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Who Does What
The model Ryan uses consists of six core components. The first - overarching - component is the functional view. Executives should cultivate a clear understanding of which functions an IT department should perform.An organization should develop a similarly detailed picture of all aspects of the financial operations and organizational structure of an IT department. Careful tabs should also be kept on its work sourcing arrangements, as well as its business processes and the services it offers.
"One model won't fit all," Ryan stresses, noting instead that organizations should tailor the model to suit their needs.
The lack of a unified IT operating model can be the cause of much cost-inefficiency as well. Each unit of a business may be using different equipment, such as different brands of desktop computers. An organization that has embraced a unified IT operating model would look at IT investment from a holistic perspective.
Ryan says businesses should endeavour to take advantage of economies of scale. They should be "going to a vendor and saying: 'This is what we want, and we want 10,000 of those', not getting 1000 for a particular business unit."
An organization operating under such a model would also closely monitor the operational and sourcing processes of the entire company. According to Ryan, this is a great way to ferret out cost inefficiencies, which can all too easily remain hidden without a unified view of IT spending.
"You may have one business unit using a big database [sourced] from company X, where some group down the hall is getting it from company Y. Sometimes a business unit doesn't need a particular [software] licence anymore and can give it to another. You don't know about that unless you've got an overall view of your sourcing profile."
Ryan believes an organization with a successful IT operating model can and should be more forward-thinking than those lacking such a framework. "So we're not just thinking about today but we're thinking about the future," he says. "We're actually putting money away for our desktop renewal, or putting it away for the new core systems replacements coming up in the future."
An IT operating model would also address the areas of employee acquisition and retention. "We all know there aren't enough people coming through the pipe from universities," Ryan laments. "So how do you actually look after the people you've got? How do you convert some of the people who don't have bang-on skills but have the desire to [learn]?"
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