Governance & Planning

Nobody doubts the need for effective governance of IT. Industry journals and Government Audit (and Ombudsman1) reports2 highlight project cost blowouts and implementation delays when governance is ineffective. Ironically while the reports set out what needs to be fixed, rarely do the authors tell readers how to do it.

A common mistake when engaging third-parties for ‘Agile software development services’ is to use a contract or procurement approach that is at odds with the tenets of Agile software development. In cases where contract and payment terms follow the more traditional ‘fixed price and scope’ statements of work, organisations do not get true Agile development services, and more likely than not, will be frustrated and dissatisfied with results of the project. Instead, organisations should consider using specific styles of Master Service contracting agreements with Agile developers, or accept that the best than can be achieved will be a hybrid “Watergility” approach by the developers.

Business Capability Modelling is a simple, structured approach that offers a strategic view of an enterprise. A Business Capability Model remains stable even as business processes change, and as your organisation is restructured. A Business Capability Model offers a higher return on investment than Business Process Modelling, and has several advantages as a tool to help bring the ICT organisation closer to becoming a partner with the business.

Within the working environment, complexity is often introduced unwittingly. At times, expediency is to blame, when intended short term fixes (such as code or business process changes) get baked into the organisational DNA. Unchecked, layer upon layer of complexity can builds up, undermining efficiency and causing ambiguity that troubles staff and confuses clients. With economic gloom casting a shadow over IT budgets, a systematic approach to re-instituting simplicity is warranted. Though more time-consuming to implement than conventional IT savings measures (such as cutting back contractor numbers or reducing training costs) the cost saving and efficiency benefits should be longer lasting.

The implementation of, and ongoing investment in Business Intelligence (BI) solutions have regularly failed to meet organisational expectations, both in terms of business outcomes and cost1. Further highlighting this, the most recent Gartner predictions for 2012 highlight that by 2015, more than 85% of Fortune 500 companies will have failed to effectively exploit Big Data (and by extension BI) to achieve competitive advantage2. As an outcome, consideration of the establishment of a BI Competency Centre is relevant for a large number of organisations who wish to improve outcomes of BI within their organisation. The establishment of the centre of excellence can align resources, focus capabilities and ensure education of projects and processes are shared across the organisation.

Over the last decade, the volume of data that governments and private corporations collect from citizens has been eclipsed by the data produced by individuals, as photos, videos, and messages on online social platforms, and also the data produced by large scale networks of sensors that monitor traffic, weather, and industrial systems. Web users are increasingly recognising the risks of handing over data-mining rights to a very small group of organisations, whist getting very little in return. The pressure is on to develop robust solutions that not only deliver value, but also address concerns about data ownership, privacy, and the threat of data theft and abuse.

Whether in the private or public sector, the fundamental objective of a board should be “building long-term sustainable growth in shareholder value”1. Usually the intention to do this is expressed in an organisation's strategic plan. Increasingly, IT plays a significant part in these plans, yet many Directors remain shy of anything other than superficial discussions on IT, potentially diminishing IT's contribution to the organisation. Through exertion of appropriate influence and by carefully selecting which channels to use to gain board attention, an effective CIO can take a number of steps to correct this situation.

The ICT organisation within any enterprise can benefit from a structured approach to understanding business capability of the enterprise. Business Capability Modelling is an Enterprise Architecture technique that IBRS sees playing a key role in transforming the relationship in many enterprises between ICT and the business. In organisations where ICT deeply understands the business we see a close relationship between respected partners, and often this is reflected by a direct reporting link between CIO and CEO. Failure to appreciate the business capability consigns the ICT organisation to be a subservient commodity supplier (rather than a business partner). Where the relationship between business and ICT is fragile, the potential of outsourcing to another provider means that the ICT organisation is not seen as a valued strategic partner.

One of the initial soft targets of the Executive when costs have to be cut is the IT training budget. Whilst CIOs might put up counter arguments such as potential impact on IT productivity, project delays and reliance on lower skilled staff, the arguments usually fall on deaf ears as most executives regard training as a discretionary expense. When the cut occurs CIOs have to be creative and find ways to enhance the skills and proficiency of IT professionals and managers, while staying within the amended IT expense budget.

The Cloud is a significant long term trend that you ignore at your peril. Like the introduction of the PC and Open Systems in the ‘80s/‘90s, you can either selectively embrace the Cloud or find yourself bypassed by the business units who will introduce Cloud based solutions to suit their tactical needs and political agendas. Unless you embrace the cloud, albeit in a controlled a...