IT4IT

make IT work with the IT4IT

1. IT Value Chain

To make the IT-function of the organization work, the IT4IT can be taken as a reference architecture – based on which the IT operating model can be built. The IT4IT can be taken as a reference for defining the operational model of an IT function. No need to reinvent the wheel. Instead, a ready-made model can be adapted to fit for purpose.   

IT4IT is based on the value chain approach. By default the IT value chain consists of four value streams as follows: 1) Strategy to Portfolio (S2P), 2) Requirement to Deploy (R2D), 3) Request to Fulfill (R2F) and 4) Detect to Correct (D2C). Each of these value streams consists of specific behavioral elements that switch information. These value streams of the overall value chain are analogous to the approach of Plan, Build, Deliver, Run -phases, as shown in the figure below. 

The IT4IT reference architecture from the Open Group defines the overall IT operating model, which covers all that is needed for organizing and running IT. IT4IT is already proven, tested and implemented in large organizations. IT4IT consists of common activities that are typical in IT functions – no matter in what sector or industry the organization is. The official IT4IT site is here: link.

This article is based on the IT4IT version 2.

2. IT4IT reloaded

The IT4IT provides a good approach for analyzing from which parts an IT operating model can be built on.

Some modifications can be made to the default IT4IT version for simplicity, e.g. as follows:

1. The first value stream of the value chain is renamed to “Demand to Portfolio“, as this better conforms to what is actually happening in practice: incoming demands are prepared to concepts into the IT development portfolio
2. The capability -concept is used as a fundamental behavioral element of the operating model for defining WHAT an organization shall have. A capability can then be further defined as a process, function, actor etc., based on what is appropriate in the organization – to define HOW the organization works in practice. Some new capabilities are introduced here (Innovation Management, Quality Management, Information Management and Security Management). Capability is at a high abstraction level (like the Practice  -concept in ITIL4), so an element like that can be used when defining what are the things that the organization should have.
3. The fundamental unit of overall development can be either a) digital service or b) digital product, based on what is appropriate in the organization.

2.1 Business Interface of the IT Value Chain

The IT value chain of the IT-function represents the development value stream of the organization. The business units (lines of business, LOBs) may have several operational value streams according to the business model of the organization. In addition, the business units may have their own processes for their business development. There can be four business interfaces towards the IT-value chain as introduced in the figure below.

The IT-value chain interacts with the lines of business (business units) via interfaces as illustrated in the figure below.

The IT development value chain receives IT-related demands and handles them within the Demand to Portfolio on the IT side. In addition, there are four (4) business interfaces towards the IT value chain as follows:

1. A business idea/demand is initiated by the Demand to Portfolio on the business side, then received by the Demand to Portfolio on the IT side
2. A business requirement/feature is produced by the Demand to Portfolio on the business side, and then received by the Requirement to Deploy on the IT side.
3. A service request is triggered on the business side, and then received by the Request to Fulfill on the IT side.
4. An incident is produced on the business side, and then received by the Detect to Correct on the IT side.

Another illustration of this business interface is shown below.

2.2 Business Model & Capability Model

The applied IT4IT value chain (figure below) consists of four value streams as follows:

1. Demand to Portfolio (D2P) [ IT4IT default: Strategy to Portfolio (S2P) ]
2. Requirement to Deploy (R2D)
3. Request to Fulfill (R2F)
4. Detect to Correct (D2C)

Each value stream is connected with a set of capabilities, and the whole value chain is supported by certain “supporting capabilities”.

The capability model connected with the value streams of the value chain, defines WHAT behavioral elements the organization has. As capabilities are connected with the value streams of the value chain, this defines what is required for value creation within each value stream. This represents the business model. The operating model, instead, is a more detailed representation of the behavior of the organization. The operating model defines HOW an organization does what it does. The operating model can be defined with processes or functions and information flows between them.

The difference between value streams and business processes is described as follows in the ArchiMate specification (link):

Importantly, value streams and business processes may seem alike, but they are defined at different abstraction levels and serve separate purposes. A business process describes the (time-ordered) sequence of behaviors required to create some result for an individual case, and it may describe alternative paths and decision points (modeled with junctions). In contrast, a value stream focuses on the overall value-creating behavior from the perspective of the importance, worth, or usefulness of what is produced, and is not a description of time-ordered tasks for individual cases.

The difference between the business model and operating model is described as follows in ArchiMate specification:

Value streams (and capabilities) reflect an organization’s business model and value proposition, whereas business processes (and business functions) reflect its operating model. At their respective abstraction levels, value streams and business processes both represent the “enterprise in motion”, whereas capabilities and business functions both describe the “enterprise at rest”.

2.3 Operating Model

This version of the IT4IT operating model illustrates the process cooperation view.

2.3.1 Demand to Portfolio (D2P) Value Stream

2.3.2 Requirement to Deploy (R2D) Value Stream

TBD: E.g. Business events that trigger processes…

2.3.3 Request to Fulfill (R2F) Value Stream

TBD: E.g. Business events that trigger processes…

2.3.4 Detect to Correct (D2C) Value Stream

TBD: E.g. Business events that trigger processes…

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For more information of the IT4IT see this reference material:

• IT4IT – A Modern Framework for Managing a Digital Enterprise, link
• The Open Group IT4IT™ Reference Architecture, Version 2.1, 2017, link
• Traceability Is the New Super Power!, Rob Akershoek, link
• IT4IT aligned with DevOps: “The DevOps World” by Rob Akershoek, Youtube video, link

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Extras

Digital Service vs. Digital Product