is enabling choice for different users, groups, and projects in the organization. But this means embracing multiple cloud platforms. Is it worth it?

    The reality is that multicloud is inevitable for most organizations, and if it’s not yet a reality for your IT team, it soon will be. This brings new challenges:

    1. How do I decide what platforms and offerings to use where? Is my old cloud strategy obsolete?
    2. How do I identify what I want out of multicloud, and what tools and best practices need to be in place to keep control?

    By defining your end goals, framing solutions based on the type of visibility and features your multicloud footprint needs to deliver, you can enable choice and improve performance, flexibility, and availability.

    1. Understand what multicloud is, what it isn’t, and why you need to accept it in your organization.
    2. Keep your cloud strategy but adapt your approach and tools.
    3. Leverage best practices and principles that will help you keep control of the volatility and complexity that comes with multicloud.

    Info-Tech Insight

    Embracing multicloud in your organization is an opportunity to gain control while enabling choice. Although it increases complexity for both IT operations and governance, with the right tools and principles in place you can reduce the IT burden and increase business agility at the same time.

    Project overview

    Multicloud isn’t good or bad; it’s inevitable

    The reality is multicloud is usually not a choice. For most organizations, the requirement to integrate with partners, subsidiaries, and parent organizations, as well as the need to access key applications in the software-as-a-service ecosystem, means that going multicloud is a matter of when, not if.

    The real question most businesses should ask is not whether to go multicloud, but rather how to land in multicloud with intent and use it to their best advantage.

    Your workloads will guide the way

    One piece of good news is that multicloud doesn’t change the basic principles of a good cloud strategy. In fact, a well-laid-out multicloud approach can make it even easier to put the right workloads in the right place – and then even move them around as needed.

    This flexibility isn’t entirely free, though. It’s important to know how and when to apply this type of portability and balance its benefits against the cost and complexity that come with it.

    Don’t fall in reactively; land on your feet

    Despite the risks that come with the increased scale and complexity of multicloud, it is possible to maintain control, realize the benefits, and even use multicloud as a springboard for leveraging cloud benefits in your business. By adopting best practices and forethought in key areas of multicloud risk, you can hit the ground running.

    Aligning the terms

    Modern organizations have multiple IT footprints. How do we classify different stances?

    01 Hybrid Cloud
    Private cloud and public cloud infrastructure managed as one entity

    02 Multicloud
    Includes multiple distinct public cloud services, or “footprints”

    03 Hybrid IT
    Putting the right workloads in the right places with an overall management framework

    Info-Tech Insight

    • Hybrid cloud is about applying the same service model across multiple deployment models (most commonly public and private clouds).
    • Multicloud is about using multiple cloud offerings irrespective of differences in service model or deployment model.

    Multicloud

    • An approach that includes multiple distinct public cloud services (e.g. AWS EC2 but also Salesforce and M365)
    • Usually defined around a steady state for each workload and footprint
    • Everything in its right place (with portability for events and disasters)
    • NOT everything everywhere all at once
    The image contains the Info-Tech thought model for multicloud.

    Multicloud is inevitable

    The SaaS ecosystem has led organizations to encourage business units to exercise the IT choices that are best for them.

    The multicloud maturity journey

    1. Move a workload to the cloud
    2. Move more workloads to the same cloud
    3. Move the right workloads to the right clouds
    4. Hybrid cloud & multicloud
    5. Integrate cloud and traditional/ on-premises footprints

    Hybrid IT: Aggregate Management, Monitoring, Optimization, Continuous Improvement

    Multicloud is about enabling choice while maintaining oversight

    The broader your footprint, the harder it becomes to manage risks across each environment.

    The image contains a screenshot of a diagram of maintaining oversight with multicloud.

    Managing multicloud risks

    The risks in multicloud are the same as in traditional cloud but amplified by the differences across footprints and providers in your ecosystem.

    • Variations across platforms include:
      • Rules
      • Security
      • Mapping corresponding products and services
    • Training and certifications by platform/provider
    • Managing cost across footprints
    • Complexity of integration
    • Managing compliance across platforms
    • Loss of standardization due to multicloud fragmentation

    Info-Tech Insight

    Don’t be afraid to ask for help! Each cloud platform you adopt in your multicloud posture requires training, knowledge, and execution. If you’re already leveraging an ecosystem of cloud providers, leverage the ecosystem of cloud enablers as needed to help you on your way.

    Despite the risks, multicloud is a springboard

    Increasing flexibility & accelerating integration

    Because multicloud increases the number of platforms and environments available to us, we can
    use it as a way to increase our agility (from both a DevOps and a resource deployment perspective) as well as to provide an answer to the problem of vendor lock-in.

    Multicloud also can be a catalyst for integrating and stitching together resources and services that were previously isolated from each other. Because of the modular design and API architecture prevalent in cloud services, they can be easily consumed and integrated from your various footprints.

    Modernizing data strategy

    While it may seem counterintuitive, a proactive multicloud approach will allow you to regain visibility and control of your entire data ecosystem. Defining your data architecture and policies with an eye to the inevitability of multicloud means you can go beyond just regaining control of data stranded in SaaS and other platforms; you can start to really understand the flows of data and how they affect your business processes for better or worse.

    Move to cloud-native IT & design

    Embracing multicloud is also a great opportunity to embrace the refactoring and digital transformation you’ve been blocked on. Instead of treading water with respect to keeping control of fragmented applications, services, and workloads, a proactive approach to multicloud allows you to embrace open standards built to deliver cloud-native power and portability and to build automations that increase reliability, performance, and cost effectiveness while reducing your total in-house work burden.

    Info-Tech Insight

    Don’t bite off more than you can chew! Especially with IaaS and PaaS services, it’s important to ensure you have the skills and bandwidth to manage and deploy services effectively. It’s better to start with one IaaS platform, master it, and then expand.

    Let your workloads guide the way

    Multicloud is a road to best-of-breed everything


    A screenshot of multiclouds.

    Stick with a workload-level approach

    The principles of cloud strategy don’t change with multicloud! The image contains a screenshot of a workload-level approach.
    If anything, a multicloud approach increases your ability to put the right workloads in the right places, wherever that may be.
    It can also (with some work and tooling) provide even broader options for portability and resilience.

    Multicloud = multiple right places

    Put everything in its right place.

    Just like with any cloud strategy, start with a workload-level approach and figure out the right migration path and landing point for your workload in cloud.

    Understand the other right places!

    Multicloud means for many workloads, especially IaaS- and PaaS-focused ones, you will have multiple footprints you can use for secondary locations as desired for portability, resilience, and high availability (with the right tooling and design).

    Info-Tech Insight

    Portability is always a matter of balancing increased flexibility, availability, and resilience against increased complexity, maintenance effort, and cost. Make sure to understand the requirement for your workloads and apply portability efforts where they make the most sense

    Your management will need to evolve

    Don’t manage multicloud with off-the-rack tools.

    The default dashboards and management tools from most cloud vendors are a great starting point when managing a single cloud. Unfortunately, most of these tools do not extend well to other platforms, which can lead to multiple dashboards for multiple footprints.

    These ultimately lead to an inability to view your multicloud portfolio in aggregate and fragmentation of metrics and management practices across your various platforms. In such a situation maintaining compliance and control of IT can become difficult, if not impossible!

    Unified standards and tools that work across your entire cloud portfolio will help keep you on track, and the best way to realize these is by applying repeatable, open standards across your various environments and usually adopting new software and tools from the ecosystem of multicloud management software platforms available in the market.

    Info-Tech Insight

    Even in multicloud, don’t forget that the raw data available from the vendor’s default dashboards is a critical source of information for optimizing performance, efficiency, and costs.

    Multicloud management tool selection

    The ecosystem is heterogeneous.

    The explosion of cloud platforms and stacks means no single multicloud management tool can provide support for every stack in the private and public cloud ecosystem. This challenge becomes even greater when moving from IaaS/PaaS to addressing the near-infinite number of offerings available in the SaaS market.

    When it comes to selecting the right multicloud management tool, it’s important to keep a few things in mind:

    1. Mapping your requirements to the feature sets for your multicloud management platform is critical.
    2. Depending on your goals and metrics, and the underlying platforms and data you need to collect from them, you may need more than one tool.
    3. Especially when it comes to integrating SaaS into your multicloud tool(s), development or partners may be required.

    Key Features

    • Portability
    • Cost management
    • Automation across vendors
    • Standardization of configuration
    • Security alignment across vendors
    • Unified provisioning and self-service

    Info-Tech Insight

    SaaS always presents a unique challenge for gathering necessary cloud management data. It’s important to understand what data is and isn’t available and how it can be accessed and made available to your multicloud management tools.

    Understand your vendors

    Define what you are looking for as a first step.

    • To best understand your options, you need to understand the focus, features, and support services for each vendor. Depending on your requirements, you may need to adopt more than one tool.
    • Remember that SaaS presents unique challenges in terms of accessing and ingesting data into your management tools. This will generally require development to leverage the provider’s API.
    • Within the following slides, you will find a defined activity with a working template that will create a vendor profile for each vendor.

    As a working example, you can review these vendors on the following slides:

    • VMware CloudHealth
    • ServiceNow ITOM
    • CloudCheckr

    Info-Tech Insight

    Creating vendor profiles will help quickly identify the management tools that meet your multicloud needs.

    Vendor Profile #1

    VMware CloudHealth

    Vendor Summary

    CloudHealth is a VMware management suite that provides visibility into VMware-based as well as public cloud platforms. CloudHealth focuses on providing visibility to costs and governance as well as applying automation and standardization of configuration and performance across cloud platforms.

    URL: cloudhealth.vmware.com

    Supported Platforms

    Supports AWS, Azure, GCP, OCI, VMware

    Feature Sets

    • Portability
    • Cost management
    • Automation across platforms
    • Standardization of configuration
    • Security alignment across platforms
    • Unified provisioning and self-service

    Vendor Profile #2

    ServiceNow ITOM

    Vendor Summary

    ServiceNow IT Operations Management (ITOM) is a module for the ServiceNow platform that allows deep visibility and automated intervention/remediation for resources across multiple public and private cloud platforms. In addition to providing a platform for managing workload portability and costs across multiple cloud platforms, ServiceNow ITOM offers features focused on delivering “proactive digital operations with AIOps.”

    URL: servicenow.com/products/it-operations-management.html

    Supported Platforms

    Supports CloudFormation, ARM, GDM, and Terraform templates. Also provisions virtualized VMware environments.

    Feature Sets

    • Portability
    • Cost management
    • Automation across platforms
    • Standardization of configuration
    • Security alignment across platforms
    • Unified provisioning and self-service

    Vendor Profile #3

    CloudCheckr

    Vendor Summary

    CloudCheckr is a SaaS platform that provides end-to-end cloud management to control cost, ensure security, optimize resources, and enable services. Primarily focused on enabling management of public cloud services, CloudCheckr’s broad platform support and APIs can be used to deliver unified visibility across many multicloud postures.

    URL: cloudcheckr.com

    Supported Platforms

    Supports AWS, Azure, GCP, SAP Hana

    Feature Sets

    • Portability
    • Cost management
    • Automation across platforms
    • Standardization of configuration
    • Security alignment across platforms
    • Unified provisioning and self-service

    Activity

    Understand your vendor options

    This activity involves the following participants:

    • IT strategic direction decision makers
    • Cloud governance team
    • Cloud deployment team
    • Vendor and portfolio management

    Outcomes of this step:

    • Vendor profile template (ppt)

    Info-Tech Insight

    This checkpoint process creates transparency around agreement costs with the business and gives the business an opportunity to reevaluate its requirements for a potentially leaner agreement.

    Create your vendor profiles

    Define what you are looking for and score vendors accordingly.

    1. Create a vendor profile for every vendor of interest.
    2. Leverage our starting list and template to track and record the advantages of each vendor.

    Vendor Profile Template

    The image contains a screenshot of a Vendor Profile Template.

    Land on your feet

    Best practices to hit the ground running in multicloud

    Focus your multicloud posture on SaaS (to start)

    SaaS

    While every service model and deployment model has its place in multicloud, depending on the requirements of the workload and the business, most organizations end up in multicloud because of the wide ecosystem of options available at the SaaS level.

    Enabling the ability to adopt SaaS offerings into your multicloud footprint should be an area of focus for most IT organizations, as it’s the easiest way to deliver business impact (without taking on additional infrastructure work).

    IaaS and PaaS

    Although IaaS and PaaS also have their place in multicloud, the benefits are usually focused more on increased portability and availability rather than on enabling business-led IT.

    Additionally, multicloud at these levels can often be complex and/or costly to implement and maintain. Make sure you understand the cost-benefit for implementing multicloud at this level!

    Where the data sits matters

    With multiple SaaS workloads as well as IaaS and PaaS footprints, one of the biggest challenges to effective multicloud is understanding where any given data is, what needs access to it, and how to stitch it all together.

    In short, you need a strategy to understand how to collect and consolidate data from your multiple footprints.

    Relying solely on the built-in tools and dashboards provided by each provider inevitably leads to data fragmentation – disparate data sets that make it difficult to gain clear, unified visibility into your cloud’s data.

    To address the challenge of fragmented data, many organizations will require a multicloud-capable management platform that can provide access and visibility to data from all sources in a unified way.

    Weigh portability against nativeness

    When it comes to multicloud, cloud-native design is both your enemy and your friend. On one hand, it provides the ability to fully leverage the power and flexibility of your chosen platform to run your workload in the most on-demand, performance-efficient, utility-optimized way possible.

    But it’s important to remember that building cloud-native for one platform directly conflicts with that workload’s portability to other platforms! You need to understand the balance between portability and native effectiveness that works best for each of your workloads.

    Info-Tech Insight

    You can (sort of) have the best of both worlds! While the decision to focus on the cloud-native products, services, and functions from a given cloud platform must be weighed carefully, it’s still a good idea to leverage open standards and architectures for your workloads, as those won’t hamper your portability in the same way.

    Broaden your cost management approach

    Even on singular platforms, cloud cost management is no easy task. In multicloud, this is amplified by the increased scale and scope of providers, products, rates, and units of measure.

    There is no easy solution to this – ultimately the same accountabilities and tasks that apply to good cost management on one cloud also apply to multicloud, just at greater scale and impact.

    The image contains a screenshot of cost management approach.

    Info-Tech Insight

    Evolving your tooling applies to cost management too. While the vendor-provided tools and dashboards for cost control on any given cloud provider’s platform are a good start and a critical source for data, to get a proper holistic view you will usually require multicloud cost management software (and possibly some development work).

    Think about the sky between the clouds

    A key theme in cloud service pricing is “it’s free to come in, but it costs to leave.” This is a critical consideration when designing the inflows and outflows of data, interactions, transactions, and resources among workloads sitting on different platforms and different regions or footprints.

    When defining your multicloud posture, think about what needs to flow between your various clouds and make sure to understand how these flows will affect costs, performance, and throughput of your workloads and the business processes they support.

    • Integration and Interfaces
    • Business Process and Application Flows
    • Inter-cloud Transit Costs

    Mature your management technology

    Automation Is Your Friend

    Managing multicloud is a lot of work. It makes sense to eliminate the most burdensome and error-prone tasks. Automating these tasks also increases the ease and speed of workload portability in most cases.

    Automation and scheduling are also key enablers of standardization – which is critical to managing costs and other risks in multicloud. Create policies that manage and optimize costs, resource utilization, and asset configuration. Use these to reduce the management burden and risk profile.

    Evolve Your Tooling

    Effective multicloud management requires a clear picture of your entire cloud ecosystem across all footprints. This generally isn’t possible using the default tools for any given cloud vendor. Fortunately, there is a wide ecosystem of multicloud tools to help provide you with a unified view.

    The best cloud management tools will not only allow you to get a unified view of your IT operations regardless of where the resources lie but also help you to evaluate your multiple cloud environments in a unified way, providing a level playing field to compare and identify opportunities for improvement.

    Info-Tech Insight

    Embrace openness! Leveraging open standards and technologies doesn’t just ease portability in multicloud; it also helps rationalize telemetry and metrics across platforms, making it easier to achieve a unified management view.

    Multicloud security

    Multicloud security challenges remain focused around managing user and role complexity

    • Fragmentation of identity and access management
    • Controlling access across platforms
    • Increased complexity of roles
    • API security
    • Managing different user types and subscriptions across different service models
    • Managing security best practices across multiple platforms
    • Potential increased attack surface

    Info-Tech Insight

    Don’t reinvent the wheel! Where possible, leverage your existing identity and access management platforms and role-based access control (RBAC) discipline and extend them out to your cloud footprints.

    Don’t fall in reactively!

    1. Multicloud isn’t bad or good.
    2. Put everything the right place; understand the other right places.
    3. Know where your data goes.
    4. Automation is your friend.
    5. Strategy fundamentals don’t change.
    6. Focus on SaaS (to start).
    7. Embrace openness.
    8. Modernize your tools.

    Related Info-Tech Research

    Define Your Cloud Vision
    This blueprint covers a workload-level approach to determining cloud migration paths

    10 Secrets for Successful Disaster Recovery in the Cloud
    This research set covers general cloud best practices for implement DR and resilience in the cloud.

    Bibliography

    “7 Best Practices for Multi-Cloud Management.” vmware.com, 29 April 2022. Web.
    Brown, Chalmers. “Six Best Practices For Multi-Cloud Management.” Forbes, 22 Jan. 2019. Web.
    Curless, Tim. “The Risks of Multi-Cloud Outweigh the Benefits.” AHEAD, n.d. Web.
    Tucker, Ryan. “Multicloud Security: Challenges and Solutions.” Megaport, 29 Sept 2022. Web.
    Velimirovic, Andreja. “How to Implement a Multi Cloud Strategy.” pheonixNAP, 23 June 2021. Web.
    “What is a Multi-Cloud Strategy?” vmware.com, n.d. Web.

    Design Data-as-a-Service

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    • member rating overall impact: 9.5/10 Overall Impact
    • member rating average dollars saved: $1,007 Average $ Saved
    • member rating average days saved: 31 Average Days Saved
    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • Lack of a consistent approach in accessing internal and external data within the organization and sharing data with third parties.
    • Data consumed by most organizations lacks proper data quality, data certification, standards tractability, and lineage.
    • Organizations are looking for guidance in terms of readily accessible data from others and data that can be shared with others or monetized.

    Our Advice

    Critical Insight

    • Despite data being everywhere, most organizations struggle to find accurate, trustworthy, and meaningful data when required.
    • Connecting to data should be as easy as connecting to the internet. This is achievable if all organizations start participating in the data marketplace ecosystem by leveraging a Data-as-a-Service (DaaS) framework.

