Assessing Corporate IT Governance with CMMI and MCDM

Transcription

1 Assessng Corporate IT Governance wth CMMI and MCDM Yng-Hsun Hung 1, Wen-Kuo Chen 2, Gwo-Hshung Tzeng 3 1 Department of Management Informaton System, Hwa-Hsa Insttute of Technology 2 Department of Marketng and Logstcs Management, Chaoyang Unversty of Technology 3 Natonal Dstngushed Char Professor, Insttute of Technology Management, Natonal Chao Tung Unversty sean@cc.hwh.edu.tw 1, wkchen@cyut.edu.tw 2 ghtzeng@cc.nctu.edu.tw 3 Informaton Technology (IT) has been a focus of research and practce for many decades. Many organzatons have mplemented IT governance frameworks to mprove ther management and governance of IT. ITIL (Informaton Technology Infrastructure Lbrary) s one of wdely accepted approaches to IT servce management. It s one of frameworks desgned to assst frms by provdng them wth consstent and comprehensve documentaton of best practce drawn from the publc and prvate sectors nternatonally. However, practtoners are often puzzled about where they stand, how well they are dong, and what they should do next. Many researchers conduct Capablty Maturty Model Integraton (CMMI) as a process mprovement approach to help organzatons to mprove ther performance. Managers usually make strategc decsons based on a sngle purpose or dmenson, but strategc plannng s nfluenced by many dfferent factors and vewed from several perspectves, such as cultural, technologcal and structural standponts. DANP (DEMATEL-based Analytc Network Process) s a new multple crtera decson makng approach used to gathers collectve knowledge to capture the causal relatonshps between strategc crtera. Therefore, ths paper proposes a hybrd assessment approach combned by CMMI and DANP as a means to help answer these and related questons. Keywords: CMMI, DANP, ITIL, IT governance,qfd,mcdm **Wen-Kuo Chen ( wkchen@cyut.edu.tw) s the correspondng author.

2 1. Introducton Informaton Technology (IT) has been a focus of research and practce for many decades. Many organzatons have mplemented IT governance frameworks to mprove ther management and governance of IT. ITIL (Informaton Technology Infrastructure Lbrary) s one of wdely accepted approaches to IT servce management. It s one of frameworks desgned to assst frms by provdng them wth consstent and comprehensve documentaton of best practce drawn from the publc and prvate sectors nternatonally. However, practtoners are often puzzled about where they stand, how well they are dong, and what they should do next. Many researchers conduct Capablty Maturty Model Integraton (CMMI) as a process mprovement approach to help organzatons to mprove ther performance. Managers usually make strategc decsons based on a sngle purpose or dmenson, but strategc plannng s nfluenced by many dfferent factors and vewed from several perspectves, such as cultural, technologcal and structural standponts. DANP (DEMATEL-based Analytc Network Process) s a new multple crtera decson makng approach used to gathers collectve knowledge to capture the causal relatonshps between strategc crtera. Therefore, ths paper proposes a hybrd assessment approach combned by CMMI and DANP as a means to help answer these and related questons. 2. IT servce management. The Informaton Technology Infrastructure Lbrary (ITIL) s a set of concepts and practces for Informaton Technology Servces Management (ITSM), Informaton Technology (IT) development and IT operatons. ITIL gves detaled descrptons of a number of mportant IT practces and provdes comprehensve checklsts, tasks and procedures that any IT organzaton can talor to ts needs. The IT Infrastructure Lbrary orgnated as a collecton of books, each coverng a specfc practce wthn IT Servce Management. ITIL was bult around a process-model based vew of controllng and managng operatons often credted to W. Edwards Demng and hs plan-do-check-act (PDCA) cycle. 2.1 Overvew of the ITIL v3 lbrary ITIL v3 s an extenson of ITIL v2 and does not replace t. The two publcatons should therefore not be consdered n solaton. ITIL v3 provdes a more holstc perspectve on the full lfe cycle of servces, coverng the entre IT organsaton and all supportng components needed to delver servces to the customer, whereas v2 focused on specfc actvtes drectly related to servce delvery and support. Most of

