Strategic Business Ict Management And Investment

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This presentation looks at an overview of what Business Strategy Heads should look at before investing in Technology

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Strategic Business Ict Management And Investment

  1. 1. Strategic Business ICT Management and Investment Tobe NNADOZIE Head, IT Architecture and Strategy First City Monument Bank PLC JULY 2009
  2. 2. Agenda  Introduction  The History of ICT  The Future of ICT  Computer Network and Management  eBusiness Fundamentals.  Task Management in ICT environment  Strategic ICT investment: Investment Analysis  Question and Answers ISM Mainland
  3. 3. Introduction Information and Communications Technology remains one of the major critical value and drain pipe for many organizations today. It occupies a very strategic place in the running of most businesses with the evolving global village phenomenon. While it’s costs remains a recurring dilemma, it’s importance and unquestionable placing in the priority prism of the business makes a strong case for our discussion this morning: How can we make the most strategic and value-adding decision ISM Mainland regarding investment in ICT
  4. 4. The History of ICT Year/Enter Inventors/Inventions Description of Event 1936 Konrad Zuse - Z1 Computer First freely programmable computer. 1942 John Atanasoff & Clifford Berry Who was first in the computing biz is not always ABC Computer as easy as ABC. 1944 Howard Aiken & Grace Hopper The Harvard Mark 1 computer. Harvard Mark I Computer 1946 John Presper Eckert & John W. 20,000 vacuum tubes later... Mauchly ENIAC 1 Computer 1948 Frederic Williams & Tom Kilburn Baby and the Williams Tube turn on the memories. Manchester Baby Computer & The Williams Tube ISM Mainland
  5. 5. The History of ICT 1947/48 John Bardeen, Walter Brattain & No, a transistor is not a Wiliam Shockley computer, but this invention The Transistor greatly affected the history of computers. 1951 John Presper Eckert & John W. First commercial computer Mauchly & able to pick presidential UNIVAC Computer winners. 1953 International Business Machines IBM enters into 'The History of Computers'. IBM 701 EDPM Computer 1954 John Backus & IBM The first successful high level programming FORTRAN Computer Programming language. Language 1955 Stanford Research Institute, Bank of The first bank industry America, and General Electric computer - also MICR (In Use ERMA and MICR (magnetic ink character 1959) recognition) for reading ISM checks. Mainland
  6. 6. The History of ICT 1958 Jack Kilby & Robert Noyce Otherwise known as 'The Chip' The Integrated Circuit 1962 Steve Russell & MIT The first computer game invented. Spacewar Computer Game 1964 Douglas Engelbart Nicknamed the mouse because the tail came Computer Mouse & Windows out the end. 1969 ARPAnet The original Internet. 1970 Intel 1103 Computer Memory The world's first available dynamic RAM chip. 1971 Faggin, Hoff & Mazor The first microprocessor. Intel 4004 Computer Microprocessor ISM Mainland
  7. 7. The History of ICT 1973 Robert Metcalfe & Xerox Networking. The Ethernet Computer Networking 1974/75 Scelbi & Mark-8 Altair & IBM The first consumer 5100 Computers computers. 1976/77 Apple I, II & TRS-80 & More first consumer Commodore Pet Computers computers. 1978 Dan Bricklin & Bob Frankston Any product that pays for itself in two weeks is a VisiCalc Spreadsheet Software surefire winner. 1979 Seymour Rubenstein & Rob Word Processors. Barnaby WordStar Software 1981 IBM From an "Acorn" grows a personal computer ISM The IBM PC - Home Computer revolution Mainland
  8. 8. The History of ICT 1981 Microsoft From "Quick And Dirty" comes the operating system MS-DOS Computer of the century. Operating System 1983 Apple Lisa Computer The first home computer with a GUI, graphical user interface. 1984 Apple Macintosh The more affordable home Computer computer with a GUI. 1985 Microsoft Windows Microsoft begins the friendly war with Apple. ISM Mainland
  9. 9. The Future of ICT …whatever you can conceive, you can achieve ISM Mainland
  10. 10. Computers, Network & Mgmt There are 10 types of Computers 1. PC: The personal computer (PC) defines a computer designed for general use by a single person. 2. Desktop: A PC that is not designed for portability is a desktop computer. The expectation with desktop systems are that you will set the computer up in a permanent location. Most desktops offer more power, storage and versatility for less cost than their portable peers 3. Laptop: Also called notebooks, laptops are portable computers that integrate the display, keyboard, a pointing device or trackball, processor, memory and hard drive all in a battery-operated package slightly larger than an average hardcover book ISM Mainland
