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OnDemandITGovernance:Apowerfultoolfor enhancingthestrategicvalueofIT.
Today,ITplaysakeyroleindeterminingacompany'ssuccessbyleadingstrategic initiativesandprovidingtechnologysolutionsthathelpthebusinessgain competitiveadvantageinthemarketplace.LeveragingITsuccessfullytotransform theenterpriseandcreatevalueaddedproductsandserviceshasbecomeacritical businesscompetency. THECHALLENGE However,thevaluethatITaddstothebusinessdependsuponitsrelationshipand alignmentwiththebusinessanditsabilitytohelpthebusinessmeetandexceed corporatevisionandgoals.Attimes,brokenrelationshipsandmisalignmentcan createperceivedfailuresofITinitiatives.Inaddition,falseimpressionsaboutthe valuethatITprovidescanariseifdeadlinesarenotmetandcostsarehigherthan expected.Asaresult,theCIOcontinuestobethebridgebetweenITandthe business,facilitatingthealignmentbetweenITinitiativesandbusinessobjectives aswellasprovidingmeasuresofthevaluethatITbringstotheorganization. SuccessfulimplementationofITGovernancerequiresastepbystepapproachso thatitisachievablewithinashorttimeframe,toavoiddraggingdownthe organizationwithalengthyandexpensiveimplementation. THEROLEOFITGOVERNANCE Sustainingthecurrentbusinessparadigmandgrowingnewbusinessmodelscanbe achievedonlywithadequateITGovernance,whichistheabilitytomanageand measureboththestrategicandtacticaldirectionofITinalignmentwiththe business.ITGovernanceisachievedbyensuringthatITdeliversagainstthe business'strategy,whilealsobalancingboththesustainmentofitsoperationsand thedeliveryofthenewinitiativesrequiredtomovethebusinessforward. Furthermore,ITGovernanceisintendedtoguaranteethatITprovidesvisibilityand transparencyintotheinitiativessetforthbytheorganization. OftenduringtheefforttoestablishITGovernance,organizationscangetlosttrying toimplementanoverlycomplexITGovernancestrategy.Organizationscantendto createcumbersomemetricsandprocessesthatcontributelittlevaluetothe organization,iftheyevenareadoptedatall.Instead,organizationsshouldtakea straightforwardapproachtocreatethevisibilityandbalancethatarethe objectivesofITGovernance. IMPLEMENTINGITGOVERNANCE ImplementingITGovernancemayseemdaunting,butwithastreamlinedand focusedapproach,establishingastrongfoundationforITGovernanceinashort timeframeisattainable.ThemostsuccessfulITGovernanceimplementationsfocus onkeybusinessdriversthatsupportatargetedandoptimizedITinitiative.These are:StrategyandAlignment,SustainingOperations,StrategicInitiatives,and MeasuringITPerformance.

The areas that support a targeted and optimized IT Governance initiative are: Strategy and Alignment, Sustaining Operations, Strategic Initiatives, and Measuring IT Performance.

White Paper On-Demand IT Governance: A Powerful tool for enhancing the strategic value of IT.

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The areas that support a targeted and optimized IT Governance initiative are: Strategy and Alignment, Sustaining Operations, Strategic Initiatives, and Measuring IT Performance.

Strategy&Alignment: StrategyandalignmentarecriticaltoITGovernanceandcriticaltobuildingthe relationshipbetweenITandotherbusinessunits.AneffectiveITorganization shoulddrivebusinessalignmentby: EnsuringthatITstrategyisdrivenbybusinessstrategy EnsuringthatITdeliversagainstthestrategy.Thismeans deliveringinitiativesontime,onbudget,withappropriate functionality,includingtheintendedbenefits Balancinginvestmentsbetweensystemsthatsupportthe currententerprise,andthosethattransformtheenterprise Optimizingresourceusageacrosssustainingapplicationsin theenterpriseanddrivingstrategicinitiatives CompaniesthataligntheirITobjectiveswiththeoverallbusinessstrategywilldrive betterbusinessvaluefromITandensurethatITisfocusedondeliveringcommon businessgoals.Betterbusinessvaluecomesfrombothinvestinginthehighest returnprojectsaswellasdelaying,combining,ordroppingprojects(andthe requiredinvestmentinthem)thatarenotalignedwithbusinessstrategy.

