Organization and management of IT : the new role of IT and the CIO in digital transformation

This book takes a practical look at how IT organizations need to position themselves optimally in this dynamically changing world and what this means for the leadership of this increasingly important IT. In addition, the book takes a closer look at the topic of managing an IT organization: What is the role and what are the leadership responsibilities of a CIO? How and by what means can an IT organization best be managed? How can complex change processes and transformations be managed? Thus, the book offers a practical guide for organizational change or reorganization of IT with many tips on change management, leadership, and agile methods and approaches in the new IT organization. Preface 5 What is the Purpose of IT Organizations in an Enterprise? 5 References 6 Contents 7 Part I: Introduction: The IT Organization Over Time 11 1: Organizations in General 12 1.1 Definition of Terms 12 1.2 Organizations Today 13 Reference 15 2: IT Organizations in Particular 16 2.1 From the Beginnings of IT to 2010 16 2.2 Where Does IT Stand Today? 21 Reference 22 Part II: The Structure of IT Organizations 23 3: The Organizational Structure of IT: Various Models in Pro and Contra 24 3.1 The Four Ways of Integrating IT into the Business Organization 24 3.1.1 Advantages and Disadvantages 25 3.2 Overview of IT Organizational Structures 28 3.2.1 The Model of the Classical IT Organization 28 3.2.1.1 Definition and Objectives of the Model 28 3.2.1.2 Advantages and Disadvantages 28 3.2.2 The “Plan-Build-Run” Model 30 3.2.2.1 Definition and Objectives of the Model 30 3.2.2.2 Advantages and Disadvantages 31 3.2.3 The Source-Make-Deliver Model 31 3.2.3.1 Definition and Objectives of the Model 31 3.2.3.2 Advantages and Disadvantages 32 3.2.4 The Innovate-Design-Transform Model 32 3.2.4.1 Definition and Objectives of the Model 32 3.2.4.2 Advantages and Disadvantages 33 3.2.5 Shared Service Models 34 3.2.5.1 Definition and Objectives of the Model 34 3.2.5.2 Advantages and Disadvantages 34 3.2.6 The Demand-Supply Model 35 3.2.6.1 Advantages and Disadvantages of the Demand/Supply Model 38 3.3 Special Features of the Organizational Structure of IT 39 3.3.1 DevOps 39 3.3.2 BizOps or BizDevOps 40 3.3.3 A Bimodal IT Organization 41 3.3.4 The IT Organization in an International Context 42 3.3.5 Line-Centric Versus Project-Centric IT Organization 44 3.4 Agile Methods in IT Organization Design 46 3.4.1 SCRUM 46 3.4.1.1 Definition and Objectives of SCRUM 46 3.4.1.2 The Functioning and Artifacts of SCRUM 46 3.4.2 IT KANBAN 49 3.4.2.1 Definition and Objectives of KANBAN in IT 49 3.4.2.2 How KANBAN Works in IT 50 3.4.3 Self-Organization and Holacracy in IT 52 3.4.3.1 Definition and Objectives of Self-Organization 52 3.4.4 Digital Labs 53 3.4.4.1 Definition and Objectives 53 3.4.4.2 The Structure of a Digital Lab 55 3.4.4.3 Three Important Success Factors for a Digital Lab 58 3.4.5 Tip from the Field: When and Where Do Agile Approaches Make Sense? 60 3.5 The Process Organization as an Interface to the Specialist Departments 62 3.5.1 The Question of the Responsibility of a Process Organization 62 3.5.2 The Three Levels of Requirements Management 62 3.5.3 Important Roles in the Process Organization 64 3.5.4 Establishment of a Process Organization 65 3.5.4.1 Step 1: Define End-to-End Processes 65 3.5.4.2 Step 2: Distribute the Roles 65 3.5.4.3 Step 3: “Marrying” the IT Organization and the Process Organization 68 3.5.4.4 Step 4: Formally Introduce the Process Organization 69 3.6 Summary and Plea for a Modern IT Organization 70 References 71 4: The Process Organization of IT: Which IT Processes and Structures Does a Modern and Lean IT Organization of the Future Need? 72 4.1 IT Governance as a Framework for IT Process Organization 72 4.2 Overview of Common Frameworks for IT Process Organization 73 4.2.1 COBIT as a Possible Reference Model for the IT Process Organization 73 4.2.1.1 Definition and Objective of COBIT 73 4.2.1.2 The Structure and Functioning of COBIT 73 4.2.2 ITIL as a Framework for the Implementation of IT Service Management Standards 76 4.2.2.1 Definition and Objective of ITIL 76 4.2.2.2 Overview of ITIL Management Practices 76 4.2.3 A Guide Through the Jungle of ITIL, COBIT, and