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Bus2.0 - day 5 various topics


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  • 1. Business 2.0 Business and IT fusion
    Lecture 8: The first 100 days
    Dr Raymond Young (MBA, GAICD)
  • 2. The first 100 days – tips from world class CIOsSmith (2006) pp222-223
    Establish your own performance measures (with your supervisor)
    1st 6 months: ease the easy pain
    2nd 6 months: set your agenda
    Restructure the IT organisation (as necessary)
    Change behaviours without asking permission
    Track IT spending to EBITDA
    Go for the money
    Hit the help desk
    Hire your own finance manager
    Ask the business for advice (and write down what people say)
  • 3. The first 100 days – CIO surveySmith (2006) pp222-223, 227; CIO Wisdom (2004) p37
    For 30 days, do nothing – except listen
    staff, customers, vendors, management, consultants. Review audits, learn status of systems and projects
    Expect to find many issues and concerns that were not immediately apparent
    Days 31-60: choose who to trust & develop a plan of action
    Focus on (a) tactical plan, (b) IT organisational analysis, (c) strategic plan
    Carefully share snippets of the plan – communicate firm parts, test other parts, finalise the plan.
    Days 61 -90: share your plan with everyone
    Get feedback and modify it.
    Let your staff know that once the plan is done, that these will be the marching orders
    Days 61 -90: share the completed plan with everyone who will listen
    Vendors, staff, peers, senior management.
    People can’t get behind you if they don’t know where you are going.
    Assign groups to bring the plan to fruition
    Have a high level plan that shows the sequence of all the major initiatives
    Execute, communicate and have FUN
  • 4. Business 2.0 Business and IT fusion
    Business and Key Relationships
    Dr Raymond Young (MBA, GAICD)
  • 5. Learn the business Smith (2006) p94
    Always listen (rather than tell)
    To develop trust, you must be able to deliver results when key issues are uncovered
    Reward teams that do a great job and produce results. Make the business look good
    Always do what is best for the business and not a particular department
    Get experience with vendors that deliver results. Spend a lot of time negotiating SLAs.
    Get experience on large projects. When possible, take responsibility of the budget.
    Think like a consultant. Complex issues may be political in nature, it helps to think out of the box as if you were not part of the organisations
    Use methodologies and templates to help the business units flesh out the real and important requirements.
    Always get signature on the scope and detail associated with what is to be done.
    The IT side is the how
  • 6. Questions & Discussion
  • 7. Business 2.0 Business and IT fusion
    Lecture 10: Outsourcing, Contract Negotiation and Financial Management
    Dr Raymond Young (MBA, GAICD)
  • 8. Partnerships – the key to successSmith (2006) p147 -148, 152
    Vendor management functions
    Define sourcing strategy
    Contract negotiation and management
    Consulting management
    Service-level agreement and charge-back management
    Reduce vendor management complexity
    Reduce the number of overall vendors
    Distinguish strategic vendors from commodity based ones80% vendors, 10% outsourcers (execute), 10% partners (trust)
    Increase the number of departments involved in vendor management
  • 9. Vendor Management TrendsSmith (2006) p148
    Business Value
    LOB-driven decisions
    Collaborative decisions
    IT-driven decisions
  • 10. Partnerships – the key to successSmith (2006) p147 -148
    Key skills
    Excellent communication skills
    Strong contract negotiation skills
    Knowledge of SLAs and best practice service-level approaches
    Knowledge of sourcing options and pricing
    Understanding of financial issues associated with options e.g. ASP, outsourced, purchased & capitalised, expensed
    Experience with software and licensing agreementse.g. named users, server-based, CPU-based, concurrent users
    Vendor relationship management skills
    Contract management
    Charge-back approaches
  • 11. What to outsourceSmith (2006) pp155-159
    Fully outsource
    Helpdesk, call centre, web site hosting, data centre
    Application development and maintenance
    Design, development and manufacturing of a hardware component e.g. Networking device, server component, disk system, etc.