3 the v2 actvtes remaned untouched n v3, but some sgnfcant changes n termnology were ntroduced n order to facltate the expanson. Fve volumes comprse the ITIL v3, publshed n May 2007: 1. ITIL Servce Strategy 2. ITIL Servce Desgn 3. ITIL Servce Transton 4. ITIL Servce Operaton 5. ITIL Contnual Servce Improvement ITIL Servce Strategy As the center and orgn pont of the ITIL Servce Lfecycle, the ITIL Servce Strategy volume provdes gudance on clarfcaton and prortzaton of servce-provder nvestments n servces. More generally, Servce Strategy focuses on helpng IT organzatons mprove and develop over the long term. In both cases, Servce Strategy reles largely upon a market-drven approach. Key topcs covered nclude servce value defnton, busness-case development, servce assets, market analyss, and servce provder types. Lst of covered processes: (1). Servce Portfolo Management (2). Demand Management (3). IT Fnancal Management ITIL Servce Desgn The ITIL Servce Desgn volume provdes good-practce gudance on the desgn of IT servces, processes, and other aspects of the servce management effort. Sgnfcantly, desgn wthn ITIL s understood to encompass all elements relevant to technology servce delvery, rather than focusng solely on desgn of the technology tself. As such, Servce Desgn addresses how a planned servce soluton nteracts wth the larger busness and techncal envronments, servce management systems requred to support the servce, processes whch nteract wth the servce, technology, and archtecture requred to support the servce, and the supply chan requred to support the planned servce. Wthn ITIL v2, desgn work for an IT servce s aggregated nto a sngle Servce Desgn Package (SDP). Servce Desgn Packages, along wth other nformaton about servces, are managed wthn the servce catalogues. Lst of covered processes: (1). Servce Catalogue Management (2). Servce Level Management (3). Rsk Management (4). Capacty Management

4 (5). Avalablty Management (6). IT Servce Contnuty Management (7). Informaton Securty Management (8). Complance Management (9). IT Archtecture Management (10). Suppler Management ITIL Servce Transton Servce transton, as descrbed by the ITIL Servce Transton volume, relates to the delvery of servces requred by a busness nto lve/operatonal use, and often encompasses the "project" sde of IT rather than "BAU" (Busness as usual). Ths area also covers topcs such as managng changes to the "BAU" envronment. Lst of processes: (1). Servce Asset and Confguraton Management (2). Servce Valdaton and Testng (3). Evaluaton (4). Release Management (5). Change Management (6). Knowledge Management ITIL Servce Operaton Best practce for achevng the delvery of agreed levels of servces both to end-users and the customers (where "customers" refer to those ndvduals who pay for the servce and negotate the SLAs). Servce operaton, as descrbed n the ITIL Servce Operaton volume, s the part of the lfecycle where the servces and value s actually drectly delvered. Also the montorng of problems and balance between servce relablty and cost etc. are consdered. The functons nclude techncal management, applcaton management, operatons management and Servce Desk as well as, responsbltes for staff engagng n Servce Operaton. Lst of processes: (1). Event Management (2). Incdent Management (3). Problem Management (4). Request Fulfllment (5). Access Management ITIL Contnual Servce Improvement (CSI) Algnng and realgnng IT servces to changng busness needs (because standstll

5 mples declne). Contnual Servce Improvement, defned n the ITIL Contnual Servce Improvement volume, ams to algn and realgn IT Servces to changng busness needs by dentfyng and mplementng mprovements to the IT servces that support the Busness Processes. The perspectve of CSI on mprovement s the busness perspectve of servce qualty, even though CSI ams to mprove process effectveness, effcency and cost effectveness of the IT processes through the whole lfecycle. To manage mprovement, CSI should clearly defne what should be controlled and measured. CSI needs to be treated just lke any other servce practce. There needs to be upfront plannng, tranng and awareness, ongong schedulng, roles created, ownershp assgned, and actvtes dentfed to be successful. CSI must be planned and scheduled as process wth defned actvtes, nputs, outputs, roles and reportng. Lst of processes: (1). Servce Level Management (2). Servce Measurement and Reportng (3). Contnual Servce Improvement Fgure 1. ITIL V.3 Framework Source: ITIL V3 Foundaton

