Your SlideShare is downloading. ×
Oracle Presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Oracle Presentation

1,498
views

Published on

Published in: Business, News & Politics

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,498
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
239
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Office of the CIO Trends Galit Fein EVP & Senior Analyst Strategies for the Web & Office of the CIO All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 1
  • 2. Two Faces of the CIO CIO function # 1 CIO function # 2 • Manager of • CEO of external IT Your Text here Your Text here internal IT All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 2
  • 3. MEGA IT Trends 2008 IT spend (inc. outsourcing) remained flat Higher standards dictated by new regulations Your Text here Your Text here Greater demand for IT services but limited resources Increasing number of small projects & its interaction All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 3
  • 4. IT is an Integral Organ of the Business Contribution to The most important IT responsibility achieving business strategy 29% Business processes Your Text here Your Text here improvement 57% Available & accurate info 14% Source: STKI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 4
  • 5. Org. that lack OTC complain of: IT support in the business strategy is less effective Poor transparency between management & ITO Lack of IT standardization & methodology Your Text here Your Text here Unproductive use & waste of human resources & IT assets Projects failures rate is too high All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 5
  • 6. IT that lack OTC complain of: Overwhelming demand for IT services Projects, requests, CR, maintenance are managed by out-dated, non-integrated tools Your Text here Your Text here Status of requests is not available in real-time Unable to detect & expose problems & malfunction in early stage All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 6
  • 7. Why do we need Office of the CIO? OTC ensures that every decision has optimal strategic value in relation to cost & risk With OTC, business managers will better understand: Your Text here Your Text here • Strategic impact of investment decision-making • Cost of IT services All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 7
  • 8. Objectives of the PMO IT Plan Development Demand Management Budget & resource management Tools Your Text here Your Text here Availability of information Post-implementation audits: • Accompany the implementation • Ensure successful system-use Continuous improvement All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 8
  • 9. IT Plan Development 13% 33% 54% Change Regulatory Strategic Run The The Organization Organization Alignment with Str. Objectives Your Text here Your Text here Cost ROI Risk & compliance Competitive IT-enabled Running IT Management advantage: business projects: operations: New products, Cost advantage IT services services, new customer satisfaction, catalogue with markets productivity costs & SLA All Rights Reserved @STKI improvements Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 9
  • 10. IT Portfolio Trends In short term: Run the Org. spend will see some decline from further efficiencies In long term: Run the Org. spend will stabilized Efficiencies here infrastructure & better ITG willhere Your Text in Your Text enable firms to reduce the % of IT spend on sustaining the current systems from 70% to 50% All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 10
  • 11. Demand Management Screening • Customer representative, system manager… Pre-agreed criteria Your Text here Your Text here Evaluation & prioritization: • Compare “apples to apples” • Avoid redundancy Financial awareness All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 11
  • 12. Budget Management Budget Allocation IT budget distribution between Business Units according to their strategic goals: • Business Unit responsibility • Operations get their own budget for the maintenance Your Text here Your Text here Resources allocation between Business Units according to their strategic goals : • Control of business demands • Internal loan between LOBs All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 12
  • 13. Budget Allocation - Recommendations Save part of resources for IT flexibility: • New regulation • Unexpected business activity Your Text here Your Text here Unplanned demand will be executed on account of planned demand All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 13
  • 14. Budget Management & Control Collecting data to show costs of services Service catalogs: • Chargeback • Alternatives Your Text here Your Text here  When IT prices its services, IT can benchmark services against outsourced alternatives to drive further efficiencies All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 14
