Procurement

Conclusion: In the modern world, no organisation has ICT entirely in-sourced. As a result, procurement, contract and vendor management have become strategic processes that allow organisations to align their ICT capability with the business strategy to achieve the desired outcomes, both now and into the future.

It is often the case that effective planning for the procurement of technology capability is compressed or constrained such that procurement is not able to effect ‘big step’ change. Or the commercial approach means the agreement is based on a fixed term, which results in the procurement not being a strategic exercise. More often than not, the procurement delivers constraints that limit the business’s ability to achieve the desired outcomes. These constraints limit the business’s ability to be agile in terms of elasticity, or how well it can respond to disruption in the market.

The technology options to meet business demand are not the same today as they were yesterday, and they will undoubtedly differ tomorrow. The challenge is to ensure ICT procurement is responsive to the business strategy, and that vendors share in the advantage a strategic alliance brings to the business. Procurement needs to be effectively planned and clearly aligned to the business strategy to ensure the strategy is delivered effectively.

This paper is the first in a four-part series on how to ensure procurement meets the business need, gain an understanding of strategic versus tactical procurement, and will define the steps necessary to avoid the pitfalls that cause procurements to under-deliver.

Conclusion: As a result of the COVID-19 outbreak in Australia, many businesses’ income has been reduced, approximately 800,000 people have been made redundant and the IT budget has been significantly cut. IT organisations are left with no alternative but to improve their internal efficiency to continue meeting their committed service levels while facing a constant drop in headcount. To survive under these budget limitations during the next two years, IT must focus on efficiency quick wins that opt to reduce costs, automate highly manual activities and mitigate critical risk that may lead to service breakdowns, which in turn require significant human effort to rectify. The quick wins should be implemented within 18 months to realise the desired effect. An efficiency improvement task force should be established to make it all happen. 

Conclusion: In August 2020, IBRS ran a roundtable on the issue of Microsoft Support service, and specifically options for obtaining services in the most effective manner. 

The replacement of Microsoft's traditional Premier Support programs for its Unified Support program is well underway. For many organisations, the new program is a strong fit, offering a wide range of services and unlimited reactive support inquiries for a fee that is directly proportional to their Microsoft software and platform investment.  

However, for others, the program is not an ideal or cost-effective fit. During the roundtable, 16 peers shared their stories of how they have approached Microsoft support in the new era and a set of practical recommendations was developed. 

Conclusion: For the last two decades, the market for ruggedised computing has been led by emergency, policing and military needs. The advent of lower-cost wireless networking, 4G and now 5G has prompted a sharp rise in field workers using devices and mobile-ready solutions to streamline operations. Unfortunately, legacy thinking about the type of devices to be used has prevailed: either staff get consumer devices (iOS or Android) or military-spec ruggedised devices.

There is an opportunity to rethink this polarised view of devices. Rather than seeing devices as either consumer or rugged, it is better to view devices on a spectrum of needs, including ruggedness, based on the work contexts in which they will be used.

Conclusion: To respond to the digital world challenges, many organisations are transforming their operations to multi-Cloud to reduce cost, improve service efficiency and contain business risks. As a result, the multi-Cloud availability has become a critical success factor. In some cases, multi-Cloud complex architecture weaknesses have resulted in service outages and allowed ransomware attacks to severely impact business operations. The new generation ITSM tools provide effective backup and recovery facilities that are worth investigation to mitigate multi-Cloud exposures to failure.

Conclusion: The traditional IT service management (ITSM) tools have allowed IT organisations to automate key IT processes (e. g. incident management), promote service management disciplines and meet service levels in the majority of cases. However, they were not designed for multi-Cloud management. The new generation ITSM tools address the essential multi-Cloud requirements by offering:

  • Asset discovery
  • Performance management
  • Multi-platform Cloud cost forecasting
  • Integrated Cloud security and compliance verification
  • Mechanisms to orchestrate applications workflow across platforms
  • Backup/recovery

IT organisations should assess the cost-effectiveness and relevance of the new ITSM offerings to business operations improvement1.

IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: The traditional IT service management (ITSM) tools have allowed IT organisations to automate key IT processes (e. g. incident management), promote service management disciplines and meet service levels in the majority of cases. However, they were limited in identifying service issues before impacting business operations, managing multi-Cloud environments and lacking the required speed to empower the digital transformation initiatives (e. g. releasing new software to production). Organisations wishing to modernise their IT service management practices should evaluate the new generation ITSM tools to determine their suitability and cost-effectiveness to improve their business operations.

Post-pandemics require changes to IT services, vendors' contracts and service levels. Organisations must re-examine their service foundations to meet business expectations and remain compliant with policies and legislation during and post-pandemics.