    Impact and Result

    • Data marketplaces facilitate data sharing between the data producer and the data consumer. The data product must be carefully designed to truly benefit in today’s connected data ecosystem.
    • Follow Info-Tech’s step-by-step approach to establish your DaaS framework:
      1. Understand Data Ecosystem
      2. Design Data Products
      3. Establish DaaS framework

    Design Data-as-a-Service Research & Tools

    Start here – Read the Executive Brief

    Read our concise Executive Brief to find out why you should design Data-as-a-Service (DaaS), review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand data ecosystem

    Provide clear benefits of adopting the DaaS framework and solid rationale for moving towards a more connected data ecosystem and avoiding data silos.

    • Design Data-as-a-Service – Phase 1: Understand Data Ecosystem

    2. Design data product

    Leverage design thinking methodology and templates to document your most important data products.

    • Design Data-as-a-Service – Phase 2: Design Data Product

    3. Establish a DaaS framework

    Capture internal and external data sources critical to data products success for the organization and document an end-to-end DaaS framework.

    • Design Data-as-a-Service – Phase 3: Establish a DaaS Framework
    [infographic]

    Workshop: Design Data-as-a-Service

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Data Marketplace and DaaS Explained

    The Purpose

    The purpose of this module is to provide a clear understanding of the key concepts such as data marketplace, data sharing, and data products.

    Key Benefits Achieved

    This module will provide clear benefits of adopting the DaaS framework and solid rationale for moving towards a more connected data ecosystem and avoiding data silos.

    Activities

    1.1 Review the business context

    1.2 Understand the data ecosystem

    1.3 Draft products ideas and use cases

    1.4 Capture data product metrics

    Outputs

    Data product ideas

    Data sharing use cases

    Data product metrics

    2 Design Data Product

    The Purpose

    The purpose of this module is to leverage design thinking methodology and templates to document the most important data products.

    Key Benefits Achieved

    Data products design that incorporates end-to-end customer journey and stakeholder map.

    Activities

    2.1 Create a stakeholder map

    2.2 Establish a persona

    2.3 Data consumer journey map

    2.4 Document data product design

    Outputs

    Data product design

    3 Assess Data Sources

    The Purpose

    The purpose of this module is to capture internal and external data sources critical to data product success.

    Key Benefits Achieved

    Break down silos by integrating internal and external data sources

    Activities

    3.1 Review the conceptual data model

    3.2 Map internal and external data sources

    3.3 Document data sources

    Outputs

    Internal and external data sources relationship map

    4 Establish a DaaS Framework

    The Purpose

    The purpose of this module is to document end-to-end DaaS framework.

    Key Benefits Achieved

    End-to-end framework that breaks down silos and enables data product that can be exchanged for long-term success.

    Activities

    4.1 Design target state DaaS framework

    4.2 Document DaaS framework

    4.3 Assess the gaps between current and target environments

    4.4 Brainstorm initiatives to develop DaaS capabilities

    Outputs

    Target DaaS framework

    DaaS initiative

    Modernize Your Applications

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    • member rating overall impact: 10.0/10 Overall Impact
    • member rating average dollars saved: After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.
    • member rating average days saved: Read what our members are saying
    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • Application modernization is essential to stay competitive and productive in today’s digital environment. Your stakeholders have outlined their digital business goals that IT is expected to meet.
    • Your application portfolio cannot sufficiently support the flexibility and efficiency the business needs because of legacy challenges.
    • Your teams do not have a framework to illustrate, communicate, and justify the modernization effort and organizational changes in the language your stakeholders understand.

    Our Advice

    Critical Insight

    • Build your digital applications around continuous modernization. End-user needs, technology, business direction, and regulations rapidly change in today’s competitive and fast-paced industry. This reality will quickly turn your modern applications into shelfware. Build continuous modernization at the center of your digital application vision to keep up with evolving business, end-user, and IT needs.
    • Application modernization is organizational change management. If you build and modernize it, they may not come. The crux of successful application modernization is centered on the strategic, well-informed, and onboarded adoption of changes in key business areas, capabilities, and processes. Organizational change management must be front and center so that applications are fit for purpose and are something that end users want and need to use.
    • Business-IT collaboration is not optional. Application modernization will not be successful if your lines of business (LOBs) and IT are not working together. IT must empathize how LOBs operate and proactively support the underlying operational systems. LOBs must be accountable for all products leveraging modern technologies and be able to rationalize the technical feasibility of their digital application vision.

    Impact and Result

    • Establish the digital application vision. Gain a grounded understanding of the digital application construct and prioritize these attributes against your digital business goals.
    • Define your modernization approach. Obtain a thorough view of your business and technical complexities, risks, and impacts. Employ the right modernization techniques based on your organization’s change tolerance.
    • Build your roadmap. Clarify the organizational changes needed to support modernization and adoption of your digital applications.

    Modernize Your Applications Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should strategically modernize your applications, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Set your vision

    Describe your application vision and set the right modernization expectations with your stakeholders.

    • Modernize Your Applications – Phase 1: Set Your Vision

    2. Identify your modernization opportunities

    Focus your modernization efforts on the business opportunities that your stakeholders care about.

    • Modernize Your Applications – Phase 2: Identify Your Modernization Opportunities

    3. Plan your modernization

    Describe your modernization initiatives and build your modernization tactical roadmap.

    • Modernize Your Applications – Phase 3: Plan Your Modernization
    [infographic]

    Workshop: Modernize Your Applications

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Set Your Vision

    The Purpose

    Discuss the goals of your application modernization initiatives

    Define your digital application vision and priorities

    List your modernization principles

    Key Benefits Achieved

    Clear application modernization objectives and high priority value items

    Your digital application vision and attributes

    Key principles that will guide your application modernization initiatives

    Activities

    1.1 State Your Objectives

    1.2 Characterize Your Digital Application

    1.3 Define Your Modernization Principles

    Outputs

    Application modernization objectives

    Digital application vision and attributes definitions

    List of application modernization principles and guidelines

    2 Identify Your Modernization Opportunities

    The Purpose

    Identify the value streams and business capabilities that will benefit the most from application modernization

    Conduct a change tolerance assessment

    Build your modernization strategic roadmap

    Key Benefits Achieved

    Understanding of the value delivery improvements modernization can bring

    Recognizing the flexibility and tolerance of your organization to adopt changes

    Select an approach that best fits your organization’s goals and capacity

    Activities

    2.1 Identify the Opportunities

    2.2 Define Your Modernization Approach

    Outputs

    Value streams and business capabilities that are ideal modernization opportunities

    Your modernization strategic roadmap based on your change tolerance and modernization approach

    3 Plan Your Modernization

    The Purpose

    Identify the most appropriate modernization technique and the scope of changes to implement your techniques

    Develop an actionable tactical roadmap to complete your modernization initiatives

    Key Benefits Achieved

    Clear understanding of what must be changed to the organization and application considering your change tolerance

    An achievable modernization plan

    Activities

    3.1 Shortlist Your Modernization Techniques

    3.2 Roadmap Your Modernization Initiatives

    Outputs

    Scope of your application modernization initiatives

    Your modernization tactical roadmap

    Drive Customer Convenience by Enabling Text-Based Customer Support

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    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Text messaging services and applications (such as SMS, iMessage, WhatsApp, and Facebook Messenger) have seen explosive growth over the last decade. They are an entrenched part of consumers’ daily lives. For many demographics, text messaging rather than audio calls is the preferred medium of communication via smartphone.
    • Despite the popularity of text messaging services and applications with consumers, organizations have been slow to adequately incorporate these channels into their customer service strategy.
    • The result is a major disconnect between the channel preferences of consumers and the customer service options being offered by businesses.

    Our Advice

    Critical Insight

    • IT must work with their counterparts in customer service to build a technology roadmap that incorporates text messaging services and apps as a core channel for customer interaction. Doing so will increase IT’s stature as an innovator in the eyes of the business, while allowing the broader organization to leapfrog competitors that have not yet added text-based support to their repertoire of service channels. Incorporating text messaging as a customer service channel will increase customer satisfaction, improve retention, and reduce cost-to-serve.
    • A prudent strategy for text-based customer service begins with defining the value proposition and creating objectives: is there a strong fit with the organization’s customers and service use cases? Next, organizations must create a technology enablement roadmap for text-based support that incorporates the right tools and applications to deliver it. Finally, the strategy must address best practices for text-based customer service workflows and appropriate resourcing.

    Impact and Result

    • Understand the value and use cases for text-based customer support.
    • Create a framework for enabling technologies that will support scalable text-based customer service.
    • Improve underlying business metrics such as customer satisfaction, retention, and time to resolution by having a plan for text-based support.
    • Better align IT with customer service and support needs.

    Drive Customer Convenience by Enabling Text-Based Customer Support Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should be leveraging text-based services for customer support, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Create the business case for text-based customer support

    Understand the use cases and benefits of using text-based services for customer support, and establish how they align to the organization’s current service strategy.

    • Drive Customer Convenience by Enabling Text-Based Customer Support – Phase 1: Create the Business Case for Text-Based Customer Support
    • Text-Based Customer Support Strategic Summary Template
    • Text-Based Customer Support Project Charter Template
    • Text-Based Customer Support Business Case Assessment

    2. Create a technology enablement framework for text-based customer support

    Identify the right applications that will be needed to adequately support a text-based support strategy.

    • Drive Customer Convenience by Enabling Text-Based Customer Support – Phase 2: Create a Technology Enablement Framework for Text-Based Customer Support
    • Text-Based Customer Support Requirements Traceability Matrix

    3. Create customer service workflows for text-based support

    Create repeatable workflows and escalation policies for text-centric support.

    • Drive Customer Convenience by Enabling Text-Based Customer Support – Phase 3: Create Customer Service Workflows for Text-Based Support
    • Text-Based Customer Support TCO Tool
    • Text-Based Customer Support Acceptable Use Policy
    [infographic]

    Workshop: Drive Customer Convenience by Enabling Text-Based Customer Support

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Create the Business Case for Text-Based Support

    The Purpose

    Create the business case for text-based support.

    Key Benefits Achieved

    A clear direction on the drivers and value proposition of text-based customer support for your organization.

    Activities

    1.1 Identify customer personas.

    1.2 Define business and IT drivers.

    Outputs

    Identification of IT and business drivers.

    Project framework and guiding principles for the project.

    2 Create a Technology Enablement Framework for Text-Based Support

    The Purpose

    Create a technology enablement framework for text-based support.

    Key Benefits Achieved

    Prioritized requirements for text-based support and a vetted shortlist of the technologies needed to enable it.

    Activities

    2.1 Determine the correct migration strategy based on the current version of Exchange.

    2.2 Plan the user groups for a gradual deployment.

    Outputs

    Exchange migration strategy.

    User group organization by priority of migration.

    3 Create Service Workflows for Text-Based Support

    The Purpose

    Create service workflows for text-based support.

    Key Benefits Achieved

    Customer service workflows and escalation policies, as well as risk mitigation considerations.

    Present final deliverable to key stakeholders.

    Activities

    3.1 Review the text channel matrix.

    3.2 Build the inventory of customer service applications that are needed to support text-based service.

    Outputs

    Extract requirements for text-based customer support.

    4 Finalize Your Text Service Strategy

    The Purpose

    Finalize the text service strategy.

    Key Benefits Achieved

    Resource and risk mitigation plan.

    Activities

    4.1 Build core customer service workflows for text-based support.

    4.2 Identify text-centric risks and create a mitigation plan.

    4.3 Identify metrics for text-based support.

    Outputs

    Business process models assigned to text-based support.

    Formulation of risk mitigation plan.

    Key metrics for text-based support.

    Learn the right way to manage metrics

    • Parent Category Name: Improve Your Processes
    • Parent Category Link: /improve-your-processes
    • byline: Short takes on topics

    Learn to use metrics in the right way. Avoid staff (subconciously) gaming the numbers, as it is only natural to try to achieve the objective. This is really a case of be careful what you wish for, you may just get it.

    Register to read more …

    Scale Business Process Automation

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    • Parent Category Name: Optimization
    • Parent Category Link: /optimization
    • Business process automation (BPA) adoption gained significant momentum as your business leaders saw the positive outcomes in your pilots, such as improvements in customer experience, operational efficiencies, and cost optimizations.
    • Your stakeholders are ready to increase their investments in more process automation solutions. They want to scale initial successes to other business and IT functions.
    • However, it is unclear how BPA can be successfully scaled and what benefits can be achieved from it.

    Our Advice

    Critical Insight

    The shift from isolated, task-based automations in your pilot to value-oriented, scaled automations brings new challenges and barriers to your organization such as:

    • Little motivation or tolerance to change existing business operations to see the full value of BPA.
    • Overinvesting in current BPA technologies to maximize the return despite available alternatives that can do the same tasks better.
    • BPA teams are ill-equipped to meet the demands and complexities of scaled BPA implementations.

    Impact and Result

    • Ground your scaling expectations. Set realistic and achievable goals centered on driving business value to the entire organization by optimizing and automating end-to-end business processes.
    • Define your scaling journey. Tailor your scaling approach according to your ability to ease BPA implementation, to broaden BPA adoption, and to loosen BPA constraints.
    • Prepare to scale BPA. Cement your BPA management and governance foundations to support BPA scaling using the lessons learned from your pilot implementation.

    Scale Business Process Automation Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Scale Business Process Automation Deck – A guide to learn the opportunities and values of scaling business process automation.

    This research walks you through the level setting of your scaled business process automation (BPA) expectations, factors to consider in defining your scaled BPA journey, and assessing your readiness to scale BPA.

    • Scale Business Process Automation Storyboard

    2. Scale Business Process Automation Readiness Assessment – A tool to help you evaluate your readiness to scale business process automation.

    Use this tool to identify key gaps in the people, processes, and technologies you need to support the scaling of business process automation (BPA). It also contains a canvas to facilitate your discussions around business process automation with your stakeholders and BPA teams.

    • Scale Business Process Automation Readiness Assessment
    [infographic]

    Further reading

    Scale Business Process Automation

    Take a value-first approach to automate the processes that matter

    Analyst Perspective

    Scaling business process automation (BPA) is an organization-wide commitment

    Business and IT must work together to ensure the right automations are implemented and BPA is grown and matured in a sustainable way. However, many organizations are not ready to make this commitment. Managing the automation demand backlog, coordinating cross-functional effort and organizational change, and measuring BPA value are some of the leading factors challenging scaling BPA.

    Pilot BPA with the intent to scale it. Pilots are safe starting points to establish your foundational governance and management practices and build the necessary relationships and collaborations for you to be successful. These factors will then allow you to explore more sophisticated, complicated, and innovative opportunities to drive new value to your team, department, and organization.

    A picture of Andrew Kum-Seun

    Andrew Kum-Seun
    Research Director,
    Application Delivery and Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Business process automation (BPA) adoption gained significant momentum as your business leaders see the positive outcomes in your pilots, such as improvements in customer experience, operational efficiencies, and cost optimizations.
    • Your stakeholders are ready to increase their investments in more process automation solutions. They want to scale initial successes to other business and IT functions.
    • However, it is unclear how BPA can be successfully scaled and what benefits can be achieved from it.

    Common Obstacles

    The shift from isolated, task-based automations in your pilot to value-oriented and scaled automations brings new challenges and barriers to your organization:

    • Little motivation or tolerance to change existing business operations to see the full value of BPA.
    • Overinvesting in current BPA technologies to maximize return despite available alternatives that can do the same tasks better.
    • BPA teams are ill-equipped to meet the demands and complexities of scaled BPA implementations.

    Info-Tech's Approach

    • Ground your scaling expectations. Set realistic and achievable goals centered on driving business value to the entire organization by optimizing and automating end-to-end business processes.
    • Define your scaling journey. Tailor your scaling approach according to your ability to ease BPA implementation, to broaden BPA adoption, and to loosen BPA constraints.
    • Prepare to scale BPA. Cement your BPA management and governance foundations to support BPA scaling using the lessons learned from your pilot implementation.

    Info-Tech Insight

    Take a value-first approach in your scaling business process automation (BPA) journey. Low-risk, task-oriented automations are good starting points to introduce BPA but constrain the broader returns your organization wants. Business value can only scale when everything and everyone in your processes are working together to streamline the entire value stream rather than the small gains from optimizing small, isolated automations.

    Scale Business Process Automation

    Take a value-first approach to automate the processes that matter

    Pilot Your BPA Capabilities

    • Learn the foundation practices to design, deliver, and support BPA.
    • Understand the fit and value of BPA.
    • Gauge the tolerance for business operational change and system risk.

    See Info-Tech's Build a Winning Business Process Automation Playbook blueprint for more information.

    Build Your Scaling BPA Vision

    Apply Lessons Learned to Scale

    1. Ground Your Scaling Expectations
      Set realistic and achievable goals centered on driving business value to the entire organization by optimizing and automating end-to-end business processes.
    2. Define Your Scaling Journey
      Tailor your scaling approach according to your ability to ease BPA implementation, to broaden BPA adoption, and to loosen BPA constraints.
    3. Prepare to Scale BPA
      Cement your BPA management and governance foundations to support BPA scaling using the lessons learned from your pilot implementation.

    Research deliverable

    Design and communicate your approach to scale business process automation with Info-Tech's Scale Business Process Automation Readiness Assessment:

    • Level set your scaled BPA goals and objectives.
    • Discuss and design your scaled BPA journey.
    • Identify the gaps and improvements needed to scale your BPA practices and implementation.

    A screenshot from Info-Tech's Scale Business Process Automation Readiness Assessment

    Step 1.1

    Ground Your Scaling Expectations

    Activities

    1.1.1 Define Your Scaling Objectives

    This step involves the following participants:

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    Outcomes of this step

    Scaling BPA objectives

    Organizations want to scale their initial BPA success

    Notable Initial Benefits

    1. Time Saved: "In the first day of live operations, the robots were saving 51 hours each day or the equivalent of six people working an eight-hour shift." – Brendan MacDonald, Director of Customer Compliance Operations, Ladbrokes (UiPath)
    2. Documentation & Knowledge Sharing: "If certain people left, knowledge of some processes would be lost and we realized that we needed a reliable process management system in place." – Peta Kinnane, Acting Audit and Risk Coordinator, Liverpool City Council (Nintex)
    3. Improved Service Delivery: "Thanks to this automation, our percentage of triaged and assigned tickets is now 100%. Nothing falls through the cracks. It has also improved the time to assignment. We assign tickets 2x faster than before." – Sebastian Goodwin, Head of Cybersecurity, Nutanix (Workato)

    Can We Gain More From Automation?