Co: What Is Really Important for the CIO? 78 4.3 Your Own IT Framework 79 4.3.1 IT Strategy and IT Governance 81 4.3.1.1 IT Strategy and IT Roadmap 81 4.3.1.2 Marketing/Communication 86 4.3.1.3 IT Controlling and Contracts 88 4.3.1.4 IT HR (Human Resource Management) 90 4.3.1.5 IT Purchasing and Provider or Supplier Management 90 4.3.2 Demand Management 91 4.3.2.1 Requirements Management 92 4.3.3 Project Management 93 4.3.3.1 Project Management 93 4.3.3.2 Portfolio Management 95 4.3.4 IT Architecture 109 4.3.5 IT Development and Deployment 110 4.3.6 IT Service Management 111 4.3.7 IT Operations 112 4.4 IT Personnel and Roles: Defining the Right Roles for the IT Processes 112 4.4.1 The CIO’s First Reporting Level 112 4.4.2 IT Strategy and IT Governance 112 4.4.3 Demand Management 113 4.4.4 Project Management 115 4.4.5 IT Architecture, Innovation, and Digitalization 116 4.4.6 IT Development/Deployment 119 4.4.7 IT Service Management 120 4.4.8 IT Operations 124 4.4.9 Interfaces and Decision Rights of the IT Roles 124 References 125 Part III: The Role of IT and the CIO in the Company 126 5: The Role of IT in the Company 127 5.1 Drivers and Influencing Factors of the IT Organization 127 5.1.1 Digitization and New Digital Business Models 128 5.1.2 Agility, Dynamism, and Collaborative Working 129 5.1.3 Consumerization of IT and IT Security 130 5.1.4 Artificial Intelligence, IoT, and Cloud Computing 130 5.1.5 Finding and Retaining Talent and Experts 131 5.2 Positioning: Where Does IT Stand Today? 131 5.3 Clarify Expectations of the IT Organization 132 5.4 The New Role of IT: Old Ways of Thinking Must Be Overcome 136 5.4.1 From Administrator of Technology to Designer of Digital Change 138 5.4.2 The Four Stages of IT Becoming an Innovation Driver 139 5.4.3 Conflict Potential 1: “Sovereign Tasks” Versus Service Tasks 140 5.4.4 Conflict Potential 2: Self-Image Versus External Image 141 5.5 The New Role of IT Drives the Business: How IT Can Create Real Business Value 141 Reference 142 6: Quo Vadis CIO? – The Role of the CIO in Times of Digital Transformation 143 6.1 CIO Role Models 144 6.2 Tasks of a CIO: Working on IT and Not in IT 146 6.3 Necessary Skills and Competencies of the CIO 147 6.3.1 Agile Leadership: Modern Leadership Instead of Command and Control 148 6.3.2 The CIO as a Change Leader: Not Just Making the Technology Work, But the People and the Processes 148 6.3.3 Entrepreneurial Thinking: Demonstrating the Business Impact and Benefits of IT 149 6.3.4 Communication and Marketing: Making IT Understandable 149 6.3.5 Simplify Complexity: Understanding Technologies and Using Them Correctly for the Company 149 6.3.6 The Seven-Point Plan for Success as a CIO 150 6.4 CIO Versus CDO: The CIO in the Digital Age 150 References 152 Part IV: Management of IT Organizations 153 7: Leadership Principles for CIOs and IT Managers 154 7.1 Results Orientation and Business Impact as CIO 154 7.2 Managing IT Specialists 156 7.3 Concentration on the Essentials 157 7.4 Employee Development: Strengthening Strengths! 158 Reference 160 8: Meaning and Purpose as a Management and Control Instrument 161 8.1 Developing a Target Picture for IT 161 8.2 How Is the IT Target Image Achieved? – Creating the IT Roadmap 163 9: Agility and Dynamism Need a New Form of Leadership 165 9.1 Leadership Agility: Effective Leadership in an Agile and Dynamic World 165 9.1.1 The Starting Point of Leadership Agility 165 9.1.2 How to Become an Innovation Driver? 167 9.1.3 Leadership Agility: From Conventional Leadership to Agile Leadership 168 9.1.4 How Can Agile Leadership Be Implemented in the IT Organization? 172 9.2 Specifics of Leadership in the Digital Age 173 References 174 10: IT Management by Objectives: OKRs Instead of Management by Objectives (MbO) 175 10.1 Definition and Objectives of OKRs 175 10.2 Procedure for the Preparation of OKRs for IT 177 11: Leadership and Team Building: The Five Phases According to Tuckman 180 12: Important Cultural Aspects of an IT Organization 185 12.1 Culture and IT 185 12.2 Trust Is the Basis for a Healthy Corporate Culture in IT 187 12.3 The Systemic View of IT Organizations: Innovation Through IT and Dealing with Uncertainty 188 12.4 Digital Culture as the Foundation for a Modern IT Organization 189 References 191 13: Summary 192 References 194