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DCMM
DCMM is an acronym for The Digital Capabilities Management Model which is an emerging model for the new era of digital transformation designed to address inherent issues and challenges of traditional models when faced with highly complex and continually changing environments. In December of 2018 Q4IT published the first DCMM book to provide practical guidance for modern CIOs looking for inspiration to help them model the IT function in a way that would reduce management overheads while focus IT as a core part of the business by delivering new capabilities to the organisation and helping to protect against disruption. DCMM – Digital Capabilities Management Model is a radically new management model designed to support CIOs with their organization’s digital transformation pathing the way for success in a new era by providing the “what” not just the “why”. It offers entirely new thinking that will help you manage complexity, a speed of change and uncertainty in the digital world.

Taking inspirations from evolution, nature and collaborative networks, this new model provides you a new paradigm on managing IT, helping you initiate self-improvements and adaptations while the governing logic is focused on building digital capabilities rapidly for the benefit of your entire organization.

Why the new model
The world of IT management is shaped by two main thinking streams, These streams create paradigms on the role of IT. Historically ITSM represented by ITIL, FitSM, ISO/IEC 20000, VeriSM, IT4IT etc, place service and value to the centre of thinking, another stream Agile, represented by DevOps, SAFe and other similar models are approaching IT with the same logic as a software development company. Both models are coming from communities defining customer as someone external, using logic of “us and them” This thinking creates a certain management pattern where the main motivation is to satisfy customer to enable economic transactions – billing. As the economic transaction is the driving force in the relationship, necessary management practices must be put in place, like request/change tracking, SLA, reporting, service catalogue and customer acceptance etc. Both models accumulated large experience from the context of where they came from, created entire ecosystems of consultants, trainings and tools support, but a critically important question is being asked by many CIOs today who are working inside organizations.

CIO: How do we know, that acting as a service provider is the best possible management model?

Sources of inspiration
Since about 2010 we can observe rapid emergence of new ideas, challenging widely accepted truths and proposing new solutions to problems arising in the digital era. The new paradigm of economy (CORE model), discoveries in biology (collaboration as the main force in evolution), artificial intelligence emulating brain or complex self-organised organisms are just examples of what we see everywhere, as technology, market behaviour and economic changes converge they are creating highly complex ever changing environments. Old truths and models are proving to be unfit for purpose in today’s complex reality. When exploring the VUCA world we now live in it becomes apparent that traditional mechanisms do not allow for proactive innovation that is necessary to protect against disruption and provide growth, they favour slow improvement and reacting to demand without creating it. The emergence of more complex business models and the need to continually evolve at pace to the point of being proactive are not well supported by traditional models designed in these paradigms so inspiration had to come from somewhere else. It was observed that in nature we see highly complex ecosystems that are continually changing and comparisons to modern business can be drawn, but this requires a big shift in thinking from the traditions of the 20th century industrialisation to the new reality of a sharing economy which is having massive impact on the future of businesses.

= DCMM model parts = Key building block of DCMM are collaboration, innovation and continual adaptation with minimized administrative overhead.

While creating DCMM model, we focused on practicality and creation of new and different management patterns, which are supporting CIOs in digital transformation. While many authors provide well intended advices that IT should transform, they are very unclear in describing to WHAT. DCMM is thus a practical guide to WHAT and provide documented IT management model for the modern CIO.

Components of DCMM are:

1.      Visual proportional model

2.      Principles

3.      Activities, stories, processes

4.      Digital Agents and capabilities

5.      Techniques

1. Visual proportional model
This next picture is providing a visual DCMM model and within it also visual model of IT (right part of picture). Unique and innovative idea behind DCMM is using proportional sizes of graphics to visualize resource consumption and capabilities provided. Using proportions in a visual model offers a great communication help you show what IT does and to what the resources are transformed into.

2. Principles
Working inside brings massive consequence, as we approach and treat our colleagues in different manner than someone external.

•      Sharing – IT is sharing organizational resources with other departments

•      Self-motivation – IT is acting without explicit request to act, becoming proactive

•      Uncertainty – due to complexities and ever ongoing changes the outcomes of acting is frequently unpredictable, and this must be supported in your management model

•      Adaptation – every part of your organization including IT is learning and adapting

•      Fairness – collaboration inside organization is driven by fair resources allocation

Listed principles are driving different behaviours and activities in IT compared to “external” logic, and this means a massive difference compared to ITSM logic.

3. Activities, stories, processes
Most of what IT does is a result of self-motivated actions, frequently driven by activity or availability of resources to start certain activities at a certain moment in time, or responding to unexpected situations like emergency or changed conditions (competition, regulation, malfunctioning).

•       New component

•       Improvement

•       Normal status

•       Check

•       Modification

•       Extension

•       Recovery

•       Emergency

•       Wrong doing

Every activity has a different impact on organizational resources and capabilities. Need of understanding complete resources is one of the significant features of DCMM.

Chains of activities create stories, where continuation of a story is frequently unknown and the decision of  what the following activity is only happens based on the outcomes of previous activity.

From the process perspective, DCMM is retaining only few repetitive processes like outage management, provisioning and monitoring in order to be as reliable and flexible as possible.

4. Digital agents
In DCMM IT is responsible for Digital agents. DA consist of processing capacity (aka brain), connectivity (nerves), memory, algorithm, information. Unlike a service, we approach digital agent in a similar way to how we approach humans or living organisms – aging, growing complexity, wrong doings. Working with the digital agent logic means accepting as fact, that some systems could be extremely complex and internal processing logic might even be changing and not fully understandable. Some digital agents might be enormously complex, that the processing logic can’t be verified for correctness – we call this Digital Intelligent Agent aka Digital intelligence.

Understanding aging and growing complexity means also acceptance that we must adopt suitable management techniques for digital agents over their changing age.

Every digital agent is enabling your organization with specific digital capability. In other words, it is not IT who is providing services, instead IT is designing, acquiring and improving digital agents, which then provide organization new or better digital capabilities and gaining the advantage.

5. Techniques
DCMM is oriented practically so we wanted to provide IT professionals with guidance of how to quantify benefits delivered to their organization, Afterall the board will want measure your success.

·       CVC – Costs value calculation is traditional model of calculating value delivered through certain digital agents (i.e. less time needed for specific transaction

·       ADRA – Activity driven resource allocation – technique describing how to provide iterative resource allocation for new, unproven digital agents to test and verify capability potential

·       RBA – Resource / Benefits analysis, key component of DCMM model. RBA describes practical examples how to quantify overall benefits delivered by the whole of IT.

= Summary = DCMM is targeted to help CIOs in their digital transformation, to change paradigm on IT in organization as innovative department, capable to deliver large, cross organization projects, bridging departmental borders, able to create digital ecosystems with external partners. Transformation is not a minor iterative step but changing patterns of acting inside IT and also presenting IT as critical capability of every organization.