Page 1 2001 PricewaterhouseCoopers LLPThe PwC Information Technology Methodology Health CheckStrategyBusiness DirectionBusiness Control of ISIS Strategy and PolicyIS Planning and BudgetingDeliveryRoles and ResponsibilitiesOrganizationProject ManagementService DeliveryDevelopment &ImplementationQuality ManagementData ManagementSecurityTechnologyStrategic DirectionArchitectureComputing InfrastructureCommunicationsInfrastructurePeoplePeople ManagementIS PeopleUser PeopleSystemsApplicationsInformationUnsatisfied DemandsThe ITM Health Check Methodology comprises 22 topics grouped into 5 segments: - strategy - delivery - technology - people, and - systemsThe BAS project team should work to select the key topics requiring consideration, and for each topic the level of analysis necessary. The following slides describe in more detail the contents of each of the 5 segmentsPage 2 2001 PricewaterhouseCoopers LLPWhat must be done to ensure that the IS/IT function effectively supports the business? How should the business control IS/IT? Is IS/IT aligned with the business goals?Are resources organized, monitored and controlled in a way that delivers IS/IT services in the most efficient way? How is the value of IS/IT services measured and monitored? How is the value of IS/IT perceived?Are technology trends identified, is the IS/IT architecture effective and is technology chosen and acquired in the most effective manner? How responsive is the technology infrastructure to the changing needs of the business?How well does the organization manage its human resources in relation to IS/IT (skills, attitude, responsiveness, process effectiveness)?Is the application functionality sufficient and cost effective, are there any deficiencies in the information provided by them, and what unsatisfied demand exists in the context of BASs business model?SystemsStrategyPeopleDeliveryTechnologyFocus on the 5 IS and IT Segments Applications Information Unsatisfied Demands People Management IS/IT People User People Business Direction Business Control of IS/IT IS/IT Strategy and Policy IS/IT Planning and Budgeting Roles and responsibilities Organization Project Management Service Delivery Development and Implementation Quality Management Data Management Security Computing Infrastructure Strategic Direction Communication Infrastructure ArchitectureHere are questions that may help you think through these five areas.Page 3 2001 PricewaterhouseCoopers LLPStrategy SegmentDevelopment & ImplementationQuality ManagementData ManagementSecurityDirectionArchitectureComputing InfrastructureCommunications InfrastructurePeople ManagementIS/IT PeopleUser PeopleApplicationsInformationUnsatisfied DemandsRoles & ResponsibilitiesOrganizationProject ManagementService DeliveryDeliveryPeopleSystemsTechnologyThe strategy analysis can focus on the following:Is there an effective business planning process that includes IS/IT issues and opportunities? Is IS/IT aligned with the business? Is there effective control over IS/IT directions, priorities, resources and expenditure by senior management?Does the organization have a clearly defined IS/IT strategy and is it adhered to?Does IS/IT have an effective resource planning and budgetary process and is there an appropriate mechanism to ensure compliance?Business Control of IS/ITBusiness DirectionIS/IT Planning, Resourcing & BudgetingIS/IT Strategy & PolicyStrategyWhat must be done to ensure that the IS/IT strategy effectively supports BASs business? How should IS/IT be controlled?Page 4 2001 PricewaterhouseCoopers LLPDelivery SegmentBusiness Control of IS/ITBusiness DirectionIS/IT Strategy & PolicyDirectionArchitectureComputing InfrastructureCommunications InfrastructurePeople ManagementIS/IT PeopleUser PeopleApplicationsInformationUnsatisfied DemandsIS/IT Planning, Resourcing & BudgetingPeopleSystemsTechnologyStrategyAre resources organized, monitored and controlled in a way that delivers IS/IT services in the most efficient way?Our delivery analysis can focus on the following:Does the IS/IT organization have a clear role and are the channels of communication defined and understood?Does the IS/IT structure enable it to fulfill its business and functional objectives? Does the IS/IT function operate effectively with the rest of the business?Is project management an accepted discipline and are the procedures applied across the project management life cycle?Are IS/IT services defined and delivered in an effective manner?Are the costs of delivering IS/IT services quantified and monitored with respect to their overall business impact and is there an IS/IT value BAS eline that covers the current systems portfolio?Is the identification, prioritization and justification process of IS/IT projects carried out?Are there procedures for validation and acceptance of all IS/IT components?Are the maintenance functions and costs controlled with the same level of discipline as development?Are there adequate management processes in place to ensure delivery of quality systems and services?Is information considered a critical corporate resource?Is this resource developed to meet the needs of the business?DeliveryDevelopment & ImplementationQuality ManagementData ManagementSecurityRoles & ResponsibilitiesOrganizationService DeliveryProject ManagementPage 5 2001 PricewaterhouseCoopers LLPTechnology SegmentBusiness Control of IS/ITBusiness DirectionIS/IT Strategy & PolicyDevelopment & ImplementationQuality ManagementData ManagementSecurityPeople ManagementIS/IT PeopleUser PeopleApplicationsInformationUnsatisfied DemandsRoles & ResponsibilitiesOrganizationProject ManagementIS/IT Planning, Resourcing & BudgetingService DeliveryDeliveryPeopleSystemsStrategyAre technology trends identified, is the IS/IT architecture effective and is technology chosen and acquired in the most effective manner? How responsive is the technology infrastructure to the changing needs of the business?DirectionArchitectureComputing InfrastructureCommunications InfrastructureTechnologyOur technology analysis can focus on the following:Are technology trends monitored and exploited fully? Is the business aware of the potential opportunities for competitive advantage offered by IS/IT ?Has the architecture been planned and is it appropriate for the organization? Is the architecture sufficiently flexible so that the business changes are not constrained by it?Does the computing infrastructure match the technology architecture? Does it support the business needs and is it sufficiently flexible to meet business changes?Is the communications infrastructure adequate to meet the needs of the business? Is there a process for effectively managing and controlling the communications infrastructure?Page 6 2001 PricewaterhouseCoopers LLPPeople SegmentBusiness Control of IS/ITBusiness DirectionIS/IT Strategy & PolicyDevelopment & ImplementationQuality ManagementData ManagementSecurityDirectionArchitectureComputing InfrastructureCommunications InfrastructureApplicationsInformationUnsatisfied DemandsRoles & ResponsibilitiesOrganizationProject ManagementIS/IT Planning, Resourcing & BudgetingService DeliveryDeliverySystemsTechnologyStrategyHow well does BAS manage its human resources in relation to IS/IT (skills, attitude, responsiveness, process effectiveness)?The people analysis can focus on the following:Does BAS have clear policies which utilize its IS/IT people effectively?Do the IT people have the necessary knowledge, skills and attitude to fulfill their role? Does BAS provide IS/IT people with career opportunities?Do users have the necessary knowledge, skills and attitude to fulfill their role?Is there sufficient involvement of users in the IS/IT projects?People ManagementUser PeopleIS/IT PeoplePeoplePage 7 2001 PricewaterhouseCoopers LLPSystems SegmentBusiness Control of IS/ITBusiness DirectionIS/IT Strategy & PolicyDevelopment & ImplementationQuality ManagementData ManagementSecurityDirectionArchitectureComputing InfrastructureCommunications InfrastructurePeople ManagementIS/IT PeopleUser PeopleRoles & ResponsibilitiesOrganizationProject ManagementIS/IT Planning, Resourcing & BudgetingService DeliveryDeliveryPeopleTechnologyStrategyAre the key applications functionally sufficient, are there any major deficiencies in the information provided by them, and what unsatisfied demand exists in the context of BASs business model?Our high-level systems analysis can focus on the following:Does the functionality of key applications meet the needs of the business?Is the value received in line with development and maintenance costs?Is the data received by users accurate, timely, and relevant?Are user requests (that are not covered by the current applications) identified, recorded, and prioritized according to business needs?What degree of unsatisfied demand exists currently or will exist BAS ed upon the groups business strategy?InformationUnsatisfied DemandsApplicationsSystemsPage 8 2001 PricewaterhouseCoopers LLPArticulating Issues, RecommendationsDevelopment & ImplementationQuality ManagementData ManagementSecurityDirectionArchitectureComputing InfrastructureCommunications InfrastructurePeople ManagementIS/IT PeopleUser PeopleApplicationsInformationUnsatisfied DemandsRoles & ResponsibilitiesOrganizationProject ManagementService DeliveryDeliveryPeopleSystemsTechnologyBusiness Control of IS/ITBusiness DirectionIS/IT Planning, Resourcing & BudgetingIS/IT Strategy & PolicyStrategyEnterprise Direction1No formal enterprise-wide business strategy, plan or performance monitoring. Enterprise is reactive to day-to-day pressures and such strategy as exists evolves2Recognition of the need for a more formal approach to enterprise strategy planning and performance monitoring. Strategy, plans and measures defined for some organizational units. Lack of consistency of approach across enterprise. Little recognition of IS opportunities within enterprise plans.3Consistent approach to enterprise-wide business strategy planning defined. Business plans defined for all major organization units focusing on inidividual needs. Regular reviews performed. Fomal method of reporting business performance established in terms of key performance indicators4.IS Direction1.Here is an example of how we would use the data collected to highlight issues and creating recommendations.Strategy