MATURITY LEVEL MEASUREMENTS OF THE EIS ACADEMIC SYSTEM IN IMPROVING CUSTOMER ORIENTATION AND SERVICES USING COBIT 4
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1 MATURITY LEVEL MEASUREMENTS OF THE EIS ACADEMIC SYSTEM IN IMPROVING CUSTOMER ORIENTATION AND SERVICES USING COBIT 4.1 MATURITY MODEL AND STRUCTURAL EQUATION MODEL Umi Sa adah 1, Riyanarto Sarno 2 1, 2 Jurusan Teknik Informatika, Fakultas Teknologi Informasi, Institut Teknologi Sepuluh Nopember Kampus ITS Keputih Sukolilo, Surabaya, umi@eepis-its.edu 1, riyanarto@if.its.ac.id 2 ABSTRACT A university that has been building IT-based system is necessary to align IT goals and business goals. This is done in order that IT can provide support in achieving optimal business strategy, which in turn will enhance the competitiveness of the respective universities. Therefore, it is very crucial to make measurement to what extent IT has been aligned with the business goals. So that its recent conditions can be revealed, hence it can be made sustainable improvement to attain competitive excellence. This measurement is quite complicated, because it involves several aspects that are sometimes intangible. CobiT typically used to measure the Maturity Level (ML) of IT processes, while the SEM is used to measure the alignment between IT goals (ITG) and business goals (BG). In measuring the maturity level with CobiT, the auditors prepare a statement for each level. Furthermore, auditors conduct interviews with staff as well as collecting relevant evidence. The result is used to assess the alignment level. In SEM, the auditors also prepare a questionnaire derived from each statement in the CobiT maturity level. Furthermore, respondents were guided by surveyors to fill this questionnaire. Data from questionnaires are processed using Partial Least Square (PLS). The result is the support of IT Processes to ITG and support from ITG to BG. In the case of measuring the ML of EIS Academic System in BG 4 at ITG from CobiT 4.1 framework, both these approaches measurement results showed similar trends. IT processes with the highest ML is DS 3, while the lowest is DS 13. The results will provide the value that reflects the maturity of IT processes and their evaluation on the need to be further developed through the recommendations. In addition, this ML also shows the level of alignment between ITG and BG Keywords: IT Goals, business goals, CobiT Maturity Model, Structural Equation Model 1 INTRODUCTION The alignment of ITG and BG has become an essential strategy of a university due to the tight competitiveness. Furthermore, the alignment of IT Strategy will give positive impact on organization profitability through excellent strategy to achieve competitive Excellencies. Therefore, the alignment of BG and ITG is required to enhance the role of IT Strategy in the planning of business strategy [1]. EIS (EEPIS Information System) is an integration of information system of whole CBIS (Computer Based Information System) sub system based on DSS (Decision Support System) developed in EEPIS (Electronic Engineering Polytechnic Institute of Surabaya) ITS. EIS aims to present flexible information, unlimited time and area, so that it can enhance services for users, improve administration and efficiency in turn improves institution competitiveness. In the implementation, EIS has integrated almost all departments, namely human resources, library, inventory, spare-part, office supplies, student affairs, academic affairs and student administration (BAAK) [3]. In this study, the ML of EIS academic system,-in this case is a function of BAAK- is measured using CobiT framework and SEM method. CobiT measures the alignment of ITG and BG by measuring ML of IT Process. The measurement is conducted by interviewing staff and collecting related evidences. Meanwhile SEM is conducted by distributing questionnaires to get contribution scores from their variables. From both measurements, the contribution of IT Process to ITG and in turn the contribution of ITG to BG of the institution is revealed. In addition, the description of ML and the evaluation of IT Process which is needed to be developed through given recommendation are achieved [8]. VIII-57
2 VIII-58 The 6 th International Conference on Information & Communication Technology and Systems BG4 is one of 10 most important Business Goals according to the result of IT Governance Institute survey [4]. Furthermore, improving customer service is one of the top reasons of universities to adopt ERP [10]. Therefore, this study focused on BG 4, namely: improve customer orientation and service, especially ITG THEORETICAL BACKGROUND 2.1 COBIT CobiT stands for Control Objective for Information and Related Technology is an IT governance framework, as applied to management, IT services, control department, auditing functions, and more importantly the business process owners to ensure the accuracy, integrity, and availability of data and information important and