Conclusion: Choosing to simplify the SAP migration project by removing irrelevant KPIs could increase adoption. This is the common thread for organisations that have successfully undertaken the SAP migration from on-premise to the Cloud.

Choosing an SAP certified practitioner with S/4HANA migration expertise helps reduce migration risk and enables a simpler migration strategy. SAP design for the S/4HANA suite replaces the extensive tables structures of the ECC series with a new digital core, in memory processing and reduces data storage costs.

Project risk can be minimised by considering these during the planning stage:

  1. An experienced SAP S/4HANA project team.
  2. Fully engaged executive sponsors and users.
  3. Early user engagement and user training.
  4. Allow testing to increase user confidence and reduce fear of data loss.
  5. Not underestimating the impact organisational issues will have on the project timeline.

Conclusion: As Australia’s use of consultancy services continues to grow, so too does the need for businesses to obtain value from these engagements quickly and effectively. Key to obtaining this value is the organisation’s ability to easily and rapidly provide consultants and contractors with the specific context of your business, your customers and your unique challenges.

By providing the organisational context quickly, you can mitigate time, scope and budget creep, improve the quality of outputs developed by consultants and ensure that consequent plans are actionable and genuinely valuable for your business.

However, the ability to provide the needed organisational context quickly and effectively to consultants remains a common organisational challenge, and therefore a pitfall for successful vendor engagement. This paper covers how you can overcome this pitfall.

IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: The entering of a strategic partnership with a client or prospect by a major vendor, e. g. more than $50k paid p. a., is aimed at convincing them that mutual benefits such as helping them gain a competitive advantage or achieving major cost reductions, will accrue. When pressed on the likely benefits to the vendor, and assuming no financial equity is involved, one tactic some vendors use is to propose participation in a prestigious early software support program to jointly enhance their market image.

Conclusion: When projects start to show early signs that they may be in trouble, it is easy to have a knee-jerk reaction and address the most visible symptom. However, it is critical that CIOs and business executives (project board chairs and project sponsors) understand that early recognition and intervention is often less painful, less costly and less damaging for the organisation.

Conclusion: Finding technologies that meet print demand across differing personas is challenging. CIOs are being asked to replace printed documents with digital workflows but many formal documents are still printed for boards, corporate stakeholders, consumers and management. The answer can be to reduce the cost of printing and provide greater flexibility rather than simply removing printing. Remote print solutions in the Cloud should be investigated as a viable alternative to on-premise printing.

Remote worker definition is becoming broader as organisations look to reduce their footprint across leased buildings. Workers are looking at flexibility to perform their roles wherever work can be completed. The solution can be remote printing that is secure, easy to use and reliable.

Organisations need to consider print software that is operating system agnostic and allows the workforce to print from any location securely. This could eliminate the need to own or lease print hardware in your business.

Conclusion: When engaging the market for consulting services, estimating the resource mix, including experience and skills, can form an excellent basis for evaluating if what is being proposed by consultants is likely to be optimal for the scope, and effective, given the environment of the purchasing organisation.
There are four main elements that should be considered:

  1. Engagement and project management
  2. Technical, strategic or design elements
  3. Guided, repetitive or high-volume elements
  4. Intellectual property.

The rationale for these, and approaches to consider when evaluating each, are discussed below.

Related Articles:

"Being a good customer of consulting Part 1: The importance of a client-side project manager in consulting engagements" IBRS, 2019-11-02 01:24:20

"Being a good customer of consulting Part 3: Maximising the value of stage gates through considered design and definition of unique objectives" IBRS, 2020-01-08 03:32:07

Conclusion: If your organisation has not entered a phase 1 managed print services providers (MPSP) agreement then having a clear understanding of your network connectivity, print assets and security requirements is essential before progressing to a tender. The business case needs to deliver at least 20 % savings on the current arrangements before considering value-add services to justify the request for proposal (RFP) process.

Enterprises entering phase 2 agreements with MPSPs should examine the value-add services and determine how they will contribute to further savings. Vendors will be offering automated workflows, data analytics, security and consulting services to increase the contract value.

If use case benefits are unclear, run a request for information (RFI) to enable comparative analysis of vendor capabilities.

Prior to developing the RFP, consider use cases that look at B2B or B2C workflow efficiency such as:

  1. Integration of print activities with other delivery processes
  2. Reducing resources to deliver improved outcome
  3. Accelerate the shift to digital transformation.

Conclusion: Identifying weaknesses in vendor management will be more effective for organisations that continuously examine their processes and manage vendor performance through an optimised vendor governance framework (VGF). An effective VGF must contain overarching guidelines which are applicable for all ICT vendor categories. Examples could include delivering increased value, promoting and providing cost reductions and recommending improvement to service levels. Mature organisations plan for vendors to provide value-added solutions and/or costs reductions in the range of 10 %+ p. a.1
To ensure the VGF continues to be relevant, organisations must firstly consider their latest ICT strategy then complete gap analysis of current vendors needed to deliver the strategy. The framework needs to be flexible to meet the changing dynamics of an organisation’s various operations whilst avoiding the vendor supply chain adversely impacting service delivery.