Figure1. PrioritizeandaligntheITPortfolio.

SustainingOperations: EffectivegovernanceofIT'soperationalspendingrequireseffectivecontrolofthe costbase.Inmostenterprises,thelargestportionoftheITbudgetsupports sustainingoperations.ITdepartmentscanmanageandminimizespendon sustainingoperationsby: AligningandprioritizingtheexistingITservicesthatare

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Companies that align their IT objectives with the overall business strategy will drive better business value from IT and ensure that IT is focused on delivering towards common business goals.

requiredtosupportbusinessoperationsbasedonclear servicedefinitions OrganizingtheITassetsoptimallysothattherequired qualityofserviceisprovidedbythemostcosteffective deliveryinfrastructure ProvidingvisibilityintotheApplicationPortfoliowhich helpsdeterminewhichapplicationsneedtobeupgraded, retiredoroptimized

Simplycreatingacatalogofapplicationswithassociatedbudgetandresource requirementscanleadtosignificantsavings.Customersoftenfindthattheyare supportingmanymoreapplicationsthananyonebelievedandcanusethe applicationportfolioasastartingpointwiththebusinesstoprioritize.Companies thatachievethisnotonlyrealizegreatcostsavingsbutalsoarewellpositionedto takeonthenextsetofITinitiativesjudiciously,whileintroducingnewtechnologies andreplacingorupdatingobsoletesystems.

Figure2. ApplicationRationalizationsupportsthecatalogingandprioritizing oftheApplicationPortfolio,providingvisibilityintoTCOfor sustainingactivities. StrategicInitiatives: WhileITisfundamentaltosustainingbusinessoperations,itisequallyessentialto growingthebusinessandmovingitforward.Insomeorganizations,ITisthe assemblylineormanufacturingplantthatbuildsproductsandservicesto differentiateandprovideacompetitiveadvantage,whileinmanyothersIT determinessurvival,notjustprosperity.ITshouldmaximizespendonstrategic initiativesby: Performingtopdownplanningtoallocatedollarsand resourcestoprioritizedinitiatives Optimizingtheallocationofresourcestothehighest prioritizedbusinessactivities Managingtheprojectportfolioagainstkeyperformance indicatorstoensureontimeandonbudgetdelivery. Bysuccessfullydeliveringagainststrategicinitiatives,ITwilldemonstratethe tremendousvalueitcanbringtotheoverallgrowthandsuccessofthe organizationsoverallobjectives.
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Figure3. PrioritizationagainstbusinessobjectivesandvisibilityintoKPIsareimportant elementsofmanagingstrategicinitiatives. MeasuringITPerformance: ForITtoeffectivelydemonstrateitsvalue,itmustfirstalignwiththebusiness' strategicdirectionandthenmeasureperformancetowardsthatdirection.As strategicdirectionisset,budgetsarecreated,resourcesareassigned,plansare established,andexecutionbegins.It'scriticalthroughouttheyeartomeasureIT performanceandcommunicatetotheorganizationwhereITstandsagainstthe plan.OrganizationsshouldmeasureITperformanceby: ComparingoverallITbudgetversusactualspend Providingvisibilityintoresourceallocation,planversusactual EnsuringongoingprioritizationofITspend Establishingprocessandstandards Measuringexecutionanddelivery AsaresultofimplementingmeasuresforITperformance,ITcandemonstrateits valuetotheorganization,aswellasstayonplanwithitsstrategicdirectionand optimizeandmaximizeITspendandresourceutilization. ONDEMANDITGOVERNANCE OrganizationscanquicklyandsuccessfullylaunchtheirITGovernancestrategy usingafoundationcombiningondemandITProjectPortfolioManagement(PPM) withServiceManagement(SM).AnondemandapproachdeliversITGovernance quicklyataverylowrisk.Additionally,afoundationofPPMandSMusesIT Governancebestpracticesandhasthenecessaryfeaturesandfunctionstofully supportIT.Incontrast,installedITGovernancesoftwaresolutionsrequirea significantinvestmentintimeanddollarsbeforeproducinganyvalueforthe organization. INNOTASPROVIDINGTHERIGHTFOUNDATIONFORITGOVERNANACE TheInnotasOnDemandITGovernancesolutionsupportsITGovernancemandates tohelpITdeliveronstrategicobjectiveswhilealsomanagingITsdaytoday
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A Solution built on a foundation of Project Portfolio Management and Service Management is the most effective path to gaining the strategic benefits of IT Governance.

