MRP- Final Presentation

Developing a framework for analyzing IT use maturity

Presented to: Prof. Rahul Roy & Prof. Preeya Seetharaman
Presented by:
Ajay Bagaria-4006/19
Bhakar Mayurkumar-4013/19
Problem Statement
Maturity level of IT use plays a critical role in operational efficiency
and strategy of an organisation.
It varies across countries, sectors and organisations depending on
requirement, availability of resources, acceptance, organization
culture and strategic fit.
The purpose of the study is to present a comprehensive framework for
evaluating the IT use maturity.

2
Parameters for creating a framework for IT use maturity
We selected 6 parameters which are further divided into sub parts.
The parameters are as follows
1. Infrastructure
2. People
3. Process of resource management
4. Data
5. End user
6. Applications




Infrastructure: Relevance of IT infrastructure
ING Vysya: As already it is business strategy enabler. So they are in the fifth level of
maturity
Eveready: IT helps in automating the business processes & acts as a business enabler so it
can be said that the organization is in the 3rd level of maturity
Ramco Cements: The decision to go from a decentralized ERP to centralized ERP is a
strategic decision because more transparency & objectivity in the data for better decision
making.


Level1 Level2 Level3 Level4 Level5
Relevance
of IT
infrastruct
ure to
business
No role of IT
infrastructur
e in business
Improve little
efficiency in
process
Business process
enabler
Between process
enabler and strategy
driver
Business
strategy
enabler/driver
Company Eveready ING Vysya, Ramco
cements
Infrastructure: Agility
ING Vysya: Keeping end user infrastructure aside, they divide infrastructure into
processing power &storage. They use private cloud. From this we can say that they are in
the 3rd level of maturity as they can bring in some application for business needs within
weeks to days.
Eveready: The up gradation doesnt take much time. It depends upon the version. If its
totally new version, it will take about 2-3 months, but a total re-implementation can take
anywhere from 6 months to one year. As the up gradation mostly takes 2-3 months we
can say that the organization is in the first level of maturity.
Ramco Cements: The integration of the new applications with the ERP takes 2 to 3 days.
But sometimes can take 2-3 weeks when more physical work ( for eg laying 2-3 km line) is
required. So we can say that the organization is in 3rd level of IT maturity
Level1 Level2 Level3 Level4 Level5
Agility Months to
weeks
Weeks Weeks to
days
days to
minutes
Minutes
Company Eveready, ING Vysya, Ramco
cements
IT People: Level of Training given
ING Vysya: There are tools & techniques which are readily available which use the past
data analysis which require some training to run them. Internal training for business &
usual kind of stuff & for transformational projects external training is required.
Eveready: The training provided to IT people is basically need based. For eg. When they
implemented the oracle process training was given to the IT people in oracle for the given
modules.
Ramco Cements: Lower level people given more technical and project related training.
For middle and top level managers more of strategic and human relations skills. Programs
are focused on how IT managers communicate value to other stake holders.


Level1 Level2 Level3 Level4 Level5
Level of
Training
given to IT
people
absent Adhoc and
minimal
level of
training
given
Individual
Project
related
Organization- wide
standards and method
deployed for training.
With various competency
matrices to evaluate
individuals quantitatively
Continuous
improvement process
aimed at developing
intellectual property
and competitive edge
Company Eveready, ING
Vysya
Ramco cements

IT People: Perception of other departments
ING Vysya: The general perception of the IT department is that they are forward looking.
They go to their end users to know their needs, try to fulfill them within their budget &
other limitations.
Eveready: It is not perceived as valued partnership. It is transaction along with the
perception of a valued service provider. So we can say that the organization is in the 3rd
stage of maturity as it has emerged as a valued service provider.
Ramco Cements: IT is considered very important at Ramco cements. IT is given a strategic
role in the organisation and people see IT as a valued service provider.


