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• What does the importance of the Office of the CIO (ITG) stem from?
IT is in need of knowledge on all the resources at its disposal at any given moment,
and also, it needs to be able to identify any resource constituting a “bottleneck”. In
addition, IT must obtain a full picture as regards planning, budgets, status of existing
projects, orders, incidents and so forth. The existing tools for project and portfolio
management are not providing a full solution and do not constitute a true tool for
decision making, one that is capable of presenting problems to the CIO before they
actually happen. On the whole, these would be BI tools, which enable the required
information to be concentrated in a single place on the managers’ Dashboard.
One organization noted that IT is entering into the domain of portfolio management
following its handling of another subject: management of suppliers in strategic
outsourcing projects, including maintenance and change management. To that end,
special purpose tools have been constructed. Following collection and analysis of
data accumulated in the EPM system the CIO saw that in order to promote an
improvement in IT management, what was needed was a decision making support
tool, which would facilitate constant improvement both in inward visibility and in the
This report constitutes the opinion of STKI – a consultancy firm providing its clients with 1
strategic and tactical information based on its research in Israel’s IT market and also on
research by international firms such as Cutter, Experture, Datamonitor and Butler.
face presented to IT “customers”. IT must be managed like a business firm. The CIO
currently needs a Dashboard, showing him the principal IT indices, the progression of
major projects, and the utilization of infrastructures.
The IT unit is to be examined as a profit and loss unit to all intents and purposes: IT
expenses compared with commercial value, quality of IT services and so forth. Since
IT value is currently being painstakingly measured, a difficulty arises in obtaining
budgets for the internal needs of IT. Part of the profits of IT comes from the provision
of outsourcing services to customers, and another part from the implementation of
projects for customers. On the whole, IT is managed without sophisticated tools,
despite the fact that it operates in a very dynamic environment. Just like the
commercial organization, it must be prepared for constant business changes, budgets
and work plans sometimes being totally revamped following the acquisition of new
companies or due to competition with business rivals.
A global organization with a number of branches dispersed all over the world
describes a similar situation. The organization requires IT to show constant
rationalization (reduction of costs per employee). In a decentralized organization, too,
it is desirable to achieve central IT management. Correct to the present, the company
has departments that are perceived as profit sources, such as training centres, and
therefore it is easy for them to obtain budgets and resources. The object is to cause
the organization to perceive IT in a similar light, and hence, IT must be capable of
demonstrating its commercial value to the company. IT must start conducting
public relations campaigns for itself vis-à-vis the organization. As things stand, IT
is always at the tail end of the order of priorities. Sometimes absurdity reaches the
point that it is easier to obtain budgets for placement employees than to obtain
additional resources for IT.
The IT world has undergone an evolution which enables and even requires processes
to be automated within the IT units. Today more than ever, genuine IT management is
lacking: projects are not being properly managed, there is no genuine visibility of a
work plan, there are no orderly processes of investment prioritization, and there exists
no analytical capability as regards project status.
For this reason, it is important to examine tools for the management of IT processes: a
tool that will support IT decision making in the outlining of work plans and will
enable IT investments to be classified in accordance with the organization’s strategic
goals. IT is under pressure to reduce costs and resources even though requirements are
constantly mounting.
This report constitutes the opinion of STKI – a consultancy firm providing its clients with 2
strategic and tactical information based on its research in Israel’s IT market and also on
research by international firms such as Cutter, Experture, Datamonitor and Butler.
One organization stated that the Office of the CIO existed within its IT unit.
This office was responsible for the strategic IT plan, for contract management
and also for management of internal customer services at a high level of
transparency both in budgetary terms and in terms of the level of service.
Such activity is conducted with the aid of an HP Project and Portfolio
Management Centre (IT Governance of Mercury and the former Kintana)
Correct to the present, the initiation of a new project passes through many
approval stages in ITG - which renders technical realization very cumbersome,
since numerous formats must be gone through en route. Participants
recommended simplifying the approval process. Complicated workflow does
This report constitutes the opinion of STKI – a consultancy firm providing its clients with 3
strategic and tactical information based on its research in Israel’s IT market and also on
research by international firms such as Cutter, Experture, Datamonitor and Butler.
not serve the best common interest; rather, it ultimately makes it difficult
for the person responsible for the overall process to advance. Customers
moreover recommend lowering the level of task reporting. The simpler and
the less cumbersome the process, the greater the likelihood that users will
put their shoulders to the wheel and that reliable data will be obtained.
BAC. Before a number of systems are hooked up to one another, with the
object of reflecting data from several worlds on a single Dashboard, a decision
must be reached as regards how low a degree of resolution one truly wishes to
reach, what objects one wishes to attain, where will it be possible to see an
order of priorities covering all of them together and so forth. In addition, IT
also lacks software for managing its IT budgets. Organizational software
packages for budget planning are not suited to IT needs. Attempts were
made to download from the Internet a not very large software package with an
uncomplicated WF for approvals, but these efforts did not meet with success.
For the present, the decision was reached to focus on the creation of an
organizational culture that is compatible with IT Governance mechanisms,
all by creating “home grown” methodology and tools which in future will
enable tools of this type to be more easily implemented.
This report constitutes the opinion of STKI – a consultancy firm providing its clients with 6
strategic and tactical information based on its research in Israel’s IT market and also on
research by international firms such as Cutter, Experture, Datamonitor and Butler.
The work method in another organization: at the beginning of the year, a calculation is
made as to the capacity level of the IT. After that, the organization computes the net
amount of work days, subtracting the time required for routine maintenance
(calculated on the basis of past figures), and thus arriving at “the budget” of
development days that customers have in work days. Maintenance works (mostly
dealing with bugs) are determined following meetings that take place once a month
between the team leaders and the programmers. In addition, the organization has a 3-
member PMO office, which is responsible for constructing the Gantt charts, budgets,
and internal customer management. IT management tools: Microsoft Project Server
and Excels for the management of Gantt charts and reporting on hours. Team leaders
and programmers report on all tasks: maintenance, ailments, and vacation days into
the system. The reporting is also subdivided into routine tasks and development tasks.
It is important that the reporting on tasks and hours be made through one screen and
in convenient form by means of SharePoint for example.
A customer recommends the use of SharePoint, where it is very easy to build the
requisite forms, there is mini workflow, a reports catalogue can be constructed, users
can easily see all meters and indices, and the project milestones can be exposed to
them. Correct to the present, only IT reports hours by Web.
What is still lacking is a demand management tool (this is currently done using
Excel). There is a problem with tools such as Test director for the management of
requests that have no automatic data update.
This report constitutes the opinion of STKI – a consultancy firm providing its clients with 7
strategic and tactical information based on its research in Israel’s IT market and also on
research by international firms such as Cutter, Experture, Datamonitor and Butler.