    The Solution

    As industries evolve and adopt more tools and technology, their products, services, and business operating models become more complex. Task- and desktop-based automations are often not enough. More sophisticated and scaled automations are needed to simplify and streamline the process from end-to-end of complex operations and align them with organizational goals.

    Stakeholders see automation as an opportunity to scale the business

    The value of scaling BPA is dependent on the organization's ability to scale with it. In other words, stakeholders should see an increase in business value without a substantial increase in resources and operational costs (e.g., there should be little difference if sending out 10 emails versus 1000).

    Examples of how business can be scaled with automation

    • Processes triggered by incoming documents or email: in these processes, an incoming document or email (that has semi-structured or unstructured data) is collected by a script or an RPA bot. This document is then processed with a machine learning model that validates it either by rules or ML models. The validated and enriched machine-readable data is then passed on to the next system of record.
    • The accounts payable process: this process includes receiving, processing, and paying out invoices from suppliers that provided goods or services to the company. While manual processing can be expensive, take too much time, and lead to errors, businesses can automate this process with machine learning and document extraction technologies like optical characters recognition (OCR), which converts texts containing images into characters that can be readable by computers to edit, compute, and analyze.
    • Order management: these processes include retrieving email and relevant attachments, extracting information that tells the business what its customers want, updating internal systems with newly placed orders or modifications, or taking necessary actions related to customer queries.
    • Enhance customer experience: [BPA tools] can help teams develop and distribute customer loyalty offers faster while also optimizing these offers with customer insights. Now, enterprises can more easily guarantee they are delivering the relevant solutions their clients are demanding.

    Source: Stefanini Group

    Scaling BPA has its challenges

    Perceived Lack of Opportunities

    Pilot BPA implementations often involve the processes that are straightforward to automate or are already shortlisted to optimize. However, these low-hanging fruits will run out. Discovering new BPA opportunities can be challenged for a variety of reasons, such as:

    • Lack of documentation and knowledge
    • Low user participation or drive to change
    • BPA technology limitations and constraints

    Perceived Lack of Opportunities

    BPA is not a cheap investment. A single RPA bot, for example, can cost between $5,000 to $15,000. This cost does not include the added cost for training, renewal fees, infrastructure set up and other variable and reoccurring costs that often come with RPA delivery and support (Blueprint). This reality can motivate BPA owners to favor existing technologies over other cheaper and more effective alternatives in an attempt boost their return on investment.

    Ill-Equipped Support Teams

    Good technical skills and tools, and the right mindset are critical to ensure BPA capabilities are deployed effectively. Low-code no-code (LCNC) can help but success isn't guaranteed. Lack of experience with low-code platforms is the biggest obstacle in low-code adoption according to 60% of respondents (Creatio). The learning curve has led some organizations to hire contractors to onboard BPA teams, hire new employees, or dedicate significant funding and resources to upskill internal resources.

    Shift your objectives from task-based efficiencies to value-driven capabilities

    How can I improve myself?

    How can we improve my team?

    How can we improve my organization?

    Objectives

    • Improve worker productivity
    • Improve the repeatability and predictability of the process
    • Deliver outputs of consistent quality and cadence
    • Increase process, tool, and technology confidence
    • Increase the team's throughput, commitment, and load
    • Apply more focus on cognitive and complex tasks
    • Reduce the time to complete error-prone, manual, and routine collaborations
    • Deliver insightful, personalized, and valuable outputs
    • Drive more value in existing pipelines and introduce new value streams
    • Deliver consistent digital experiences involving different technologies
    • Automatically tailor a customer's experience to individual preferences
    • Forecast and rapidly respond to customer issues and market trends

    Goals

    • Learn the fit of BPA & set the foundations
    • Improve the practices & tools and optimize the performance
    • Scale BPA capabilities throughout the organization

    Gauge the success of your scaled BPA

    BPA Practice Effectiveness

    Key Question: Are stakeholders satisfied with how the BPA practice is meeting their automation needs?

    Examples of Metrics:

    • User satisfaction
    • Automation request turnaround time
    • Throughput of BPA team

    Automation Solution Quality

    Key Question: How do your automation solutions perform and meet your quality standards?

    Examples of Metrics:

    • Licensing and operational costs
    • Service level agreement and uptime/downtime
    • Number of defects

    Business Value Delivery

    Key Question: How has automation improved the value your employees, teams, and the organization delivers?

    Examples of Metrics:
    Increase in revenue generation
    Reduction in operational costs
    Expansion of business capabilities with minimal increases in costs and risks

    1.1.1 Define your scaling objectives

    5 minutes

    1. Complete the following fields to build your scaled business process automation canvas:
      1. Problem that scaling BPA is intending to solve
      2. Your vision for scaling BPA
      3. Stakeholders
      4. Scaled BPA business and IT objectives and metrics
      5. Business capabilities, processes, and application systems involved
      6. Notable constraints, roadblocks, and challenges to your scaled BPA success
    2. Document your findings and discussions in Info-Tech's Scale Business Process Automation Readiness Assessment.

    Output

    Scaled BPA value canvas

    Participants

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    Record the results in the 2. Value Canvas Tab in the Scale Business Process Automation Readiness Assessment.

    1.1.1 cont'd

    Scaled BPA Value Canvas Template:

    A screenshot of Scaled BPA Value Canvas Template

    Align your objectives to your application portfolio strategy

    Why is an application portfolio strategy important for BPA?

    • All business process optimizations are designed, delivered, and managed to support a consistent interpretation of the business and IT vision and goals.
    • Clear understanding of the sprawl, criticality, and risks of automation solutions and applications to business capabilities.
    • BPA initiatives are planned, prioritized, and coordinated alongside modernization, upgrades, and other changes to the application portfolio.
    • Resources, skills, and capacities are strategically allocated to meet BPA demand considering other commitments in the backlog and roadmap.
    • BPA expectations and practices uphold the persona, values, and principles of the application team.

    What is an application portfolio strategy?

    An application portfolio strategy details the direction, activities, and tactics to deliver on the promise of your application portfolio. It often includes:

    • Portfolio vision and goals
    • Application, automation, and process portfolio
    • Values and principles
    • Portfolio health
    • Risks and constraints
    • Strategic roadmap

    See our Application Portfolio Management Foundations blueprint for more information.

    Leverage your BPA champions to drive change and support scaling initiatives

    An arrow showing the steps to Leverage your BPA champions to drive change and support scaling initiatives

    Expected Outcome From Your Pilot: Your pilot would have recognized the roles that know how to effectively apply good BPA practices (e.g., process analysis and optimization) and are familiar with the BPA toolset. These individuals are prime candidates who can standardize your Build a Winning Business Process Automation Playbook, upskill interested teams, and build relationships among those involved in the delivery and use of BPA.

    Step 1.2

    Define Your Scaling Journey

    Activities

    1.2.1 Discuss Your BPA Opportunities
    1.2.2 Lay Out Your Scaling BPA Journey

    Scale Business Process Automation

    This step involves the following participants:

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    Outcomes of this step

    • List of scaling BPA opportunities
    • Tailored scaling journey

    Maintain a healthy demand pipeline

    A successful scaled BPA practice requires a continuous demand for BPA capabilities and the delivery of minimum viable automations (MVA) held together by a broader strategic roadmap.

    An image of a healthy demand pipeline. it flows from opportunities to trends, with inputs from internal and external sources.

    An MVA focuses on a single and small process use case, involves minimal possible effort to improve, and is designed to satisfy a specific user group. Its purpose is to maximize learning and value and inform the further scaling of the BPA technology, approach, or practice.

    See our Build a Winning Business Process Automation Playbook blueprint for more information.

    Investigate how BPA trends can drive more value for the organization

    • Event-Driven Automation
      Process is triggered by a schedule, system output, scenario, or user (e.g., voice-activated, time-sensitive, system condition)
    • Low- & No-Code Automation build and management are completed through an easy-to-learn scripting language and/or a GUI.
    • Intelligent Document Processing
      Transform documents for better analysis, processing and handling (e.g., optical character recognition) by a tool or system.
    • End-to-End Process Automation & Transparency
      Linking cross-functional processes to enable automation of the entire value stream with seamless handoffs or triggers.
    • Orchestration of Different BPA Technologies
      Integrating and sequencing the execution of multiple automation solutions through a single console.
    • Cognitive Automation
      AI and other intelligent technologies automate information-intensive processes, including semi and unstructured data and human thinking simulation.
    • Intelligent Internet-of-Things
      Connecting process automation technologies to physical environments with sensors and other interaction devices (e.g., computer vision).
    • Ethical Design
      Optimizing processes that align to the moral value, principles, and beliefs of the organization (e.g., respects data privacy, resists manipulative patterns).
    • User Profiling & Tailored Experiences
      Customizing process outputs and user experience with user-defined configurations or system and user activity monitoring.
    • Process Mining & Discovery
      Gleaning optimization opportunities by analyzing system activities (mining) or monitoring user interactions with applications (discovery).

    1.2.1 Discuss your BPA opportunities

    5 minutes

    1. Review the goals and objectives of your initiative and the expectations you want to gain from scaling BPA.
    2. Discuss how BPA trends can be leveraged in your organization.
    3. List high priority scaling BPA opportunities.

    Output

    • Scaled BPA opportunities

    Participants

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    Create your recipe for success

    Your scaling BPA recipe (approach) can involve multiple different flavors of various quantities to fit the needs and constraints of your organization and workers.

    What and how many ingredients you need is dependent on three key questions:

    1. How can we ease BPA implementation?
    2. How can we broaden the BPA scope?
    3. How can we loosen constraints?

    Personalize Scaling BPA To Your Taste

    • Extend BPA Across Business Units (Horizontal)
    • Integrate BPA Across Your Application Architecture (Vertical)
    • Embed AI/ML Into Your Automation Technologies
    • Empower Users With Business-Managed Automations
    • Combine Multiple Technologies for End-to-End Automation
    • Increase the Volume and Velocity of Automation
    • Automate Cognitive Processes and Making Variable Decisions

    Answer these questions in the definition of your scaling BPA journey

    Seeing the full value of your scaling approach is dependent on your ability to support BPA adoption across the organization

    How can we ease BPA implementation?

    • Good governance practices (e.g., role definitions, delivery and management processes, technology standards).
    • Support for innovation and experimentation.
    • Interoperable and plug-and-play architecture.
    • Dedicated technology management and support, including resources, documents, templates and shells.
    • Accessible and easy-to-understand knowledge and document repository.

    How can we broaden BPA scope?

    • Provide a unified experience across processes, fragmented technologies, and siloed business functions.
    • Improve intellectually intensive activities, challenging decision making and complex processes with more valuable insights and information using BPA.
    • Proactively react to business and technology environments and operational changes and interact with customers with unattended automation.
    • Infuse BPA technologies into your product and service to expand their functions, output quality, and reliability.

    How can we loosen constraints?

    • Processes are automated without the need for structured data and optimized processes, and there is no need to work around or avoid legacy applications.
    • Workers are empowered to develop and maintain their own automations.
    • Coaching, mentoring, training, and onboarding capabilities.
    • Accessibility and adoption of underutilized applications are improved with BPA.
    • BPA is used to overcome the limitations or the inefficiencies of other BPA technologies.

    1.2.2 Lay out your scaling BPA journey

    5 minutes

    1. Review the goals and objectives of your initiative, the expectations you want to gain from scaling BPA, and the various scaling BPA opportunities.
    2. Discuss the different scaling BPA flavors (patterns) and how each flavor is applicable to your situation. Ask yourself these key questions:
      1. How can we ease BPA implementation?
      2. How can we broaden the BPA scope?
      3. How can we loosen constraints?
    3. Design the broad steps of your scaling BPA journey. See the following slide for an example.
    4. Document your findings and discussions in Info-Tech's Scale Business Process Automation Readiness Assessment.

    Record the results in the 3. Scaled BPA Journey Tab in the Scale Business Process Automation Readiness Assessment.

    Output

    • Scaled BPA journey

    Participants

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    1.2.2 cont'd

    An image of the marker used to identify Continuous business process optimization and automation Continuous business process optimization and automation
    An image of the marker used to identify Scope of Info-Tech's Build Your Business Process Automation Playbook blueprintScope of Info-Tech's Build Your Business Process Automation Playbook blueprint

    Example:

    An example of the BPA journey. Below are the links included in the journey.

    Continuously review and realign expectations

    Optimizing your scaled BPA practices and applying continuous improvements starts with monitoring the process after implementation.

    Purpose of Monitoring

    1. Diligent monitoring confirms your scaled BPA implementation is performing as desired and meeting initial expectations.
    2. Holding reviews of your BPA practice and implementations helps assess the impact of marketplace and business operations changes and allows the organization to stay on top of trends and risks.

    Metrics

    Metrics are an important aspect of monitoring and sustaining the scaled practice. The metrics will help determine success and find areas where adjustments may be needed.

    Hold retrospectives to identify any practice issues to be resolved or opportunities to undertake

    The retrospective gives your organization the opportunity to review themselves and brainstorm solutions and a plan for improvements to be actioned. This session is reoccurring, typically, after key milestones. While it is important to allow all participants the opportunity to voice their opinions, feelings, and experiences, retrospectives must be positive, productive, and time boxed.

    Step 1.3

    Prepare to Scale BPA

    Activities

    1.3.1 Assess Your Readiness to Scale BPA

    This step involves the following participants:

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    Outcomes of this step

    • Scale BPA readiness assessment

    Prepare to scale by learning from your pilot implementations

    "While most organizations are advised to start with automating the 'low hanging fruit' first, the truth is that it can create traps that will impede your ability to achieve RPA at scale. In fact, scaling RPA into the organizational structure is fundamentally different from implementing a conventional software product or other process automation."
    – Blueprint

    What should be the takeaways from your pilot?

    Degree of Required BPA Support

    • Practices needed to address the organization's tolerance to business process changes and automation adoption.
    • Resources, budget and skills needed to configure and orchestrate automation technologies to existing business applications and systems.

    Technology Integration & Compatibility

    • The BPA technology and application system's flexibility to be enhanced, modified, and removed.
    • Adherence to data and system quality standards (e.g., security, availability) across all tools and technologies.

    Good Practices Toolkit

    • A list of tactics, techniques, templates, and examples to assist teams assessing and optimizing business processes and applying BPA solutions in your organization's context.
    • Strategies to navigate common blockers, challenges, and risks.

    Controls & Measures

    • Defined guardrails aligned to your organization's policies and risk tolerance
    • Key metrics are gathered to gauge the value and performance of your processes and automations for enhancements and further scaling.

    Decide how to architect and govern your BPA solutions

    Centralized

    A single body and platform to coordinate, execute, and manage all automation solutions.

    An image of the Centralized approach to governing BPA solutions.

    Distributed

    Automation solutions are locally delivered and managed whether that is per business unit, type of technology, or vendor. Some collaboration and integration can occur among solutions but might be done without a holistic strategy or approach.

    An image of the Distributed approach to governing BPA solutions.

    Hybrid

    Automation solutions are locally delivered and managed and executed for isolated use cases. Broader and complex automations are centrally orchestrated and administered.

    An image of the Hybrid approach to governing BPA solutions.

    Be prepared to address the risks with scaling BPA

    "Companies tend to underestimate the complexity of their business processes – and bots will frequently malfunction without an RPA design team that knows how to anticipate and prepare for most process exceptions. Unresolved process exceptions rank among the biggest RPA challenges, prompting frustrated users to revert to manual work."
    – Eduardo Diquez, Auxis, 2020

    Scenarios

    • Handling Failures of Dependent Systems
    • Handling Data Corruption & Quality Issues
    • Alignment to Regulatory & Industry Standards
    • Addressing Changes & Regressions to Business Processes
    • "Run Away" & Hijacked Automations
    • Unauthorized Access to Sensitive Information

    Recognize the costs to support your scaled BPA environment

    Cost Factors

    Automation Operations
    How will chaining multiple BPA technologies together impact your operating budget? Is there a limit on the number of active automations you can have at a single time?

    User Licenses
    How many users require access to the designer, orchestrator, and other functions of the BPA solution? Do they also require access to dependent applications, services, and databases?

    System Enhancements
    Are application and system upgrades and modernizations needed to support BPA? Is your infrastructure, data, and security controls capable of handling BPA demand?

    Supporting Resources
    Are dedicated resources needed to support, govern, and manage BPA across business and IT functions? Are internal resources or third-party providers preferred?

    Training & Onboarding
    Are end users and supporting resources trained to deliver, support, and/or use BPA? How will training and onboarding be facilitated: internally or via third party providers?

    Create a cross-functional and supportive body to lead the scaling of BPA

    Your supportive body is a cross-functional group of individuals promoting collaboration and good BPA practices. It enables an organization to extract the full benefits from critical systems, guides the growth and evolution of strategic BPA implementations, and provides critical expertise to those that need it. A supportive body distinctly caters to optimizing and strengthening BPA governance, management, and operational practices for a single technology or business function or broadly across the entire organization encompassing all BPA capabilities.

    What a support body is not:

    • A Temporary Measure
    • Exclusive to Large Organizations
    • A Project Management Office
    • A Physical Office
    • A Quick Fix

    See our Maximize the Benefits from Enterprise Applications With a Center of Excellence blueprint for more information.

    What are my options?

    Center of Excellence (CoE)
    AND
    Community of Practice (CoP)

    CoEs and CoPs provide critical functions

    An image of the critical functions provided by CoE and CoP.

    Shift your principles as you scale BPA

    As BPA scales, users and teams must not only think of how a BPA solution operates at a personal and technical level or what goals it is trying to achieve, but why it is worth doing and how the outcomes of the automated process will impact the organization's reputation, morality, and public perception.

    An image of the journey from Siloed BPA to Scaled BPA.

    "I think you're going to see a lot of corporations thinking about the corporate responsibility of [organizational change from automation], because studies show that consumers want and will only do business with socially responsible companies."

    – Todd Lohr

    Source: Appian, 2018.

    Assess your readiness to scale BPA

    Vision & Objectives
    Clear direction and goals of the business process automation practice.

    Governance
    Defined BPA roles and responsibilities, processes, and technology controls.

    Skills & Competencies
    The capabilities users and support roles must have to be successful with BPA.

    Business Process Management & Optimization
    The tactics to document, analyze, optimize, and monitor business processes.

    Business Process Automation Delivery
    The tactics to review the fit of automation solutions and deliver and support according to end user needs and preferences.

