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Running IT as a business

  • Delivering IT-as-a-Service requires an Enterprise Architecture for IT

    Conclusion:When undertaking business-oriented transformation programs, such as the current wave of digital transformation, it is important for Enterprise Architects to develop an EA for IT in parallel – not as a separate or independent IT transformation effort.

    Establishing the EA for IT requires that the IT organisation itself becomes the “enterprise” in

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  • Running IT-as-a-Service Part 33: How to transition to hybrid Cloud

    Conclusion:Transitioning to hybrid Cloud might include migration from the current outsourcing contracts and some in-sourced activities to IT-as-a-Service models. The rationale is to accelerate efficiency gains realisation in a timely manner. One of the Procurement Manager’s options is to seek a service broker (e. g. prime contractor) to efficiently undertake the migration

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  • Running IT-as-a-Service Part 32: Efficiency gains demand process integration

    Conclusion:IT organisations initiating efficiency improvement programs should automate inter-process interaction, focus on measurement and refine inter-group communication. This will enhance service availability, reduce delivery cost and enrich end user experience.

  • Running IT-as-a-Service Part 31: Maximising relationship management ROI

    Conclusion: IT organisations wishing to maximise the ROI of as-a-Service contracts must transform the relationship management role from contract focus (i. e. whereby the mindset is to create a win/lose scenario) to a value focus whereby business benefits are realised. This demands building advanced skills in negotiation, communication and consulting. It is also necessary to

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  • Running IT-as-a-Service Part 30: Transitioning from In-House Team Management to Contract Management

    Conclusion: With the migration to complex hybrid sourcing strategies, traditional IT organisations based on ‘plan/build/run’ models will not be suitable for acquiring Cloud services in an increasingly changing market. This is due to a vague understanding of service total cost of ownership and limited contract negotiation and management skills. IT organisations wishing to rely

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  • Running IT-as-a-Service Part 29: Integrating as-a-Service and Digital Transformation under an Innovation Program

    Conclusion: IT-as-a-Service is an initiative launched by IT organisations to fix an IT problem, whilst digital transformation is another initiative launched by business lines to fix a business problem. However, fixing both problems remains an enterprise’s critical issue. Hence, organisations wishing to remove the duplication between the two programs should unify both programs

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  • Running IT-as-a-Service Part 28: IT-as-a-Service Procurement Maturity Model

    Conclusion: IT organisations wishing to select quality services at competitive prices should rate themselves against an IT procurement maturity model to leverage economies of scale. This will enable IT organisations to reduce cost while meeting business needs in a timely and cost-effective manner.

  • SaaS Migration Methodologies

    Conclusion: While IaaS and PaaS adoption has been increasing, most IT organisations are hesitant to migrate their legacy systems to public SaaS. This is primarily due to the applications being highly customised resulting in a significant effort being required to retrofit existing systems to migrate them to public SaaS architecture in the Cloud.

  • Running IT-as-a-Service Part 26: The evolution of the managed services providers’ landscape in Australia

    Conclusion: There are distinct differences between traditional outsourcing, managed services and as-a-service contracts. Traditional outsourcing and managed services are input-based contracts with a fixed price based on the number of the supplier team members delivering the service, service levels that do not reflect business operations and significant financial penalties

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  • Running IT-as-a-Service Part 25: Understanding the cost drivers of Application-as-a-Service

    Conclusion: One of IT organisations’ objectives must be to reduce the total service cost of legacy applications by migrating them to a Cloud environment. However, achievement of the desired success largely lies in limiting the scope variations of Application-as-a-Service contracts and controlling the hidden cost drivers. This requires leveraging the lessons learnt in

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  • Running IT-as-a-Service Part 24: Total Cost of Ownership is dead – Long live the Total Cost of Service

    Conclusion: The Total Cost of Ownership (TCO) was created two decades ago to provide visibility of the total cost of IT assets. It was targeted at IT organisations running an in-house mode of operations. While TCO can provide a good understanding of the internal IT asset cost, it could not estimate the cost per service because the IT budget was never based on service

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  • Running IT-as-a-Service Part 22: IT-as-a-Service readiness assessment

    Conclusion: IT organisations driving their business transformation should mature their as-a-Service capability to deliver IT services at commercial standards in a timely and cost-effective manner. This should lead to effective delivery through the integration of business and IT processes.

  • Running IT-as-a-Service Part 21: The Digital World demands new Disaster Recovery Plans

    Conclusion: Traditional disaster recovery plans do not mitigate risks against frequent software and hardware malfunction, nor do they integrate with business continuity plans. As a result, a production service may become unavailable for up to two days in certain cases (e. g. recovery from a database outage or data corruption). In the digital world, the business impact of such

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  • Running IT-as-a-Service Part 20: Business transformation requires mature internal consulting function

    Conclusion: IT organisations driving their business transformation should mature their internal consulting function to connect with business units’ service quality expectations. This should lead to consistent delivery, facilitate knowledge sharing and realise

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  • Running IT-as-a-Service Part 19: The emergence of Cloud service brokers

    Conclusion: While the increased adoption of public IaaS1 can reduce cost and simplify technology procurement challenges, IaaS does not meet all IT organisations’ sourcing requirements such as legacy applications maintenance and IT service management. Hence, IT organisations are left with no alternative but to use

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  • Running IT-as-a-Service Part 18: Creating service differentiation

    Conclusion: Forward thinking IT organisations wishing to create a service differentiation should analyse their value activities to construct a “uniqueness capability”. The outcome should convince business lines that IT services can generate business value at a

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  • Running IT-as-a-Service Part 17: Realising cost advantage

    Conclusion: Cost advantage can be achieved by firstly, estimating the existing services costs. Secondly, use cost effective external services. Thirdly, integrate services. Fourthly, retain cost advantage. This can be achieved by removing duplicated activities