IBRS advises assessing and developing an organisation’s vendor governance framework using the IBRS Vendor Governance Maturity Model.

Conclusion: Organisations would hope that their data protection policies are in place and effective. Data loss protection is active on the email channel and data is encrypted while at rest within the organisation. Staff are often trying to share data with others or move data to where it may be easily accessible. A very common channel for this is one of the many Cloud-based file-sharing services such as Dropbox, iCloud or Google Drive.

These services conflict with data protection in several ways. In many cases the services used by staff are personal accounts owned by the staff member, not the organisation. This immediately places the data outside the control of the operation.
The sharing of the data can be open-ended where a) even the staff member loses control over who can access the data, and b) it is uncertain where the data is stored and in which jurisdiction.

If the data contains personal information, credit card details or confidential finance information, the organisation may find itself in breach of regulations such as the Notifiable Data Breach Regulation or Payment Card Industry requirements.

According to a new IBRS study, spend on enterprise solutions is set to increase in 2019-2020. Both IT and line of business buyers need to consider how they manage procurement of these new solutions – and how they can make integration easy for their business.

According to the report, there are three degrees of integration an organisation can opt for: the pre-integrated enterprise, the core services and satellite apps enterprise and the business service mesh.

Understanding the kind of company you want to be is important, says Julie Ember, SaaS transition specialist at TechnologyOne, as that will help inform the decision about what business application environment fits your needs.

“Do you want to be in the business of IT, or focus on delivering your core business?” asks Ember.

“This is important because if an organisation does not, or cannot, build a large, highly skilled IT group, then they need to choose an application environment that can be easily supported – something like Software as a Service where the vendor manages the delivery and upkeep of the applications,” she says.

It is also important to determine if the business needs niche, best-of-breed applications to deliver core business processes, or if it is able to align with off-the-shelf enterprise software, she adds.

“An enterprise software strategy will provide a simplified application architecture with minimal integration, which not only makes implementations quicker, but also ensures the latest enhancements are easy to adopt.”

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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: Reimagining the ERP strategy will require IT and business collaboration to ensure requirements are clear. Retaining the 5–10 year old ERP system1 may serve back office functions but this may impede innovation. ERP customisation is being replaced by vendors who deliver regular updates to their SaaS ERP model. This provides innovation which could reduce the need for complex business cases.

ERP vendors have signalled sunset on support for older ERP systems to challenge organisations to embrace modernisation in the next five years2. This seems far away but experience suggests laggards could see skills shortages and higher costs as the deadline approaches.

ROI measures successful ERP migrations but SaaS models will challenge this. Organisations will need to hold regular conversations to understand these competing parameters. Business leaders will question business requirements; however, innovation should not be ignored during the development of the new ERP strategy.

Conclusion: When engaging the market for suppliers, the objective of the procurement process is to select the supplier with the most suitable approach, who is able to accurately define the scope, and deliver in an effective and risk-mitigated way. In the context of a full project, for a proportionally minor investment, and a comparable amount of time and effort from key stakeholders, a competitive and paid discovery phase, involving multiple prospective suppliers, can yield significantly better outcomes for projects than through request for proposal (RFP) alone. The benefits include the ability to trial the delivery team, more accurately define scope, validate assumptions and hybridise the best of several informed approaches.

Conclusion: Given the reality of shrinking budgets, organisations can struggle deciding what new products to purchase or techniques to implement. They hope the new capabilities will enhance their security posture, but new tools often need additional staff to operate them. Employing skilled security staff can itself be a challenge. A simple but pragmatic approach is to leverage IT operation’s budget and skills to improve operational hygiene and hence, overall security hygiene.

Conclusion: With Software-as-a-Service (SaaS) deployments the fastest growing and most deployed Cloud service globally, particular attention should be given to evaluation and selection approaches that align to the solution being selected. When evaluating SaaS solutions, greater confidence in the applicability and value of a solution can be gained via a rapid demonstration and trial-based evaluation versus the same level of time and cost committed to a full request for proposal (RFP) process.

 IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: The development of a strategic relationship between suppliers and public government agencies needs to be approached differently to that in the private commercial world. Government bodies are bound by procurement rules which require government agencies to regularly market-test provision of services, where value for money is the primary consideration. Government agencies cannot therefore have a strategic partnership with suppliers in the same manner as a commercial strategic partnership. The relationship must therefore be timeboxed to meet procurement policies such as the Commonwealth Procurement Rules and cannot be open-ended1.