  11. 11. Computers, Network & Mgmt 4. PDA: Personal Digital Assistants (PDAs) are tightly integrated computers that often use flash memory instead of a hard drive for storage. These computers usually do not have keyboards but rely on touchscreen technology for user input. PDAs are typically smaller than a paperback novel, very lightweight with a reasonable battery life. A slightly larger and heavier version of the PDA is the handheld computer 5. Workstation: A workstation is simply a desktop computer that has a more powerful processor, additional memory and enhanced capabilities for performing a special group of task, such as 3D Graphics or game development. 6. Server: A computer that has been optimized to provide services to other computers over a network. Servers usually have powerful processors, lots of memory and ISM large hard drives. Mainland
  12. 12. Computers, Network & Mgmt 7. Mainframe: In the early days of computing, mainframes were huge computers that could fill an entire room or even a whole floor! As the size of computers has diminished while the power has increased, the term mainframe has fallen out of use in favor of enterprise server. You'll still hear the term used, particularly in large companies to describe the huge machines processing millions of transactions every day 8. Minicomputer: Another term rarely used anymore, minicomputers fall in between microcomputers (PCs) and mainframes (enterprise servers). Minicomputers are normally referred to as mid- range servers now. ISM Mainland
  13. 13. Computers, Network & Mgmt 9. Supercomputer: This type of computer usually costs hundreds of thousands or even millions of dollars. Although some supercomputers are single computer systems, most are comprised of multiple high performance computers working in parallel as a single system. The best known supercomputers are built by Cray Supercomputers 10. Wearable Computer: The latest trend in computing is wearable computers. Essentially, common computer applications (e-mail, database, multimedia, calendar/scheduler) are integrated into watches, cell phones, visors and even clothing. ISM Mainland
  14. 14. Computers, Network & Mgmt There are various types of Networks: 1. LAN: This refers to Local Area Networks which involve the interconnectivity between systems, servers and accessories within a close range. The can be connected via lead cables, fiber or via wireless routers and switches 2. MAN: This refers to the interconnectivity between LANs or systems within medium range of distance. They can be connected via fiber (with amplifiers in- between), radio and other technology 3. WAN: This refers to the interconnectivity of networks and or systems that are widely separated. Several technologies abound like DSL, ISM Radio, Fiber, VSAT and others Mainland
  15. 15. Computers, Network & Mgmt Best Practice in Technology Management is centered on the following: 1. Ensure that good governance is in place 2. Ensure that globally accepted standards are implemented 3. IT should be strictly aligned to the business and strategy of the organization 4. IT Group should be run by someone with an understanding of the business and corporate goal 5. Outsourcing should be considered for support where the core business of the organization is not. Do not develop competencies that will be expensive to run and maintain 6. IT should be future proof ISM Mainland
  16. 16. eBusiness Fundamentals Electronic Business, commonly referred to as "eBusiness" or "e-Business", may be defined as the utilization of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and hence can be seen as one of the essential activities of any business. Hence, electronic commerce or eCommerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses ISM Mainland
  17. 17. eBusiness Fundamentals It is important to note that eBusiness is much more than eCommerce. eBusiness includes the following apart from eCommerce:  Application of knowledge management systems  Electronic purchasing  Supply chain management  Processing orders electronically  Handling customer service  Cooperating with business partners.  Brand Marketing, Messaging and Collaboration E-business can be conducted using the Web, the Internet, ISM intranets, extranets, or some combination of these. Mainland
