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Bus2.0 - day 5 various topics


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Bus2.0 - day 5 various topics

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