RSM, Erasmus University
Msc BIM 2021 - 2022
Kathleen Gaillot
BM03BIM • 5 EC
Business Architecture &
Transformation
Notes/imagery based on lectures
Lectures
Summary
1
, Table of Contents
Session 1: IT Strategy ........................................................ 1 3.4 Time & Scope Management ..............................23
1.1 Introduction to IT Strategy .................................. 1 3.4.1 Scope Management ...................................23
1.1.1 Strategy & IT Alignment Overview .............. 1 3.4.2 Time Management.....................................23
1.1.2 What is Business Architecture?................... 1 3.5.2 Visualization: Network Diagram & Gantt Charts
1.1.3 What is Business Transformation?.............. 2 ............................................................................24
1.2 Business Strategy: Vision & Mission.................... 2 3.5.3 PERT & Critical Path Exercises ...................25
1.3 Strategies & Market Leadership .......................... 3 Session 4: IT Project Management II ............................... 27
1.3.1 Competitive Strategies ................................ 3 4.1 Business Process Management: Alignment
1.4 Operating Models................................................ 4 Mechanism...............................................................27
1.5 IT Assets & Needs ................................................ 5 4.2 Business Process Management Techniques ......28
1.5.1 Business IT Alignment ................................. 5 4.2.1 Process Mining ...........................................28
1.5.2 How to Identify IT Needs ............................ 6 4.2.2 Scenario Examples .....................................29
1.6 Approaches ......................................................... 6 4.3 Process Modeling Language (BPMN 2.0) ...........30
1.6.1 OKR: Objective and Key Results .................. 6 4.3.1 Important Concepts to Remember ............30
1.6.2 BSC: Balanced Score Card ........................... 6 Session 5: IT Risk Management ....................................... 32
1.6.3 CSF: Critical Success factors ........................ 7 5.1 IT Risk Management ..........................................32
1.6.4 Consolidating BSC & CSF Analysis ............... 7 5.2 IT Auditing ..........................................................34
Session 2: IT Governance .................................................. 9 5.2.1 Planning .....................................................34
2.1 Corporate Governance ........................................ 9 Session 6: IT Sourcing ...................................................... 35
2.1.1 Overview ..................................................... 9 6.1 IT Sourcing Decision Aspects..............................35
2.1.2 IT governance ............................................ 10 6.1.1 Task: What Tasks Can Be Outsourced? ......35
2.1.3 Key Assets Governance ............................. 10 6.1.2 Sourcing Modes: How Do I Source a Task? 36
2.1.4 Business Architecture & IT ........................ 11 6.1.3 Costs: When do we Outsource as a Company?
2.1.5 Centralization Vs Decentralization ............ 11 ............................................................................36
2.2 IT Governance ................................................... 12 6.2 IT Outsourcing Success Factors ..........................38
2.2.1 Contingency Factors as a Design Framework12 6.2.1 Success Factor: Asset Specificity ................38
2.2.2 IT Governance Mode................................. 13 6.2.2 Success Factor: Contract Type ...................40
2.2.3 IT Decision Types ....................................... 14 6.2.3 Success factor: Governance .......................41
2.2.4 IT Governance Performance & Design ...... 14 Session 7: IT Decision Making.......................................... 43
2.3 Control Framework for IT Governance ............. 15 7.1 Decision Making Theories ..................................43
2.3.1 COBIT: Control Objectives for Information & 7.1.1 Dual System / Process Theory ...................43
related Technology ............................................ 15 7.1.2 Prospect Theory .........................................44
2.4.2 ITIL: Information Technology Infrastructure 7.2 Heuristic & Biases in Decision Making ...............44
Library ................................................................ 16 7.2.1 Examples Relating to Dual-Process Theory44
Session 3: IT Project Management I ............................... 17 7.2.2 Examples Relating to Prospect Theory ......45
3.1 Phases of Project Management Process ........... 17 7.2.3 Examples Relating to Regression Effects ...46
3.1.1 The Initiation Phase................................... 18 7.3 Debiasing Strategies...........................................47
3.2 Cost Management ............................................. 19 7.3.1 Weighted Decision Matrix / Pugh Matrix ..47
3.2.1 The Planning Phase ................................... 19 7.3.3 Maximum Difference Scaling (MaxDiff) .....48
3.3 When to Start a Project? ................................... 20 7.3.4 Algorithms..................................................48
3.3.1 Time Value of Money ................................ 21 8. Examination Information............................................. 49
3.3.2 Break-Even Analysis .................................. 21 8.1 Sample Questions .........................................49
Course & Topics Division
A. Business Architecture
It Strategy (Course 1) IT Governance (Course 2)
B. Business Transformation
IT Process Management (Course 3) IT Project Management (Course 4) IT Risk Management (Course 5)
C. Business Decisions
IT Sourcing (Course 6) IT Decision Making (Course 7)
ii
, Note: use CTRL + F for quick navigation / finding keywords.
