1. Business 2.0 Business and IT fusion Lecture 8: The first 100 days Dr Raymond Young (MBA, GAICD) Raymond.young@canberra.edu.au

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) Raymond.young@canberra.edu.au

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) Raymond.young@canberra.edu.au

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 Trends: 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 Infrastructure 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 Options: 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 Insource 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] Efficiency Effectiveness Minimum Uptime % Quality Timeliness Notification for planned outages Response time for unplanned outages Productivity Cost Penalties for outages outside SLA Internal vs. Outsource 42% providers not meeting SLAs 90% of the time Understand 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) Raymond.young@canberra.edu.au

17. Operational FrameworkCIO Wisdom (2004) p255, ITIL Operations Asset Management Capacity Planning Change Management Disaster Recovery Planning High Availability Problem Management Security Management Service Level Agreements Development Programming practices Project management practice SDLC HR 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) Raymond.young@canberra.edu.au

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, Helpdesk Systems administration Architect Database administrator (DBA) DBA stops system from corrupting data Business 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) Raymond.young@canberra.edu.au

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 Vendors 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 DEVELOPMENT Theory Principles Innovation Application Deployment Configuration Theoretical Applied 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 Qualifications

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) Raymond.young@canberra.edu.au

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 Online LinkedIn 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