  18. 18. eBusiness Fundamentals Electronic Banking (e-banking) is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network. The channels include Mobile Banking; Internet banking; ATM (Automated Teller Machine);POS (Point of Sales) ISM Mainland
  19. 19. eBusiness Fundamentals eBusiness can also be grouped into:  business-to-business (B2B)  business-to-consumer (B2C)  business-to-employee (B2E)  business-to-government (B2G)  government-to-business (G2B)  government-to-government (G2G)  government-to-citizen (G2C)  consumer-to-consumer (C2C)  consumer-to-business (C2B) ISM Mainland
  20. 20. eBusiness Fundamentals What should guide our eBusiness Strategy and Implementation:  CUSTOMER: Our Customers are the reason we remain in business. Their present and perceived needs have to be fully considered in our eBusiness implementations.  COST: There is an eBusiness possibility for every price. Before you implement, how much are you ready to spend?  CONTINUITY: Business Continuity plans should also be considered to know who to partner with. ISM This will reduce the rate of sunk costs. Mainland
  21. 21. eBusiness Fundamentals Financial eBusiness Plans Strategy Strength Execution Effectiveness Product and portfolio Diversity Skills, People Quality & YOUR Internal Customer Culture FIRM satisfaction Reach and Internal Process market simplicity coverage Organization ISM Mainland 21
  22. 22. Task Mgmt in ICT Environment ICT has been demystified and tasks which ceremonially resides within a core techy caucus can be simplified to empower users control their usage. However, the following factors should be considered before doing this:  What is the Exposure Level of the Users? o BASIC o INTERMEDIATE o ADVANCED o EXPERT Like we say, you can force a camel to the stream but you cannot force it to drink! !! !!! ISM Mainland
  23. 23. Task Mgmt in ICT Environment  What is the Security Requirement of the firm? o LOW o AVERAGE o HIGH o RISKY  What level of business criticality is attached to the ICT platform? o VERY LOW IMPACT o AVERAGE IMPACT o HIGH IMPACT o FULL SHUTDOWN ISM Mainland
  24. 24. Task Mgmt in ICT Environment  What are the cost implications of hiring? o INSIGNIFICANT o IRRITANT o MAJOR o TOTAL  What are the cost growth potentials? o PREDICTABLE o GEOMETRIC GROWTH (CURVED LINE) o ARITHMETIC GROWTH (STRAIGHT LINE) o DEALS-LINKED o PRE-DEALS COMPULSORY o OPERATIONAL o ONE-OFF ISM o REGULATORY/POLICY-DEFINED/EMOTIONAL RECRUITMENT Mainland
  25. 25. Task Mgmt in ICT Environment Looking at all the components mentioned, it is therefore necessary to state that tasks can be managed centrally, regionalized or fully outsourced. Tasks can also be fully automated, partially automated or manual. Automated tasks have a high take-off cost and a predictable running costs while manual ICT tasks may be cheap to run but are not efficient, do not generate spot- on MIS data and are normally associated with key man control risks ISM Mainland
  26. 26. Task Mgmt in ICT Environment ICT has been demystified and tasks which ceremonially resides within a core techy caucus can be simplified to empower users control their usage. However, the following factors should be considered before doing this:  What is the Exposure Level of the Users?  What is the Security Requirement of the firm?  What level of business criticality is attached to the ICT platform?  What are the cost implications of hiring? Mainland What are the cost growth potentials? ISM 
  27. 27. Strategic ICT investment: Investment Analysis  Why should I invest on ICT?  What should dictate my investment?  Are there tools to guide my investment?  How do we recover past investment?  How do we create a balance between investments and cost-savings? ISM  Who should control IT Investment? Mainland
  28. 28. Strategic ICT investment: Investment Analysis The following should guide you when you want to make an ICT Investment  Corporate Strategy and Policies  Customer Needs  Operating Countries Regulations  Business Value  Budget and Costs (Purchase, Maintenance, Escrow, ISM Change, Licensing, Training, Dependencies and others) Mainland
  29. 29. Strategic ICT investment: Investment Analysis (cont’d)  Future-proof state of the Investment  Support Capacity (esp. Localized)  Buy-back Opportunities  Inter-operability with Existing Systems (Open systems are better)  Adherence with defined and globally accepted standards ISM  Time to deploy and start reaping value Mainland
  30. 30. Question and Answer Q A and ISM Mainland

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