    Business Process Automation Platform
    The capabilities to manage BPA platforms and ensure it supports the growing needs of the business.

    1.3.1 Assess your readiness to scale BPA

    5 minutes

    1. Review your scaling BPA journey and selected patterns.
    2. Conduct a readiness assessment using the 4. Readiness Assessment tab in Info-Tech's Scale Business Process Automation Readiness Assessment.
    3. Brainstorm solutions to improve the capability or address the gaps found in this assessment.

    Output

    • Scaled BPA readiness assessment

    Participants

    • Business Process Owners
    • Product Owners
    • Application Directors
    • Business Architects
    • BPA Delivery & Support Teams

    Record the results in the 4. Readiness Assessment tab in Info-Tech's Scale Business Process Automation Readiness Assessment.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Related Info-Tech Research

    Bibliography

    Alston, Roland. "With the Rise of Intelligent Automation, Ethics Matter Now More than Ever." Appian, 4 Sept. 2018. Web.
    "Challenges of Achieving RPA at Scale." Blueprint, N.d. Web.
    Dilmegani, Cem. "RPA Benefits: 20 Ways Bots Improve Businesses in 2023," AI Multiple, 9 Jan 2023. Web.
    Diquez, Eduardo. "Struggling To Scale RPA? Discover The Secret to Success." Auxis, 30 Sept. 2020. Web.
    "How much does Robotic Process Automation (RPA) Really Cost?" Blueprint, 14 Sept. 2021. Web.
    "Liverpool City Council improves document process with Nintex." Nintex, n.d. Web.
    "The State of Low-Code/No-Code." Creatio, 2021. Web.
    "Using automation to enhance security and increase IT NPS to 90+ at Nutanix." Workato, n.d. Web.
    "What Is Hyperautomation? A Complete Guide To One Of Gartner's Top Tech Trends." Stefanini Group, 26 Mar. 2021. Web.

    Implement an IT Employee Development Plan

    • Buy Link or Shortcode: {j2store}592|cart{/j2store}
    • member rating overall impact: 9.0/10 Overall Impact
    • member rating average dollars saved: 5 Average Days Saved
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    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • There is a growing gap between the competencies organizations have been focused on developing and what is needed in the future.
    • Employees have been left to drive their own development with little direction or support and without the alignment of development to organizational needs.
    • The pace of change in today’s environment demands new competencies while making others obsolete, and IT is challenged with keeping up with upskilling employees.

    Our Advice

    Critical Insight

    • Organizations position development as employee-owned, yet employees still feel like their needs aren’t being met, and many leave as a result.
    • Development needs to be employee-owned and manager-supported but also organization-informed to ensure that it meets the organization’s needs.
    • Today, operating environments change quickly, and organizations need to develop the competencies employees need both today and in the future.

    Impact and Result

    • Design employee development plans that build the competencies the organization and IT department need both today and in the future.
    • Equip managers and build program support to foster continuous learning and development.
    • Connect the right development opportunity to the right employee through an effective development planning process.

    Implement an IT Employee Development Plan Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement effective development planning, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess employees' development needs

    Assist your employees in setting appropriate development goals.

    • Implement Effective Employee Development Planning – Phase 1: Assess Employees' Development Needs
    • IT Manager Job Aid: Employee Development
    • IT Employee Job Aid: Employee Development
    • IT Employee Career Development Workbook
    • Individual Competency Development Plan
    • IT Competency Library
    • Leadership Competencies Workbook

    2. Select appropriate activities for development

    Review existing and identify new development activities that employees can undertake to achieve their goals.

    • Implement Effective Employee Development Planning – Phase 2: Select Activities for Developing Prioritized Competencies
    • Learning Methods Catalog for IT Employees

    3. Build manager coaching skills

    Establish manager and employee follow-up accountabilities.

    • Implement Effective Employee Development Planning – Phase 3: Build Manager Coaching Skills to Support Employee Development
    • Role Play Coaching Scenarios
    [infographic]

    Tactics to Retain IT Talent

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    • Parent Category Name: Engage
    • Parent Category Link: /engage
    • Regrettable turnover is impacting organizational productivity and leading to significant costs associated with employee departures and the recruitment required to replace them.
    • Many organizations focus on increasing engagement to improve retention, but this approach doesn’t address the entire problem.

    Our Advice

    Critical Insight

    • Engagement surveys mask the volatility of the employee experience and hide the reason why individual employees leave. You must also talk to employees to understand the moments that matter and engage managers to understand turnover triggers.

    Impact and Result

    • Build the case for creating retention plans by leveraging employee data and feedback to identify the key reasons for turnover that need to be addressed.
    • Target employee segments and work with management to develop solutions to retain top talent.

    Tactics to Retain IT Talent Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Tactics to Retain IT Talent Storyboard – Use this storyboard to develop a targeted talent retention plan to retain top and core talent in the organization.

    Integrate data from exit surveys and interviews, engagement surveys, and stay interviews to understand the most commonly cited reasons for employee departure in order to select and prioritize tactics that improve retention. This blueprint will help you identify reasons for regrettable turnover, select solutions, and create an action plan.

    • Tactics to Retain IT Talent Storyboard

    2. Retention Plan Workbook – Capture key information in one place as you work through the process to assess and prioritize solutions.

    Use this tool to document and analyze turnover data to find suitable retention solutions.

    • Retention Plan Workbook

    3. Stay Interview Guide – Managers will use this guide to conduct regular stay interviews with employees to anticipate and address turnover triggers.

    The Stay Interview Guide helps managers conduct interviews with current employees, enabling the manager to understand the employee's current engagement level, satisfaction with current role and responsibilities, suggestions for potential improvements, and intent to stay with the organization.

    • Stay Interview Guide

    4. IT Retention Solutions Catalog – Use this catalog to select and prioritize retention solutions across the employee lifecycle.

    Review best-practice solutions to identify those that are most suitable to your organizational culture and employee needs. Use the IT Retention Solutions Catalog to explore a variety of methods to improve retention, understand their use cases, and determine stakeholder responsibilities.

    • IT Retention Solutions Catalog
    [infographic]

    Workshop: Tactics to Retain IT Talent

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Identify Reasons for Regrettable Turnover

    The Purpose

    Identify the main drivers of turnover at the organization.

    Key Benefits Achieved

    Find out what to explore during focus groups.

    Activities

    1.1 Review data to determine why employees join, stay, and leave.

    1.2 Identify common themes.

    1.3 Prepare for focus groups.

    Outputs

    List of common themes/pain points recorded in the Retention Plan Workbook.

    2 Conduct Focus Groups

    The Purpose

    Conduct focus groups to explore retention drivers.

    Key Benefits Achieved

    Explore identified themes.

    Activities

    2.1 Conduct four 1-hour focus groups with the employee segment(s) identified in the pre-workshop activities.

    2.2 Info-Tech facilitators independently analyze results of focus groups and group results by theme.

    Outputs

    Focus group feedback.

    Focus group feedback analyzed and organized by themes.

    3 Identify Needs and Retention Initiatives

    The Purpose

    Home in on employee needs that are a priority.

    Key Benefits Achieved

    A list of initiatives to address the identified needs

    Activities

    3.1 Create an empathy map to identify needs.

    3.2 Shortlist retention initiatives.

    Outputs

    Employee needs and shortlist of initiatives to address them.

    4 Prepare to Communicate and Launch

    The Purpose

    Prepare to launch your retention initiatives.

    Key Benefits Achieved

    A clear action plan for implementing your retention initiatives.

    Activities

    4.1 Select retention initiatives.

    4.2 Determine goals and metrics.

    4.3 Plan stakeholder communication.

    4.4 Build a high-level action plan.

    Outputs

    Finalized list of retention initiatives.

    Goals and associated metrics recorded in the Retention Plan Workbook.

    Further reading

    Tactics to Retain IT Talent

    Keep talent from walking out the door by discovering and addressing moments that matter and turnover triggers.

    Executive Summary

    Your Challenge

    Many organizations are facing an increase in voluntary turnover as low unemployment, a lack of skilled labor, and a rise in the number of vacant roles have given employees more employment choices.

    Common Obstacles

    Regrettable turnover is impacting organizational productivity and leading to significant costs associated with employee departures and the recruitment required to replace them.

    Many organizations tackle retention from an engagement perspective: Increase engagement to improve retention. This approach doesn't consider the whole problem.

    Info-Tech's Approach

    Build the case for creating retention plans by leveraging employee data and feedback to identify the key reasons for turnover that need to be addressed.

    Target employee segments and work with management to develop solutions to retain top talent.

    Info-Tech Insight

    Engagement surveys mask the volatility of the employee experience and hide the reason why individual employees leave. You must also talk to employees to understand the moments that matter and engage managers to understand turnover triggers.

    This research addresses regrettable turnover

    This is an image of a flow chart with three levels. The top level has only one box, labeled Turnover. the Second level has 2 boxes, labeled Voluntary, and Involuntary. The third level has two boxes under Voluntary, labeled Non-regrettable: The loss of employees that the organization did not wish to keep, e.g. low performers, and Regrettable: The loss of employees that the organization wishes it could have kept.

    Low unemployment and rising voluntary turnover makes it critical to focus on retention

    As the economy continues to recover from the pandemic, unemployment continues to trend downward even with a looming recession. This leaves more job openings vacant, making it easier for employees to job hop.

    This image contains a graph of the US Employment rate between 2020 - 2022 from the US Bureau of Economic Analysis and Bureau of Labor Statistics (BLS), 2022, the percentage of individuals who change jobs every one to five years from 2022 Job Seeker Nation Study, Jobvite, 2022, and voluntary turnover rates from BLS, 2022

    With more employees voluntarily choosing to leave jobs, it is more important than ever for organizations to identify key employees they want to retain and put plans in place to keep them.

    Retention is a challenge for many organizations

    The number of HR professionals citing retention/turnover as a top workforce management challenge is increasing, and it is now the second highest recruiting priority ("2020 Recruiter Nation Survey," Jobvite, 2020).

    65% of employees believe they can find a better position elsewhere (Legaljobs, 2021). This is a challenge for organizations in that they need to find ways to ensure employees want to stay at the organization or they will lose them, which results in high turnover costs.

    Executives and IT are making retention and turnover – two sides of the same coin – a priority because they cost organizations money.

    • 87% of HR professionals cited retention/turnover as a critical and high priority for the next few years (TINYpulse, 2020).
    • $630B The cost of voluntary turnover in the US (Work Institute, 2020).
    • 66% of organizations consider employee retention to be important or very important to an organization (PayScale, 2019).

    Improving retention leads to broad-reaching organizational benefits

    Cost savings: the price of turnover as a percentage of salary

    • 33% Improving retention can result in significant cost savings. A recent study found turnover costs, on average, to be around a third of an employee's annual salary (SHRM, 2019).
    • 37.9% of employees leave their organization within the first year. Employees who leave within the first 90 days of being hired offer very little or no return on the investment made to hire them (Work Institute, 2020).

    Improved performance

    Employees with longer tenure have an increased understanding of an organization's policies and processes, which leads to increased productivity (Indeed, 2021).

    Prevents a ripple effect

    Turnover often ripples across a team or department, with employees following each other out of the organization (Mereo). Retaining even one individual can often have an impact across the organization.

    Transfer of knowledge

    Retaining key individuals allows them to pass it on to other employees through communities of practice, mentoring, or other knowledge-sharing activities.

    Info-Tech Insight

    Improving retention goes beyond cost savings: Employees who agree with the statement "I expect to be at this organization a year from now" are 71% more likely to put in extra hours and 32% more likely to accomplish more than what is expected of their role (McLean & Company Engagement Survey, 2021; N=77,170 and 97,326 respectively).

    However, the traditional engagement-focused approach to retention is not enough

    Employee engagement is a strong driver of retention, with only 25% of disengaged employees expecting to be at their organization a year from now compared to 92% of engaged employees (McLean & Company Engagement Survey, 2018-2021; N=117,307).

    Average employee Net Promoter Score (eNPS)

    This image contains a graph of the Average employee Net Promoter Score (eNPS)

    Individual employee Net Promoter Scores (eNPS)

    This image contains a graph of the Individual employee Net Promoter Scores (eNPS)

    However, engagement surveys mask the volatility of the employee experience and hide the reason why individual employees leave.

    This analysis of McLean & Company's engagement survey results shows that while an organization's average employee net promoter score (eNPS) stays relatively static, at an individual level there is a huge amount of volatility.

    This demonstrates the need for an approach that is more capable of responding to or identifying employees' in-the-moment needs, which an annual engagement survey doesn't support.

    Turnover triggers and moments that matter also have an impact on retention

    Retention needs to be monitored throughout the employee lifecycle. To address the variety of issues that can appear, consider three main paths to turnover:

    1. Employee engagement – areas of low engagement.
    2. Turnover triggers that can quickly lead to departures.
    3. Moments that matter in the employee experience (EX).

    Employee engagement

    Engagement drivers are strong predictors of turnover.

    Employees who are highly engaged are 3.6x more likely to believe they will be with the organization 12 months from now than disengaged employees (McLean & Company Engagement Survey, 2018-2021; N=117,307).

    Turnover triggers

    Turnover triggers are events that act as shocks or catalysts that quickly lead to an employee's departure.

    Turnover triggers are a cause for voluntary turnover more often than accumulated issues (Lee et al.).

    Moments that matter

    Employee experience is the employee's perception of the accumulation of moments that matter within their employee lifecycle.

    Retention rates increase from 21% to 44% when employees have positive experiences in the following categories: belonging, purpose, achievement, happiness, and vigor at work. (Workhuman, 2020).

    While managers do not directly impact turnover, they do influence the three main paths to turnover

    Research shows managers do not appear as one of the common reasons for employee turnover.

    Top five most common reasons employees leave an organization (McLean & Company, Exit Survey, 2018-2021; N=107 to 141 companies,14,870 to 19,431 responses).

    Turnover factorsRank
    Opportunities for career advancement1
    Satisfaction with my role and responsibilities2
    Base pay3
    Opportunities for career-related skill development4
    The degree to which my skills were used in my job5

    However, managers can still have a huge impact on the turnover of their team through each of the three main paths to turnover:

    Employee engagement

    Employees who believe their managers care about them as a person are 3.3x more likely to be engaged than those who do not (McLean & Company, 2021; N=105,186).

    Turnover triggers

    Managers who are involved with and aware of their staff can serve as an early warning system for triggers that lead to turnover too quickly to detect with data.

    Moments that matter

    Managers have a direct connection with each individual and can tailor the employee experience to meet the needs of the individuals who report to them.

    Gallup has found that 52% of exiting employees say their manager could have done something to prevent them from leaving (Gallup, 2019). Do not discount the power of managers in anticipating and preventing regrettable turnover.

    Addressing engagement, turnover triggers, and moments that matter is the key to retention

    This is an image of a flow chart with four levels. The top level has only one box, labeled Turnover. the Second level has 2 boxes, labeled Voluntary, and Involuntary. The third level has two boxes under Voluntary, labeled Non-regrettable, and Regrettable. The fourth level has three boxes under Regrettable, labeled Employee Engagement, Turnover triggers, and Moments that matter

    Info-Tech Insight

    HR traditionally seeks to examine engagement levels when faced with retention challenges, but engagement is only a part of the full picture. You must also talk to employees to understand the moments that matter and engage managers to understand turnover triggers.

    Follow Info-Tech's two-step process to create a retention plan

    1. Identify Reasons for Regrettable Turnover

    2. Select Solutions and Create an Action Plan

    Step 1

    Identify Reasons for Regrettable Turnover

    After completing this step you will have:

    • Analyzed and documented why employees join, stay, and leave your organization.
    • Identified common themes and employee needs.
    • Conducted employee focus groups and prioritized employee needs.

    Step 1 focuses on analyzing existing data and validating it through focus groups

    Employee engagement

    Employee engagement and moments that matter are easily tracked by data. Validating employee feedback data by speaking and empathizing with employees helps to uncover moments that matter. This step focuses on analyzing existing data and validating it through focus groups.

    Engagement drivers such as compensation or working environment are strong predictors of turnover.
    Moments that matter
    Employee experience (EX) is the employee's perception of the accumulation of moments that matter with the organization.
    Turnover triggers
    Turnover triggers are events that act as shocks or catalysts that quickly lead to an employee's departure.

    Turnover triggers

    This step will not touch on turnover triggers. Instead, they will be discussed in step 2 in the context of the role of the manager in improving retention.

    Turnover triggers are events that act as shocks or catalysts that quickly lead to an employee's departure.

    Info-Tech Insight

    IT managers often have insights into where and why retention is an issue through their day-to-day work. Gathering detailed quantitative and qualitative data provides credibility to these insights and is key to building a business case for action. Keep an open mind and allow the data to inform your gut feeling, not the other way around.

    Gather data to better understand why employees join, stay, and leave

    Start to gather and examine additional data to accurately identify the reason(s) for high turnover. Begin to uncover the story behind why these employees join, stay, and leave your organization through themes and trends that emerge.

    Look for these icons throughout step 2.

    Join

    Why do candidates join your organization?

    Stay

    Why do employees stay with your organization?

    Leave

    Why do employees leave your organization?

    For more information on analysis, visualization, and storytelling with data, see Info-Tech's Start Making Data-Driven People Decisions blueprint.

    Employee feedback data to look at includes:

    Gather insights through:

    • Focus groups
    • Verbatim comments
    • Exit interviews
    • Using the employee value proposition (EVP) as a filter (does it resonate with the lived experience of employees?)

    Prepare to draw themes and trends from employee data throughout step 1.

    Uncover employee needs and reasons for turnover by analyzing employee feedback data.

    • Look for trends (e.g. new hires join for career opportunities and leave for the same reason, or most departments have strong work-life balance scores in engagement data).
    • Review if there are recurring issues being raised that may impact turnover.
    • Group feedback to highlight themes (e.g. lack of understanding of EVP).
    • Identify which key employee needs merit further investigation or information.

    This is an image showing how you can draw out themes and trends using employee data throughout step 1.

    Classify where key employee needs fall within the employee lifecycle diagram in tab 2 of the Retention Plan Workbook. This will be used in step 2 to pinpoint and prioritize solutions.

    Info-Tech Insight

    The employee lifecycle is a valuable way to analyze and organize engagement pain points, moments that matter, and turnover triggers. It ensures that you consider the entirety of an employee's tenure and the different factors that lead to turnover.

    Examine new hire data and begin to document emerging themes

    Join

    While conducting a high-level analysis of new hire data, look for these three key themes impacting retention:

    Issues or pain points that occurred during the hiring process.