sensitive. CobiT essentially developed to help meet the diverse needs of information management by bridging the gap between business risks, control, and technical problems. CobiT supports IT governance by providing a framework to ensure that IT aligned with business, IT enables business and maximize profits, IT resources are used responsibly, and IT risks are managed appropriately [2]. The business orientation of CobiT consists of linking BG to ITG, providing metrics and maturity models to measure their achievement, and identify the associated responsibilities of business and IT Process owners. CobiT classifies 17 BG related to IT activities in organization. The CobiT framework also defines ITG and classifies them into 28 ITG. CobiT is not only provides a mapping BG and ITG, but it gives the linkage between ITG and IT processes. The process focus of CobiT is described by the model process, which subdivides into 34 IT processes in line with areas of responsibility to plan, build, run and monitor, providing end-to-end view of IT [2]. CobiT framework consists of 34 high-level control objectives, in which each IT process are grouped into four domains, namely [9]: 1. Plan and Organize (PO): includes strategies and tactics on how IT can best contribute to achieving the organization's business objectives, forming a good organization with good technological infrastructure as well 2. Acquire and Implement (AI): identification of IT solutions and then implemented and integrated into business processes to realize the IT strategy 3. Deliver and Support (DS): Domain associated with the delivery of desired services, which consist of operations on the security systems and business continuity aspects to training procurement. 4. Monitor and Evaluate (ME): All IT processes need to be assessed regularly and periodically how the quality and conformance with the control requirements In this research focused on the customer perspective in BG 4. BG 4 has two ITG, namely ITG 3 (Ensure satisfaction of end users with service offerings and service levels) and ITG 23 (Make sure that IT services are available as required). In order to achieve the ITG, it needs some IT processes, as shown in table 1 and table 2 [4]. IT Process PO 8 AI4 DS1 DS2 DS7 DS8 DS10 DS13 IT Process DS3 DS4 DS8 DS13 Table 1. Eight IT Processes in ITG 3 Description Manage quality. Enable operation and use. Define and manage service levels. Manage third-party services. Educate and train users. Manage service desk and incidents. Manage problems. Manage operations. Table 2. Four IT Processes in ITG 23 Description Manage Performance and Capacity Ensure Continuous Service Manage service desk and incidents. Manage operations. Each of these IT processes that will be hold in measuring IT performance to get ML of IT processes within a company [5]. When measuring the ML of IT Processes, it must first know the purpose of these measurements and what to do after getting their size. Measuring the ML is not a purely objective, but rather is intended to support increased awareness, identify weaknesses and to identify priority development [6]. These IT performance measurements will become a starting position for the company to perform further actions to improve IT performance to a higher ML. Determining the ML will be made on each IT process through interview to the staff directly related to the management process. Previously, auditors need to perform weighting (quantitative) of each statement in accordance with the conditions of the company. The result is an agreement between the auditors and related staff by choosing one of the following criteria: "not at all", "little", "to some degree," or "completely". Maximum level of
3 Maturity Level Measurements of The EIS Academic System in Improving Customer Orientation and Services Using Cobit 4.1 Maturity Model and Structural Equation Model Umi Sa adah VIII-59 decency is one, which describes the relevant statement had been fully met [5]. Level 0 Non Existent 1 Initial/ Ad Hoc 2 Repeatable but intuitive 3 Defined 4 Managed and Measurable 5 Optimised Table 3. General Maturity Model[4] Maturity Criteria conditions under which the company is not aware of the need of IT Processes implementation conditions under which the company has realized the need to implement, no clear division of tasks who is responsible conditions in which the IT Process has been running in company but no policies that support, there is no coordination between processes, each running their own conditions under which the management began to regulate these processes are aligned between procedures and policies that support these processes conditions in which all have well defined but there is no standard measurement process and measurement of the process conditions in which IT processes are executed, organized, measured and communicated to various parties within the company Table 4. Description of Maturity Level [2] Level Description 0 Management processes are not applied at all 1 