Learning Objectives - After following this course, the student will be able to…
Evaluate the digital capabilities within an Apply the main concepts of a digital
Create a Digital Strategy for an organization
organization transformation
Determine the appropriate digital governance Analyse the IT funding guidelines of an
Learn business jargon
structure organization
Session 1: IT Strategy
Topics: IT strategy
Learning goals:
1) Define business architecture and business transformation.
2) Analyze different business strategies and operating models
3) Explain how IT and business strategy can be aligned
4) Examine factors influencing Business-IT alignment
1.1 Introduction to IT Strategy
1.1.1 Strategy & IT Alignment Overview
Vision Mission Objectives Strategy Approach Tactics
Business Why the company Result that a Long term plan Methodology for Smaller, focused action
aspiration exists & what the company aims to designed to achieve executing long term plans that support the
founders envisioned achieve objectives plan overall approach & strategy
Relates to Assignment 1: Business Architecture Relates to Assignment 2: Business Transformation
Why do we need an IT Strategy? Two Approaches:
1. Traditional Approach: Strategy IT Alignment [IT supports strategy]
2. Technology-Driven Approach: IT Strategy Alignment [IT is part of strategy]
1.1.2 What is Business Architecture?
Business architecture: three components
1) Business Motivation: why are we doing the business? …Vision, mission, objective, values, goals, strategy
2) Business Model: what are we doing? ...assets, operating models, core assets
3) Business Execution: how are we doing our business? …Business processes
1
, 1.1.3 What is Business Transformation?
Business transformation - Two-important axis:
х Degree of potential benefits (low-high).
ϓ Degree of business transformation (low-high).
Two Approaches to business transformation:
o High degree of potential benefits & business
transformation the top right of the model. It’s
about changing strategy & vision. There, you can
improve your capabilities in a top-down process:
1. Business Scope Redefinition
2. Business Network Redesign
o At the bottom right, we’re at the root: where we
update processes and integrate. Bottom-up approach. =
This class’ focus. Includes: (1) Internal Integration & (2)
Localized Exploitation In short, two ways to reach business process redesign
1.2 Business Strategy: Vision & Mission
In this course, we start with the business part and we take the
CIO/consultant perspective. E.g., say you are CIO of Volkswagen, you
think of:
What IT strategy would I choose? Note that the IT strategy is
closely related to the business strategy.
Which strategic IT investments would you make?
2
Msc BIM 2021 - 2022
Kathleen Gaillot
BM03BIM • 5 EC
Business Architecture &
Transformation
Notes/imagery based on lectures
Lectures
Summary
1
, Table of Contents
Session 1: IT Strategy ........................................................ 1 3.4 Time & Scope Management ..............................23
1.1 Introduction to IT Strategy .................................. 1 3.4.1 Scope Management ...................................23
1.1.1 Strategy & IT Alignment Overview .............. 1 3.4.2 Time Management.....................................23
1.1.2 What is Business Architecture?................... 1 3.5.2 Visualization: Network Diagram & Gantt Charts
1.1.3 What is Business Transformation?.............. 2 ............................................................................24
1.2 Business Strategy: Vision & Mission.................... 2 3.5.3 PERT & Critical Path Exercises ...................25
1.3 Strategies & Market Leadership .......................... 3 Session 4: IT Project Management II ............................... 27
1.3.1 Competitive Strategies ................................ 3 4.1 Business Process Management: Alignment
1.4 Operating Models................................................ 4 Mechanism...............................................................27
1.5 IT Assets & Needs ................................................ 5 4.2 Business Process Management Techniques ......28
1.5.1 Business IT Alignment ................................. 5 4.2.1 Process Mining ...........................................28
1.5.2 How to Identify IT Needs ............................ 6 4.2.2 Scenario Examples .....................................29
1.6 Approaches ......................................................... 6 4.3 Process Modeling Language (BPMN 2.0) ...........30
1.6.1 OKR: Objective and Key Results .................. 6 4.3.1 Important Concepts to Remember ............30
1.6.2 BSC: Balanced Score Card ........................... 6 Session 5: IT Risk Management ....................................... 32
1.6.3 CSF: Critical Success factors ........................ 7 5.1 IT Risk Management ..........................................32
1.6.4 Consolidating BSC & CSF Analysis ............... 7 5.2 IT Auditing ..........................................................34
Session 2: IT Governance .................................................. 9 5.2.1 Planning .....................................................34
2.1 Corporate Governance ........................................ 9 Session 6: IT Sourcing ...................................................... 35
2.1.1 Overview ..................................................... 9 6.1 IT Sourcing Decision Aspects..............................35