    Reasons why employees joined your organization.

    The experience of their first 90 days. This can include their satisfaction with the onboarding process and their overall experience with the organization.

    Themes will help to identify areas of strength and weakness organization-wide and within key segments. Document in tab 3 of the Retention Plan Workbook.

    1. Start by isolating the top reasons employees joined your organization. Ask:
      • Do the reasons align with the benefits you associate with working at your organization?
      • How might this impact your EVP?
      • If you use a new hire survey, look at the results for the following questions:
      • For which of the following reasons did you apply to this organization?
      • For what reasons did you accept the job offer with this organization?
    2. then, examine other potential problem areas that may not be covered by your new hire survey, such as onboarding or the candidate experience during the hiring process.
      • If you conduct a new hire survey, look at the results in the following sections:
        • Candidate Experience
        • Acclimatization
        • Training and Development
        • Defining Performance Expectations

      Analyze engagement data to identify areas of strength that drive retention

      Employees who are engaged are 3.6x more likely to believe they will be with the organization 12 months from now (McLean & Company Engagement Survey, 2018-2021; N=117,307). Given the strength of this relationship, it is essential to identify areas of strength to maintain and leverage.

      1. Look at the highest-performing drivers in your organization's employee engagement survey and drivers that fall into the "leverage" and "maintain" quadrants of the priority matrix.
        • These drivers provide insight into what prompts broader groups of employees to stay.

      This is an image of a quadrant analysis, with the following quadrants in order from left to right, top to bottom. Improve; Leverage; Evaluate; Maintain.

      1. Look into what efforts have been made to maintain programs, policies, and practices related to these drivers and ensure they are consistent across the entire organization.
      2. Document trends and themes related to engagement strengths in tab 2 of the Retention Plan Workbook.

      If you use Info-Tech's Engagement Survey, look in detail at what are classified as "Retention Drivers": total compensation, working environment, and work-life balance.

      Identify areas of weakness that drive turnover in your engagement data

      1. Look at the lowest-performing drivers in your organization's employee engagement survey and drivers that fall into the "improve" and "evaluate" quadrants of the priority matrix.
        • These drivers provide insight into what pushes employees to leave the organization.
      2. Delve into organizational efforts that have been made to address issues with the programs, policies, and practices related to these drivers. Are there any projects underway to improve them? What are the barriers preventing improvements?
      3. Document trends and themes related to engagement weaknesses in tab 2 of the Retention Plan Workbook.

      If you use a product other than Info-Tech's Engagement Survey, your results will look different. The key is to look at areas of weakness that emerge from the data.

      This is an image of a quadrant analysis, with the following quadrants in order from left to right, top to bottom. Improve; Leverage; Evaluate; Maintain.

      If you use Info-Tech's Engagement Survey, look in detail at what are classified as "Retention Drivers": total compensation, working environment, and work-life balance.

      Mine exit surveys to develop an integrated, holistic understanding of why employees leave

      Conduct a high-level analysis of the data from your employee exit diagnostic. While analyzing this data, consider the following:

      • What are the trends and quantitative data about why employees leave your organization that may illuminate employee needs or issues at specific points throughout the employee lifecycle?
      • What are insights around your key segments? Data on key segments is easily sliced from exit survey results and can be used as a starting point for digging deeper into retention issues for specific groups.
      • Exit surveys are an excellent starting point. However, it is valuable to validate the data gathered from an exit survey using exit interviews.
      1. Isolate results for key segments of employees to target with retention initiatives (e.g. by age group or by department).
      2. Identify data trends or patterns over time; for example, that compensation factors have been increasing in importance.
      3. Document trends and themes taken from the exit survey results in tab 2 of the Retention Plan Workbook.

      If your organization conducts exit interviews, analyze the results alongside or in lieu of exit survey data.

      Compare new hire data with exit data to identify patterns and insights

      Determine if new hire expectations weren't met, prompting employees to leave your organization, to help identify where in the employee lifecycle issues driving turnover may be occurring.

      1. Look at your new hire data for the top reasons employees joined your organization.
        • McLean & Company's New Hire Survey database shows that the top three reasons candidates accept job offers on average are:
          1. Career opportunities
          2. Nature of the job
          3. Development opportunities
      2. Next, look at your exit data and the top reasons employees left your organization.
        1. McLean & Company's Exit Survey database shows that the top three reasons employees leave on average are:
          1. Opportunities for career advancement
          2. Base pay
          3. Satisfaction with my role and responsibilities
      3. Examine the results and ask:
        • Is there a link between why employees join and leave the organization?
        • Did they cite the same reasons for joining and for leaving?
        • What do the results say about what your employees do and do not value about working at your organization?
      4. Document the resulting insights in tab 2 of the Retention Plan Workbook.

      Example:

      A result where employees are leaving for the same reason they're joining the organization could signal a disconnect between your organization's employee value proposition and the lived experience.

      Revisit your employee value proposition to uncover misalignment

      Your employee value proposition (EVP), formal or informal, communicates the value your organization can offer to prospective employees.

      If your EVP is mismatched with the lived experience of your employees, new hires will be in for a surprise when they start their new job and find out it isn't what they were expecting.

      Forty-six percent of respondents who left a job within 90 days of starting cited a mismatch of expectations about their role ("Job Seeker Nation Study 2020," Jobvite, 2020).

      1. Use the EVP as a filter through which you look at all your employee feedback data. It will help identify misalignment between the promised and the lived experience.
      2. If you have EVP documentation, start there. If not, go to your careers page and put yourself in the shoes of a candidate. Ask what the four elements of an EVP look like for candidates:
        • Compensation and benefits
        • Day-to-day job elements
        • Working conditions
        • Organizational elements
      3. Next, compare this to your own day-to-day experiences. Does it differ drastically? Are there any contradictions with the lived experience at your organization? Are there misleading statements or promises?
      4. Document any insights or patterns you uncover in tab 2 of the Retention Plan Workbook.

      Conduct focus groups to examine themes

      Through focus groups, explore the themes you have uncovered with employees to discover employee needs that are not being met. Addressing these employee needs will be a key aspect of your retention plan.

      Identify employee groups who will participate in focus groups:

      • Incorporate diverse perspectives (e.g. employees, managers, supervisors).
      • Include employees from departments and demographics with strong and weak engagement for a full picture of how engagement impacts your employees.
      • Invite boomerang employees to learn why an individual might return to your organization after leaving.

      image contains two screenshots Mclean & Company's Standard Focus Group Guide.

      Customize Info-Tech's Standard Focus Group Guide based on the themes you have identified in tab 3 of the Retention Plan Workbook.

      The goal of the focus group is to learn from employees and use this information to design or modify a process, system, or other solution that impacts retention.

      Focus questions on the employees' personal experience from their perspective.

      Key things to remember:

      • It is vital for facilitators to be objective.
      • Keep an open mind; no feelings are wrong.
      • Beware of your own biases.
      • Be open and share the reason for conducting the focus groups.

      Info-Tech Insight

      Maintaining an open dialogue with employees will help flesh out the context behind the data you've gathered and allow you to keep in mind that retention is about people first and foremost.

      Empathize with employees to identify moments that matter

      Look for discrepancies between what employees are saying and doing.

      1. Say

      "What words or quotes did the employee use?"

      3.Think

      "What might the employee be thinking?"

      Record feelings and thoughts discussed, body language observed, tone of voice, and words used.

      Look for areas of negative emotion to determine the moments that matter that drive retention.

      2. Do

      "What actions or behavior did the employee demonstrate?"

      4. Feel

      "What might the employee be feeling?"

      Record them in tab 3 of the Retention Plan Workbook.

      5. Identify Needs

      "Needs are verbs (activities or desires), not nouns (solutions)"

      Synthesize focus group findings using Info-Tech's Empathy Map Template.

      6. Identify Insights

      "Ask yourself, why?"

      (Based on Stanford d.school Empathy Map Method)

      Distill employee needs into priority issues to address first

      Take employee needs revealed by your data and focus groups and prioritize three to five needs.

      Select a limited number of employee needs to develop solutions to ensure that the scope of the project is feasible and that the resources dedicated to this project are not stretched too thin. The remaining needs should not be ignored – act on them later.

      Share the needs you identify with stakeholders so they can support prioritization and so you can confirm their buy-in and approval where necessary.

      Ask yourself the following questions to determine your priority employee needs:

      • Which needs will have the greatest impact on turnover?
      • Which needs have the potential to be an easy fix or quick win?
      • Which themes or trends came up repeatedly in different data sources?
      • Which needs evoked particularly strong or negative emotions in the focus groups?

      This image contains screenshots of two table templates found in tab 5 of the Retention Plan Workbook

      In the Retention Plan Workbook, distill employee needs on tab 2 into three to five priorities on tab 5.

      Step 2

      Select Solutions and Create an Action Plan

      After completing this step, you will have:

      • Selected and prioritized solutions to address employee needs.
      • Created a plan to launch stay interviews.
      • Built an action plan to implement solutions.

      Select IT-owned solutions and implement people leader–driven initiatives

      Solutions

      First, select and prioritize solutions to address employee needs identified in the previous step. These solutions will address reasons for turnover that influence employee engagement and moments that matter.

      • Brainstorm solutions using the Retention Solutions Catalog as a starting point. Select a longlist of solutions to address your priority needs.
      • Prioritize the longlist of solutions into a manageable number to act on.

      People leaders

      Next, create a plan to launch stay interviews to increase managers' accountability in improving retention. Managers will be critical to solving issues stemming from turnover triggers.

      • Clarify the importance of harnessing the influence of people leaders in improving retention.
      • Discover what might cause individual employees to leave through stay interviews.
      • Increase trust in managers through training.

      Action plan

      Finally, create an action plan and present to senior leadership for approval.

      Look for these icons in the top right of slides in this step.

      Select solutions to employee needs, starting with the Retention Solutions Catalog

      Based on the priority needs you have identified, use the Retention Solutions Catalog to review best-practice solutions for pain points associated with each stage of the lifecycle.

      Use this tool as a starting point, adding to it and iterating based on your own experience and organizational culture and goals.

      This image contains three screenshots from Info-Tech's Retention Solutions Catalog.

      Use Info-Tech's Retention Solutions Catalog to start the brainstorming process and produce a shortlist of potential solutions that will be prioritized on the next slide.

      Info-Tech Insight

      Unless you have the good fortune of having only a few pain points, no single initiative will completely solve your retention issues. Combine one or two of these broad solutions with people-leader initiatives to ensure employee needs are addressed on an individual and an aggregate level.

      Prioritize solutions to be implemented

      Target efforts accordingly

      Quick wins are high-impact, low-effort initiatives that will build traction and credibility within the organization.

      Long-term initiatives require more time and need to be planned for accordingly but will still deliver a large impact. Review the planning horizon to determine how early these need to begin.

      Re-evaluate low-impact and low-effort initiatives and identify ones that either support other higher impact initiatives or have the highest impact to gain traction and credibility. Look for low-hanging fruit.

      Deprioritize initiatives that will take a high degree of effort to deliver lower-value results.

      When assessing the impact of potential solutions, consider:

      • How many critical segments or employees will this solution affect?
      • Is the employee need it addresses critical, or did the solution encompass several themes in the data you analyzed?
      • Will the success of this solution help build a case for further action?
      • Will the solution address multiple employee needs?

      Info-Tech Insight

      It's better to master a few initiatives than under-deliver on many. Start with a few solutions that will have a measurable impact to build the case for further action in the future.

      Solutions

      Low ImpactMedium ImpactLarge Impact
      Large EffortThis is an image of the used to help you prioritize solutions to be implemented.
      Medium Effort
      Low Effort

      Use tab 3 of the Retention Plan Workbook to prioritize your shortlist of solutions.

      Harness the influence of people leaders to improve employee retention

      Leaders at all levels have a huge impact on employees.

      Effective people leaders:

      • Manage work distribution.
      • Create a motivating work environment.
      • Provide development opportunities.
      • Ensure work is stimulating and challenging, but not overwhelming.
      • Provide clear, actionable feedback.
      • Recognize team member contributions.
      • Develop positive relationships with their teams.
      • Create a line of sight between what the employee is doing and what the organization's objectives are.

      Support leaders in recommitting to their role as people managers through Learning & Development initiatives with particular emphasis on coaching and building trust.

      For coaching training, see Info-Tech's Build a Better Manager: Team Essentials – Feedback and Coaching training deck.

      For more information on supporting managers to become better people leaders, see Info-Tech's Build a Better Manager: Manage Your People blueprint.

      "HR can't fix turnover. But leaders on the front line can."
      – Richard P. Finnegan, CEO, C-Suite Analytics

      Equip managers to conduct regular stay interviews to address turnover triggers

      Managers often have the most visibility into their employees' personal and work lives and have a key opportunity to anticipate and address turnover triggers.

      Stay interviews are an effective way of uncovering potential retention issues and allowing managers to act as an early warning system for turnover triggers.

      Examples of common turnover triggers and potential manager responses:

      • Moving, creating a long commute to the office.
        • Through stay interviews, a manager can learn that a long commute is an issue and can help find workarounds such as flexible/remote work options.
      • Not receiving an expected promotion.
        • A trusted manager can anticipate issues stemming from this, discuss why the decision was made, and plan development opportunities for future openings.

      Stay interview best practices

      1. Conducted by an employee's direct manager.
      2. Happen regularly as a part of an ongoing process.
      3. Based on the stay interview, managers produce a turnover forecast for each direct report.
        1. The method used by stay interview expert Richard P. Finnegan is simple: red for high risk, yellow for medium, and green for low.
      4. Provide managers with training and a rough script or list of questions to follow.
        1. Use and customize Info-Tech's Stay Interview Guide to provide a guide for managers on how to conduct a stay interview.
      5. Managers use the results to create an individualized retention action plan made up of concrete actions the manager and employee will take.

      Sources: Richard P. Finnegan, CEO, C-Suite Analytics; SHRM

      Build an action plan to implement the retention plan

      For each initiative identified, map out timelines and actions that need to be taken.

      When building actions and timelines:

      • Refer to the priority needs you identified in tab 4 of the Retention Plan Workbook and ensure they are addressed first.
      • Engage internal stakeholders who will be key to the development of the initiatives to ensure they have sufficient time to complete their deliverables.
        • For example, if you conduct manager training, Learning & Development needs to be involved in the development and launch of the program.
      • Include a date to revisit your baseline retention and engagement data in your project milestones.
      • Designate process owners for new processes such as stay interviews.

      Plan for stay interviews by determining:

      • Whether stay interviews will be a requirement for all employees.
      • How much flexibility managers will have with the process.
      • How you will communicate the stay interview approach to managers.
      • If manager training is required.
      • How managers should record stay interview data and how you will collect this data from them as a way to monitor retention issues.
        • For example, managers can share their turnover forecasts and action plans for each employee.

      Be clear about manager accountabilities for initiatives they will own, such as stay interviews. Plan to communicate the goals and timelines managers will be asked to meet, such as when they must conduct interviews or their responsibility to follow up on action items that come from interviews.

      Track project success to iterate and improve your solutions

      Analyze measurements

      • Regularly remeasure your engagement and retention levels to identify themes and trends that provide insights into program improvements.
      • For example, look at the difference in manager relationship score to see if training has had an impact, or look at changes in critical segment turnover to calculate cost savings.

      Revisit employee and manager feedback

      • After three to six months, conduct additional surveys or focus groups to determine the success of your initiatives and opportunities for improvement. Tweak the program, including stay interviews, based on manager and employee feedback.

      Iterate frequently

      • Revisit your initiatives every two or three years to determine if a refresh is necessary to meet changing organizational and employee needs and to update your goals and targets.

      Key insights

      Insight 1Insight 2Insight 3

      Retention and turnover are two sides of the same coin. You can't fix retention without first understanding turnover.

      Engagement surveys mask the volatility of the employee experience and hide the reason why individual employees leave. You must also talk to employees to understand the moments that matter and engage managers to understand turnover triggers.

      Improving retention isn't just about lowering turnover, it's about discovering what healthy retention looks like for your organization.

      Insight 4Insight 5Insight 6

      HR professionals often have insights into where and why retention is an issue. Gathering detailed employee feedback data through surveys and focus groups provides credibility to these insights and is key to building a case for action. Keep an open mind and allow the data to inform your gut feeling, not the other way around.

      Successful retention plans must be owned by both IT leaders and HR.

      IT leaders often have the most visibility into their employees' personal and work lives and have a key opportunity to anticipate and address turnover triggers.

      Stay interviews help managers anticipate potential retention issues on their teams.

      Workshop Overview

      Contact your account representative for more information.
      workshops@infotech.com 1-888-670-8889

      Info-Tech AnalystsPre-workPost-work
      Client Data Gathering and PlanningImplementation Supported Through Analyst Calls

      1.1 Discuss participants, logistics, overview of workshop activities

      1.2 Provide support to client for below activities through calls.

      		2.1 Schedule follow-up calls to work through implementation of retention solutions based on identified needs.
      Client

      1.Gather results of engagement survey, new hire survey, exit survey, and any exit and stay interview feedback.

      2.Gather and analyze turnover data.

      3.Identify key employee segment(s) and identify and organize participants for focus groups.

      4.Complete cost of turnover analysis.

      5.Review turnover data and prioritize list of employee segments.

      1.Obtain senior leader approval to proceed with retention plan.

      2.Finalize and implement retention solutions.

      3.Prepare managers to conduct stay interviews.

      4.Communicate next steps to stakeholders.