6 2.2.6 Informaton Technology Servces Assessment n Organzatons Recently many researchers evaluated the percepton gaps of servce qualty between nformaton technology servce provders and ther clents to assess these gaps by usng the nstrument SERVPERF of the SERVQUAL model. E-Government servces such as the onlne tax flng and payment system (OTFPS) were assessed by usng a theoretcal model based on the theory of planned behavor (TPB), technology adopton model (TAM), dffuson of nnovaton theory (DOI) to dentfy the determnants for acceptance, and the causal relatonshps among the varables of acceptance behavor. Furthermore, some researchers dscovered e-government adopton behavor dffers based on servce maturty levels,.e., when functonal characterstcs of organzatonal, technologcal, economcal, and socal perspectves of e-government dffer from the perspectves of servce maturty stages. 3. DEMATEL-based Analytc Network Process (DANP) 3.1 The DEMATEL Method Because evaluaton of knowledge management capabltes cannot accurately estmate each consdered crteron n terms of numercal values for the alternatves, fuzzness s an approprate approach. The DEMATEL method s an emergng method that gathers group knowledge to capture the causal relatonshps between crtera. The orgnal DEMATEL (DEcson-MAkng Tral and Evaluaton Laboratory) method studed the dsjonted and antagonstc phenomena of world and nvestgated ntegrated solutons. In 1973, the Battelle Memoral Insttute conducted the DEMATEL project through ts Geneva Research Centre. In recent years, ths method has become very popular n Japan. It s especally practcal and useful for vsualzng the structure of complcated causal relatonshps wth matrces or dgraphs, whch portray the contextual relatons between the elements of a system, where a numeral represents the strength of nfluence. Therefore, the DEMATEL method can convert the relatonshp between the causes and effects of crtera nto an ntellgble structural model of the system. The DEMATEL method has been successfully appled n many felds. For example, Tamura et al. (2002) try to decrease anxety of people by extractng and

7 analyzng varous uneasy factors n order to create future safe, secure and relable (SSR) socety. More recently, Chu et al. (2005) adopted the method to study marketng strategy based on customer behavor related to LCD-TVs. Also Hor and Shmzu (1999) employed t to desgn and evaluate the software of a dsplay-screen structure for analyzng a supervsory control system. 3.2 The DEMATEL for Constructng a NRM The DEMATEL method (Gabus and Fontela 1972; Ou Yang et al. 2008) was utlzed to nvestgate the nterrelatons among crtera to buld a NRM. The technque has been successfully appled n many stuatons, such as development strateges, management systems, e-learnng evaluatons, and knowledge management (Ln and Tzeng 2009; Tsa and Chou 2009; Tzeng et al. 2007; Wu 2008). The method can be arranged as follows: Step 1: Obtan the drect-nfluence matrx by scores. Respondents are requred to pont out the degree of drect nfluence among each crteron. We suppose that the comparson scales, 0, 1, 2, 3 and 4, stand for the levels from no nfluence to very hgh nfluence. Then, the graph whch can descrbe the nterrelatonshps between the crtera of the system s shown n Fg. 1. For nstance, an arrow from w to y symbolzes that w mpacts on y, and the score of nfluence s 1. The drect-nfluence matrx, A, can be derved by ndcated one crteron mpact on another crteron j as aj. a11 a1 j a1 n A a 1 aj a n an 1 anj a nn Step 2: Calculate the normalzed drect-nfluence matrx S. S can be calculated by normalzng A through Equatons (6-1) and (6-2). S=m A (6-1) 1 1 m mn, n n max aj max aj j j1 1 (6-2) Step 3: Derve the total drect-nfluence matrx T. T of NRM can be derved by usng

8 a formula (6-3), where I denotes the dentty matrx;.e., a contnuous decrease of the ndrect effects of problems along the powers of S, e.g., 2 3 q q S, S,..., S and lm [0] nn, q S where S [ s ], 0 1 and 0 s or 1 j j s only one column or one row sum equals 1, but not all. j The total-nfluence matrx s lsted as follows. j nn s j T 2 q S S S S( I SS S q )( I S)( I S ) q S( I S )( I S ) when q, S q n n, then 1 T S( I S ) (6-3) where T [ t ],, j 1,2,..., n. j nn Step 4: Construct the NRM based on the vectors r and c. The vectors r and c of matrx T represent the sums of rows and columns respectvely, whch are shown as Equatons (6-4) and (6-5). n r [ r] n1 tj (6-4) j1 n1 n d [ d ] t (6-5) j n1 j 1 1n where r denotes the sum of the th row of matrx T and dsplays the sum of drect and ndrect effects of crteron on another crtera. Also, d j denotes the sum of the j th column of matrx T and represents the sum of drect and ndrect effects that crteron j has receved from another crtera. Moreover, when j ( r d ), t presents the ndex of the degree of nfluences gven and receved;.e., ( r d ) reveals the strength of the central role that factor plays n the problem. If ( r d ) s postve representng that other factors are mpacted by factor. On the contrary, f ( r d ) s negatve, other factors has nfluences on factor and thus the NRM can be constructed (Lou et al. 2007; Tzeng et al. 2007). 4. Capablty Maturty Model Integraton (CMMI) In 1991, the Software Engneerng Insttute (SEI) of Carnege Mellon Unversty ntroduced the capablty maturty model for software (SW-CMM) to evaluate the