  • 15. Planning vs. Execution – Why? Planning vs. execution assessment: • Actual demands’ status • High maintenance systems Your Text here Your Text here • Business Unit resources exhaustion All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 15
  • 16. Planning vs. Execution – How? Develop annual plan based on hours spent per task • Incidents, maintenance, development Not attendance clock! Your Text here Your Text here Reporting enforcement through executives’ dedication All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 16
  • 17. How do you define project success? Israel Usage, Bugs in production, Reusability Other Clients 11% Satisfaction 19% Schedule ROI 11% Your Text30% here Your Text here Cost 29% Source: STKI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 17
  • 18. Software Tools IT managed either manually, through spreadsheets, or through an array of standalone tools ITG tools help the organization: • Visualize the demand for IT services & new initiatives Your Text here Your Text here • Prioritize financial investment & human resources ITG automation helps to enforce standards & practices • Access is limited to permitted users only • Efficient demand workflow confirmation All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 18
  • 19. ITG Tools Evolution Text Individual project mngt Demand mngt Project & portfolio mngt Standalone Financial mngt tools Resource mngt Your Text here IT process mngt Your Text here Reporting ERP for IT All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 19
  • 20. STKI Israeli Positioning  Not a technological positioning  Refers only to Israeli market Vendor A  Focused on enterprise market (not SMB) Local Support  Not an STKI recommendation Vendor B  Market here Your Text Presence (X) Your Text here • Market share - existing and new sales (more emphasis) • Mind share (how user organizations perceive vendors)  Local Support (Y) – is influenced by (X) • Experience & technical knowledge, localization, support, number and kind of integrators Market Presence All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 20
  • 21. PPM- Positioning of the Israeli Market Vendors to Watch: Compuware IBM Microsoft Primavera CA Local Support HP Enterprise Your Text here Your Text here PS Next MID-Tier This analysis should be used with its supporting documents Market Presence All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 21
  • 22. PPM Tools & Integrators in Israel Clients New Clients 07’ Integrators Clarity (CA) Ministry of Tourism, CA, Proceed (Calanit Clalit, Leumi Card, Carmon) SunDisk Project & Portfolio Partner, Motorola, HP, Taldor Center (HP) Mataf Compuware Matrix Changepoint (Matrix) BAW,EPM, RAM, RD IBM Composer (IBM Q4 08) Your Text here Your Text here Primavera (Aviv) Mercava, IDF Aviv Requirement & Menora IAI MSP Release mngt (MSP) PS Next (Xioma) Bank Discount, Visa Cal Xioma, MSP Eshed , Menora, Teva Signifer PPS (Microsoft) Malan Matan, Orantech Tefen, Proceed EPM (Microsoft) M-system, Leumit, IAI, Orbotech, Bank Leumi, Matan, Orantech, Tefen, Lotem, Bezeq, Coca-Cola, Tnuva, Neway, Pnina Zinger, Mekorot, Tel Aviv Strauss-Elite, IAA Proceed Municipality All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 22 22
  • 23. PPM Tools & Integrators in Israel SAP RPM (resource & portfolio mngt) – IAI, Bank Hapoalim, Maaz, DSW, Cellcom, Bezeq, Bazan, Navy, Taas, Amdocs, Barom, Merkava TimeMaker (time & task mngt)– Mirs ERG Timesheet (time estimation mngt) -Your Text here Your Text here Cellcom All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 23
  • 24. PMO Israeli Trends From standard project mngt to ITG processes ITOs are currently increasing its PMO Majority of organizations examine ITG tools ITOs are looking for: Your Text here Your Text here • Ultimate ITG tool • Process automation using existing tools • Improving budget control by integrating work plan to ERP PMO staffing ratio depends on organization maturity: All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 24
  • 25. OTC Process Implementation: Recommendations Receive recognition from executive mngt: • Decision-making, budget & resources Standardization of processes Drawing conclusions: Your Text here Your Text here • Project mngt, alignment with business strategy Use of consultants: • Less resistance toward external involvement All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 25
  • 26. ITG Tools Implementation: Recommendations The process should be simple as it involves only a few users Focus on 2-3 critical KPIs Your Text here Your Text here Choose user friendly system Short term ROI Implement module by module All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 26
  • 27. Office of the CIO pays off Even though establishment of the OTC takes 2-3 years, it has a valid business justification OTC helps firms to achieve: Your Text here Your Text here • Greater return on IT investments • Higher customer satisfaction from IT All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 27
