3 YEAR it Management and Budget plans

1
3 YEAR it Management and Budget plans

• Enterprise Value Chain and Application Maps

2
Value Chains
3
Objective

• To give agency personnel a better understanding
  of Enterprise Value Chains.
• To give agency personnel multiple examples in
  order to increase understanding and to find a
  starting point to create their own value chain
• To give agency personnel techniques that could
  make creation of the value chain easier

4
What is a Value Chain?

• Value Chain theory comes from Michael Porters
  book Competitive Advantage (1985)
• A model that breaks down an organization into a
  series of value-generating activities
• A Value Chain is a
• Business Model
• High Level Model
• Performance Feedback Model
• Beginning stages of an Application Map
• Beginning stages to look at the States business
  goals as one enterprise

5
Parts of the Value Chain

• Support Activities
• Primary Activities

6
Porters Model
7
Support Activities

• Do not directly add value, but are still
  necessary in providing the services or products
• Close to universal for every agency

8
Support Activities (continued)

• Porters Breakdown of Support Activities
• Firm Infrastructure organizational structure,
  control systems, company culture, ect.
• Human Resource Management employee recruiting,
  hiring, training, development, and compensation.
• Technology Development technologies to support
  value-creating activities.
• Procurement purchasing inputs such as
  materials, supplies, and equipment.

9
Support Activities (continued)

• State of Kansas agencies have modified support
  activities to include
• Administration Management
• IT Management
• HR Management
• Financial Management
• Procurement
• Supporting Assets

10
Primary Activities

• The links in the value chain are the strategic
  relevant activities that add value to the
  services or products you are providing.
• Every agency is going to have unique strategic
  relevant activities
• Some may be similar

11
Primary Activities (continued)

• Porters Breakdown of Primary Activities
• Inbound logistics the receiving and warehousing
  of raw materials, and their distribution to
  manufacturing as they are required.
• Operations the process of transforming inputs in
  finished products and services
• Outbound logistics the warehousing and
  distribution of finished goods
• Marketing and Sales the identification of
  customer needs and the generation of sales.
• Service the support of the customers after the
  products and services are sold to them.

12
Primary Activities (continued)

• Porters list does not have a direct one-to-one
  correlation to State government in many cases.
• His focus is mostly directed to manufacturing
  companies that have a certain product they are
  producing
• His primary goal is the get the company to get
  more value out of the sale of those goods.
• Value chains give a good starting point to think
  about what your agency does to meet their goals
• The services that our state agencies provide
  might in some cases do not have goods that are
  sold, but the services provided are still
  important
• The benefits of the value chain can still be
  realized in the governmental arena. We care
  about getting the most out of our limited money.
  Value chains can help in that goal.

13
Primary Activities (continued)

• The value chain links are not independent
  activities
• Links exist inside of value chains
• Horizontal Links
• Vertical Links
• These links can help lead to optimization and
  coordination of activities
• Also provide a basis for quality assurance and
  monitoring performance

14
(No Transcript)
15
(No Transcript)
16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
KBOR Value Chain
Goal
Through its diverse postsecondary education
system, the KBOR seeks to provide educational
opportunities for all of Kansas citizens to
achieve their greatest potential.
Supporting Processes
Supporting Activities
Support Asset Info
Supporting (Financial, HR, IT, ) Assets
Process Management
Process Management
Policy and Quality Programs
Governance and Coordination of Public Higher
Education
New or Existing Program or Policy Budget Subm
ission To Board
Core Business Process
Adequate Funding for Programs and Services
Funding of Public Higher Education
Primary Activities
Program and Policy Review
Quality Management
User Feedback and Program Management
Product Information
Students, Citizens
20
Fort Hays State
21
Value Chain Template
22
Why a Value Chain?