operations.Comprehensiveandeasytoconfigure(inweeks,notmonthslike traditional,onpremiseapplications),InnotasempowersCIOsandbusiness executivestomanagepeopleandprocessesmoreeffectively,sotheycanalign resourcesandprioritiestoproducethemostbusinessvalue. InnotasprovidesvisibilityintoanintegratedITportfoliobycatalogingand prioritizingallITactivities.Ultimately,byoptimizingandbalancingtheITportfolio ofprojectsandresources,InnotassupportsthereductionofITspendandfocuses valuableITdollarsandresourcesongrowingthebusinessratherthanjust operatingit. BuiltexclusivelyforIT,theInnotasondemandITGovernancesolutiondeliversa powerfultoolby: SupportingtheprioritizationofanintegratedITportfolio acrossstrategicandoperationalinitiatives ProvidingApplicationRationalizationtocatalog,prioritize andmanagetheapplicationportfolio Governingstrategicinitiativesfromconceptiontodelivery withacompletelifecycleapproach Optimizingresourceutilizationacrossbothstrategic projectsandapplicationmaintenanceactivities EstablishingITGovernancebestpracticesthatsupport standardizationofITprocesses,methodologiesand reporting Theresultisacomprehensivesolutionthatgivesvisibilityintothecompletepicture ofIThealthandprovidestruemeasurementoftheperformanceofIT. ToseehowtheInnotasondemandITGovernanceofferingcansupportyourIT initiativesandbusinessstrategies,contactInnotastoday. Visithttp://www.innotas.comorcall866.692.7362or+1.415.814.7700. ABOUTINNOTAS Fullfunctionality,lowercost,fastimplementation,andmorefrequentproduct enhancementsarethekeyelementsbehindtheInnotasondemandITGovernance solution. Thisawardwinningsolutioneliminatesthepainfulelementsofinstalledsoftware todeliveradvantagesquickly: Nocapitalinvestmentinsoftware Noadditionaloutlaysinconsultingservices Nomonthsofcomplexintegrationandcustomization NofaroffpromiseofefficiencyandROI

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ABOUT INNOTAS Innotas provides the only ondemand IT Project Portfolio Management (PPM) solution for IT Governance. Innotas 118 2nd Street, 3rd Floor San Francisco, CA 94105 Main: +1.415.814.7700 Toll- free: 866.692.7362 Email: info@innotas.com

Innotasdeliversthesolutionthattoday'sITleadersneedtousetoconductthefive techniquespresentedinthiswhitepaperandquicklyandeffectivelyachieveIT Governance. ITprofessionalsandorganizationsinawiderangeofindustries,includingfinancial services,healthcare,retail,hightechnology,telecommunications,andenergy,have turnedtoInnotastohelpthemfocusontherightinitiatives,andeffectively manageprojects,resources,andapplicationsallinoneplace. Formoreinformation,visithttp://www.innotas.comorcall866.692.7362or+1 415.814.7700.

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