ITIL 4: Digital and IT Strategy

ITIL®4: Digital and IT Strategy
	Contents
	List of figures
	List of tables
	Foreword
	Preface
	About the ITIL 4 publications
	About the ITIL story
	CHAPTER 1 INTRODUCTION
		1 Introduction
			1.1 About this guide
				Figure 1.1 The continual improvement model
			1.2 ITIL practices
				Table 1.1 ITIL practice guides that interact with this publication
			1.3 The digital and IT strategy context
				1.3.1 Digital and information technology has changed the world
				Figure 1.2 Governance and management shift from traditional to digital organizations
				1.3.2 Business models are changing
				1.3.3 The role of technology leader is changing
				1.3.4 Accelerated innovation has brought greater urgency to business change
				Figure 1.3 Traditional vs continual innovation cycle
				Figure 1.4 What happens when innovation accelerates
	PART I WHAT IS DIGITAL AND IT STRATEGY?
	CHAPTER 2 KEY CONCEPTS
		2 Key concepts
			2.1 Digital, information, operational, and communication technology
				Figure 2.1 Digital technology
				2.1.1 Information technology
				2.1.2 Operational technology
				2.1.3 Communication technology
				2.1.4 Internet of Things
			2.2 Digital organization
			2.3 Digital business
			2.4 Digitization
			2.5 Digital transformation
				Figure 2.2 Modified list of key digital transformation themes
			2.6 Products and services
				Figure 2.3 Wardley’s strategy cycle
				Figure 2.4 Situational awareness vs action
			2.7 Tiers of strategy
				Figure 2.5 Traditional perspective of business, digital, and IT strategy
				2.7.1 Business strategy
				2.7.2 Digital strategy
				Figure 2.6 Revised perspective (example) of business, digital, and IT strategy
				2.7.3 IT strategy
			2.8 Business models
				2.8.1 The role of business models
				2.8.2 Business models and strategy
				Table 2.1 Strategy, business model, and tactics
				Figure 2.7 Business model canvas
				Figure 2.8 Adapted company design template
			2.9 Operating models
				Table 2.2 Strategy, business model, and operating model comparisons
				Figure 2.9 Operating model canvas
			2.10 Strategy and the service value system
				Figure 2.10 The service value system
				2.10.1 Opportunity and demand
				2.10.2 Value
				2.10.3 Governance
				2.10.4 Guiding principles
				Table 2.3 Description of seven guiding principles
				2.10.5 Continual improvement
				2.10.6 Practices
	PART II THE STRATEGY JOURNEY
	CHAPTER 3 WHAT IS THE VISION?
		3 What is the vision?
			Table 3.1 Market and industry overview
			3.1 Digital disruption
				Figure 3.1 Levels of digital disruption
				3.1.1 Ecosystem disruption
				3.1.2 Industry/market disruption
				3.1.3 Organizational disruption
				3.1.4 Being a disruptor or responding to disruption
				Figure 3.2 Types of disruption
			3.2 Deciding on a balanced strategic focus
				3.2.1 Customer/market relevance
				3.2.2 Operational excellence
				3.2.3 Internal and external focus
				3.2.4 A balanced approach
				Table 3.2 Looking outwards vs looking inwards
			3.3 Positioning tools for digital organizations
				3.3.1 Maturity models
				Figure 3.3 Four types of digital master
				3.3.2 Digital positioning and sense making
				Figure 3.4 Digital positioning assessment framework
				Figure 3.5 Positioning assessment framework focused on business, operational, cultural and experience transformation
				Figure 3.6 Positioning assessment framework focused on physical and digital presence, and the use of emerging and standard technologies
			3.4 Creating the vision
				3.4.1 What is a vision?
				3.4.2 Confirming the scope of the vision
				3.4.3 Defining the vision
	CHAPTER 4 WHERE ARE WE NOW?
		4 Where are we now?
			4.1 Environmental analysis
				Figure 4.1 The context of strategy applied to the four dimensions of service management and PESTLE
				4.1.1 External analysis
				Table 4.1 PESTLE: environment analysis factors and their influence on digital strategy
				Table 4.2 Tools for external environmental analysis
				4.1.2 Internal analysis (the four dimensions of service management)
				Table 4.3 The four dimensions of service management and their influence on digital strategy
				Table 4.4 Tools for internal environmental analysis
				4.1.3 Interaction between the organization and its environment
				4.1.4 Using the results of environmental analysis
			4.2 Opportunity analysis
				4.2.1 Tools for opportunity analysis
				Table 4.5 Examples of opportunity analysis tools
			4.3 Digital readiness assessment
				4.3.1 Evaluating current organizational capabilities
				4.3.2 Gap analysis
				4.3.3 Output
				4.3.4 Risks and challenges of digital readiness assessment
	CHAPTER 5 WHERE DO WE WANT TO BE AND HOW DOWE GET THERE?
