2B - Business IT Investment Risks - Richard Moulds


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  • An unavoidable hankering to be overambitious (Overambitious) A feeling among IT managers that they should know it all and cannot admit when they don’t (Pride) A belief among the entire project team that computerisation must be a good thing (Presumption) A CEO who is in the best position to judge an IT project because s/he knows nothing about computers but fails to intervene-because s/he knows nothing about computers (Pusillanimity) A readiness to accept it will be all right on the night assurances from suppliers –assurances that suppliers studiously avoid writing down (Credulity) An overreliance on consultants – who may have a vested interest in prolonging ills (Consultancy) An avoidance of cheap, proven of the shelf packages in favour of custom built software or tailoring a standard, proven package (Tailored Software) An unwillingness of management to impart bad news to the board – mainly because the Board will make known its resentment of anyone who tries (Concealment) The buck stops nowhere (Buck Passing) A mistaken belief that the contract makes it easy to sue the supplier if it all goes wrong (Lawyers)
  • 2B - Business IT Investment Risks - Richard Moulds

    1. 1. Business IT Investment Risks Richard Moulds Interim CIO, The Royal British Legion 20th March 2013
    2. 2. ObjectiveTo enable you to identify at least 1 lesson and 1 resource to act on
    3. 3. Agenda• Introduction• Objective• Findings – Research – Crash – Cranfield University – Lessons Learned, NHS & BHF• The Royal British Legion
    4. 4. Research - Crash• Overambitious• Pride• Presumption• Pusillanimity• Credulity• Consultancy• Tailored Software• Concealment• Buck Passing• Lawyers Moulds Management Consulting Ltd
    5. 5. Research-Cranfield University Top 10 Practices H% L% Diff.%Transferral of lessons learned 73 32 41Quantification of benefits 52 14 38All benefits identified 56 19 37Organisational change reviews 62 30 32Overstating benefits 22 51 -29Benefits delivery planning 45 19 26Benefits review and evaluation 62 39 23Organisational change planning 44 23 21External reference sites used 45 24 21External benchmarking used 35 16 19 Cranfield University Information Systems Research Centre
    6. 6. Risks, issues & lessons Disaster = Multiple Issues
    7. 7. Lessons Learned• Google searches • Lessons learned = 39.7 million hits • We fail to LL = 29.2 million hits• Lessons learned = identify lesson & act on it **• Identify lessons by assessing the: – context – event – causes (root causes and critical success factors)• Act on lessons** Milton N (2010) The Lessons Learned Handbookhttp:// www.amazon.co.uk/The-Lessons-Learned-Handbook-Knowledge-Based/dp/1843345
    8. 8. British Journal of Healthcare Management Dec. 2010 T D OU HAN Moulds Management Consulting Ltd
    9. 9. 2 lessons identified CapabilitiesBusiness Cases•list all major risks, issues and lessons identifiedfrom at least one reference site visit for eachoptionDecision Making & Governance•ensure the project sponsor is a role model on howto raise and resolve difficult issues
    10. 10. CFG 2011 Risk report ‘Managing Risk: Operating in the new world’…that there is a fundamental imbalance betweensupply and demand in the not-for-profit sector…charities are seeing growing demand for theirservices but are unable to invest enough to providethese services effectively …little sign of the situation improving in theforeseeable future…..many charities are faced with a business modelthat no longer works in the longer term.http://www.cfg.org.uk/news/press-releases/2011/november/charities-facing-uphill-struggle-to-meet-demands-and-manage-risks.aspx
    11. 11. The Royal British Legion• Armed Forces Sector• TRBL Group of Charities• Business IT investment to support new Operating Model
    12. 12. Armed Forces Charities - 2007/08Political EconomicIraq War 2003 -2011 Lehman Brothers filed for Chapter 11Afghanistan War 2001- to date bankruptcy protection on SeptemberUSA,UK Australia, and the Afghan 15, 2008.United Front - Operation EnduringFreedom.Social TechnologicalRapid growth in use of social media Emergence of hi tech artificial limbse.g. Facebook generationJune 2007 , the Pew Global Attitudes Web 2.0 becoming mainstreamProject found international oppositionto the war in Afghanistan . Only 4 / 47 Sept. 2008countries favoured keeping foreign 1504 M internet users, 22.5% of world pop.troops in Afghanistan Compared to Dec. 2000Significant empathy and expectations 361 M internet users, 5.8 % of world popfor UK armed forces
    13. 13. Royal British Legion 2007/08Strengths Opportunities•Brand •Political•Financial •Economic•75% market share •Social •TechnologyWeakness‘ Threats•Inward looking •Political•Little focus on ‘market’ •Economic •Social •Technology
    14. 14. Armed Forces Charities 2011• Royal British Legion Founded 1921 – Market share from 75% to 55% – Income broadly static – Brand 4th in top 125 Charities – Pathway 4 Growth – for beneficiaries• Help for Hero’s Founded 2007 – Income £50 m, market share c. 20% – Brand 5th in top 125 Charities
    15. 15. TRBL Business & Operating Model for ServicesFrom ToPrimarily face to face Face to face, on phone online & self serviceLimited reach & depth Very low marginal costsFew national customer National output andstandards outcome standards
    16. 16. TRBL Challenges & Lessons• Challenges • Lessons Identified – Disconnect between – Build personal relationships functions including IT – Importance & relevance – Integrated IT assets = of IT Architecture benefits for business model not just functionality • Access • Business Systems • Data, data, data …… – Capability & Capacity – Balance Demand & Supply • Partnership • Cloud based solution
    17. 17. Questions & Comments• Richard Moulds• Interim CIO, Royal British Legion• rmoulds@britishlegion.org.uk• http://www.linkedin.com/in/rich ardmoulds• M: 07834 320979