  • 28. IT Service Desk Highly competitive & mature market Continually growing staff & number of transactions IT SD as full-service provider: • Cost mngt - call-reduction strategies, automation Your Text here Your Text here efforts, service delivery alignment with defined service levels) • Proactive management • Appropriate performance metrics ITIL All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 28
  • 29. IT Service Desk – Positioning of the Israeli Market Vendors to Watch: IBM CA Microsoft SAP Local Support HP BMC Enterprise Siebel here Your Text Your Text here MID-Tier PeopleSoft Pivotal SysAid IT HD Modules This analysis should be used with its supporting documents Market Presence All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 29
  • 30. IT Service Desk Tools Selected Installations in Israel Clients New Clients Integrators Comverse, IAI, Discount, Elta, ECI, HOT, Shabas, Rafael, Isracard CA, Ness, Malam, CA* Motorola, Teva, Elbit, Mekorot, Osem, MSP Cabao , Phoenix, DSW, Bezeq Int, Beit Berl, Israel Police, Tnuva, Central Bureau of Statistics, EL-AL, Tamas, TASE, Ministry of Health, Tel- Aviv Municipality Zim, Malan, IGS, MED Nautilus, Malam, Matrix , Xor BMC* Kneset, NDS, Social Insurance, Uniliver, Creo, Intel, Motorola, Summit Design, Your Text here - Your Text here Polycom, Cellcom- eng. HOT-eng. Partner - eng IDF, Netafim, Shaam, Open University, HP, Xor HP* Orbotech, Tower Semiconductors, Haaretz - Rav-Bariach, Marvell, Dan, Jonson & Africa Israel, Mei-Eden, AIG, SysAid* Jonson, Highway 6, Omrix, Wintegra, Sami Electra, McCann Erickson, Consist Shimon College, Minicom, Litcom Diesenhaus unitours, Flash Networsks, Liveperson, Opal Hertz, Psagot Ofek, *ITIL compliant All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 30
  • 31. IT Help Desk Modules from CRM packages Clients New Clients Integrators Microsoft Ministry of Finance, Malan, Israeli Visa, Cellcom, Eldan, 20 Partners, including: Navy, Intel, Prime Minister Ministry of Education Matrix-Effect, SIT, CRM* Advantech, Team, (*ITIL complaint) Malam, Eyron, We!, Netwise, Bynet SW, Yael, Avaya…. Pivotal Super-Pharm, Bat-Yam Municipality, Tadiran, Negev Ceramics, ONE1 Exlibris, Systematics, Panorama, Telmap, Orad Your FGG Radvision, Gilat, Maccabi, ,Ericom Text here Your Text here Shahal, Ritalix, Globs Coca Cola, Paz, Isr. Government Ness, IBM, EDS, SAP Bazan Advantech PeopleSoft Ministry of Foreign Affairs, Mamram, Matrix Bezeq - Siebel* Tnuva, Visa, Golden Pages, Bank Taldor, IBM Leumi - All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 31
  • 32. The Sarbanes-Oxley Act (SOX) Executives are enforced to accurate & verified financial info Periodical review of the processes used to ensure Your Text here Your Text here compliance with regulatory Internal controls are regularly assessed for effectiveness All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 32
  • 33. What is the SOX for IT? SOX implications have huge impact on the ITO The role of CIO & ITOs will evolve under SOX IT departments can expect much closer scrutiny Need for Text here Your enterprise risk management &Your Text here governance Timely & accurate info enabled & sustained by a blend of process, quality, & governance All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 33
  • 34. Enterprise Risk Mngt Common Frameworks: Process: Process Developing process to improve  ITIL efficiency & IT service delivery  Maturity models Quality control: – CMM , PMM Build metrics to follow up Your Text here Quality control Your Text here performance & improvement  ISO 9001 Governance:  Total Quality Establishing oversight measures Management (TQM)  Six Sigma Governance Consultants: HMS, One, SecOz,  COBIT Spider, Taldor, Tulip All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 34
  • 35. Best Practices vs. Innovation  TACTICAL IT  STRATEGIC IT • Tactical functions simply • Strategic functions drive Best keep the business up & Innovation the company’s dollar, stock Practices running on a day-to-day Your Text here basis: value, & competitive advantage Text here Your  COBIT  Office of the CIO  CMMI  Portfolio mngt…  ISO  ITIL  Six Sigma… All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 35
  • 36. What’s the Best Practice Framework? No single process/governance framework will effectively represent every organization ITIL COBIT CMMI No single framework covers the complete territory Six ISO Your Text here Your Text here Sigma Leverage & aggregate best practices The combination of process methodologies will provide a more complete view of IT’s operational/ support processes All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 36
