Inhoud
Week 1: What is IT Gov?.......................................................................................................................... 2
IT Governance Concepts .................................................................................................................. 2
Why is IT Gov important? ................................................................................................................ 2
IT Strategy ........................................................................................................................................ 2
Enterprise architecture .................................................................................................................... 2
Key IT decisions & archetypes ......................................................................................................... 3
Week 2: Dealing with Uncertainty ........................................................................................................... 5
Organizational Resilience................................................................................................................. 5
Environmental Dynamism ............................................................................................................... 6
Dynamic Capabilities ....................................................................................................................... 7
The Duality of Digital ....................................................................................................................... 7
Digital Transformation ..................................................................................................................... 7
From Linear to platform business models ....................................................................................... 8
Digital Economy Business Model Elements ..................................................................................... 8
Digital Transformation: .................................................................................................................... 8
Week 3: Digital Transformation Strategy ............................................................................................... 10
The Complexity of Digital Transformation ..................................................................................... 10
Paradoxical Tensions of Digital Transformation ............................................................................. 13
Digital (Transformation) Strategy .................................................................................................. 13
Week 4: ITO Theories ............................................................................................................................ 14
IT Outsourcing ............................................................................................................................... 14
ITO Theory & Research .................................................................................................................. 15
Week 5: ITO Practice.............................................................................................................................. 20
Relational Dynamics in ITO ............................................................................................................ 21
ITO Risks......................................................................................................................................... 22
ITO Practices: ................................................................................................................................. 23
1
,Week 1: What is IT Gov?
IT Governance Concepts
- IT Governance describes the decision rights and accountability framework used to ensure the
alignment of IT-related activities with the organization’s strategy and objectives. (Gregory, et
al, 2018)
- Key dimensions deriving from the definition:
o Focus of IT governance (what to govern)
▪ What IT-related activities and artifacts must be aligned with organizational
strategy and objectives.
o Scope of IT governance (who to govern),
▪ Which actors and stakeholders are held accountable for ensuring IT’s
contribution to the organization.
o Patterns of IT governance (how to govern),
▪ What mechanisms are put in place to ensure “desirable” IT-related activities
and outcomes.
- IT Governance is not about what specific decisions are made.
- It is about systematically determining who makes each type of decision (input right) and how
these people (or groups) are held accountable for their role.
- Managing a key management paradox: simultaneously empowering and controlling.
Why is IT Gov important?
- IT Governance matters because it facilitates the benefits received from IT investments.
o Does IT matter? (Carr, 2003)
o Extracting value from IT requires innovations in business practices.
o IT spending rarely correlates with superior financial results
o Need to change practices and exploit new capabilities
o Link it to innovation
- ROIIT = f (BPI, Governance, matched IT investments)
IT Strategy
Enterprise architecture
- Main challenge in Business-IT alignment?
2
, o Strategy is multifaceted and strategic priorities change.
o IT is left to align strategic initiatives after they are announced.
o IT can thus become a persistent bottleneck.
o IT can become proactive if businesses define their operating model
▪ The necessary level of business process integration and standardization for
delivering goods and services to customers.
o Operating models
▪ Diversification (low standardization, low integration > General Electric)
▪ Unification (high standardization, high integration > Delta Airlines)
▪ Coordination (low standardization, high integration > Toyota Europe)
▪ Replication (high standardization, low integration > Marriot)
- Enterprise architecture is the organizing logic for business processes and IT infrastructure,
reflecting the standardization and integration requirements of the firm’s operating model.
- Learning to be more strategic with IT changes a firm’s IT investment patterns (maturity).
- Investment alone however does not lead to more value. IT Governance and different
management patterns drive value.