9 capablty maturty of software development contractors of the US Defense Department and provde a roadmap for software process mprovement. Snce SEI released SW-CMM Verson 1.1, t has been appled to dfferent areas. Hence, many capablty maturty models have been proposed, ncludng the software acquston CMM (SA-CMM), system engneerng CMM (SE-CMM), ntegrated product development CMM (IPD-CMM) and people CMM (P-CMM)(Huang and Han 2006). Table 1. CMMI : SW-CMM Verson 1.1 Source: SW-CMM Verson 1.1 As these models were developed by dfferent organzatons, they had many overlappng applcatons and lacked consstency n archtecture, termnology, and assessment methodology. These problems ncreased costs and the tme requred to mplement multple model-based process mprovements. Therefore, SEI released the capablty maturty model ntegraton (CMMI) system n 2001 to ntegrate exstng capablty maturty models. Huang and Han (2006) observed that the advantages of CMMI are: (1) t elmnates nconsstences and duplcaton, and thus streamlnes enterprse-wde process mprovements; and (2) t reduces the cost and tme assocated wth model-based process mprovement, and thereby ncreases the return on an organzaton s nvestments. To accommodate dfferent process-mprovement needs for software organzatons,

10 the CMMI product team provded them wth two choces (staged or contnuous representaton) to ncrease the maturty of ther processes. Under CMM, staged representaton provdes a framework for organzng the evolutonary steps nto fve levels of maturty (ntal, managed, defned, quanttatvely managed, and optmzng). (Huang and Han 2006) These levels are ordnal scales for measurng the maturty of an organzaton s software process and can also be used for ts nternal process mprovement. SEI then added the contnuous representaton framework to the CMMI. Because of ts flexblty, the framework enables software organzatons to choose ther mprovement paths. The contnuous representaton facltates comparsons of a specfc process area across software organzatons, and thereby allows process mprovement to be compared wth that of the ISO/IEC standard. (Huang and Han 2006) Source: SW-CMM Verson 1.1 Fgure 2. Ratonal of CMMI Staged Representaton 5. Qualty Functon Deployment approach(qfd) Qualty functon deployment (QFD) s a valuable method that provdes a means of translatng customer needs nto the approprate techncal requrements for each stage of detaled operatons n product development and producton. The purpose of ths study s to develop an effectve decson-makng method based on QFD and DANP approach to help for makng better decsons of plannng or evaluaton problems.

11 The QFD s an ntegrated plannng method that can assure and mprove the algnment of elements of desgn processes wth the requrements of customers, as well as t s a manageral phlosophy that can help enhance the organzatonal and managng effects [40]. Especally, QFD employs a cross-functonal team to plan and desgn new or mproved products or servces through a structured and well-documented framework. In contrast wth tradtonal requrements of engneerng methodologes, benefts of usng QFD are such as: carres the voce of the customer nto the process; abolshes waste and creates flexblty; supports customer-orented decsons of desgn; determnes objectves and creates focus on the essental; takes nterests of varous groups nto account; systematzes communcaton and provdes for contnuty and responsveness; creates transparency and makes coordnaton processes easer; and speeds up development process. 5.1 What QFD can do Accordng to Wkpeda s defnton, Qualty functon deployment (QFD) s a method to transform user demands nto desgn qualty, to deploy the functons formng qualty, and to deploy methods for achevng the desgn qualty nto subsystems and component parts, and ultmately to specfc elements of the manufacturng process., as descrbed by Dr. Yoj Akao, who orgnally developed QFD n Japan n 1966, when the author combned hs work n qualty assurance and qualty control ponts wth functon deployment used n value engneerng. QFD s especally desgned to help practtoners focus on characterstcs of a new or exstng product or servce from the vewponts of market segments, company, or technology-development needs. The technque yelds graphs and matrces. QFD helps transform customer needs ( the voce of the customer [VOC] ) nto engneerng characterstcs (and approprate test methods) for a product or servce, prortzng each product or servce characterstc whle smultaneously settng development targets for product or servce. 5.2 House of Qualty House of Qualty s a dagram, resemblng a house, used for defnng the relatonshp between customer desres and the frm/product capabltes. It s a part of the Qualty Functon Deployment (QFD) and t utlzes a plannng matrx to relate what the customer wants to how a frm (that produces the products) s gong to meet those wants. It looks lke a House wth a "correlaton matrx" as ts roof, customer