  • 37. COBIT Control Objectives for  High-level governance & control Information & Related framework Technology (COBIT)  Developed by the Information Systems Audit and Control  COBIT align with the COSO finan. Association (ISACA): A set of identified control objectives framework - recommended for  4 high-level domains (e.g., compliance with SOX Your Text here Your Text here planning & organization)  34 sub domains (e.g., manage human resources)  Checklists for assessing IT controls  318 control points designed to & effectiveness provide assurance that certain objectives will be achieved  Israeli ISACA is translating  Ensures that controls & security COBIT to Hebrew are in place All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 37
  • 38. ITIL  Process is the linchpin to IT Infrastructure delivering consistent services at Library (ITIL) a reliable level of quality  Initiated by the UK government’s (CCTA) Central Computing & Telecommunication Agency  ITIL primarily focuses on IT  Provides best practices for operations where 80% of IT Your Text here deliveringYourservices IT Text here budgets are spent  ITIL v.3 (5 books) refines the notion of IT service  ITIL v.2 core tenants were divided between service support & service delivery; these are now combined All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 38
  • 39. ITIL v.3 - 5 Books Service Strategy Service Design Service Transition Service Operation Continual Service Your Text here Your Text here Improvement All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 39
  • 40. ITIL Israeli Trends Business started to realize the importance of the ITIL Customers started to demand vendors ITIL compliance in RFP (especially HD & outsourcing vendors) Main reasons to enter ITIL: Your Text here Your Text here • IT services improvement • Regulations: Companies which incorporated ITIL processes reported better compliance with SOX, BazelII… Bottom-up demand All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 40
  • 41. ITIL Adoption Trends About 10 enterprises has already implemented some ITIL processes Industries with highest % of usage: • Finance, Telecom & High-Tech Increasing interest, but no actual investment here Your Text here Your Text ITIL courses & training: HP, John Bryce ITIL lead consultants (alphabetical) & selective examples: • CA: Ministry of Foreign Affairs • EMC: Amdocs, Cellcom • GalanTech- ITIL training; Amdocs; IEC; Petah-Tikva municipality • HP- Pelephone, Ministry of Justice • I-til consulting - Bank Leumi, Zim • XOR - Bank Hapoalim; Bank Leumi Zion, Israel +972 9 74 444 74 www.stki.info All Rights Reserved @STKI Moshav Bnei 41
  • 42. COBIT & ITIL Do they affect each other? Yes!  COBIT tells you what to  ITIL describes how to monitor & control implement  Higher-level business  Lower-level service value framework performance framework Your Text here Your Text here The ideal configuration - a combination of both frameworks: • ITIL measures internal technology efficiencies • COBIT interprets them in the context of business value The latest versions of these frameworks integrate with each other All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 42
  • 43. ISO International Organization ISO- framework for information for Standardization (ISO) security management Developed by the International Organization for ISO/IEC17799:2000 lays out a Standardization & the International Electrotechnical process for securing those Commission services Textaddressing legal Your & here Your Text here requirements ISO specifies best practices for security in 12 areas & offers guidance on such topics as protecting personal data, internal information, & intellectual property All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 43
  • 44. Importance of: Unified Framework Responsibility Frameworks are tied to each other Different frameworks handled by various orgs roles: • Accountants, CIO, CTO, QA managers, CISO, etc. Responsibility of all frameworks MUST be unified: Your Text here Your Text here This translates itself to greater efficiency & resource saving All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 44
  • 45. Risk & Compliance Mngt CobiT Control Objectives for Information & Related Technology Reference framework for Information Technology ITIL Text here Your governing Your Text here IT & Infrastructure Library compliant with SOX Framework for information ISO security management All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 45
  • 46. Management Tools - Ranking Outsourcing: one of the top 10 most used mngt tools, however, below average satisfaction Your Text here Your Text here All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74Source: Bain & Company 444 74 www.stki.info (Mng. Tools 2007) 46
  • 47. Outsourcing WW Trends Outsourcing will continue to be recession-proof Recent turmoil in credit markets will selectively slow outsourcing in the financial services sector multi-shore & multi-provider outsourcing will GlobalYour Text here Your Text here become more the norm than the exception Capital expenditure avoidance will become a key driver for increased demand for outsourcing & BPO All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 47