2.1.2 IT governance ............................................ 10 6.1.1 Task: What Tasks Can Be Outsourced? ......35
2.1.3 Key Assets Governance ............................. 10 6.1.2 Sourcing Modes: How Do I Source a Task? 36
2.1.4 Business Architecture & IT ........................ 11 6.1.3 Costs: When do we Outsource as a Company?
2.1.5 Centralization Vs Decentralization ............ 11 ............................................................................36
2.2 IT Governance ................................................... 12 6.2 IT Outsourcing Success Factors ..........................38
2.2.1 Contingency Factors as a Design Framework12 6.2.1 Success Factor: Asset Specificity ................38
2.2.2 IT Governance Mode................................. 13 6.2.2 Success Factor: Contract Type ...................40
2.2.3 IT Decision Types ....................................... 14 6.2.3 Success factor: Governance .......................41
2.2.4 IT Governance Performance & Design ...... 14 Session 7: IT Decision Making.......................................... 43
2.3 Control Framework for IT Governance ............. 15 7.1 Decision Making Theories ..................................43
2.3.1 COBIT: Control Objectives for Information & 7.1.1 Dual System / Process Theory ...................43
related Technology ............................................ 15 7.1.2 Prospect Theory .........................................44
2.4.2 ITIL: Information Technology Infrastructure 7.2 Heuristic & Biases in Decision Making ...............44
Library ................................................................ 16 7.2.1 Examples Relating to Dual-Process Theory44
Session 3: IT Project Management I ............................... 17 7.2.2 Examples Relating to Prospect Theory ......45
3.1 Phases of Project Management Process ........... 17 7.2.3 Examples Relating to Regression Effects ...46
3.1.1 The Initiation Phase................................... 18 7.3 Debiasing Strategies...........................................47
3.2 Cost Management ............................................. 19 7.3.1 Weighted Decision Matrix / Pugh Matrix ..47
3.2.1 The Planning Phase ................................... 19 7.3.3 Maximum Difference Scaling (MaxDiff) .....48
3.3 When to Start a Project? ................................... 20 7.3.4 Algorithms..................................................48
3.3.1 Time Value of Money ................................ 21 8. Examination Information............................................. 49
3.3.2 Break-Even Analysis .................................. 21 8.1 Sample Questions .........................................49
Course & Topics Division
A. Business Architecture
It Strategy (Course 1) IT Governance (Course 2)
B. Business Transformation
IT Process Management (Course 3) IT Project Management (Course 4) IT Risk Management (Course 5)
C. Business Decisions
IT Sourcing (Course 6) IT Decision Making (Course 7)
ii
, Note: use CTRL + F for quick navigation / finding keywords.
Learning Objectives - After following this course, the student will be able to…
Evaluate the digital capabilities within an Apply the main concepts of a digital
Create a Digital Strategy for an organization
organization transformation
Determine the appropriate digital governance Analyse the IT funding guidelines of an
Learn business jargon
structure organization
Session 1: IT Strategy
Topics: IT strategy
Learning goals:
1) Define business architecture and business transformation.
2) Analyze different business strategies and operating models
3) Explain how IT and business strategy can be aligned
4) Examine factors influencing Business-IT alignment
1.1 Introduction to IT Strategy
1.1.1 Strategy & IT Alignment Overview
Vision Mission Objectives Strategy Approach Tactics
Business Why the company Result that a Long term plan Methodology for Smaller, focused action
aspiration exists & what the company aims to designed to achieve executing long term plans that support the
founders envisioned achieve objectives plan overall approach & strategy
Relates to Assignment 1: Business Architecture Relates to Assignment 2: Business Transformation
Why do we need an IT Strategy? Two Approaches:
1. Traditional Approach: Strategy IT Alignment [IT supports strategy]
2. Technology-Driven Approach: IT Strategy Alignment [IT is part of strategy]
1.1.2 What is Business Architecture?
Business architecture: three components
1) Business Motivation: why are we doing the business? …Vision, mission, objective, values, goals, strategy
2) Business Model: what are we doing? ...assets, operating models, core assets
3) Business Execution: how are we doing our business? …Business processes
1
, 1.1.3 What is Business Transformation?
Business transformation - Two-important axis:
х Degree of potential benefits (low-high).
ϓ Degree of business transformation (low-high).
Two Approaches to business transformation:
o High degree of potential benefits & business
transformation the top right of the model. It’s
about changing strategy & vision. There, you can
improve your capabilities in a top-down process:
1. Business Scope Redefinition
2. Business Network Redesign
o At the bottom right, we’re at the root: where we
update processes and integrate. Bottom-up approach. =
This class’ focus. Includes: (1) Internal Integration & (2)
Localized Exploitation In short, two ways to reach business process redesign
1.2 Business Strategy: Vision & Mission
In this course, we start with the business part and we take the
CIO/consultant perspective. E.g., say you are CIO of Volkswagen, you
think of:
What IT strategy would I choose? Note that the IT strategy is
closely related to the business strategy.
Which strategic IT investments would you make?
2