Level1 Level2 Level3 Level4 Level5
Perceptio
n of other
departme
nts about
IT people
Role is
Minimum
Primarily
transactional
support
Emerging valued
service provider
Valued service
provider
Valued Partnership
Company ING Vysya,
Eveready
Ramco cements

Processes related to IT resource management: Data Management
ING Vysya: Depending upon the type of data (raw data, static data, derived data), the IT
department has the flexibility on its usage.
Eveready: The data management processes are in place but the data management
processes are also evolving because the sources are changing. There is data from mobile
devices, social media, emails etc. As more & more sources are getting added on , the data
validation processes are also changing.
Ramco Cements: Data management process is strictly defined in the organization and the
organization adhere to them.


Level1 Level2 Level3 Level4 Level5
Data
Management
Ad-hoc
Process for
data
managem
ent
Reactive
approach for
data
management
Standards are
defined for data
management but
strictly adhered
Data
management
Standards are
defined
flexibility is
encouraged
Standards evolve
to improve data
management
Company Ramco cements ING Vysya Eveready
Processes related to IT resource management: Human capital
ING Vysya: They have an emergency successor & long term successor. For in case of
emergency there should be someone who can look after the work for 6 months. The long
term successor can come from outside the company.
Eveready: Yes, there is succession planning process in the organization. The number of
people hired in the IT department depends upon the manpower sanctioned for IT.
Ramco Cements: Company has already planned what is going to happen in next five years.
There is a continuous succession planning. And people are groomed for their next role.
Succesion planning is done for top two three roles.


Level1 Level2 Level3 Level4 Level5
Human
capital
management
Unstructured
Interviewing
(Non systemic
staffing and
resourcing)
structured
Interviewing for
lower
level(Systemic
staffing and
resourcing)
structured
Interviewing for lower
level and middle level
(Systemic staffing and
resourcing)
Succession planning
for top level
Integrated work force
planning
Company ING Vysya,
Eveready, Ramco
cements
Processes related to IT resource management: Training to end users
ING Vysya: End user training of end user tools (excel, PowerPoint, etc) is almost nil as
they expect their end users to be comfortable with these tools while hiring them. They
might require training for using enterprise applications. In such cases, software
manufacturers along with the department train 50 key people who
will in turn help other people in the organization.
Eveready: End user training is done as per end user training calendar. As there are lot of
people coming in & going out of the organization, so training is a continuous process
which is done every quarter.
Ramco Cements: As there is routine training to the end users we can say that they are in
the 2nd level of IT maturity


Level1 Level2 Level3 Level4 Level5
Training to
end users
Very little
training,
user self
instruction
Routine
offering of
introductory
courses
Routine offering
of advanced
courses
Routine offering
of courses in use
of integrated
tools
Training in
application
development, data
administration
Company Ramco cements,
Eveready
ING Vysya
Processes related to IT resource management: IT Infrastructure
ING Vysya: They have an annual meeting & prepare a three year rolling
plan which they fine tune by interaction with the customers (other departments).
Eveready: Budget approvals are taken by the IT department as & when required, based on
project & the need.
Ramco Cements: Company believes it has innovative culture. Conservative in terms of
financial approach but in terms of IT Ramco wants to be better than its competitors. In
short Ramco is old organization with modern outlook


Level1 Level2 Level3 Level4 Level5
Resource
allocation
process to IT
Infrastructure
Ad-hoc Decided by IT
department
Decided by IT
Department with
consultation with IT
head
Decided by IT
department in
consultation with
top management
and IT head
Involvement of all key
stake holders
Company Eveready Ramco cements,
ING Vysya
Data: Format in which data is available
ING Vysya: They operate in a completely digitalized environment & they have an
integrated system. So they are in the fifth level of maturity
Eveready: The entire data is in digital format. There are no hard copies, except for special
government purposes. It can be in the system or it can be outside the system. There is
data from social media, emails & there is data from integrated systems.
Ramco Cements: They have data which is ready for subsequent analysis and no data is
manually entered in system. They use ERP data. Various other example given how they
generate data automatically and is integrated in real time.