      Workshop Overview

      Contact your account representative for more information.
      workshops@infotech.com 1-888-670-8889

      ActivitiesDay 1Day 2Day 3Day 4
      Assess Current StateConduct Focus GroupsIdentify Needs and Retention InitiativesPrepare to Communicate and Launch

      1.1 Review data to determine why employees join, stay, and leave.

      1.2 Identify common themes.

      1.3 Prepare for focus groups.

      2.1 Conduct four 1-hour focus groups with the employee segment(s) identified in the pre-workshop activities..

      2.2 Info-Tech facilitators independently analyze results of focus groups and group results by theme.

      3.1 Create an empathy map to identify needs

      3.2 Shortlist retention initiatives

      4.1 Select retention initiatives

      4.2 Determine goals and metrics

      4.3 Plan stakeholder communication4.4 Build a high-level action plan

      Deliverables

      1.List of common themes/pain points recorded in the Retention Plan Workbook

      2.Plan for focus groups documented in the Focus Group Guide

      1.Focus group feedback

      2.Focus group feedback analyzed and organized by themes

      		1.Employee needs and shortlist of initiatives to address them1.Finalized list of retention initiatives

      Info-Tech offers various levels of support to best suit your needs

      DIY Toolkit

      “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

      Guided Implementation

      “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

      Workshop

      “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

      Consulting

      “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

      Diagnostics and consistent frameworks used throughout all four options

      Research Contributors and Experts

      Jeff Bonnell
      VP HR
      Info-Tech Research Group

      Phillip Kotanidis
      CHRO
      Michael Garron Hospital

      Michael McGuire
      Director, Organizational Development
      William Osler Health System

      Dr. Iris Ware
      Chief Learning Officer
      City of Detroit

      Richard P. Finnegan
      CEO
      C-Suite Analytics

      Dr. Thomas Lee
      Professor of Management
      University of Washington

      Jane Moughon
      Specialist in increasing profits, reducing turnover, and maximizing human potential in manufacturing companies

      Lisa Kaste
      Former HR Director
      Citco

      Piyush Mathur
      Head of Workforce Analytics
      Johnson & Johnson

      Gregory P. Smith
      CEO
      Chart Your Course

      Works Cited

      "17 Surprising Statistics about Employee Retention." TINYpulse, 8 Sept. 2020. Web.
      "2020 Job Seeker Nation Study." Jobvite, April 2020. Web.
      "2020 Recruiter Nation Survey." Jobvite, 2020. Web.
      "2020 Retention Report: Insights on 2019 Turnover Trends, Reasons, Costs, & Recommendations." Work Institute, 2020. Web.
      "25 Essential Productivity Statistics for 2021." TeamStage, 2021. Accessed 22 Jun. 2021.
      Agovino, Theresa. "To Have and to Hold." SHRM, 23 Feb. 2019. Web.
      "Civilian Unemployment Rate." Bureau of Labor Statistics, June 2020. Web.
      Foreman, Paul. "The domino effect of chief sales officer turnover on salespeople." Mereo, 19 July 2018. Web.
      "Gross Domestic Product." U.S. Bureau of Economic Analysis, 27 May 2021. Accessed 22 Jun. 2020.
      Kinne, Aaron. "Back to Basics: What is Employee Experience?" Workhuman, 27August 2020. Accessed 21 Jun. 2021.
      Lee, Thomas W, et al. "Managing employee retention and turnover with 21st century ideas." Organizational Dynamics, vol 47, no. 2, 2017, pp. 88-98. Web.
      Lee, Thomas W. and Terence R. Mitchell. "Control Turnover by Understanding its Causes." The Blackwell Handbook of Principles of Organizational Behaviour. 2017. Print.
      McFeely, Shane, and Ben Wigert. "This Fixable Problem Costs U.S. Businesses $1 Trillion." Gallup. 13 March 2019. Web.
      "Table 18. Annual Quit rates by Industry and Region Not Seasonally Adjusted." Bureau of Labor Statistics. June 2021. Web.
      "The 2019 Compensation Best Practices Report: Will They Stay or Will They Go? Employee Retention and Acquisition in an Uncertain Economy." PayScale. 2019. Web.
      Vuleta, Branka. "30 Troubling Employee Retention Statistics." Legaljobs. 1 Feb. 2021. Web.
      "What is a Tenured Employee? Top Benefits of Tenure and How to Stay Engaged as One." Indeed. 22 Feb. 2021. Accessed 22 Jun. 2021.

      Service Desk

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      The service desk is typically the first point of contact for clients and staff who need something. Make sure your team is engaged, involved, knowledgeable, and gives excellent customer service.

      Safety as a secondary consideration

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      This is a story that should make you perk up.

      I know of a department that was eager to launch their new product. The strain was severe. The board was breathing down their necks. Rivals were catching up (or so they thought).

      What did they do?

      "Let's get this thing live, prove the market wants it, then we'll circle back and handle all the security and stability backlog items." For the product owner, at the time, that seemed the right thing to do.

      They were hacked 48 hours after going live.

      Customer information was stolen. The brand's reputation suffered. The decision led to a months-long legal nightmare. And they still had to completely rebuild the system. Making stability and security bolt-on items is never a good idea.

      The true price of "fix it later"

      See, I understand. When the product owner is pressing for user experience enhancements and you're running out of time for launch, it's easy to overlook those "non-functional requirements." Yet, we should avoid blaming the product owner. The PO is under pressure from many stakeholders, and a delayed launch may also come with significant costs.

      Load balancing isn't visible to customers, after all. Penetration testing doesn't excite them. Failure mechanisms don't matter to them. This statement is true until a malfunction impacts a client. Then it suddenly becomes the most important thing in the world.

      However, I know that ignoring non-functional requirements (NFRs) can lead to failed businesses (or business lines). This elevates these issues beyond mere technical inconveniences. NFRs are designed with the client in mind.

      Look at it this way. When your system crashes during periods of high traffic, how does the user experience change? How satisfied are customers when their personal information is stolen? When it takes 30 seconds for your website to load, how does that conversion rate look?

      Let me expose you to some consultant figures. The average cost of IT outages is $5,600 per minute, according to a 2014 Gartner study. That figure can rise to $300,000 per hour for larger businesses. The reality is that in your department, you will rarely reach these numbers. When we look at current (2020-2025) and expected (2026) trends, the typical operational loss numbers in international commercial banking or insurance are closer to 100K for high-impact incidents that are handled within 2–3 hours.

      Obviously, your numbers will vary. And if you don't know what your costs are, now would be a good time to discover that. This does not imply that you should simply accept the risks associated with such situations. You must fix or mitigate such opportunities for hackers to get in. Do so at the appropriate cost for your business.

      Data breaches are a unique phenomenon. According to IBM's Cost of a Data Breach Report 2025, a data breach typically costs $4.44 million, and detecting and containing it takes an average of 241 days. Some preview data from the 2025 report include that 97% of organizations that reported on the study indicated that they lacked access controls for their AI systems. That means that many companies don't even have the basics in order. And AI-related breaches are just going to accelerate. AI security defenses will help lower the cost of such breaches.

      Despite the decreasing cost of these breaches, I anticipate an increase in their frequency in the upcoming years.

      This means that non-functional requirements in terms of security and resilience should take a more prominent place in the prioritizations. Your client depends on your systems being safe, resilient, and performant.

      The blind spot in leadership

      And yet, this is where some leaders make mistakes. I have the impression they believe that client-focused design means more functionality and elegant interfaces. They prioritize user experience enhancements over system reliability.

      I want to share a key fact that distinguishes successful businesses: customers desire more than just a good product. It must always function for them. And that means following certain procedures. They are not there to hamper you; they are there to retain customers.

      88% of online shoppers are less likely to visit a website again after a negative experience, according to research from Forrester. Amazon found that they lose 1% of sales for every 100 ms of latency. That 100 milliseconds adds up to millions of lost profits when billions of dollars are at stake.

      You run the risk of more than just technical difficulties when you deprioritize safety. Customer trust, revenue stability, competitive advantage, adherence to the law, costs, and team morale are all at stake.

      The "happy flow" trap is costing you revenue.

      Allow me to illustrate what I see happening during development cycles.

      The team tests the happy flow. The user successfully logs in. The user navigates with ease. The user makes the purchase without any problems. The user logs off without incident.

      "Excellent! Publish it!"

      However, what occurs if 1000 users attempt to log in at once? What occurs if an attempt is made to insert malicious code into your contact form? During a transaction, what happens if your database connection fails?

      These are not extreme situations. These are real-life occurrences.

      Fifty percent of data center managers and operators reported having an impactful outage in the previous three years, according to the Uptime Institute's 2025 Global Data Center Survey. Note that this is at the infra level. The biggest contributor is power outages. What role does power play in ensuring a smooth flow? Power will not always flow as you want it, so plan for lack of power and for spikes.

      With regard to software failures, the spread of possible causes widens. AI is a big contributor. AI is typically brought in to accelerate development and assist in coding. But it tends to introduce subtle bugs and vulnerabilities that a seasoned developer has to review and solve.

      Another upcoming article will discuss how faster release cycles often lead to a rush in testing. This should not be the case; by spending some time automating your (non-)regression test bank, you will gain speed. But you have to invest time in building the test suite.

      Can your system handle success? This question should keep every executive awake at night.

      I've witnessed businesses invest millions in advertising campaigns to drive traffic to systems that fail due to their success. Consider describing to your board how your greatest marketing victory became your worst operational mishap.

      Managing traffic spikes is only one aspect of load balancing. It is about ensuring that your business can handle opportunities without being overwhelmed.

      The mindset that transforms everything

      Let's now address the most pressing issue: security.

      The majority of leaders consider security to be like insurance, something you hope you never need. The fact that security is more than just protection, however, will alter the way you approach every project. It's approval to develop.

      According to the Ponemon Institute's 2025 Cost of Insider Threats Global Report, the average annualized cost of insider threats, defined as employee negligence, criminal insiders, and credential thieves, has risen to $17.4 million per incident, up from $15.4 million in 2022. The number of discovered and analyzed incidents increased from 3,269 in 2018 to 7,868 in 2025 research studies. 

      Cybersecurity Ventures predicts that cybercrime will cost the global economy $10.5 trillion annually by 2025.

      The most fascinating thing, though, is that companies that invest in proactive security see measurable outcomes. Organizations that allocate over 10% of their IT budget to cybersecurity have a 2.5-fold higher chance of experiencing no security incidents than those that allocate less than 1%, per Deloitte's Future of Cyber Survey.

      By hardening your systems against common attack vectors, you can scale quickly without worrying about the future. You can handle sensitive data with confidence, enter new markets without fear, establish partnerships that require trust, and focus on innovation instead of crisis management.

      The non-functional needs that genuinely generate income

      Allow me to explain this in a way that will satisfy your CFO.

      Retention is equal to reliability. Customers return when a system functions reliably (given you sell items they want). The Harvard Business Review claims that a 5% increase in customer retention rates boosts profits by 25% to 95%. It is five to twenty-five times less expensive to retain customers than to acquire new ones.

      Scalability is equal to security. Secure systems can handle larger client volumes, more sensitive data, and higher-value transactions. 69% of board members and C-suite executives think that privacy and cyber risks could affect their company's ability to grow, according to PwC.

      Profit is equal to performance. You lose conversions for every second of load time. Google discovered that the likelihood of a bounce rises by 32% as page load time increases from 1 to 3 seconds. It increases by 90% from 1 second to 5 seconds. Walmart discovered that every second improvement in page load time led to a 2% increase in conversions.

      Reputation is equal to resilience. Guess which company benefits when your system works while your competitors' systems fail? Failures reduce trust. 71% of consumers will actively advocate against companies they don't trust, and 67% of consumers will stop purchasing from them, according to Edelman's 2023 Trust Barometer. While the 2025 report does not present comparative numbers, distrust impacting consumer behavior is likely to be even more prevalent. 

      The structure that reverses the script

      Reframe this discussion with your executives and team

      • The question we should not ask is, "Can we afford to build this right?" but rather, "Can we afford not to?" This consideration is crucial because we risk losing customers at every obstacle they encounter. 
      • Non-functional requirements should be viewed as competitive advantages rather than obstructions. If it suddenly does not work, the customer walks away.
      • Consider viewing system reliability as a profit center instead of a cost center. When a customer knows it will work, they will order again and refer a friend.

      The numbers support this point. Businesses that invest in operational resilience see three times higher profit margins and 2.5 times higher revenue growth than their counterparts, according to McKinsey's 2023 State of Organizations report. In 2025 we see a focus on AI, but the point remains.

      These metrics will grab the attention when you're presenting them.

      Although the average cost of downtime varies by industry, it is always high. 

      The impact of a security breach on customer lifetime value is equally uncomfortable. Following a data breach, 78% of consumers will cease interacting with a brand online, and 36% will never do so again, according to Ping Identity's 2023 Consumer Identity Breach Report.

      Every second that the system is unavailable results in a rapidly mounting loss of money. That's about $3,170 per minute of full downtime for a business that makes $100 million a year. We're talking about $31,700 per minute for billion-dollar businesses. Again, your experience may differ, but it's important to note that this cost is often unseen yet undeniable. If you want to calculate this more granularly, then I have a calculation method for you that is easy to implement.

      There is a discernible trend in the cost of rebuilding versus building correctly the first time. Resolving a problem in production can cost four to five times as much as fixing it during design, and it can cost up to 100 times as much as fixing it during the requirements and design phase, according to IBM's Systems Sciences Institute.

      The plan of action that truly works

      This is what you should do right away.

      Please begin by reviewing your current primary systems. When they're under stress, what happens? What occurs if they are attacked? What occurs if they don't work? 40% of businesses that suffer a significant system failure never reopen, although only 23% of organizations have tested their disaster recovery plans in the previous year, according to Gartner. Companies we work with test their systems at least once per year. If the results are unsatisfactory, we conduct a retest to ensure they meet our standards.

      Next, please determine the actual cost of addressing issues at a later stage. Add in the costs of customer attrition, security breaches, downtime, and reconstruction. To lend credibility to your calculations, try to work out exact numbers for your company. Industry standards (like in this article) will give you indicators, but you need to know your figures.

      Third, recast your non-functional needs as business needs. Consider focusing on strategies for managing success rather than solely discussing load balancing. Instead of discussing security testing, focus on revenue protection.

      Fourth, consider safety when defining "done." Until a feature is dependable, secure, and scalable, it isn't considered complete. Projects that incorporate non-functional requirements from the outset have a threefold higher chance of success, per the Standish Group's 2023 Chaos Report.

      Fifth, use system dependability as a differentiator in the marketplace. You're up when your rivals are down. You're safe when they're compromised.

      The bottom line

      I understand that resilience isn't sexy. I am aware that UI enhancements are more exciting than infrastructure resilience.

      And yet, I know that businesses that prioritize safety will survive and lead after seeing others thrive and fail based on this one choice. Customers trust them. They are capable of scaling without breaking. Because they are confident that their systems can manage whatever comes next, they are the ones who get a good night's sleep.

      Resilient organizations are twice as likely to surpass customer satisfaction goals and are 2.5 times more likely to achieve revenue growth of 10% or more.

      Resilience represents the most significant competitive advantage. You have a choice. Just keep in mind that your clients are depending on you to do the job correctly.

      Always happy to engage in a conversation.

      Right-Size the Service Desk for Small Enterprise

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      The service desk is a major function within IT. Small enterprises with constrained resources need to look at designing a service desk that enables consistency in supporting the business and finds the right balance of documentation.

      Determining the right level of documentation to provide backup and getting the right level of data for good reporting may seem like a waste of time when the team is small, but this is key to knowing when to invest in more people, upgraded technology, and whether your efforts to improve service are successful.

      Our Advice

      Critical Insight

      It’s easy to lose sight of the client experience when working as a small team supporting a variety of end users. Changing from a help desk to a service desk requires a focus on what it means to be a customer centric service desk and a change to the way the technicians think about providing support.

      • Make the best use of the team. Clearly define roles and responsibilities and monitor those wearing multiple hats to make sure they don’t burn out.
      • Build cross training and documentation into your culture to preserve service levels while giving team members time off to recharge.
      • Don’t discount the benefit of good tools. As volume increases, so does the likelihood of issues and requests getting missed. Look for tools that will help to keep a customer focus.

      Impact and Result

      • Improved workload distribution for technicians and enable prioritization based on work type, urgency, and impact.
      • Improved communications methods and messaging will help the technicians to set expectations appropriately and reduce friction between each other and their supported end users.
      • Best practices and use of industry standard tools will reduce administrative overhead while improving workload management.

      Right-Size the Service Desk for Small Enterprise Research & Tools

      Besides the small introduction, subscribers and consulting clients within this management domain have access to:

      1. Right-Size the Service Desk for Small Enterprise Storyboard – A step-by-step guide to help you identify and prioritize initiatives to become more customer centric.

      This blueprint provides a framework to quickly identify a plan for service desk improvements. It also provides references to build out additional skills and functionality as a continual improvement initiative.

      • Right-Size the Service Desk for Small Enterprise Storyboard

      2. Maturity Assessment – An assessment to determine baseline maturity.

      The maturity assessment will provide a baseline and identify areas of focus based on level of current and target maturity.

      • IT Service Desk Maturity Assessment for Small Enterprise

      3. Standard Operating Procedure – A template to build out a clear, concise SOP right-sized for a small enterprise.

      The SOP provides an excellent guide to quickly inform new team members or contractors of your support approach.

      • Incident Management and Service Desk SOP for Small Enterprise

      4. Categorization Scheme – A template to build out an effective categorization scheme.

      The categorization scheme template provides examples of asset-based categories, resolution codes and status.

      • Service Desk Asset-Based Categories Template

      5. Improvement Plan – A template to present the improvement plan to stakeholders.

      This template provides a starting point for building your communications on planned improvements.

      • Service Desk Improvement Initiative
      [infographic]

      Further reading

      Right-Size the Service Desk for Small Enterprise

      Turn your help desk into a customer-centric service desk.

      Analyst Perspective

      Small enterprises have many of the same issues as large ones, but with far fewer resources. Focus on the most important aspects to improve customer service.

      The service desk is a major function within IT. Small enterprises with constrained resources need to look at designing a service desk that enables consistency in supporting the business and finds the right balance of documentation.

      Evaluate documentation to ensure there is always redundancy built in to cover absences. Determining coverage will be an important factor, especially if vendors will be brought into the organization to assist during shortages. They will not have the same level of knowledge as teammates and may have different requirements for documentation.

      It is important to be customer centric, thinking about how services are delivered and communicated with a focus on providing self-serve at the appropriate level for your users and determining what information the business needs for expectation-setting and service level agreements, as well as communications on incidents and changes.

      And finally, don’t discount the value of good reporting. There are many reasons to document issues besides just knowing the volume of workload and may become more important as the organization evolves or grows. Stakeholder reporting, regulatory reporting, trend spotting, and staff increases are all good reasons to ensure minimum documentation standards are defined and in use.

      Photo of Sandi Conrad, Principal Research Director, Info-Tech Research Group. Sandi Conrad
      Principal Research Director
      Info-Tech Research Group

      Table of Contents

      Title Page Title Page
      Blueprint benefits 6 Incident management 25
      Start / Stop / Continue exercise 10 Prioritization scheme 27
      Complete a maturity assessment 11 Define SLAs 29
      Select an ITSM tool 13 Communications 30
      Define roles & responsibilities 15 Reporting 32
      Queue management 17 What can you do to improve? 33
      Ticket handling best practices 18 Staffing 34
      Customer satisfaction surveys 19 Knowledge base & self-serve 35
      Categorization 20 Customer service 36
      Separate ticket types 22 Ticket analysis 37
      Service requests 23 Problem management 38
      Roadmap 39

      Insight summary

      Help desk to service desk

      It’s easy to lose sight of the client experience when working as a small team supporting a variety of end users. Changing from a help desk to a service desk requires a focus on what it means to be a customer-centric service desk and a change to the way the technicians think about providing support.