  • 48. Outsourcing Model Evolution or Equilibrium? Outsourcing model has been changed 1/3 of deals were total IT function, especially with SMBs Rest of deals were of transferring processes & specific fields to outsourcer: Comprehen sive Your Text here Your Text here outsourcing • Infrastructure 33% • Help Desk support Selective outsourcing • Application Mngt 67% Source: STKI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 48
  • 49. Selective Outsourcing Israeli Trends Comprehensive outsourcing Selective outsourcing • Loss of Flexibility • Vendor Competition • Increased Risk • Shared Objectives • Loss of Internal Expertise • Core Competencies Your Text here Your Text here Selective examples: Selective examples: EDS: Kneset EDS: Alvarion, Ports & Railways Authority HP: Tower HP: Navy, Telrad Malam – Team: Dan Malam-Team: Shlomo Group, Phoneix Ness: Tadiran Appliances Ness: Teledata, Applied Materials, UTI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 49
  • 50. Outsourcing Israeli Trends Outsourcing market will continue on steady mature growth Net increase in the outsourcing market PublicYour Text heredemand will continue to grow here sector Your Text Decline in mega-deals (number & volume) Most of the activity will be happening in SMBs All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 50
  • 51. Pace of new contract has slowed during 2007 More sophisticated customers who conduct thorough feasibility study  End of vendors’ “suicidal prices”  A few major WW outsourcing contracts are being brought Your Text here Your Text here back in house: Prudential, Selfridges, Sainsbury…  Advertisement of disagreements & problems in contract between Mey-Eden, Mataf, Harel… All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 51
  • 52. Outsourcing Israeli Trends Customers  Most orgs. succeed in achieving their objectives, but in general they feel indifferent about the results  Companies generally have difficulty to evaluate vendor capabilities & outsourcing outcomes Your Text here Your Text here  Companies are choosing vendors with proven abilities to deliver services according to SLA  Clients changing preference: smaller contracts~1-5 years  Re-biding vs. renewals: resulting in less stability since the contract & checks take time to accomplish All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 52
  • 53. Multisourcing Multisourcing still hasn’t passed the reality test Multisourcing demands the complete mngt of operation & providers Mngt of operation & providers requires large managerial here Your Text mechanism Your Text here Managerial boundaries must be specified Multisourcing demands a critical mass since providers have lesser profit margins when it comes to smaller contract All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 53
  • 54. Outsourcing Israeli Trends Vendors Highly competitive market with increasing no. of vendors Main players: Your Text here Your Text here • Ness, EDS, Malam-Team, IBM, HP New players are entering the IT sector: • Bynet , Taldor All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 54
  • 55. Main Factors for Failure of Outsourcing Management lack experience of outsourcing Management lack skill of writing & negotiating outsourcing contracts Your Text here Your Text here The outsourced work is difficult to standardize Quality did not meet expectations: • “80:20” bubble burst All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 55
  • 56. Major obstacle for successful outsourcing ITOs are dissatisfied with the methods used for measuring vendors’ performance ITOs still struggle with metrics design & implementation ITOs mostly rely on the vendor's estimation Your Text here Your Text here The problem of measurement pertains not only to outsourcing but also to the overall operation of a firm All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 56
  • 57. For what reasons have you considered insourcing? Have not considered insourcing 61% 51% Cost saving not realized 24% 28% Service levels not met 21% 26% Your Text here Customer dissatisfaction 13% Your Text here 26% Change in strategy about outsourcing 12% 16% Communication problems 13% 18% Other 3% 5% 2008 2007 Source: Cutter All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 57
  • 58. What kinds of tasks are you currently outsourcing or planning to outsource? 78% Development 79% 64% Maintanance 61% Your Text here Your Text here 49% Help Desk Support 38% 18% Other 18% 2008 2007 Source: Cutter All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 58