    Hosting care and maintenance of an application program (ASP)
    Partially outsource
    Managed firewall services, managed application services, intrusion / penetration testing
    Process mapping
    Data modelling
    Application design
    Anything that improves quality, delivery, and competitive advantage
  • 12. How to outsourceSmith (2006) pp155-159
    Identify exactly what you want done
    Communicate your needs clearly to your vendor in contracts
    Spend time and clarify SLAs to ensure both IT work and business objectives are identified along with any penalties for failed performance
    Manage your vendor and relationship
    Cost vs. brand reputation vs. customer support vs. reliability
  • 13. Service Level Agreements (SLAs)Smith (2006) p180
    Typical Criteria [availability]
    Minimum Uptime %
    Notification for planned outages
    Response time for unplanned outages
    Penalties for outages outside SLA
    Internal vs. Outsource
    42% providers not meeting SLAs 90% of the time
    Benefits and impacts of a specific service level99.999999% = no unplanned
    99.5% = 4 hrs/mth maintenance
    Cost and potential consequences
    Availability of data for metrics
  • 14. Negotiating SLAs – recommendationsSmith (2006) pp181-2
    Get business customers and partners in contract renewal and negotiation
    Conduct technology pilots where possible (fixed or free). If success, contract live, if fails, contract terminated p195
    Negotiate, give in less important issues, focus on terms and conditions you really want
    Annual fees 17-20%
    Annual increases and limits in % e.g. Lesser of x% or CPI
    Spell out expectations re: planned maintenance and notifications
    Spell out renewal terms (vs. Auto-renewal)
    Long or short contracts?
    Pay attention to penalties for early termination and attempt to reduce or eliminate them
    Never serve as a reference without performance
    Stipulate DR provisions
    Use lawyers for legal sections e.g. Force majeure, indemnification
    ID key resources contractually
    Avoid paying up front (esplge project implementations)
    Tie payments to milestones and deliverables
    Request monthly reports
    NEVER be in a hurry
    Understand vendor’s market
  • 15. Questions & Discussion
  • 16. Business 2.0 Business and IT fusion
    IT Infrastructure Management and Execution
    Dr Raymond Young (MBA, GAICD)
  • 17. Operational FrameworkCIO Wisdom (2004) p255, ITIL
    Asset Management
    Capacity Planning
    Change Management
    Disaster Recovery Planning
    High Availability
    Problem Management
    Security Management
    Service Level Agreements
    Programming practices
    Project management practice
    New employee orientation
    Managing staff performance
    Training and staff development
  • 18. Disaster Recovery Planning (DRP)
    Natural disasters (storm, earthquake, flood, etc) accounts for only 3% of major data loss
    Hardware failure and human error account for over 75%
    Highly reliable data backup and recovery is an important foundation for successful DRP
    Backup & restoring data must be a core competency for IT
    First Steps
    Get Executive sponsorship (finance)
    Develop initial plan with a small team
    Identify major applications that support key business functions
    Ensure backups performed reliably
    Develop a plan to use either external resources or excess internal equipment capacity
    Expand plan DRP for all apps and BCP for organisation
  • 19. Lessons from September 11
    Testing of DRP plans essential
    Communications plans essential
    Chain-of-command contingencies needed
    Voice and voicemail system recovery high priority
    Paper still widely used and vulnerable
    Mismatch between business requirements and BCP
    Key personnel dependency underestimated
    Cell phone plans inadequate.