- An example Architecture
Key IT decisions & archetypes
- Large enterprises have 5 major IT decisions to make:
1. IT Principles = high level statements about how IT is used in the business
Key Decision
▪ Davenport, Hammer & Metsisto 1989, Broadbent & Weill 1997
2. IT architecture = An integrated set of technical choices to guide the organization in
satisfying business needs. The architecture is a set of policies and rules for the use of
3
Week 1: What is IT Gov?.......................................................................................................................... 2
IT Governance Concepts .................................................................................................................. 2
Why is IT Gov important? ................................................................................................................ 2
IT Strategy ........................................................................................................................................ 2
Enterprise architecture .................................................................................................................... 2
Key IT decisions & archetypes ......................................................................................................... 3
Week 2: Dealing with Uncertainty ........................................................................................................... 5
Organizational Resilience................................................................................................................. 5
Environmental Dynamism ............................................................................................................... 6
Dynamic Capabilities ....................................................................................................................... 7
The Duality of Digital ....................................................................................................................... 7
Digital Transformation ..................................................................................................................... 7
From Linear to platform business models ....................................................................................... 8
Digital Economy Business Model Elements ..................................................................................... 8
Digital Transformation: .................................................................................................................... 8
Week 3: Digital Transformation Strategy ............................................................................................... 10
The Complexity of Digital Transformation ..................................................................................... 10
Paradoxical Tensions of Digital Transformation ............................................................................. 13
Digital (Transformation) Strategy .................................................................................................. 13
Week 4: ITO Theories ............................................................................................................................ 14
IT Outsourcing ............................................................................................................................... 14
ITO Theory & Research .................................................................................................................. 15
Week 5: ITO Practice.............................................................................................................................. 20
Relational Dynamics in ITO ............................................................................................................ 21
ITO Risks......................................................................................................................................... 22
ITO Practices: ................................................................................................................................. 23
1
,Week 1: What is IT Gov?
IT Governance Concepts
- IT Governance describes the decision rights and accountability framework used to ensure the
alignment of IT-related activities with the organization’s strategy and objectives. (Gregory, et
al, 2018)
- Key dimensions deriving from the definition:
o Focus of IT governance (what to govern)
▪ What IT-related activities and artifacts must be aligned with organizational
strategy and objectives.
o Scope of IT governance (who to govern),
▪ Which actors and stakeholders are held accountable for ensuring IT’s
contribution to the organization.
o Patterns of IT governance (how to govern),
▪ What mechanisms are put in place to ensure “desirable” IT-related activities
and outcomes.
- IT Governance is not about what specific decisions are made.
- It is about systematically determining who makes each type of decision (input right) and how
these people (or groups) are held accountable for their role.
- Managing a key management paradox: simultaneously empowering and controlling.
Why is IT Gov important?
- IT Governance matters because it facilitates the benefits received from IT investments.
o Does IT matter? (Carr, 2003)
o Extracting value from IT requires innovations in business practices.
o IT spending rarely correlates with superior financial results
o Need to change practices and exploit new capabilities
o Link it to innovation
- ROIIT = f (BPI, Governance, matched IT investments)
IT Strategy
Enterprise architecture
- Main challenge in Business-IT alignment?
2
, o Strategy is multifaceted and strategic priorities change.
o IT is left to align strategic initiatives after they are announced.
o IT can thus become a persistent bottleneck.
o IT can become proactive if businesses define their operating model
▪ The necessary level of business process integration and standardization for
delivering goods and services to customers.
o Operating models
▪ Diversification (low standardization, low integration > General Electric)
▪ Unification (high standardization, high integration > Delta Airlines)
▪ Coordination (low standardization, high integration > Toyota Europe)
▪ Replication (high standardization, low integration > Marriot)
- Enterprise architecture is the organizing logic for business processes and IT infrastructure,
reflecting the standardization and integration requirements of the firm’s operating model.
- Learning to be more strategic with IT changes a firm’s IT investment patterns (maturity).
- Investment alone however does not lead to more value. IT Governance and different
management patterns drive value.
- An example Architecture
Key IT decisions & archetypes
- Large enterprises have 5 major IT decisions to make:
1. IT Principles = high level statements about how IT is used in the business
Key Decision
▪ Davenport, Hammer & Metsisto 1989, Broadbent & Weill 1997
2. IT architecture = An integrated set of technical choices to guide the organization in
satisfying business needs. The architecture is a set of policies and rules for the use of
3