Level1 Level2 Level3 Level4 Level5
What is the
format in
which data is
available
Hard copy in
paper form
Some data in
hard copy
and some
data in digital
form
Digital data with
some anomalies
Data is ready for
subsequent
analysis
Data is integrated
in the system
Company ING Vysya, Eveready,
Ramco cements
Data: Relevance of data to business activity
ING Vysya: As already mentioned they use their data for strategic planning so they are in
the fifth level of maturity.
Eveready: Data is used for management decision making & also for strategic planning so
we can say that the organization is in the 5th level of maturity.
Ramco Cements: Management uses data for decision. It uses data to find out which areas
to focus more, which are the areas where to start a new plant. With the help of data and
IT Integration Company is available to improve its profitability.


Level1 Level2 Level3 Level4 Level5
Relevance of
data to
business
activity
Data ad
hoc in
nature
(little or
no useful
data)
Data for
transaction
support (no
tools to
convert data
into
information )
Data for operational
Support (categorize
and explain data in
meaningful ways, as
well as explain the
relationships and
interdependencies
among the data )
Data for
management
decision making
(conduct historical
or retroactive
analysis and
conduct predictive
analysis )
Data for strategic
planning
(companys entire
business model is
built around its
analytical models
)
Company Ramco cements

ING Vysya,
Eveready,
Data: Data Integration
ING Vysya: They have real time data integration. They have data virtualization which
means that their data will actually stay in one place but they can see a virtual copy of data
without actually copying it.
Eveready: From 2005 onwards data integration is real time so we can say that the
organization is in the fifth level of maturity.
Ramco Cements: Plant level data integration is done real time but whole company level
data integration is done at the end of day. Due to lack of location of cement plants which
is mainly in areas which are not that much developed.


Level1 Level2 Level3 Level4 Level5
Data
Integration
No data
processing
Data
processing in
isolation
Manual integration
in data processing
Automated
integration in data
processing
Real-time data
integration
Company Ramco cements

ING Vysya,
Eveready,
End user: Goal setting & Measurement
Level1 Level2 Level3 Level4 Level5
Goal setting and
measurement
There is
complete
randomness,
end users dont
have much idea
about their goals
& performance
measurement
some end
user
goals are set
and
monitored
inconsistently,
end user goals
are unclear or
vaguely
defined
end user goals &
performance metrics
are formally defined
and documented, &
these metrics are
used for decision
making and
continuous
Improvement.
Performance of
end user is monitored informally,
IT leadership provides basic reports
to senior leadership about the
state of end user , goals for end
user
are defined, but
not clearly linked
to educational
requirements or
Jurisdiction goals
There is a clear goal
setting as per the
educational & technical
skills of the end user &
performance
measurement is used for
assessing the training
requirements of the end
users & the IT leadership
as well as senior
leadership has complete
& updated reports of the
state of the end user
Company
ING Vysya ,
Eveready
Ramco cement
ING Vysya: They classify their end users & categorize them depending upon their
importance in the organization. For e.g. they give more importance to certain branches &
therefore their end users & provide them with the best facilities
Eveready: The end user is given goals depending upon the level of the end user. For
managers & above posts the goals are set at the beginning of the year & they are
reviewed after every six months. They are more towards the alignment of the business.
For end users lower down the lines the goals are more generic in nature. So from this we
can say that the organization is in the second level of maturity
End user: Responsibility & Accounting

Level1 Level2 Level3 Level4 Level5
Responsibility
&
accountability

Allocation of
Responsibility
is
assumed by
end user
Allocation of
responsibility and
accountability is done
Informally, there is
confusion about who
is responsible and
accountable when
Issues arise.
Accountability and
responsibility for
end user have been
formally assigned
and
documented, End
user
may not have
sufficient authority
to fulfill their
responsibilities
End user have the
level of authority
Required to fulfill
their
responsibilities.
End user are
empowered to
make
decisions and to
take action.
Companies
Eveready ING Vysya Ramco cements
ING Vysya: They classify their end users where they fall. For Eg. If the end user
has forgotten his username & password the accountability lies with the end
users & the responsibility lies with the service desk.
Eveready: Decisions are only taken by department managers & the end users
are not given much authority.