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  • Running IT-as-a-Service Part 16: Constructing IT value chain

    Conclusion: Many IT organisations are perceived by their business units as high cost/low quality service providers. Much of this perception is due to the IT group’s inability to successfully articulate service value, demonstrate cost competitiveness, and

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  • Running IT-as-a-Service Part 15: Traditional enterprise architecture is irrelevant to digital transformation

    Conclusion: While technology is becoming increasingly critical to business transformation, IT organisations are becoming less important to business stakeholders. This is because enterprise architecture practice’s main focus remains on back-office systems and

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  • Running IT-as-a-Service Part 13: Maturing the business relationship function

    Conclusion: IT organisations establishing business relationship management to excel at coordinating business and IT strategic matters should assess the current maturity of this role. The rationale is to allow IT to deliver solutions that improve business performance, reduce the cost of doing business and mitigate business risks.

  • Running IT-as-a-Service Part 12: The evolution of Service Catalogues

    Conclusion: The Service Catalogue required by the ITIL framework has undergone several variations during the last 20 years. The rationale was to address the emerging service trends in in-house and outsourced modes of operations. However, while the original service catalogues’ objectives were achieved, they are inadequate in acquiring hybrid Cloud core services

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  • Run IT as a Service Master Advisory Presentation

    Many IT organisations are trying to change their perceived image from high-cost / low quality to value-added service providers. However, many of the adopted approaches revolve around improving just few processes (e.g. problem management). While these processes are important, they are insufficient to produce the desired effect for IT groups to deliver value-added

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  • Running IT-as-a-Service Part 11: DevOps is not different from mature ITIL Release Management

    Conclusion: There is debate within the IT industry whether or not DevOps can replace ITIL1. From ITIL perspective, many IT organisations, especially in Australia, have been implementing ITIL processes since 1994 with significant investment in technology and professional services. Hence, it is impractical to just drop ITIL and

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  • Running IT-as-a-Service Part 10: Designing Practical Configuration Management Databases

    Conclusion: Since 1994 many Australian IT organisations have been implementing Configuration Management practices. However, it has been done with limited success when assessed against the key objectives of Configuration Management process and its associated database (CMDB) in terms of service availability and configuration items interdependencies. IT

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  • Running IT-as-a-Service Part 9: Significant ERP Maintenance Savings are real

    Conclusion: One IT-as-a-Service strategy remains to migrate legacy systems to SaaS to reduce cost, improve service level and achieve excellence in end user experience. However, large-scale ERP SaaS migrations are still not imminent, primarily due to the significant ERP customisation made by Australian organisations during the last twenty years, which prevent the

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  • Running IT-as-a-Service Part 8: Governance processes critical for HyperCloud success

    Conclusion: IT organisations adopting IT-as-a-Service strategies tend to acquire the best of breed services from the market instead of building them in-house. This leads to increased adoption of multi-sourced services, whereby reliable governance processes are critical success factors to realise the desired business benefits in a timely and cost-effective

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  • Running IT-as-a-Service Part 7: Constructing Service Value Agreements

    Conclusion: in the publication ‘Running-IT-as-a-Service part 4’, IBRS defined how Service Value Agreements can be constructed by correlating business performance metrics with IT service levels. This note describes how Service Value Agreements can be constructed by aligning IT service levels with business service levels and processes. As a result, meeting or

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  • Running IT as a Service Part 6: Managing supply/demand

    Conclusion: IT organisations adopting IT-as-a-Service practices are often challenged by limited resources to meet service demands, especially in the IT Operations space. IT operations groups should develop supply/demand models that link to business priorities and ensure funds allocation. These models will enable IT organisations to meet client necessities, clear

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  • Running IT as a Service Part 5: Escrow your SaaS Contract

    Conclusion: with the increased adoption of SaaS for business systems (e. g. ERP), new SaaS providers continue to appear in the market. While those providers are offering easy-to-use products and low start-up costs compared to running in-house business systems services, there is a risk that some service providers might cease to do business. As a result, SaaS

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  • Running IT as a Service Part 4: Transforming from Service Level Agreements to Service Value Agreements

    Conclusion: Running IT-as-a-Service requires offering broad IT services tied to external-value that goes beyond meeting or exceeding SLA targets. This is because the majority of existing SLAs are IT centric and vaguely relate to business value. Much of this issue is related to IT Groups’ lack of business analysis skills and IT ad hoc methods to comprehend

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  • Running IT as a Service Part 3: Preventing IT Policies from obstructing the Business

    Conclusion: IT organisations developing IT policies in isolation from business units1 will face challenges to tie policies to business drivers and limit policies acceptance rate. IT organisations should formulate policies by involving business units at an early stage in policy scope discussion. IT best practices...

  • Running IT as a Service Part 2: Business-centric IT Strategy

    Conclusion: Business-centric IT strategies are critical to run IT-as-a-Service1 because they attempt to integrate IT with business strategies. The rationale is to support business operations by implementing new technologies that reduce business risks, create business opportunities and achieve high levels of customer

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  • Running IT as a Service Part 1: Prerequisite Building Blocks

    Conclusion: To improve business performance and/or reduce the cost of doing business, forward-thinking IT organisations are trying to run IT as a Service. However, they are challenged by long software implementation timescales, fragmented delivery processes and insufficient skilled resources to meet business demands.

    To address these challenges, IT

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What should be in Australia’s next cyber security strategy? - Computer Weekly - 10 Feb 2020

Peter Sandilands, an advisor at analyst firm IBRS, called the discussion paper “a pre-judged survey” that is mostly looking for answers. He also questioned if the resulting recommendations would be...
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