Processes are ad hoc and disorganised 2 Processes follow a regular pattern 3 Processes are documented and communicated 4 Processes are monitored and measured 5 Good practices are followed and automated 2.2. STRUCTURAL EQUATION MODEL (SEM) Structural Equation Model (SEM) is one of the multivariate analyses that can analyze the relationship between variables in complex. This analysis is generally used for studies that use a lot of variables. Data were analyzed using SEM, carried out to explain thoroughly the existing relationship between variables in the research. SEM has integrated approach between the factor analysis, structural model and path analysis. In SEM, a researcher can perform three activities simultaneously. The first activity is to test the validity and reliability of the questionnaire. The second activity is to test the model of the relationship between latent variables, and the last activity was to obtain a useful model for forecasting [1]. The first step that must be done is to build models and theories based on the concept. The next step is to construct a path diagram involving exogenous and endogenous variables. Exogenous variables are independent variables that influence the endogenous variables. In this case every statement of the maturity level from level 0 to level 5 from each IT process is an indicator of exogenous variables. All of the statements become questions to fill out in questionnaires. While the ITG and BG are endogenous variables, each of which has performance indicators. 3 METHODOLOGY This study using approaches such as CMM (CobiT Maturity Model) and analyze it using SEM. The researcher acted as an auditor, conducted a survey using the questions based on CMM from the four existing IT processes on ITG 23, i.e. DS 3, DS 4, DS 8 and DS 13. In this case, the auditors answer questions according to subjective assessment based on evidence obtained during the interviews and observed in the available documents [1]. Furthermore, the respondents fill out questionnaires from the SEM. In this case the auditor only role is to explain things from the questionnaire that is not understandable [1]. Staff interviewed in the CMM as well as respondents from the questionnaire must be in accordance with the criteria RACI chart for each IT process. RACI chart describes the duties, which are Responsible, Accountable, Consulted, and Informed. The first is Responsible, which is for the staff role in which staffs were given the authority to implement a policy; the second is Accountable, which is for other role of staffs which provided direction and authorized decisions, the third is Consulted which is for the role of staffs in which they provided input and support for decisions; and the fourth is Informed, which is for the staff role to be informed about decisions. The collection of evidence required by CMM, adapted to the questions that are available in the ML 0 through ML 5 from each IT Process. Based on existing evidence, the auditor gives a score to every question in the ML 0 through ML 5. In CMM, this research assesses the alignment between BG 4 and ITG 23. The ML L1, L2, L3, and L4 are for the values of ML DS 3, ML DS 4, ML DS 8 and ML DS 13 respectively. The level of alignment assessment between ITG 23 and BG 4 is shown by AL, which is calculated using Equation (1). The maturity calculation results the ML of the audited
4 VIII-60 The 6 th International Conference on Information & Communication Technology and Systems IT process. Figure 1 shows the linkage between IT processes, ITG 23 and BG 4. Figure 1. The linkage between IT processes, ITG 23 and BG 4 This researcher proposes that the total maturity level (TML) for the alignment assessment using CMM is similar with the total effect for the alignment assessment using SEM. TML can be calculated using Equation (2). Since the ML of CMM is between 0.0 to 5.0 and the effect score of SEM is between 0.0 to 1.0, then the ML is divided by 5 in order to compare between the ML and the effect score. TML is the total effect of the whole processes to the customer satisfaction (1) (2) In SEM, questionnaires which will be distributed were prepared according to the CobiT ML from ML 0 to the ML 5 of DS 3, DS 4, DS 8 and DS 13. Furthermore, the data is processed by the PLS (Partial Least Square). The result is the contribution of IT processes to ITG and contribution of ITG to BG. Furthermore, the total effect is calculated with the equation TES (Total Effect Score) (3) In SEM, the effect score ES1, ES2, ES3, and ES4 are for ML DS 3, ML DS 4, ML DS 8 and ML DS 13 respectively. ES5 is the alignment assessment value between ITG 23 and BG 4, and the TES of this model can be calculated using Equation (3). TES is the total effect of the whole processes to the customer satisfaction. TES will be compared with TML in CMM. From results obtained by the TES and the CMM, it can be found areas where the maturity level is still low so needs to be developed through recommendations. 