Level1 Level2 Level3 Level4 Level5
Skills &
expertise
End user is not
technically skilled,
Dependent on the
IT staff support to
help with the
basic tools,
interaction with
the IT department
is very high
End user has some
basic skills about the
tools but requires
constant support from
IT department for
advanced tools and
techniques
End user has some
knowledge of
advanced tools and
techniques, comes
from an IT
background,
interaction with the IT
department is
frequent for advanced
tools help
End user is highly
experienced, comes
from an IT
background,
minimal, interaction
with the IT
department, but has
not doesnt have the
skills to develop its
own tools and
applications
End user is technically
highly skilled, almost
no interaction with
the IT department,
can develop its own
tools and applications

Companies
Eveready, Ramco
cements
ING Vysya
End user: Skills & Expertise
ING Vysya: We can say that they are in 4th level of maturity as End user has some
knowledge of advanced tools and techniques, comes from an IT background,
interaction with the IT department is frequent for advanced tools help
Eveready: Most of the end users dont have an IT background & the end users are
hired by the particular departments depending upon the skills required by the
particular department. IT is not a perquisite. So we can say that the organization is in
the 2nd level of IT maturity.
End user: Policies, plans & procedures for end user training
Level1 Level2 Level3 Level4 Level5
Policies,
plans &
procedures
for end
user
training
End user training
activities occur in
isolation and are
based upon
individual
IT staff practices,
policies and
procedures for
end
user training
have not
been defined.
Common and
informal policies
and procedures for
end user training
are defined, but not
documented,
compliance with
end user training
policies
and procedures is
left to the
individuals
discretion
Formal policies and
procedures for key
end user training
processes have been
defined, documented and
communicated, policies and
procedures are
based upon generally
accepted good practices, end
user training procedures
include steps to develop the
training plan, deliver training
and evaluate the training
Formal policies and
procedures for all
end user training
processes are
defined, documented
and regularly
reviewed, Senior
leadership approves
policies and
procedures for end
user training, end user
training plans are
consistently
reviewed before,
during and after
Implementation.
implementation of
the IT Strategic Plan,
generally accepted
best practices and
standards for end
user training are
used to inform policy
and procedure
Development,
exceptions to end
user training policies
and procedures
are noticed and
corrective action is
taken
Company
ING Vysya Eveready, Ramco cements
ING Vysya: They are in the 2nd stage of maturity as Common and informal policies and
procedures for end user training are defined, but not documented properly.
Eveready: There are documentations which are available online along with the classroom
sessions & web sessions which can be downloaded for self-training purposes. The
documentation is done by the IT department & then circulated. So from this we can say
that the organization is in the 3rd level of maturity.
Application: Level of interconnectedness
Level 1 Level 2 Level 3 Level 4 Level 5
Level of
interconnectedness
Little or no
exchange of data
with other
applications
Stand alone
applications,
data entered
into an
application is
keyed in
manually
Data is
transferred
from
application to
application by
manual file
interchange
Applications connect
with one or more
corporate databases
using automated
processes designed
into the applications
Applications are part of a
network which accesses
data distributed
throughout the
organization; distinctions
concerning the location
of data disappear
Company
Eveready ING Vysya
ING Vysya: They are in the fifth level of maturity as Applications are part of a network
which accesses data distributed throughout the organization; distinctions concerning
the location of data disappear
Eveready: There is one application that runs, which is an integrated application end to
end. So there is no interconnection required
Application: Level of interconnectedness
Level 1 Level 2 Level 3 Level 4 Level 5
Relevance to
business/
implementation
levels of IT
application
For
transactional
purposes
Simple
application
usage in sales
& customer
feedback
Usage in R &
D
applications
such as CAD

To get key customer
insights by utilizing
the database
To drive the business
strategies
Company
Eveready, ING Vysya
ING Vysya: They are in the 4th level of maturity as they have recently using their database
to get key consumer insights.
Eveready: As the organizations uses the IT applications for data mining & getting consumer
insights it can be said that it is in the 4th level of maturity.