Strategic vendors for government agencies are either critical to the delivery of business outcomes or are influential in the development of future business opportunities.

For strategic vendor management to be successful in government, both the government agency and the vendor need to commit to effective governance of the relationship and agree to share knowledge on business strategies and product development.

Conclusion: Enterprise architecture (EA) framework standards, such as the Zachman Framework or The Open Group Architecture Framework (TOGAF), are often promoted by advocates as complete solutions for organisations seeking to maximise business alignment and mitigate risk during major transformations through the use of an agreed set of structured planning practices.

However, the term ‘framework’ has become overloaded and not all industry offerings are created equal. Some frameworks provide well-defined content meta models while others provide detailed methodologies and some industry-specific reference models. Therefore, organisations must understand the elements that make up a complete EA framework, then ensure that they adopt aspects from multiple sources to provide complete coverage in support of a contemporary EA practice.

Conclusion: When faced with determining the long-term future of an ERP solution that has met the organisation’s needs, business and IT management must investigate and weigh up their strategic options.

To make an informed determination, business management must take ownership of the buying process in their role as demand managers while IT management and staff support the process by assuming the role of supply managers and technical advisors.

Conclusion: Telecommunications services and the supporting infrastructure have historically been complex, costly and difficult to change. The modern technology landscape now allows for greater flexibility in the design of networks, and the telecommunications services of voice, video and data they deliver.

The use of software defined networking (SDN), Cloud-based standard operating environments (SOE) with unified communications (UC) and Cloud-based call centre solutions are now mature, secure and commonplace in the market.

These changes with the significantly reduced cost of physical connectivity (lines and links), which are now viewed as a commodity, enable the telecommunications landscape to be agile to each organisation’s business needs and delivered at greatly reduced costs.

Conclusion: IT organisations responding to mergers & acquisitions or migrating to multi-sourced environments of Cloud and service contracts should establish service providers governance frameworks that favour federated organisations’ principles. It requires maintaining central consistency (e. g. policymaking) whilst allowing local autonomy in certain areas (e. g. hardware purchases). This will leverage the economy of scale, allow the acquisition of local services and products more efficiently, and permit the introduction of new geographies whenever needed in a consistent manner.

IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: Cloud offerings are now commercially available, allowing CIOs to engage the technology offerings with a high degree of trust that the service is secure and responsive at reduced cost to in-house solutions.

CEOs have an obligation to ensure their organisation’s IT systems are cost-effective and meet the security accreditation defined by government (or their Board). PROTECTED Cloud services can reduce cost of operations and meet many of the CEO’s obligations for accreditation (and review) of services, and therefore better manage risk, to meet government and best practice commercial security requirements.

All PROTECTED Cloud data centres certified by ASD are physically located in Australia. Depending on your needs, they all meet Australian Government data sovereignty requirements and offer low latency and in-country technical support teams to assist clients. Provision of PROTECTED Cloud services allows the CIO to restructure IT, moving to a more agile and potentially lower cost option to provide the appropriate security approach.

IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

Conclusion: Increasingly, IT departments are looking for ways to divest their operations of undifferentiated activities – that is, activities that are common among most organisations. One technology that is ubiquitous across every organisation, in every vertical sector, is end-user computing. Theoretically, it should be an easy area of IT to be deployed via a fully managed service. In reality, IBRS has seen more failures in the space than successes.

The reasons why fully managed (aka “as-a-Service”) end-user computing initiatives fail is a result of the initial rationale for the go-to-market strategy and the resulting request for proposal (RFP).

Related Articles:

"IBRS Compass: Beyond the Desktop: Creating a Digital Workspace Strategy for Business Transformation" IBRS, 2016-01-02 11:39:29

"The Components of a Self-Service Desktop" IBRS, 2014-10-01 18:36:09

"The use and abuse of Personas for end-user computing strategies" IBRS, 2017-03-04 16:53:10

  IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

 
 IBRSiQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

 IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

 
IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

Conclusion: When multiple application software vendors claim they have the solution to an organisation’s requirements, challenge them to prove it by demonstrating their product’s differentiators and ability to process use cases.

To make the right buying decision, clients must insist the demonstration stretch the software’s functionality and the vendor’s grasp of its nuances. If this is not done, the likelihood of a wrong buying decision looms.

Vendors that do not know their software’s capabilities intimately, or are ill prepared to demonstrate them, should be rated accordingly and, unless there are mitigating circumstances, omitted from the final round in the procurement process. Vendors that are comfortable in demonstrating the software’s functionality and its ability to meet an organisation’s requirements should be seriously considered for inclusion in the final round of the procurement exercise.

 IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: The range of channel and customer engagement tools needs thorough and continuous evaluation. There are two challenges to this objective. Firstly, the initial impediment is to gather data from various sources. The second problem is to apply a coherent and durable methodology to all of it.

The greater complexity of technologies and increased channel support means organisations must have a path to understand how their technologies perform. The most common assessment of return on investment can be applied to all data sets but it lacks sophistication. Developing a use-case will help establish a secure methodology which will make clearer the real value of customer satisfaction.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: Technology decision-makers have a larger and ever-growing set of technologies to choose from. The creative entrepreneurship driving the expansion of products is generally beneficial to end-users because it stimulates change and helps to drive innovation from the major vendors.

For larger organisations, in most cases, the major enterprise offer will be selected for many reasons, incumbency being significant, along with compatibility. For other organisations, examining the new and emerging vendors’ technologies may unlock a better process. However, assessing all the vendors within a category vertical, each with their own range of solutions, features and technical aspects, can result in a lot of information to process. The most effective method is to apply the principal business objective and assess how it aligns with strategic execution.

Conclusion: Cyber security incidents are a foreseeable business risk, and organisations must learn from the ongoing litany of cyber incidents that accompany any digital enterprise. Organisations that have data at their core live or die by how they manage this asset. The Equifax data breach is an unfortunate example of an organisation of senior business executives that were not making decisions on cyber risk management that aligned with societal expectations. Equifax is a company with data at its core, and time will tell whether it was incompetence or negligence that resulted in the data breach this month. Either way, Equifax clearly failed to exercise due care in the reasonable protection of its wealth and sustainability in the face of eminently addressable risks. It is a serious mistake for any executive to think that risk management of digital assets is somehow merely an IT issue.

Conclusion: In the last few years the structure and shape of ICT investment have undergone a series of shifts. The results are varied and complex and they reflect wider changes in the investment and use of ICT products.

It is important for organisations to take note of these transitions and to adapt and utilise methods which can improve the efficiency of their ICT portfolios.

 IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: Astute CIOs and business managers must consider not only which COTS (Commercial off the Shelf) vendor best meets their needs, but also how to best deploy the solution. This is because many vendors not only offer a mix of on-premises or private Cloud or SaaS (Software as a Service) solution but due to a limited local presence may lack the capability to implement it.

A further complication in the debate is that many COTS solutions are functionally mature which often means the selection decision hinges on their meeting qualitative and non-functional requirements.

Conclusion: Cyber threats and incidents will continue to be covered in the mainstream media, and local organisations will increasingly become part of this coverage. Not only may these stories get reported more frequently and in more depth, but local board members will become increasingly aware of what the technical aspects around cyber security mean. Reporting to the board is a blend of what the board – the people tasked with ensuring that the organisation is dealing responsibly with its risks – thinks is important with what the CIO and their team consider to be important. Finding the balance of information to report is important, and will be a continually evolving discussion between cyber security leaders and their boards.

Is a return to the high period of IT investment likely? The same conditions of the long IT investment boom are not present today. This infographic reveals the trends over the next 3 years.

Conclusion: Organisations that by law must issue open tenders for systems solutions know they will be inundated with multiple responses and spend scarce work days assessing them. Staff involved in the process also know that many solutions proposed are not practical and, even if they are, often doubt the vendor has the capacity and capability locally to implement them.

The alternative, if not required to issue an open tender, is to conduct a market scan and qualify vendors with a viable solution and the ability to implement it. Having qualified them, they can send them a tender knowing they can probably meet its requirements. If this approach is adopted, there is the risk a potential vendor might have been overlooked.

Organisations can select a model for a particular need however, it is fundamental that the assumptions and the factors that construct the model are realistic and clearly understood. Furthermore, the models should be comprehended by other departments within an organisation, such as finance. A model that is only applied within, and solely has merit for IT, is generally not an altogether useful tool. The outputs and the inferences drawn from them may not convince other parties if the tool is not compatible with cross-department interpretation.

Conclusion: Ransomware is a widespread scourge in the local region and organisations must take steps to address this eminently foreseeable risk. User education is necessary, but it is not sufficient to address this risk – otherwise it would already have been dealt with. Organisations must review their information systems and become rigorous on technical hygiene strategies, such as patching. Using the revised Strategies to Mitigate Cyber Security Incidents from the Australian Signals Directorate (ASD) is an excellent starting point, as these are empirically validated. The critical action is to determine where these strategies are best applied, and this must be guided by the risk tolerance of the business.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: The options for processing ERP (Enterprise Resource Planning) range from on premises to managed services to public Cloud to SaaS (Software as a Service). The attributes of all the solutions, including the risks, costs and benefits, can appear overwhelming and may persuade risk averse senior management to make an expedient decision and keep the status quo.