4 DESIGN AND IMPLEMENTATION In research, data collection focused on the academic system, therefore the mapping staff in academic system EIS according to RACI chart as follows: - R: Head of Section BAAK - A: The administrative staff of each department - C: Assistant Director in Academic - I: The Chairman of each Department Tests conducted by the auditor on the staff associated with the academic system as seen in mapping RACI chart. In the interview process, the auditors ask as well as confirm how the process actually taking place in relation to every statement in the whole ML. The result is an agreement between the auditors and the staff by choosing one of the following criteria: "not at all", or "a little", or "to some degree" or "completely". Grouping capability in the management of IT processes from level zero to level five is not intended as a sequential increase that must be met starting from the lowest to highest. But their fulfillment appropriateness can be done on several levels simultaneously. It means the fulfillment of maturity may occur at some level zero to level five, and then the level of maturity is calculated in accordance with the contribution by multiplying the total level of appropriateness of the respective level. While for the SEM, the first step is to build a model, then build a path diagram as shown in Figure 4. Exogenous variables X1, X2, X3 and X4 are to DS 3, DS 4, D 8 and DS 13. While the endogenous variables Y1 and Y2 is to ITG 23 and BG 4. ML5 to ML0 is for indicators of exogenous variables. For the endogenous variables Y1 (for ITG 23 related to the guarantee of IT services) has four performance indicators. Similarly, the endogenous variable Y2 (BG 4 related to the customer satisfaction) has four performance indicators, namely: friendliness, speed, ability to solve problems and communication [7]. Total indicator in figure 4 is 151. Means there are 151 questions in the questionnaire. Data processing was done by entering into an Excel worksheet table. Further tests of validity and reliability are to mark a valid question that can be represented as dependent variables in this study. Validity tests conducted using confirmatory factor analysis of each latent variable DS 3, DS 4, DS8, DS 13, ITG 23 and BG 4. Reliability tests performed by measuring the reliability and
5 Maturity Level Measurements of The EIS Academic System in Improving Customer Orientation and Services Using Cobit 4.1 Maturity Model and Structural Equation Model Umi Sa adah VIII-61 accuracy of the indicators used. Reliability was measured using a goodness-of-fit of the composite reliability with cut-off value of 0.7. Based on valid and reliable model, then each path coefficient interpreted by equation (4) The next process is the T statistic test for all indicators to identify indicators which have a value of more than 1.96 T statistics for certain bootstrap values. This process aims to measure the direct support dare exogenous variables to endogenous variables. (4) Figure 2. Maturity Level 0 for IT Process DS3: Manage Performance and Capacity Figure 3. Maturity Level 2 for IT Process DS3: Manage Performance and Capacity 5 RESULT AND EVALUATION Figure 2 and Figure 3 are examples of IT Process DS 3 for level 0 and level 2. After all of the appropriate statements at each level rated, the next step is to calculate scores for each ML of IT processes. Furthermore, to obtain the ML, it is necessary to determine the level of contribution from each level in the process. The contribution is then multiplied by the level of appropriateness at each level that is relevant to generate value from each level. ML of IT process is the total of the value of each level of maturity that was obtained from the multiplication result (see Figure 5).
6 VIII-62 The 6 th International Conference on Information & Communication Technology and Systems Figure 4. Structural Equation Model of the alignment between ITG and BG Figure 5. Calculation result of DS3 Maturity Level Furthermore, the ML value is divided by 5 so that could be compared with a SEM. Thus obtained value of 0.63, 0.68, 0:59 and 0.6 is the value for the DS 3, DS 4, DS 8 and DS 13 (see Figure 6). IT Goal ITG 23 Table 5. Calculation Result of Maturity Level of all IT Process in ITG 23 IT Description Maturity Process Level DS3 Manage Performance 3.1 and Capacity DS4 Ensure Continuous 2.9 Service DS8 Manage service desk 2.9 and incidents. DS13 Manage operations. 2.8 The alignment between the ITG 23 and BG 4 can be calculated by equation (1) as follows:
7 Maturity Level Measurements of The EIS Academic System in Improving Customer Orientation and Services Using Cobit 4.1 Maturity Model and Structural Equation Model Umi Sa adah VIII-63 AL = ( : ) / 4 = 0.63 TML is calculated using equation (2) as follows: TML = ( : ) x 0.63 = 1.58 It means total support from all IT Processes of BG of customer satisfaction is at 1.58 Since the ML is between 0.0 to 5.0 and the effect score is between 0.0 to 1.0, then the SEM effect score is multiplied by 5. The results computed by the CMM compared with measurements by SEM as shown in table 9 and described in the Spider Web Graphic in figure 8 Figure 6. Alignment of ITG 23 with the BG 4 using the CMM Within SEM method, in tests of validity, a valid indicator is the value of its loading factor more than 0.5. Table 6 shows the results of testing the validity of latent variables. While the reliability tests, all latent variables have a composite reliability (CR) with the cut off value more than 0.7. Table 7 displays the results from reliability testing of all latent variables. Table 6. Results of validity tests of latent variable IT Process Number of Valid Indicators Number of Invalid Indicators DS (ML0, ML5) DS (ML0, ML1) DS DS (ML0, ML1, ML3, ML4) ITG BG (Y2.1, Y2.4) Table 7. Results of reliability tests of latent variable IT Goodness of Fit Composite Realibility Process DS DS DS DS ITG BG The experimental results indicated that all latent variables have a value of more than 1.96 T statistic for the bootstrap 300 (n = 300). Therefore it can be concluded that all indicators are valid. Figure 7 shows the Structural equation is processed by PLS. It describes the structural equation (5). Values approaching 0 is considered as an outlier was removed. Details of the test path coefficient in figure 7 and equation (4) is as shown in table 8 Y 1 = 0.549X X X X 4 Y 2 = 0.731Y 1 Figure 7. Testing results with PLS Table 8. Results of BG Coefficient Model Testing Variable Coefficient T Statistic Description DS 3 ITG Significant DS 4 ITG Significant DS 8 ITG Significant DS 13 ITG Significant ITG 23 BG Significant TES = ( ) X 0.7 = 1.26 Table 9. Comparison of Measurement Results of the CMM and SEM IT Process CMM SEM DS DS DS DS Figure 8. Graph Web Spider alignment using CMM measurements and SEM. Blue striped area is the result of the CMM, while the brown-striped area is the result of SEM 6 RECOMMENDATION[2] From the findings and results of measurements on all IT processes within the IT goal 23, it can be formulated recommendations as shown in table 10
8 VIII-64 The 6 th International Conference on Information & Communication Technology and Systems Table 10. Recommendation of the IT processes within the ITG 23 IT Process Description Recommendation DS 3 Manage Performance Planning and providing system capacity and availability and Capacity Monitoring and reporting system performance DS 4 DS 8 Ensure Continuous Service Manage service desk and incidents. Modelling and forecasting system performance Developing and maintaining (improving) IT contingency Training on and testing IT contingency plans Storing copies of contingency plans and data at offsite locations Installing and operating a service desk Monitoring and reporting trends Defining clear escalation criteria and procedures DS 13 Manage operations. Operating the IT environment in line with agreed-upon service levels and defined instructions Maintaining the IT infrastructure 7 CONCLUSION From this research can be concluded that the current state of the Academic System EIS average score is in the range Maturity Level 3. It means, process is documented and communicated. These results are not much different from the results of measurement by SEM method in describing the sequence of each level of maturity in the IT Process within ITG 23. The collection of data by using the SEM method is expected to be more objective than the CMM due to the respondents who adopted with the mapping of RACI chart more proactive to fill out questionnaires. Furthermore, measurement results and recommendations will be a starting point to formulate a sustainable development strategy in the future. REFERENCES [1] Tanuwijaya, H and Sarno, R (2010) The Comparation of CobiT Maturity Model and Structural Equation Model for Alignment Measurement of University Academic Regulations and Information Technology Goals, International Journal of Computer Science and Network Security10(6). [2] The IT Governance Institute (2007) COBIT 4.1, ISACA. [3] Accessed at 1 May [4] Sarno, R (2009) Strategi Sukses Bisnis dengan Teknologi Informasi Berbasis Balanced Scorecard dan COBIT, ITS Press. [4] Sarno, R (2009) Strategi Sukses Bisnis dengan Teknologi Informasi Berbasis Balanced Scorecard dan COBIT, ITS Press. [5] Sarno, R (2009) Audit Sistem Informasi/Teknologi Informasi. Surabaya: ITS Press. [6] Accessed at 25 May [7] EEPIS (2010) Hasil Evaluasi Pendapat Mahasiswa Terhadap Layanan Di PENS tahun 2010, EEPIS. [8] Sarno, R and Herdiyanti, A (2010) Information Technology Policies for Enterprise Resource Planning Practices to Improve Customer Orientation and Service, International Journal of Computer Science and Network Security 10(5): [9] Sarno, R and Herdiyanti, A (2010) A Service Portfolio for an Enterprise Resource Planning, International Journal of Computer Science and Network Security 10(3): [10] Rico, David (2005) ERP in Higher Education.
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