      Make the best use of the team

      • Clearly define primary roles and responsibilities, and identify when and where escalations should occur.
      • Divide the work in a way that makes the most sense based on intake patterns and categories of incidents or service requests.
      • Recognize who is wearing multiple hats, and monitor to make sure they don’t burn out or struggle to keep up.
      • Determine the most appropriate areas to outsource based on work type and skills required.

      Build cross-training into your culture

      • Primary role holders need time off and need to know the day-to-day work won’t be waiting for them when they come back.
      • The knowledge base is your first line of defense to make sure incidents don’t have to wait for resolution and to avoid having technicians remote in on their day off.
      • When volumes spike for incidents and service requests, everyone needs to be prepared to pitch in. Train the team to recognize and step up to the call to action.

      Don’t discount the benefit of good tools

      • When volume increases, so does the likelihood of missing issues and requests.
      • Designate a single solution to manage the workload, so there is one place to go for work orders, incident reporting, asset data, and more.
      • Set up self-serve for users so they have access to how-to articles and can check the status of tickets themselves.
      • Create a service catalog to make it easy for them to request the most frequent items easily.

      Blueprint deliverables

      Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

      Standard Operating Procedures

      Sample of the Standard Operating Procedures deliverable.

      Maturity Assessment

      Sample of the Maturity Assessment deliverable.

      Categorization scheme

      Sample of the Categorization scheme deliverable.

      Improvement Initiative

      Sample of the Improvement Initiative deliverable.
      Create a standard operating procedure to ensure the support team has a consistent understanding of how they need to engage with the business.

      Blueprint benefits

      IT benefits

      • Improve workload distribution for technicians and enable prioritization based on work type, urgency, and impact.
      • Improved communications methods and messaging will help the technicians set expectations appropriately and reduce friction between each other and their supported end users.
      • Best practices and use of industry-standard tools will reduce administrative overhead while improving workload management.

      Business benefits

      • IT taking a customer-centric approach will improve access to support and reduce interruptions to the way they do business.
      • Expectation setting and improved communications will allow the business to better plan their work around new requests and will have a better understanding of service level agreements.

      Guided Implementation

      A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

      A typical GI is six to ten calls over the course of three to four months.

      The current state discussion will determine the path.

      What does a typical GI on this topic look like?

      Current State & Vision

      Best Practices

      Service Requests & Incidents

      Communications

      Next Steps & Roadmap
      Call #1: Discuss current state & create a vision

      Call #2: Document roles & responsibilities

      		 Call #3:Review and define best practices for ticket handling Call #4: Review categorization

      Call #5: Discuss service requests & self-serve

      Call #6: Assess incident management processes      		 Call #7: Assess and document reporting and metrics

      Call #8: Discuss communications methods

      		 Call #9: Review next steps

      Call #10: Build roadmap for updates
      For a workshop on this topic, see the blueprint Standardize the Service Desk

      Executive Brief Case Study

      Southwest CARE Center      		 Logo for Southwest Care.
      INDUSTRY
      Healthcare

      Service Desk Project

      After relying on a managed service provider (MSP) for a number of years, the business hired Kevin to repatriate IT. As part of that mandate, his first strategic initiative was to build a service desk. SCC engaged Info-Tech Research Group to select and build a structure; assign roles and responsibilities; implement incident management, request fulfilment, and knowledge management processes; and integrate a recently purchased ITSM tool.

      Over the course of a four-day onsite engagement, SCC’s IT team worked with two Info-Tech analysts to create and document workflows, establish ticket handling guidelines, and review their technological requirements.

      Results

      The team developed a service desk standard operating procedure and an implementation roadmap with clear service level agreements.

      		 Southwest CARE Center (SCC) is a leading specialty healthcare provider in New Mexico. They offer a variety of high-quality services with a focus on compassionate, patient-centered healthcare.

      “Info-Tech helped me to successfully rebrand from an MSP help desk to an IT service desk. Sandi and Michel provided me with a customized service desk framework and SOP that quickly built trust within the organization. By not having to tweak and recalibrate my service desk processes through trial and error, I was able to save a year’s worth of work, resulting in cost savings of $30,000 to $40,000.” (Kevin Vigil, Director of Information Technology, Southwest CARE Center)

      The service desk is the cornerstone for customer satisfaction

      Bar charts comparing 'Dissatisfied' vs 'Satisfied End Users' in both 'Service Desk Effectiveness' and 'Timeliness'.
      N=63, small enterprise organizations from the End-User Satisfaction Diagnostic, at December 2021
      Dissatisfied was classified as those organizations with an average score less than 7.
      Satisfied was classified as those organizations with an average score greater or equal to 8.
      • End users who were satisfied with service desk effectiveness rated all other IT processes 36% higher than dissatisfied end users.
      • End users who were satisfied with service desk timeliness rated all other IT processes 34% higher than dissatisfied end-users.

      Improve the service desk with a Start, Stop, Continue assessment

      Use this exercise as an opportunity to discuss what’s working and what isn’t with your current help desk. Use this to define your goals for the improvement project, with a plan to return to the results and rerun the exercise on a regular basis.

      STOP
      • What service desk processes are counterproductive?
      • What service blockers exist that consistently undermine good results?
      • Are end-user relationships with individual team members negatively impacting satisfaction?
      • Make notes on initial ideas for improvement.

      START
      • What service process improvements could be implemented immediately?
      • What technical qualifications do individual staff members need to improve?
      • What opportunities exist to improve service desk communications with end users?
      • How can escalation and triage be more efficient?

      CONTINUE
      • What aspects of your current service desk are positive?
      • What processes are efficient and can be emulated elsewhere?
      • Where can you identify high levels of end-user satisfaction?

      Complete a maturity assessment to create a baseline and areas of focus

      The Service Desk Maturity Assessment tool helps organizations assess their service desk process maturity and focus the project on the activities that matter most.

      The tool will help guide improvement efforts and measure your progress.

      • The second tab of the tool walks through a qualitative assessment of your service desk practices. Questions will prompt you to evaluate how you are executing key activities. Select the answer in the drop-down menus that most closely aligns with your current state.
      • The third tab displays your rate of process completeness and maturity. You will receive a score for each phase, an overall score, and advice based on your performance.
      • Document the results of the efficiency assessment in the Service Desk Improvement Initiative.
      • The tool is intended for periodic use. Review your answers each year and devise initiatives to improve the process performance where you need it most.
      		 Sample of the Service Desk Maturity Assessment.

      Define your vision for the support structure

      Use this vision for communicating with the business and your IT team

      Consider service improvements and how those changes can be perceived by the organization. For example, offering multiple platforms, such as adding Macs to end-user devices, could translate to “Providing the right IT solutions for the way our employees want to work.”

      To support new platforms, you might need to look at the following steps to get there:
      • Evaluate skills needed – can you upskill generalists quickly, or will specialists be required? Determine training needs for support staff on new platforms.
      • Estimate uptake of the new platform and adjusting budgets – will these mostly be role-based decisions?
      • Determine what applications will work on the new platform and which will have a parity offering, which will require a solution like Parallels or VirtualBox, and which might need substitute applications.
      • What utilities will be needed to secure your solutions such as for encryption, antivirus, and firewalls?
      • What changes in the way you deploy and patch machines?
      • What level of support do you need to provide – just platform, or applications as well? What self-serve training can be made available?
      If you need to change the way you deploy equipment, you may want to review the blueprint Simplify Remote Deployment With Zero-Touch Provisioning

      Info-Tech Insight

      Identify some high-level opportunities and plan out how these changes will impact the way you provide support today. Document steps you’ll need to follow to make it happen. This may include new offerings and product sourcing, training, and research.

      Facilitate service desk operations with an ITSM tool

      You don’t need to spend a fortune. Many solutions are free or low-cost for a small number of users, and you don’t necessarily have to give up functionality to save money.

      Encourage users to submit requests through email or self-serve to keep organized. Ensure that reporting will provide you with the basics without effort, but ensure report creation is easy enough if you need to add more.

      Consider tools that do more than just store tickets. ITSM tools for small enterprises can also assist with:
      • Equipment and software license management
      • Self-serve for password reset and improving the experience for end users to submit tickets
      • Software deployment
      • Onboarding and offboarding workflows
      • Integration with monitoring tools
      Info-Tech Insight Buying rather than building allows you the greatest flexibility and can provide enterprise-level functionality at small-enterprise pricing. Use Info-Tech’s IT Service Management Selection Guide to create a business case and list of requirements for your ITSM purchase.
      Logo for Spiceworks.
      Logo for ZenDesk. Logo for SysAid.
      Logo for ManageEngine.
      Logo for Vector Networks.
      Logo for Freshworks.
      Logo for Squadcast.
      Logo for Jira Software.
      Logos contain links

      ITSM implementations are the perfect time to fix processes

      Consider engaging a partner for the installation and setup as they will have the expertise to troubleshoot and get you to value quickly.

      Even with a partner, don’t rely on them to set up categories, prioritizations, and workflows. If you have unique requirements, you will need to bring your design work to the table to avoid getting a “standard install” that will need to be modified later.

      When we look at what makes a strong and happy product launch, it boils down to a few key elements:
      • Improving customer service, or at least avoiding a decline
      • Improving access to information for technical team and end users
      • Successfully taking advantage of workflows, templates, and other features designed to improve the technician and user experience
      • Using existing processes with the new tools, without having to completely reengineer how things are done
      For a complete installation guide, visit the blueprint Build an ITSM Implementation Plan      		 To prepare for a quick time to value in setting up the new ITSM tool, prioritize in this order:
      1. Categorization and status codes
      2. Prioritization
      3. Divide tickets into incidents and service requests
      4. Create workflows for onboarding and offboarding (automate where you can)
      5. Track escalations to vendors
      6. Reporting
      7. Self-serve
      8. Equipment inventory (leading to hardware asset management)

      Define roles looking to balance between customer service and getting things done

      The team will need to provide backfill for each other with high volume, vacations, and leave, but also need to proactively manage interruptions appropriately as they work on projects.
      Icon of a bullseye. First contact – customer service, general knowledge
      Answers phones, chats, responds to email, troubleshooting, creates knowledge articles for end users.
      Icon of a pie chart. Analyst – experienced troubleshooter, general knowledge
      Answers phone when FC isn’t available, responds to email, troubleshooting, creates knowledge articles for first contact, escalates to other technicians or vendors.
      Icon of a lightbulb. Analyst – experienced troubleshooter, specialist
      Answers phones only when necessary, troubleshooting, creates knowledge articles for anyone in IT, consults with peers, escalates to vendors.
      Icon of gear on a folder. Engineer – deep expertise, specialist
      Answers phones only when necessary, troubleshooting, creates knowledge articles for anyone in IT, consults with peers, escalates to vendors.
      Icon of a handshake. Vendor, Managed Service Providers
      Escalation point per contract terms, must meet SLAs, communicate regularly with analysts and management as appropriate. Who escalates and who manages them?
      		Row of colorful people.

      Note roles in the Incident Management and Service Desk – Standard Operating Procedure Template

      Keep customers happy and technicians calm by properly managing your queue

      If ticket volume is too high or too dispersed to effectively have teams self-select tickets, assign a queue manager to review tickets throughout the day to ensure they’re assigned and on the technician’s schedule. This is particularly important for technicians who don’t regularly work out of the ticketing system. Follow up on approaching or missed SLAs.

      • Separate incidents (break fix) and service requests: Prioritize incidents over service requests to focus on getting users doing business as soon as possible. Schedule service requests for slower times or assign to technicians who are not working the front lines.
      • First in/first out…mostly: We typically look to prioritize incidents over service requests and only prioritize incidents if there are multiple people or VIPs affected. Where everything is equal, deal with the oldest first. Pause occasionally to deal with quick wins such as password resets.
      • Update ticket status and notes: Knowing what tickets are in progress and which ones are waiting on information or parts is important for anyone looking to pick up the next ticket. Make sure everyone is aware of the benefits of keeping this information up to date, so technicians know what to work on next without duplicating each other’s work.
      • Implement solutions quickly by using knowledge articles: Continue to build out the knowledge base to be able to resolve end-user issues quickly, check to see if additional information is needed before escalating tickets to other technicians.
      • Encourage end users to create tickets through the portal: Issues called in are automatically moved to the front of the queue, regardless of urgency. Make it easy for users to report issues using the portal and save the phone for urgent issues to allow appropriate prioritization of tickets.
      • Create a process to add additional resources on a regular basis to keep control of the backlog: A few extra hours once a week may be enough if the team is focused without interruptions.
      • Determine what backlog is acceptable to your users: Set that as a maximum time to resolve. Ideally, set up automated escalations for tickets that are approaching target SLAs, and build flexibility into schedules to have an “all hands on deck” option if the volume gets too high.

      Info-Tech Insight

      Make sure your queue manager has an accurate escalation list and has the authority to assign tickets and engage with the technical team to manage SLAs; otherwise, SLAs will never be consistently managed.

      Best practices for ticket handling

      Accurate data leads to good decisions. If working toward adding staff members, reducing recurring incidents, gaining access to better tools, or demonstrating value to the business, tickets will enable reporting and dashboards to manage your day-to-day business and provide reports to stakeholders.
      • Provide an easy way for end users to electronically submit tickets and encourage them to do so. This doesn’t mean you shouldn’t still accept phone calls, but that should be encouraged for time sensitive issues.
      • Create and update tickets, but not at the expense of good customer service. Agents can start the ticket but shouldn’t spend five minutes creating the ticket when they should be troubleshooting the problem.
      • Update the ticket when the issue is resolved or needs to be escalated. If agents are escalating, they should make sure all relevant information is passed along to the next technician.
      • Update user of ETA if issue cannot be resolved quickly.
      • Update categories to reflect the actual issue and resolution.
      • Reference or link to the knowledge base article as the documented steps taken to resolve the incident.
      • Validate incident is resolved with client. Automate this process with ticket closure after a certain time.
      • Close or resolve the ticket on time.
      		 Ticket templates (or quick tickets) for common incidents can lead to fast creation, data input, and categorizations. Templates can reduce the time it takes to create tickets from two minutes to 30 seconds.
      Sample ticket template.

      Create a right-sized self-service portal

      Review tickets and talk to the team to find out the most frequent requests and the most frequent incidents that could be solved by the end user if there were clear instructions. Check with your user community to see what they would like to see in the portal.

      A portal is only as attractive as it is useful. Enabling ticket creation and review is the bare minimum and may not entice users to the portal if email is just as easy to use for ticket creation.

      Consider opening the portal to groups other than IT. HR, finance, and others may have information they want to share or forms to fill in or download where an employee portal rather than an IT portal could be helpful. Work with other departments to see if they would find value. Make sure your solution is easy to use when adding content. Low-code options are useful for this.

      Portals could be built in the ITSM solution or SharePoint/Teams and should include:

      • Easy ways to create and see status on all tickets
      • Manuals, how-to articles, links to training
      • Answers to common questions, could be a wiki or Q&A for users to help each other as well as IT
      • Could have a chatbot to help people find documents or to create a ticket

      Info-Tech Insight

      Consider using video capture software to create short how-to videos for common questions. Vendors such as TechSmith Snagit , Vimeo Screen Recorder, Screencast-O-Matic Video Recording, and Movavi Screen Recording may be quick and easy to learn.

      49%

      49% of employees have trouble finding information at work

      35%

      Employees can cut time spent looking for information by 35% with quality intranet

      (Source: Liferay)

      Use customer satisfaction surveys to monitor service levels

      Transactional surveys are tied to specific interactions and provide a means of communication to help users communicate satisfaction or dissatisfaction with single interactions.
      • Keep it simple: One question to rate the service with opportunity to add a comment is enough to understand the sentiment and potential issues, and it will be more likely that the user will fill it out.
      • Follow up: Feedback will only be provided if customers think it’s being read and actioned. Set an alert to receive notification of any negative feedback and follow up within one or two business days to show you’re listening.

      A simple customer feedback form with smiley face scale.

      		 Relationship surveys can be run annually to obtain feedback on the overall customer experience.

      Inform yourself of how well you are doing or where you need improvement in the broad services provided.

      Provide a high-level perspective on the relationship between the business and IT.

      Help with strategic improvement decisions.

      Should be sent over a duration of time and to the entire customer base after they’ve had time to experience all the services provided by the service desk. This can be done on an annual basis.

      For example: Info-Tech’s End User Satisfaction Diagnostic. Included in your membership.

      Keep categorizations simple

      Asset categorization provides reports that are straightforward and useful for IT and that are typically used where the business isn’t demanding complex reports.

      Too many options can cause confusion; too few options provide little value. Try to avoid using “miscellaneous” – it’s not useful information. Test your tickets against your new scheme to make sure it works for you. Effective classification schemes are concise, easy to use correctly, and easy to maintain.

      Build out the categories with these questions:
      • What kind of asset am I working on? (type)
      • What general asset group am I working on? (category)
      • What particular asset am I working on? (sub-category)

      Create resolution codes to further modify the data for deeper reporting. This is typically a separate field, as you could use the same code for many categories. Keep it simple, but make sure it’s descriptive enough to understand the type of work happening in IT.

      Create and define simple status fields to quickly review tickets and know what needs to be actioned. Don’t stop the clock for any status changes unless you’re waiting on users. The elapsed time is important to measure from a customer satisfaction perspective.

      Info-Tech Insight

      Think about how you will use the data to determine which components need to be included in reports. If components won’t be used for reporting, routing, or warranty, reporting down to the component level adds little value.

      		Example table of categorizations.


      Need to make quick progress? Use Info-Tech Research Group’s Service Desk Asset-Based Categories template.

      1.1 Build or review your categories

      1-3 hours

      Input: Existing tickets

      Output: Categorization scheme

      Materials: Whiteboard/Flip charts, Markers, Sample categorization scheme

      Participants: CIO, Service desk manager, Technicians

      Discuss:

      • How can you use categories and resolution information to enhance reporting?
      • What level of detail do you need to be able to understand the data and take action? What level of detail is too much?
      • Are current status fields allowing you to accurately assess pending work at a glance?