IT managers must engage their risk averse peers and force them to think through the issues and make a strategic, rather than an expedient, decision as whatever they decide will have long-term ramifications.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.

Conclusion: Communications vendors’ product shipping reports show that a disappointingly large number of Australian enterprises continue to re-invest in obsolete telephony solutions. In most organisations, this approach is a major waste of business opportunity and a misdirection of communications responsibilities given that popular and effective alternative unified communications and collaboration (UCC) solutions are so readily available.

UCC has become known as simply ‘collaboration’ and telephony needs to be seen as a supported part of the collaboration environment rather than as a first choice communications technology.

Do not re-invest in obsolete telephony solutions. Strong collaboration solutions abound.

Conclusion: Sustained investment in IT Infrastructure is critical for the delivery of services to clients and delivering business efficiencies. Without continued investment service quality will deteriorate, operational incidents occur more frequently and the organisation’s network put at risk from unwanted intrusions.

Conclusion: To ensure desktop investments are aligned to the organisation’s strategy, and the business benefits are clearly understood, IT organisations should create a Benefit Dependency Network. This is a benefits management tool that explicitly shows the linkages between technology investments and the business benefits, uncovers the business changes necessary to deliver these benefits, and clarifies the role of the business in harvesting those benefits.

Through the processes of building a Benefit Dependency Network, the IT organisation can engage the business in a meaningful discussion about business benefits and about the business changes needed to harvest them. Without a benefits analysis a major desktop investment is less likely to be approved and there are risks generating no value for the business, perpetuating the view that IT is a cost that must be reduced.

Conclusion: This note seeks to analyse two questions: Is a return to the high period of IT investment likely? And what were the conditions surrounding the last one?

The answer to the first question is, currently at least, of a very low probability. The conditions or background that produced the long IT investment boom are not seen today and are not likely to provide the same business environment in the near-term either.

Conclusion: CIOs continually wrestle with how to replace or modify failing core systems and having to convince management to invest in modernising them. They also know that ignoring a bad situation will probably cost the organisation more to fix the longer they postpone the replacement decision.

Conclusion: The role and responsibilities of procurement and corporate services organisations is increasing relative to those of ICT groups as ICT becomes increasingly bought ‘as-a-service’ rather than installed as capital-intensive internal infrastructure.1

This demand is driving the trend to focus on governance, probity and sourcing management issues in buying decision frameworks.

Neither corporate procurement nor ICT sourcing teams can succeed in isolation: both will sink or swim together. The near-term challenge for most enterprise buying activities will continue to be the ability for both procurement and ICT to keep each other adequately informed and sufficiently knowledgeable in the other’s domain2.

Conclusion: Despite the prominence of Business Process Management (BPM) in most organisations, Enterprise Architects are routinely oblivious to the scope for using Communications-Enabled Business Process (CEBP) within their BPM.

The very large global Microsoft and Google developer communities have run with the most popular collaboration suites as a foundation for their CEBP apps.

The most common CEBP solutions are based on customised messaging allowing alerts, alarms and notifications to be used to support business process. Widespread use of customised ‘Presence’ has become particularly helpful in giving the status of people or resources to inform transactions. Human delay and business latency is being minimised by using notifications to handle routine processes as well as exceptions to business rules.

Conclusion: Microsoft’s new strategy is to make Windows 10 the dominant enterprise desktop O/S by first winning over the consumers with a much improved user experience, then have consumers demand Windows 10 at work, forcing the enterprise to upgrade. This is Microsoft’s best desktop strategy in 10 years and IT executives must prepare a strategy1 for dealing with user demands or risk losing control of the enterprise desktop strategy.

Conclusion: Today’s Windows centric desktop is based on 20 year old assumptions about devices and applications and is the result of years of sustained innovation. We are now at the point in the desktop innovation cycle where incremental change no longer adds business value and the business is reluctant to fund upgrades. This was clearly demonstrated by the difficulty most IT organisations had funding their Windows XP upgrade.

Forward-thinking CIOs are reassessing the assumptions on which their next end user computing platform will be built and are experimenting with disruptive innovations to build a self-service, web-centric Digital Workspace that will last the next 10-15 years.

Conclusion: leading Mobile Device Management (MDM) solution providers will persist but face multiple challenges with Microsoft’s Enterprise Mobility Suite, especially its Intune Configuration, rising as a logical challenge to MDM in >50% of Australian enterprises before 2017.

The dominant MDM selection criterion will remain: how well does this mobility solution integrate with Microsoft and others?

Conclusion: the key factor in the selection of a CRM vendor should be the duration in which the product will be in service. The time in service period could be up to a seven year horizon and therefore durability is a critical condition in order to make a selection. This recommendation counts equally for vendor abilities as it does for an organisation’s requirements.