  • 20. Project Management ProcessCIO Wisdom (2004) pp281-282
    Symptoms of poor practice
    Approved initiatives out of synch with business needs
    Key business-enabling projects not implemented
    Requirements and costs not well defined/understood
    Project surprises
    Staff, not management, making strategic decisions
    Slipped dates, cost overruns
    Duplicate or unclear roles
    Project processes and procedures not followed
    Project resources overcommitted
    New project initiative-generation process a mystery
    Frequent emergencies
    Extensive rework
    Overlapping or duplicated projects
  • 21. Questions & Discussion
  • 22. Business 2.0 Business and IT fusion
    IT Organisations
    Dr Raymond Young (MBA, GAICD)
  • 23. IT Organisational ReviewCIO Wisdom (2004) p40
    Common problems
    Dysfunctional structure with unclear roles and responsibilities
    “Rogue” IT organisations established by departments that are unhappy with services provided by IT
    Ineffective team members
    Poor teamwork
    Lack of IT alignment with the business
    Principles in redesign
    Establish a customer focussed IT organisation
    Align IT with internal customers
    Provide customers with a single point of contact for IT
    Make it very easy to do business with IT
    Provide customers with the highest level of service possible
    Ensure each department within the IT organisation has a customer
  • 24. Guidelines – balance centralised / decentralised functionsCIO Wisdom (2004) p42
    Centralized / Global functions that need to be consistent on a global basis
    Information security
    Enterprise business development (ERP)
    Network design and management
    Email / communication
    Other shared infrastructure
    Decentralised / Regional functions that require close coordination with internal customers
    Business analysis
    Help desk and end user suport
  • 25. Important IT RolesCIO Wisdom (2004) pp106-111
    Operations Director
    Desktop support,
    Systems administration
    Database administrator (DBA)
    DBA stops system from corrupting data
    must stop bad data entry
    specify the business rules
    Clean up bad data
    Project management
  • 26. Questions & Discussion
  • 27. Business 2.0 Business and IT fusion
    Skills and Relationships
    Dr Raymond Young (MBA, GAICD)
  • 28. Gaining the right skillsSmith (2006) p24
    Pursue educational degrees to compliment your background and strengthen your IT and business knowledge
    Pursue certificate programs that add hot skills and knowledge
    Map out a training plan to fill technology and business gaps and work with your supervisor to make it happen
    Read periodicals to gain additional insights and perspectives
    Get some consulting experience.
    Conduct brown bag sessions for training and information sharing of technology and business topics
    Get engaged with vendors to learn new technologies and/or processes
    Attend free vendor information and demo sessions on relevant technology
    Conduct research, where applicable, and review best practices and vendor solutions to solve real business problems
    Volunteer to join project teams where you can gain additional IT skills and business knowledge
    Get involved with the DR team and participate in a recovery test which focuses on restoring mission critical applications, databases, networks and security devices
  • 29. ICT Hiring Influences
  • 30. Changing skills needs
    Increasing demand
    Information professional-business analysts- data analysts/miners-statisticians-programmers-software engineers-computer scientists-engineers
  • 31. ICT Qualifications
    Key finding: Employers prefer tertiary education – particularly, undergraduate degrees
  • 32. Key finding: Employers prefer a Bachelor of IT and a combined IT and business degree
    Same top 3 as 2006
  • 33. Graduate hiring influences
  • 34. Key finding: Graduates who demonstrate prior work experience are more in demand
    “The main driver for our firm in looking at ICT graduates is the course they undertook and the level of experience and personal attributes they have.”
    – 2008 survey respondent
    Graduate Factors
  • 35. Same top 3 as 2006
    Key finding: Motivation and strong communication skills influence hiring decisions
    Other factors
  • 36. Key finding: The capability to perform and learn, people skills and team player are the most sought after traits of high performing ICT professionals
    “Technical skills can be taught, however ‘people’ skills are more difficult to obtain. The staff that are most in demand have both, and staff I employ understand that ICT is all about customer focus and teamwork.”
    - 2008 survey respondent
    Personal characteristics
  • 37. Top 3 ICT occupations indemand
    Key finding: Project Management skills are in most demand in 2008.
    Based on ABS ICT Occupations (ANZSCO)
  • 38. Business 2.0 Business and IT fusion
    Building the right network
    Dr Raymond Young (MBA, GAICD)
  • 39. Top 5 Networking forumsSmith (2006) pp140-142
    Informal networking with peers
    CIO/peer executive events and councils
    Participation on advisory boardsor Board of director positions
    Meetings and discussions with vendors
    IT advisory meetings and/or conferences
    Golf events & tournaments
    Former employees, co-workers
    Technology user groups
    Online networking svcs
    Professional associations
  • 40. CIO AdviceSmith (2006) pp1412
    Focus first on being a good CIO before being a good politician. You have to have some successes from which to develop further professionally
    Share your ideas with people ... Listen to what they have to say ... Build relationships
    When you have problems ... You have to rely on your contacts for advice or their experience
    Do favours for people and help them to be successful in whatever is important to them
    Build your network in a targeted way
  • 41. Recommendations for networking
    Integrate vendors and consultants
    Look at some professional associations
    Look for and find a mentor
    Seek networking forums outside your professional field of expertise
    Attend conferences and seminars
    Publish best practices and project wins where appropriate
    Volunteer to speak at forums (e.g. case studies)
  • 42. Questions & Discussion