		5 Where do we want to be and how do we get there?
			5.1 Strategy planning
				5.1.1 Strategy cycles and planning horizons
				Figure 5.1 Strategy cycles
				5.1.2 Strategy structure and content
				Table 5.1 Elements of a strategy document
				5.1.3 Financial aspects of digital and IT strategy
				Figure 5.2 The fish model
				Table 5.2 Examples of common digital charging models
				5.1.4 Using business models for strategy planning
				Figure 5.3 The Barrett model
				Table 5.3 Information that supports business model planning
				Figure 5.4 Uses of a business model canvas
				Table 5.4 Business model canvas example
				Figure 5.5 Business model for innovation
				Table 5.5 Business model patterns
				Figure 5.6 Business model for validation and benchmarking
				Figure 5.7 Business model for communication and alignment
			5.2 Strategic approaches for digital organizations
				Table 5.6 Key focus areas of the strategic approaches
				5.2.1 Strategic approaches for customer/market relevance
				Figure 5.8 Example of a customer journey map
				Table 5.7 Examples of different types of channel
				Figure 5.9 Seamless user journey with omnichannel management
				5.2.2 Strategic approaches for operational excellence
				Table 5.8 Descriptions of the three levels of automation
				5.2.3 Strategic approaches to evolution
				Figure 5.10 The development of knowledge-sharing according to the SECI model
				5.2.4 Strategic approaches to social responsibility and sustainability
				Figure 5.11 The triple bottom line model
				Figure 5.12 Evolution of work
			5.3 Strategy discussion and approval
				5.3.1 Portfolio optimization
				Figure 5.13 An organization’s portfolios enable a return on investments
				5.3.2 Business cases, portfolio, and strategy
				5.3.3 Business cases for strategy
				5.3.4 Communicating the business case
	CHAPTER 6 TAKE ACTION!
		6 Take action!
			6.1 How strategies are implemented
				Figure 6.1 Satir change model
				6.1.1 Large-scale transformation
				6.1.2 Incremental transformation
				6.1.3 Mergers and acquisitions
				6.1.4 Individual changes
			6.2 Coordinating strategy and strategic initiatives
				6.2.1 Managing strategic initiatives
				6.2.2 Education and training
				6.2.3 Educating peers
				6.2.4 Educating managers and staff
				Table 6.1 Education and training programme for stakeholders
				6.2.5 Educating consumers
				6.2.6 Educating shareholders
				6.2.7 Educating suppliers
			6.3 Leading digital transformation
				Figure 6.2 Common digital transformation paradigms
				6.3.1 Introducing digital technology
				6.3.2 Identifying the best role to lead digital transformation programmes
				6.3.3 Scoping digital transformation
				6.3.4 Typical activities of a digital transformation programme
				Figure 6.3 Typical steps in a digital transformation programme
			6.4 Strategy communication and implementation
	CHAPTER 7 DID WE GET THERE?
		7 Did we get there?
			7.1 Key facts about measurement
				7.1.1 Types of metrics
				7.1.2 Lagging and leading metrics
				Figure 7.1 Lagging and leading indicators
				7.1.3 Outside-in and inside-out metrics
				7.1.4 Metrics and indicators
				7.1.5 Cascading and linking measurement
				Figure 7.2 Planning and evaluation model
				Table 7.1 Examples of objectives, indicators, and metrics at different levels of management
				7.1.6 Objectives and key results
				Figure 7.3 How OKRs bridge strategy and execution
			7.2 Measuring a strategy
				7.2.1 Strategy measurement principles
				7.2.2 Measuring the progress
				7.2.3 Measuring the performance
				7.2.4 Measuring the relevance
			7.3 Instrumenting strategy
				7.3.1 Operational reports and dashboards
				7.3.2 Analytical reports
				7.3.3 Operational vs analytical reports
			7.4 Strategy review
				Table 7.2 Operational report vs analytical report
	CHAPTER 8 HOW DO WE KEEP THE MOMENTUM GOING?