Conclusion: the time is right to review whether ERP (Enterprise Resource Planning) solutions implemented over 10 years ago are still meeting their original objectives, and if not, assess the options. Failure to review and seriously consider the options when the business value of the ERP is marginal, is unsustainable.

Conclusion: The digitisation of service delivery in the finance, insurance, and government sectors means that all organisations in these sectors are now in the business of developing, maintaining, and operating software products for millions of users, with profound implications for organisational structures1, business architectures2, and the approach3 to service development and operation. Whilst internal business support functions can usually be addressed via off-the-shelf software, with very few exceptions, the functionality of customer facing services can’t be sourced off-the-shelf.

Conclusion: Big Data and the promise of unlocking greater revenues and better productivity is perceived as the next technology wave. No barrier exists for any business of any size accessing Big Data solutions.

Conclusion: When architecting a payroll environment it is best to align to employment types not to departments. The payrolls are simpler to establish and run, cost less, and are in a form that can be outsourced to specialist payroll BPaaS providers.

Conclusion: Before embarking on a virtual desktop project examine the major factors in delivering a virtual desktop rather than immediately focusing on a technical evaluation of Citrix vs. VMware. This should include use cases, service model (i. e., Cloud, Managed Service Provider or Build, Own, Run) and infrastructure model (i. e., Desktop-as-a-service, Engineered System, Do It Yourself).

Conclusion: Financial models provide insights and support better understanding. Using the right model depends on a thorough knowledge of its output and what it means. A powerful and valid model must have currency outside IT.

Conclusion: While the concept of bundling and outsourcing of IT services is simple, its pricing regime based on dedicated devices available and not client applications processed, frustrates efforts to make IT costs transparent to business managers.

Conclusion: There are several established models which have been used to evaluate technology investments. Some models are applied to assess the value of technology in use within an organisation.

Organisations can select a model for a particular need; however it is fundamental that the assumptions and the factors that construct the model are realistic and clearly understood. Furthermore, the models should be comprehended by other departments within an organisation, such as finance. A model that is only applied within, and solely has merit for IT is generally not an altogether useful tool. The outputs and the inferences drawn from these outputs may not convince other parties if the tool is not compatible to cross-department interpretation.

Conclusion: VMware’s EVO hyper-converged infrastructure is the tipping point for the move away from SAN based architectures. Over the next 3-5 years VMware EVO will commoditise and simplify compute/storage infrastructures in the same fashion VMware commoditised and simplified servers.

This will disrupt traditional systems vendors (e.g., HP, IBM) and new systems vendors (e.g., Cisco, VCE) and challenge the growth and long term viability of upstart hyper-converged vendors (e.g., Nutanix and SimpliVity). However, the real challenge to EVO will be IaaS, especially VMware Air.

Conclusion: The IBRS technology investment model only assesses costs. It shows costs in net present value terms and can also compare those costs with a typical total cost of ownership calculation. It does not measure so-called benefits or other intangible features of a product. Its principal aim is to reveal what an investment will cost over its duration and to do that as thoroughly as all the data available will allow. In addition the model can be customised and work with different data sets.

Conclusion: There is no single perfect financial analytical method. There are some models which are in common use but their longevity is due to their lack of rigour, or that they can be used for any occasion.

The best way to avoid the obvious gaps is to combine techniques, not in one model, but for comparison purposes. By bringing together parts of the stronger methodologies users can obtain better insights. How this type of optimised composite model will work is shown in the next paper.

Conclusion: The operational model and associated processes of larger organisations in many sectors of the economy are encoded in software. Enterprise software from SAP plays a dominant role in many industries and significantly influences the terminologies and workflows used within organisations, in particular in those domains where SAP offers out-of-the-box solutions. The resulting level of standardisation has tangible advantages, but also represents an upper limit to the level of operational efficiency that is achievable. Organisations that rely on SAP are well advised to get independent advice to determine the optimal level of lock-in to SAP.

Conclusion: Unlike other parts of business, IT has wrestled with a few financial analysis methodologies. Although those commonly employed work reasonably well, and have currency, it is clear to IT professionals that they are not as good as they might be. That is to say, that despite the application of a financial analysis to technology investments there is still vagueness and uncertainty about the quality of the analysis.

Eliminating all doubts over the merits of financial analysis is not entirely possible, of course, but it is feasible to apply better techniques as to how financial analysis is conducted.  

Conclusion: There are many benefits in off-the-shelf applications, whether they be onsite or SaaS,  available to organisations in terms of cost reductions, increased productivity, improving market share or customer satisfaction. For organisations that have traditionally followed a custom build approach, there are some key areas that need focus and executive management commitment to ensure the promised value is achieved.