  • 59. Tactical IT vs. Strategic IT  TACTICAL IT  STRATEGIC IT • Tactical functions simply keep • Strategic functions drive the Outsourcing on the business up & running In-House company’s dollar, stock value a day-to-day basis: & competitive advantage:  Infrastructure maintenance Your Text here  Business development Your Text here  Service Desk  New system development  QA/Testing  Product marketing support  Printing  Sales force automation  BPO  Business & IT alignment  Security  R&D  ERP All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 59
  • 60. IT Service Desk Trends Highly competitive & mature market Most of the activity will occur in SMBs Service packages including HD tools: Your Text here Your Text here • The focus should be on service instead of tools Main players & Selective Examples: Calanit-Carmon: Isracard; Malam-Team: Tel-Aviv municipality; EDS: Alvarion; Taldor: “Computer for Every Teacher” project; Yael: Tyco All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 60
  • 61. QA/Testing Management Rapidly growing field Acknowledging the advantage & cost saving by outsourcing: the transition from PS to outsourcing Israeli near shore: • Main Player: Matrix (Talpiot) Your Text here Your Text here • Malam (Ma’alot) • Ness (EDC) • Aman (Tehila) Offshore: Eastern Europe, Far East, Palestinian authority Main Players: Ness & Tescom, Malam-Team, Matrix, Tesnet, Tact Computer System All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 61
  • 62. Security Outsourcing Security outsourcing is a growing trend Increasingly regulated, intensive & expensive field From firewalls to setup & maintenance of most security systems Text here Your Your Text here Expert service providers: • Economies of scale: quality security staff • Cost saving: No longer have to pay high-level technical staff to monitor security around the clock All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 62
  • 63. Professional Services / Temps Israeli Trends Professional services growth has narrowed In-sourcing trend as part of management perception, despite being cost saving OppositeText here in private versus public Your Text here Your trends sectors Need for flexibility & specific proficiency: • Demand on professional niche experts (BI, SQL, Security, Oracle Applications, etc) All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 63
  • 64. IT Staffing Metrics PS as Percentage of IT Staff Unchanged Insourcing 32% 45% Your Text here Your Text here Greater Use 23% Source: STKI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 64
  • 65. Professional Services / Temps Israeli Trends  ITOs prefer fixed prices (overtime hours, sick pay, miluim)  Transparency with suppliers to prevent paradoxical situations (where employee earns more than his/her employer) PS Advantages here Your Text Your Text here  Employee’s preservation (training, professional support, excursions, pay increase, high mobility) FTE Advantages  Employee’s sense of belonging  Cost saving All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 65
  • 66. IT roles % expecting to increase hiring: WW Trends Programming/system development 40% Your Text here Help Desk 28%Your Text here Project management 24% Source: CIO Insight All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 66
  • 67. IT roles % expecting to increase hiring: Israeli Trends Programming/system 55% development Project management 45% Security 31% Your Text here Your Text here Architecture & planning 31% Help Desk 20% 2008 Source: STKI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 67
  • 68. Training Management  Recession will narrow the training & implementation market growth  The investment of 5-10 training days of employees  Increasing need for management & service skills courses Your Text here Your Text here  Main topics: .NET, MF, J2EE, security  Gathering momentum: ITIL, PMI, SOX, virtual communities Main Players: Matrix, Ness, Sela Group, Emet, Malam-Team, YANA Group All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 68
  • 69. Annual Training Allocation per IT Employee Increased 28% Your Text here Your Text here Unchanged Decreased 50% 22% Source: STKI All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 69
  • 70. Web Evolution Your Text here Your Text here All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 70
  • 71. Web 2008 – an “Enterprise” Issue!  Web 08’ tools, technologies, & concepts help business find: • New customers • Retain existing customers more effectively • Provide products & services at higher profit margin Your Text here Your Text here Business Strategic IT Web 2.0 All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 71
  • 72. Where is your company stands with regards to Web 2.0 technologies? 45% 24% 32% Video over the Web 20% 40% 40% Your Text here Wikis Your Text here Deployed Testing 26% 21% 53% Not on radar screen RSS 9% 25% 66% Social Networks All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 72
  • 73. My company considers consumer technology for potential business uses Consumer technology (social networking, video games, iPod) Disagree 5% Agree 27% Your Text here Your Text here Waiting 68% All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 73