• Uniform way of looking at all agencies
• Start to look at how IT helps each one of the
  links of the value chain
• netMBA.com has Information Systems at every level
  of the value chain
• KDOTs application maps prove this for their
  particular agency
• Building block for Application Mapping

23
Technology and the Value Chain

• Technological change is not important for its own
  sake. It is important to the value generating
  activities of your organization
• Technology is imbedded at every link of the value
  chain
• Information / Data is becoming more pervasive
• Overall technology is playing a greater roll in
  business strategy

24
Value Chain Linkages

• Activity to Activity
• Business Unit to Business Unit
• Agency to Agency
• Department of Education to Regents Institutions
• KCJIS

25
Value Chain Linkages (continued)
26
Vertical Linkages
There are easy to see vertical linkages between
planning and real-time operations. They span
the entire three chains But there are also be
linkages between supporting activities and
primary Activities that are harder to see with
the model alone
27
Horizontal Linkages
Changes made in each activity could change how
other activities are performed
28
Performance / Quality Assurance
When you start looking at advanced usage of the
Value Chains one can begin to look how each
activity is performing. At the lowest level you
can look at each specific activity
At the Activity Level
This metric will let you know if each activity is
performing optimally.
29
Performance / Quality Assurance
The same type of performance metric can be
applied to an entire Value chain.
Value chain level
At this level you can begin to start measuring
the success of your process in meeting your high
level business goal This could done via the
results gained from each activity level
evaluation, or done via a macro level approach
30
Performance / Quality Assurance

• Other ways to think about this
• White Space Gaps
• Prioritized Processes / Focus
• Agency to Agency Performance
• Pier Agency Performance
• Other Kansas Agencies
• Federal Partners
• Local partners
• Other state partners

31
Where to begin?

• Goals First
• Define the goals of the agency
• Budget Documents, Strategic Plans, Responsibility
  and Authority documents, Organizational Charts,
  surveys
• Determine what steps occur to carry out each goal
• Use Porters model along with other agency
  examples as a reference point

32
Where to Begin (continued)

• Application catalog
• Group applications according to services they
  provide
• This should be a good alternative to finding
  goals of the agency
• (If possible) Break down the group of
  applications into smaller links
• Again use Porters model and other agencies
  examples as a reference point

33
Where to Begin?

• Combination Approach
• Define the goals of the agency
• Find group applications based on the goals
  defined
• Break down the groups into smaller links
• Fill any holes in the value chain using other
  methods
• Document review, survey, organizational charts,
  ect

34
Level of Detail

• Collect at the level of Detail that works for
  you.
• Include Summary level on the ITMB

35
Enterprise Application Maps
36
Objective

• To give a quick review of Value Chains
• To understand what an application map is
• To understand the scope of the application map

37
What is an Application Map

• An Enterprise Application Map is an extension of
  the value chain
• It seeks to categorize the applications and
  systems in your agency with links on the value
  chain.
• It an application map is a
• Business and technology hybrid model
• High Level

38
(No Transcript)
39
Application Map Example
40
Map Example 2
41
Regents University of Kansas Medical Center
42
Regents University of Kansas Medical Center
(continued)
43
Secretary of State
44
Aging, Department of
45
Investigation, Kansas Bureau of
46
Education, Department of
47
Why an Application Map?

• It will allow agencies to see where each specific
  application fits in relation to the high level
  business areas in the organization
• To find gaps where IT does not have any
  applications in a particular business area
• To find how pervasive technology is in your
  organization
• Can be used to illustrate justification for IT
  spending
• Starts the process to visually see IT / Business
  alignment.

48
What Applications to include?

• Applications that show up in Section 3 of the
  3-Year Plan
• Other things that do not show up in section 3.
• Access databases
• Big excel spreadsheets
• Ad hoc software running in someones office
• Applications that are shared by agencies
• KDOT also added different goals and business
  areas to their map.
• This model can be tailored to help your agency in
  a wide variety of ranges

49
Creating the Application Map

• Place each application / system / ect on the
  appropriate area of the value chain.
• If it is used in multiple different functions
  then put it in all of them that apply
• There is really not much more to it than that.
  Creating the value chain is the biggest hurdle.

50
Level of Detail

• Provide what ever level of detail you can
  realistically complete in the given time.
• We would rather see a partial application map
  than no application map

51
Reminder

• Deadline for the IT Management and Budget Plan is
  August 29th.
• Contact us if you are having any problems, or
  have any concerns. The sooner the better, as we
  are getting busier by the day.

52
Training Provided (900-1100)

• All sessions are hosted in the Eisenhower
  Buildings 4th Floor Auditorium and take place at
  9AM
• Conference Call capability will be available for
  all sessions.

53
Questions?

• Bill Roth, CITA, 785-296-2108
• william.roth_at_da.ks.gov
• Bryan Dreiling, 785-296-2809
• bryan.dreiling_at_da.ks.gov
• http//da.ks.gov/kito/3YR_ITPlans.htm