      Draft:

      1. Start with existing categories and review, identifying duplicates and areas of inconsistency.
      2. Write out proposed resolution codes and status fields and critically assess their value.
      3. Test categories and resolution codes against a few recent tickets.
      4. Record the ticket categorization scheme in the Incident Management and Service Desk – Standard Operating Procedure.

      Download the Incident Management and Service Desk – Standard Operating Procedure Template

      Separate tickets into service requests and incidents

      Tickets should be separated into different ticket types to be able to see briefly what needs to be prioritized. This may seem like a non-issue if you have a small team, but if you ever need to report how quickly you’re solving break-fix issues or whether you’re doing root cause analysis, this will save on future efforts. Separating ticket types may make it easier to route tickets automatically or to a new provider in the future.

      INCIDENTS

      SERVICE REQUESTS
      Icon of a bullseye.

      PRIORITIZATION

      		 Incidents will be prioritized based on urgency and impact to the organization. Service requests will be scheduled and only increase in prioritization if there is an issue with the request process (e.g. new hire start).
      Icon of a handshake.

      SLAs

      		 Did incidents get resolved according to prioritization rules? REPONSE & RESOLUTION Did service requests get completed on time? SCHEDULING & FULFILMENT
      Icon of a lightbulb.

      TRIAGE & ROOT CAUSE ANALYSIS

      		 Incidents will typically need triage at the service desk unless something is set up to go directly to a specialist. Service requests don’t need triage and can be routed automatically for approvals and fulfillment.

      “For me, the first key question is, is this keeping you from doing business? Is this a service request? Is it actually something that's broken? Well, okay. Now let's have the conversation about what's broken and keeping you from doing business.” (Anonymous CIO)

      Determine how service requests will be fulfilled

      Process steps for service requests: 'Request, Approve, Schedule, Fulfill, Notify requester, Close ticket'.

      • Identify standard requests, meaning any product approved for use and deployment in the organization.
      • Determine whether this should be published and how. Consider a service catalog with the ability to create tickets right from the request page. If there is an opportunity to automate fulfillment, build that into your workflow and project plans.
      • Create workflows for complicated requests such as onboarding, and build them into a template in the service desk tool. This will allow you to reduce the administrative work to deploy tasks.
      • Who will fulfill requests? There may be a need for more than one technician to be able to fulfill if volume dictates, but it’s important to determine what will be done by each level to quickly assign those tickets for scheduling. Define what will be done by each group of technicians.
      • Determine reasonable SLAs for most service requests. Identify which ones will not meet “normal” SLAs. As you build out a service catalog or automate fulfillment, SLAs can be refined.

      Info-Tech Insight

      Service requests are not as urgent as incidents and should be scheduled.

      Set the SLA based on time to fulfill, plus a buffer to schedule around more urgent service requests.

      1.2 Identify service requests and routing needs

      2-3 hours

      Input: Ticket data, Existing workflow diagrams

      Output: Workflow diagrams

      Materials: Whiteboard/Flip charts, Markers, Visio

      Participants: CIO, Service desk manager, Technicians

      Identify:

      1. Create your list of typical service requests and identify the best person to fulfill, based on complexity, documentation, specialty, access rights.
      2. Review service requests which include multiple people or departments, such as onboarding and offboarding
      3. Draw existing processes.
      4. Discuss challenges and critique existing process.
      5. Document proposed changes and steps that will need to be taken to improve the process.

      Download the Incident Management and Service Desk – Standard Operating Procedure Template

      Incident management

      Critical incidents and normal incidents

      Even with a small team, it’s important to define a priority for response and resolution time for SLA and uptime reporting and extracting insights for continual improvement efforts.

      • Mission-critical systems or problems that affect many people should always come first (i.e. Severity Level 1).
      • The bulk of reported problems, however, are often individual problems with desktop PCs (i.e. Severity Level 3 or 4).
      • Some questions to consider when deciding on problem severity include:
        • How is productivity affected?
        • How many users are affected?
        • How many systems are affected?
        • How critical are the affected systems to the organization?
      • Decide how many severity levels the organization needs the service desk to have. Four levels of severity is ideal for most organizations.
      		 Go to incident management for SE

      Super-specialization of knowledge is also a common factor in smaller teams and is caused by complex architectures. While helpful, if that knowledge isn’t documented, it can walk out the door with the resource and the rest of the team is left scrambling.

      Lessons learned may be gathered for critical incidents but often are not propagated, which impacts the ability to solve recurring incidents.

      Over time, repeated incidents can have a negative impact on the customer’s perception that the service desk is a credible and essential service to the business.

      Cover image for 'Incident Management for Small Enterprise'.
      Click picture for a link to the blueprint

      1.3 Activity: Identify critical systems

      1 hour

      Input: Ticket data, Business continuity plan

      Output: Service desk SOP

      Materials: Whiteboard/Flip charts, Markers

      Participants: CIO, Service desk manager, Technicians

      Discuss and document:

      1. Create a list of the most critical systems, and identify and document the escalation path.
      2. Review inventory of support documents for critical systems and identify any that require runbooks to ensure quick resolution in the event of an outage or major performance issue. Refer to the blueprint Incident Management for Small Enterprise to prioritize and document runbooks as needed.
      3. Review vendor agreements to determine if SLAs are appropriate to support needs. If there is a need for adjustments, determine options for modifying or renegotiating SLAs.

      Download the Incident Runbook Prioritization Tool

      Prioritization scheme

      Keep the priority scheme simple and meaningful, using this framework to communicate and report to stakeholders and set SLAs for response and resolution.
      1. Focus primarily on incidents. Service requests should always be medium urgency, unless there is a valid reason to move one to high level.
      2. Separate major outages from all other tickets as these are a major factor in business impact.
      3. Decide how many levels of severity are appropriate for your organization.
      4. Build a prioritization matrix, breaking down priority levels by impact and urgency.
      5. Build out the definitions of “impact” and “urgency” to complete the prioritization matrix.
      6. Run through examples of each priority level to make sure everyone is on the same page.
      		 A matrix of prioritization with rows as levels of 'IMPACT' and columns as levels of 'URGENCY'. Ratings range from 'Critical' at 'Extensive/Critical' to 'Low' at 'Low Impact/Low'.

      Document escalation rules and contacts

      Depending on the size of the team, escalations may be mostly to internal technical colleagues or could be primarily to vendors.

      • Ensure the list of escalation rules and contacts is accurate and available, adding expected SLAs for quick reference
      • If tickets are being escalated but shouldn’t be, ensure knowledge articles and training materials are up to date
      • Follow up on all external escalations, ensuring SLAs are respected
      • Publish an escalation path for clients if service is not meeting their needs (for internal and external providers) and automate escalations for tickets breaching SLAs
      Escalation rules strung together.
      User doesn’t know who will fix the issue but expects to see it done in a reasonable time. If issue cannot be resolved right away, set expectations for resolution time.
      • Document information so next technician doesn’t need to ask the same questions.
      • Escalate to the right technician the first time.
      • Check notes to catch up on the issue.
      • Run tests if necessary.
      • Contact user to troubleshoot and fix.
      • Meet SLAs or update client on new ETA.
      • Provide complete information to vendor.
      • Monitor resolution.
      • Follow up with vendor if delays.
      • Update client as needed.
      • Vendor will provide support according to agreement.
      • Encourage vendor to provide regular updates to IT.
      • Review vendor performance regularly.
      • IT will validate issue is resolved and close ticket.
      		 Validate user is happy with the experience

      Define, measure, and report on service level agreements

      Improving communications is the most effective way to improve customer service
      1. Set goals for time to respond and time to resolve for different incident levels, communicate to the technical team, and test ability to meet these goals.
      2. Set goals for time to fulfil for most service requests, document exceptions (e.g. onboarding).
      3. Create reports to measure against goals and determine what information will be most effective for reporting to the business.
      4. Management: Communicate expectations to the business leaders and end users.
      5. Management: Set regular cadence to meet with stakeholders to discuss expectations and review relevant metrics.
      6. Management: Determine how metrics will be tracked and reviewed to manage technical partners.
      		 Keep messaging simple
      • Be prepared with detailed reporting if needed, but focus on a few key metrics to inform stakeholders of progress against goals.
      • Use trending to tell a story, especially when presenting success stories.
      • Use appropriate media for each type of message. For example: SLAs can be listed on automated ticket responses or in a banner on the portal.

      Determine what communications are most important and who will do them

      Icon of a bperson ascending a staircase.

      PROACTIVE, PLANNED CHANGES

      		 From: Service Desk

      Messaging provided by engineer or director, sent to all employees; proactive planning with business unit leaders.
      Icon of a bullseye.

      OUTAGES & UPDATES

      		 From: Service Desk

      Use templates to send out concise messaging and updates hourly, with input from technical team working on restoring services to all; director to liaise with business stakeholders.
      Icon of a lightbulb.

      UPDATES TO SERVICES, SELF-SERVE

      		 From: Director

      Send announcements no more than monthly about new services and processes.
      Icon of a handshake.

      REGULAR STAKEHOLDER COMMUNICATIONS

      		 From: Director

      Monthly reporting to business and IT stakeholders on strategic and project goals, manage escalations.

      1.4 Create communications plan

      2 hours

      Input: Sample past communications

      Output: Communications templates

      Materials: Whiteboard/flip charts, Markers

      Participants: CIO, Service desk manager, Technicians

      Determine where templates are needed to ensure quick and consistent communications. Review sample templates and modify to suit your needs:

      1. Proactive, planned changes
      2. Outages and updates
      3. Updates to services, self-serve
      4. Regular stakeholder communications

      Download the communications templates

      Create reports that are useful and actionable

      Reporting serves two purposes:

      1. Accountability to stakeholders
      2. Identification of items that need action

      To determine what reports are needed, ask yourself:

      • What are your goals?
      • What story are you trying to tell?
      • What do you need to manage day to day?
      • What do you need to report to get funding?
      • What do you need to report to your stakeholders for service updates?

      Determine which metrics will be most useful to suit your strategic and operational goals

      STRATEGIC GOAL (stakeholders): Improve customer service evidenced by:

      TIME

      • Aged backlog
      • Service requests solved within SLA (could also look for quick ones, e.g. tickets solved in one day, % solved within one hour)
      • Volume of incidents and time to solve each type
      • Critical incidents solved in 4 hours
      • Incidents solved same day

      QUALITY

      • Percentage of tickets solved at first contact
      • SLAs missed
      • Percentage of services available to request through catalog
      • Percentage of tickets created through portal (speaks to quality of experience)
      • Customer satisfaction survey results – transactional and annual

      RESOURCES

      • Knowledge articles used by technicians
      • Knowledge articles used by end users
      • Tickets resolved at each technician level (volume)
      • Non-standard requests evaluated and fulfilled by volume & time served
      • Volume of recurring incidents
      OPERATIONAL GOALS: Report to director & technicians

      What else can you do to improve service?

      Review the next few pages to see if you need additional blueprints to help you:
      • Evaluate staffing and training needs to ensure the right number of resources are available and they have the skills they need for your environment.
      • Create self-service for end users to get quick answers and create tickets.
      • Create a knowledge base to ensure backup for technical expertise.
      • Develop customer service skills through training.
      • Perform ticket analysis to better understand your technical environment.

      Be agile in your approach to service

      It’s easy for small teams to get overwhelmed when covering for vacations, illness, or leave. Determine where priorities may be adjusted during busy or short-staffed times.

      • Have a plan to cross-train technicians and create comprehensive knowledge articles for coverage during vacations and unexpected absences.
      • Know where it makes sense to bring in vendors, such as for managed print services, or to cover for extended absences.
      • Look for opportunities to automate functions or reduce administrative overhead through workflows.
      • Identify any risks and determine how to mitigate, such as managing or changing administrative passwords.
      • Create self-serve to enable ticket creation and self-solve for those users who wish to use it.

      Staff the service desk to meet demand

      • With increasing complexity of support and demand on service desks, staff are often left feeling overwhelmed and struggling to keep up with ticket volume, resulting in long resolution times and frustrated end users.
      • However, it’s not as simple as hiring more staff to keep up with ticket volume. IT managers must have the data to support their case for increasing resources or even maintaining their current resources in an environment where many executives are looking to reduce headcount.
      • Without changing resources to match demand, IT managers will need to determine how to maximize the use of their resources to deliver better service.

      Cover image for 'Staff the Service Desk to Meet Demand'.
      Click picture for a link to the blueprint

      Create and manage a knowledge base

      With a small team, it may seem redundant to create a knowledge base, but without key system and process workflows and runbooks, an organization is still at risk of bottlenecks and knowledge failure.

      • Use a knowledge base to document pre-escalation troubleshooting steps, known errors and workarounds, and runbook solutions.
      • Where incidents may have many root causes, document which are the most frequent solutions and where variations are typically used.
      • Start with an inventory of personal documents, compare and consolidate into the knowledge base, and ensure they are accurate and up to date.
      • Assign someone to review articles on a regular basis and flag for editing and archiving as the technical environment changes.
      • Supplement with vendor-provided or purchased content. Two options for purchased content include RightAnswers or Netformx.

      Info-Tech Insight

      Appeal to a broad audience. Use non-technical language whenever possible to help less technical readers. Identify error messages and use screenshots where it makes sense. Take advantage of social features like voting buttons to increase use.

      Optimize the service desk with a shift-left strategy

      • “Shift left” is a strategy which moves appropriate technical work to users through knowledge articles, automation and service catalogs, freeing up time for technicians to work on more complex issues.
      • Many organizations have built a great knowledge base but fail to see the value of it over time as it becomes overburdened with overlapping and out-of-date information. Knowledge capture, updating, and review must be embedded into your processes if you want to keep the knowledge base useful.
      • Similarly, the self-service portal is often deployed out of the box with little input from end users and fails to deliver its intended benefits. The portal needs to be designed from the end user’s point of view with the goal of self-resolution if it will serve its purpose of deflecting tickets.

      Cover image for 'Optimize the Service Desk With a Shift-Left Strategy'.
      Click picture for a link to the blueprint

      Customer service isn’t just about friendliness

      Your team will all need to deal with end users at some point, and that may occur in times of high stress. Ensure the team has the skills they need to actively listen, stay positive, and de-escalate.

      Info-Tech’s customer service program is a modular approach to improve skills one area at a time. Delivering good customer service means being effective in these areas:
      • Customer focus – Focus on the customer and use a positive, caring, and helpful attitude.
      • Listening and verbal communication skills – Demonstrate empathy and patience, actively listen, and speak in user-friendly ways to help get your point across.
      • Written communication skills – Use appropriate tone, language, and terms in writing (whether via chat, email, or other).
      • Manage difficult situations – Remain calm and in control when dealing with difficult customers and situations.
      • Go the extra mile – Go beyond simply resolving the request to make each interaction positive and memorable.

      Deliver a customer service training program to your IT department

      • There’s a common misconception that customer service skills can’t be taught, so no effort is made to improve those skills.
      • Even when there is a desire to improve customer service, it’s hard for IT teams to make time for training and improvement when they’re too busy trying to keep up with tickets.
      • A talented service desk agent with both great technical and customer service skills doesn’t have to be a rare unicorn, and an agent without innate customer service skills isn’t a lost cause. Relevant and impactful customer service habits, techniques, and skills can be taught through practical, role-based training.
      • IT leaders can make time for this training through targeted, short modules along with continual on-the-job coaching and development.

      Cover image for 'Deliver Customer Service Training Program to Your IT Department'.
      Click picture for a link to the blueprint

      Improve your ticket analysis

      Once you’ve got great data coming into the ticketing system, it’s important to rethink your metrics and determine if there are more insights to be found.

      Analyzing ticket data involves:
      • Collecting ticket data and keeping it clean. Based on the metrics you’re analyzing, define ticket expectations and keep the data up to date.
      • Showing the value of the service desk. SLAs are meaningless if they are not met consistently. The prerequisite to implementing proper SLAs is fully understanding the proper workload of the service desk.
      • Understanding – and improving – the user experience. You cannot improve the user experience without meaningful metrics that allow you to understand the user experience. Different user groups will have different needs and different expectations of the level of service. Your metrics should reflect those needs and expectations.

      Analyze your service desk ticket data

      Properly analyzing ticket data is challenging for the following reasons:
      • Poor ticket hygiene and unclear ticket handling
      • Service desk personnel are not sure where to start with analysis
      • Too many metrics are tracked to parse actionable data from the noise
      Ticket data won’t give you a silver bullet, but it can help point you in the right direction.

      Cover image for 'Analyze Your Service Desk Ticket Data'.
      Click picture for a link to the blueprint

      Start doing problem management

      Proactively focusing on root cause analysis will reduce the most disruptive incidents to the organization.

      • A focus on elimination of critical incidents and the more disruptive recurring incidents will reduce future workloads for the team and improve customer satisfaction.
      • This can be challenging when the team is already struggling with workload; however, setting a regular cadence to review tickets, looking for trends, and identifying at least one focus area a month can be a positive outcome for everyone.
      • Focus on the most impactful ticket or service first. The initial goal should be to reduce or eliminate critical and high-impact incidents. Once the high-stress situations are reduced, proactively scheduling the smaller but still time-consuming repeatable incidents can be done.
      • Where you have vendors involved, work with them to determine when root cause analysis must happen and where they’ll need to coordinate with your team or other supporting vendors.

      Problem management

      Problem management can be challenging because it requires skills and knowledge to go deep into a problem and troubleshoot the root cause of an issue, but it also requires uninterrupted time.
      • Problem management, however, can be taught, and the issue isn’t always hard to spot if you have time to look.
      • Using tried and true methods for walking through an issue step by step will enable the team to improve their investigative and troubleshooting skills.
      • Reduction of one or two major incidents and recurring incidents per month will pay off quickly in reducing reactive ticket volume and improve customer satisfaction.

      Cover image for 'Problem Management'.
      Click picture for a link to the blueprint

      Create your roadmap with high-level requirements

      Determine what tasks and projects need to be completed to meet your improvement goals. Create a high-level project plan and balance with existing resources.

      Roadmap of high-level requirements with 'Goals' as row headers and their timelines mapped out across fiscal quarters.

      Bibliography

      Taylor, Sharon and Ivor Macfarlane. ITIL Small Scale Implementation. Office of Government Commerce, 2005.

      “Share, Collaborate, and Communicate on One Consistent Platform.” Liferay, n.d. Accessed 19 July 2022.

      Rodela, Jimmy. “A Beginner’s Guide to Customer Self-Service.” The Ascent, 18 May 2022. Web.

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