12 wants versus product features as the man part, compettor evaluaton as the porch etc. It s based on "the belef that products should be desgned to reflect customers' desres and tastes". It also s reported to ncrease cross functonal ntegraton wthn organzatons usng t, especally between marketng, engneerng and manufacturng. The basc structure s a table wth "Whats" as the labels on the left and "Hows" across the top. The roof s a dagonal matrx of "Hows vs. Hows" and the body of the house s a matrx of "Whats vs. Hows". Both of these matrces are flled wth ndcators of whether the nteracton of the specfc tem s a strong postve, a strong negatve, or somewhere n between. Addtonal annexes on the rght sde and bottom hold the "Whys" (market research, etc.) and the "How Muches". Rankngs based on the Whys and the correlatons can be used to calculate prortes for the Hows. House of Qualty analyss can also be cascaded, wth "Hows" from one level becomng the "Whats" of a lower level; as these progresses the decsons get closer to the engneerng/manufacturng detals. Moreover, QFD has been appled n varous ndustres such as transportaton, communcaton, electroncs, electrcal utltes, software systems, manufacturng, servces, educaton, and research. It has been successfully appled n many companes as a powerful tool that addresses strategc and operatonal decsons n busnesses. To advance contnuous mprovement for strengthenng global compettveness, most companes are strvng to elmnate the IT servces gaps and seze users needs and to seek for hgher levels of qualty for ther products and servces. To fulfll these IT servce demands, we adopt Qualty Functon Deployment (QFD) wth ITIL to provde proftable solutons wth the emphass on goal-orented, fast, flexble and customer-focused approach.

13 Fgure 3. QFD House of Qualty for Enterprse Product Development Processes 6. A novel hybrd ITIL servce approach combned by DANP and QFD The am of ths study s to buld n the servce user satsfactons at the IT system servces phase, whch s attractng a lot of attenton n recent researches. Durng the QFD mplement process, the Analytc Network Process (ANP) has been used to determne the relatve mportance weghts between crtera or the

14 ntensty of the relatonshp between the row and column varables of each matrx. To develop an effectve decson-makng method to help for makng better decsons of plannng or evaluaton problems. Snce the key tool of QFD s the matrx, we focus on the seres of nteractve matrces and therefore apply the super-matrx of the ANP n order to perform our proposed method. In the proposed method, t ncorporates several QFD matrces nto a super-matrx based on the Seres System model. The procedures of proposed method are manly dvded nto two phases as follows. Phase 1: Usng QFD to develop decson structure. In ths phase, t begns wth the way to confrm strategc needs obtaned through busness surveys and analyses. Next, t s necessary to defne the decson goal and to collect relevant nformaton, evaluaton crtera, and the alternatves. Then, these decson elements are structured nto a three dmenson HOQ through the QFD methodology. Commonly, persons employ the way of tradtonal two-dmenson HOQ, so that they need to use two HOQs wth twce translatons. Where the frst HOQ translates the crtera nto sub-crtera, and then the second HOQ converts the sub-crtera nto the alternatves. Obvously, the way of usng a three-dmenson HOQ s more effectve and benefcal than that way of usng a two-dmenson HOQ. Because the former provdes more ntegrated nformaton n a compact form, and t s also more convenent for the calculatons wth the super-matrx of the ANP. Of course, f necessary, a four dmenson HOQ can also be extended to use. Phase 2: Usng ANP to prortze alternatve. Once that decson structure s settled down, t s requred to employ Saaty s fve-pont scale for makng all pared comparsons of decson elements, and then to ncorporate all sub-matrces nto the super-matrx whch s a herarchy structure wth four levels ncludng nner dependences. Through performng calculatons wth the super-matrx of the ANP, fnally the overall prortes of alternatves may be obtaned. As for the calculatons of the super-matrx, we can easly solve t wth the ways usng ether the Mcrosoft Excel, Mathlab, or the professonal software named Super Decsons provded by the Creatve Decsons Foundaton.

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