  • 74. Self-Service Israeli Trends Not an innovative concept Most orgs. are planning to invest into customer self- service improvement: • Cost saving • Improved here Your Text customer satisfaction Your Text here Build product simpler Effective Internet Start Self-Service version search engine Disadvantage: lack of customer sense of belonging All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 74
  • 75. Virtual Worlds Your Text here Your Text here All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 75
  • 76. Questions that must be examined: What is a virtual world? / Second Life? Why are millions of people joining VW? What value does a VW provide? Your Text here Your Text here What are its real potentials & risks?  How can one make money in a VW? Will VW affects & influences our personal, social, & professional life, like today’s Web? All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 76
  • 77. Virtual Worlds Examples (over 200 worlds):  Second Life – Microtransactions, subscription ($9.95 per month)  World of Warcraft - Software, subscription, microtransaction ($14.99 per month)  Club Penguin – Subscription ($5.95 per month)  Barbie GirlsTextProduct sales Your - here Your Text here  ActiveWorlds – Subscription ($69.95 per year)  Google Lively  There - Subscription  MultiVerse  Vast Park  Metaplace  Entropia Universe All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 77
  • 78. Economy  Reuters  Banking and credit  Stock markets • SL Capital Exchange (US, 20 listings) • World Stock Exchange (Australia, 15 listings) • VSTEX (Italy, 7 listings) • Ancapex (US,here Your Text 3 listings) Your Text here All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 78
  • 79. Second Life Million M^2 of SL Land  40,000 concurrency (at any time)  450,000 active users (last 7 days)  1.4 m active users (last 2 months)  10.6 m total accounts Your Text here Your Text here  2 m assets created per day Total User Hours (millions)  35 TB of user-created data  800,000 unique items sold or traded per month  500 events per day Source: Linden Lab All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 79
  • 80. Currency: Linden$ US$ Spent by Users (in Millions) LindeX exchange operated by Linden Lab • Buy: USD $.30 transaction fee • Sell: 3.5% transaction fee Your Text here Your Text here • 270 L$ =$1 USD US $ Exchanged on Lindex (in Millions) Monetary policy All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 80
  • 81. Virtual World, Real Money SL’s First Millionaire: Anshe Chung (Ailin Graef) - the virtual land baroness Your Text here Your Text here • In period of 2.5 years • Initial investment 9.95$ All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 81
  • 82. Virtual World, Real Business Information points – interactive & dynamic online resource or brochure Front offices or HD - customer service “Shop fronts” & online sales - customer product experience here Your Text Your Text here Meeting venues - meetings & collaborative activities Seminars & conferences Advertising - products /services promotion Product demonstrations - potential customers Recruiting All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 82
  • 83. Virtual World, Real Business Adidas Store IBM Your Text here Cisco Your Text here Intel Preen SUN All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 83
  • 84. Virtual World, Real Business Scion, Toyota's youth-oriented brand, has sold (2H07) about 200 computer-generated cars in Second Life Your Text here Your Text here All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 84
  • 85. Museum & Art International Spaceflight Museum Computer History Museum Your Text here Your Text here Art Gallery All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 85
  • 86. Tourism  Tourism destinations promotion - real places & activities virtual experience Interactive Dublin map Images of Sweden Your Text here Your Text here All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 86
  • 87. Education & Training Education – interactive courses with students Training - simulation, role-play games Your Text here Your Text here Princeton Science Friday American Cancer Society Relay for Life All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 87
  • 88. Advisory/Analyst firms STKI Your Text here Your Text here H&R Block Island BDO Stoy Hayward Accenture KAWG&F (Baltimore MD CPA firm), CPA Island All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 88
  • 89. Government, politics & collective action European Your Text here US Congress Your Text here Community Campaign HQs Davos protest Sweden Embassy All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 89
  • 90. Galit Fein EVP & Senior Text here Your Analyst Your Text here Strategies for the Web & Office of the CIO All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info 90

×