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Governance & Planning

Conclusion: Taking the guesswork out of capacity planning by making an informed forecast of demand for computing and support resources for the strategic capacity plan is an ongoing challenge for IT professionals and managers. Reputational damage can ensue when resources are either under or overestimated and there are claims that guesswork was employed.

Conclusion: Consulting engagements are often scheduled under the assumption of ideal conditions. In reality, many engagements experience a ‘slow start’ due to the consultants needing to request information and data, schedule stakeholder meetings, understand assumptions and parameters, and define and agree on the appropriate governance processes. This is often followed by a ‘frantic finish’ and can impact the quality of consulting outcomes.
All of the causes of the ‘slow start’ can be effectively alleviated through preparation and the role of a client-side project manager. This early work can often lead to significantly increased quality of consulting deliverables.

Conclusion: Digital transformation is the number one information communication technology (ICT) challenge for information technology (IT) leaders across Australia and New Zealand. Organisations are faced with various hurdles whenever they try to implement digital transformation initiatives. The major concerns for these organisations are how to get to the other side of disruption efficiently and effectively and how to best deal with the cultural and technological challenges of digital transformation. Challenges are not focused on technology or adoption approaches as these are available and matured. Traditional challenges of organisation change, culture and budget seem to not have been overcome, even after more than three decades.

Based on Infosys Digital Radar 2019, in terms of the digital maturity ranking in the Asia Pacific per country, Australia is within the top 5 out of 10 countries and New Zealand is in the top 7 out of 10 countries. Organisations are encountering obstacles in adapting successfully in the digital era.

Conclusion: Analysts in general are correct to identify the challenges in the industry to develop appropriate skills, meet the demands of digitisation and to counter the security threats. When it is distilled down it is all about the business. The CIO is supporting business outcomes which will need specific technology solutions, which will, in turn, drive ICT strategy. The key to success is defined by how the CIO drives the outcome. The CIO, therefore, must possess soft skills as well as technical knowledge to deliver success.

The key to success for CIOs is mastering four soft skills that allow them to achieve control of the ICT environment. Effective control will allow the CIO to deliver exemplary services in support of business today, whilst gaining support from the executive for the ICT strategy to meet the demands of tomorrow. Sounds simple but as experience has found, it is easier said than done.

The secret lies with good networking within the executive and key stakeholders, situational awareness of the ICT environment, the ability to effectively delegate with clear direction of what is to be achieved, and a communications strategy which allows for engagement by all stakeholders and escalation of issues through both technical and management channels without fear or favour.

Conclusion: Deterministic1 project budgets do not convey any information about the range of possible outcomes for a project, or the associated risk factors driving the range. The ability to communicate the risk-weighted range of possible project outcomes can lead to much clearer expectations and understanding of project outcomes, especially for project sponsors. Modelling these ranges can be performed with relative ease, using basic Excel add-ins and high-level estimates of risk applied to the components that make up a project2.

Conclusion: Since the advent of the title of chief information officer (CIO), the reporting line for this critical role and those it has since spawned, such as the chief technology officer and chief digital officer, has been the subject of debate. The reality is that there is no right or wrong answer, but rather the reporting relationship of the CIO and his or her IT organisation is a function of the current value of IT to delivery of outcomes at a particular given point in time.

The reality is that the value of IT to delivery of business outcomes, despite the pervasiveness of technology in the modern enterprise, is not static and changes over time. Yet many CIOs and aspiring IT leaders see IT value as a function of organisational or IT maturity, relying on capability maturity models (CMM) to demonstrate value by looking ‘internally’ within the IT function. Instead, contemporary savvy IT leaders must look for alternative models that explain the organisational context external to IT itself and use that to align services that will be valued now such as the “IT Hierarchy of Needs”1.

Conclusion: Increasing the IT literacy of business managers and professionals has sharpened their interest in buying off-the-shelf software to meet immediate business needs, but potentially without the expertise to implement and support it, often leading to unexpected requests for IT support. When the request is a surprise, and there is a compelling business priority, IT workforce plans must be put to one side and changed to find the resources needed. When the dust has settled and the surprise element is a thing of the past, the IT governance group is bound to ask, ‘How did this surprise occur and what can be done to ensure it does not happen again’? It is a reasonable question and one that needs a cogent response.

Conclusion: In an age-diverse workforce, it is important that IT managers and professionals understand the different expectations and management styles of stakeholders and accommodate them to gain their support for IT-related initiatives being proposed.

Without understanding the management styles and expectations of age-diverse stakeholders, a level of disconnect may occur and business relationships could slip from being of mutual benefit to transactional and ineffective.

Conclusion: ERP SW licensing or Software-as-a-Service (SaaS) has many permutations and influences one of the largest IT investments for most organisations. Vendors aim to integrate, at a minimum, shared corporate data from financial data, HR, operations and sales. The benefits of aligned data, reporting and processes helps C-level decision makers track and improve organisation performance.

The most common arguments for implementing an ERP system are the cost savings and productivity improvements1. Effective SW governance is essential to avoid eroding expected cost savings or efficiencies.

Large government departments, local government authorities, public listed corporate entities or privately owned entities are all likely to have significant investment in an ERP and will need continued investment in the ERP if ongoing value is to be extracted. Small to medium organisations tend to be more agile and may be able to migrate to a SaaS solution to take advantage of lower migration costs and more cost-effective licensing arrangements.

Either way, modernisation or migration programs are opportunities to renegotiate SW licensing costs provided the pros and cons have been assessed.

Conclusion: IT auditors typically consult with, and report their findings to, the board’s Audit and Risk Committee. Their POW (program of work) or activities upon which they will focus may or may not be telegraphed in advance to stakeholders, including IT management.

To avoid getting a qualified audit report for IT, e. g. when internal (systems) controls are weak or IT risks are unmanaged, business and IT management must first get their house in order, by tightening controls and addressing risks before the possible arrival of the audit team. Failure to get the house in order, before an audit, could be career limiting for IT and business managers.

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