		8 How do we keep the momentum going?
			8.1 Long-term momentum: ensuring organizational viability
				8.1.1 VUCA
				Table 8.1 Digital transformation, the service economy, and the VUCA environment
				8.1.2 Ensuring the viability of digital organizations
				Table 8.2 Recommendations for acting in a VUCA environment
				Table 8.3 Recommendations for acting in a VUCA environment mapped to the seven guiding principles
				Figure 8.1 Key behaviour patterns of a digital organization
				Figure 8.2 Five characteristics for operating in a VUCA environment
				8.1.3 Strategic approaches to address VUCA
				Figure 8.3 The Cynefin framework
				Figure 8.4 Toyota improvement kata
			8.2 Short-term momentum: parallel operation
				8.2.1 Parallel operating models
				8.2.2 Pace of transition from the old model to a digital model
				8.2.3 The role of continual improvement in parallel operating models
	PART III STRATEGIC CAPABILITIES
	CHAPTER 9 DIGITAL LEADERSHIP
		9 Digital leadership
			9.1 Digital mindset
			9.2 Communication
			9.3 Relationship management
			9.4 Education and learning
				9.4.1 Self-education
				9.4.2 Educating peers
				9.4.3 Educating other stakeholders
			9.5 Evaluating emerging technology and industry trends
			9.6 Agile management techniques
			9.7 Defining and using strategic metrics
			9.8 Orchestrating diverse environments
			9.9 Operationalizing strategy
			9.10 Business and technology management skills
	CHAPTER 10 MANAGING INNOVATION AND EMERGING TECHNOLOGIES
		10 Managing innovation and emerging technologies
			10.1 Definition
			10.2 Managing innovation is a strategic capability
			10.3 Managing innovation is a mindset and culture
			10.4 Innovation or adoption
				Table 10.1 Key differences between innovation and adoption
				Figure 10.1 Technology adoption lifecycle
			10.5 Achieving a balanced approach to inn
			10.6 Formal approach to innovation management
				10.6.1 Organizing innovation management
				10.6.2 Activities in managing innovation
			10.7 Characteristics of organizations with an innovative culture
			10.8 Building a culture that supports innovation
			10.9 Approaches to innovation
				10.9.1 ‘Managed chaos’ and distributed experimentation
				10.9.2 Crowdsourced learning
				10.9.3 Purposeful innovation
				10.9.4 Continual learning
			10.10 Evaluating and adopting emerging technology
				Figure 10.2 Stages of technology adoption
				Figure 10.3 Emerging technology in an organization’s work environment
				Figure 10.4 Emerging technology in context
	CHAPTER 11 MANAGING STRATEGIC RISK
		11 Managing strategic risk
			11.1 Definitions
			11.2 Risk management in digital organizations
			11.3 Organizing risk management
			11.4 Using risk management to evaluate opportunities
			11.5 Risk identification
				11.5.1 Disruption risks
				11.5.2 Innovation risks
				11.5.3 Cybersecurity risks
				11.5.4 Engagement risks
			11.6 The risk register
			11.7 Qualitative risk analysis
				11.7.1 Risk matrix
				Figure 11.1 Matrix example for qualitative risk analysis
				11.7.2 Scenario-based analyses
			11.8 Quantitative risk analysis
			11.9 Risk triggers
			11.10 Risk posture: balancing the risks and rewards of digital technology
				Table 11.1 Concepts that define an organization’s approach to risk
				11.10.1 Risk attitude
			11.11 Risk treatment
			11.12 Achieving a risk-informed mindset and culture
	CHAPTER 12 STRUCTURING FOR DIGITAL BUSINESS
		12 Structuring for digital business
			12.1 Governance
				12.1.1 The role of leadership
				12.1.2 Linking strategies and enabling digital co-evolution
				12.1.3 Business and IT strategy co-evolution for digital organizations
				12.1.4 Compliance
			12.2 Structuring the organization
				12.2.1 Types of IT service providers
				Figure 12.1 Examples of sourcing options for an IT function
				12.2.2 Variables of organizational structure
				Figure 12.2 Examples of hybrid organizational structures
				12.2.3 The role of the service management office
			12.3 Transitioning from traditional to new organizational structures
	CHAPTER 13 CONCLUSION
		13 Conclusion
	END NOTE
		End note: The ITIL story
	Further research
	Glossary
	Acknowledgements
	Index