Conclusion: 80% of traditional outsourcing contracts established in Australia during the last 25 years were renewed with the same service provider. However, with the emergence of public Cloud, IT organisations should examine the feasibility and cost-effectiveness of migrating to public Cloud prior to renewing the existing outsourcing contracts.

Conclusion: Due to recent advances in IT infrastructure, the capital cost of VDI is now comparable to that of a Full Desktop, making it suitable for a wider range of use cases. However, there remain significant project risks due to the large upfront infrastructure costs and the very high technical risks associated with building the VDI infrastructure. IT organisations need to understand these costs and risks and then formally develop mitigation strategies to control these.

Conclusion: Disaster recovery continues to be an issue for many clients. Approaches based on tape have a low cost benefit but often recovery takes too long to meet the business’ requirements. The popular new approach of replicating data to a secondary data centre enables rapid recovery but at a cost which is prohibitive for some applications or smaller organisations.

An emerging third approach is to use Cloud infrastructure (IaaS) as a warm standby. This is attractive both in terms of cost and recovery time and can also be used as a strategic stepping stone for adopting IaaS.

Conclusion: Utilising vendor products entails a cost to the user above the licence fee. This cost, which is hidden, is mostly unaccounted except when dealing with a vendor that imposes vexatious conditions. Such conditions may alter usage rights and prolong the negotiation period to conclude contracts. That adds costs to an organisation it should not bear.

Where a vendor has myriad and confusing contractual terms it is a cause for organisations to assess their lock-in with that vendor. In reassessing their connections with vendors, organisations ought to strategically move out of deep lock-in towards more flexible relationships with vendors. For a user organisation to be overly dependent on a limited number of vendors is a potential problem. Reducing dependencies on single or groups of vendors may also deliver more efficient business relationships. It also serves as a signal to vendors that an organisation wants an efficient arrangement.

Conclusion: CIOs must avoid being swept up by the hype concerning SaaS (Software as a Service) and approach each business case on its merits. While the immediate net benefits may be appealing, it is important to evaluate whether the long-term benefits are sustainable and the risks manageable before entering into a service contract.

Synopsis: In the previous millennium some CIOs claimed they could reduce their IT costs by not producing printed reports for business managers and only recommencing them if the manager complained. If they said nothing the application software and documentation were put on the back burner in case they were needed and after a decent period given a ‘quiet burial’.

In this millennium the approach above will not work as business professionals and managers can access their data and prepare management reports online when needed. This begs the question, how can CIOs reduce their costs in 2013 while managing risks?

Conclusion: Enterprise architecture tools and processes have traditionally missed the mark in providing timely and relevant support for executive decision making. A fresh approach is required that focusses on just enough information to support defensible, evidence-based planning. Enterprise architecture functions must provide value in short, focussed iterations.

Enterprise architecture provides an evidence-based approach that demonstrates clear traceability for investment planning decisions. Astute executives will understand how enterprise architecture can be used as a powerful approach for developing an ICT investment plan that is robust and defensible.

Conclusion: Enterprise architecture should be viewed by CIOs as a fundamental toolset to provide sound, defensible, evidence-based decision making. CIOs who ignore or misunderstand enterprise architecture forego a powerful management device.

CIOs should understand and make use of the enterprise architecture techniques at their disposal; they must also recognise approaches to enterprise architecture that will not work. CIOs should set expectations with their enterprise architects for quick delivery of highly relevant outputs: days not years.

Conclusion: Much discussion on NBN attempts to demonstrate its value in the future. Instead of trying to prove what NBN can deliver in thirty years it is wiser to assess what organisations can do with the network.

This may seem obvious. All that’s required is to plug into NBN and let the network make it happen. If NBN is really such a significant change in technology, organisations will find they have to discover how they operate and how to fix themselves in order to use the NBN to their advantage.

Conclusion: Clients will see fewer IT services providers responding to requests for work in 2013 as many have been forced to reduce staff to stay profitable. To attract respondents and get competitive pricing, clients must convince both struggling and viable providers they have a greater than 30% chance of success and no-one has the ‘inside running’ to win the business.

Conclusion: Organisations, large and small, have invested time and money over the past 5-10 years in improving ICT project success. Skilled project managers, governance groups, increased executive awareness and improved processes have all combined to improve the probability of a successful project. However, recognising when to cut the losses of a failing project is still a problem for many organisations. Either they never terminate a failing project or they delay in making the decision to terminate it. Either way the consequences can be devastating.

Conclusion: Selecting a corporate mobile device standard can be risky. Mobile devices are far more personal than PCs, and users’ preferences are heavily influenced by their existing consumer experience and personal choices.

Imposing an IT driven device standard increases the risk of the CIO being forced into defending the decision against disgruntled end-users, some of whom may have considerable influence. To avoid this follow the four golden rules of mobility and ensure mobile device selection has business buy-in.