SAM

Background: The federal government has finally unveiled its cyber security strategy. The Australia’s Cyber Security Strategy 2020, released on 6th August will see $1.67 billion invested in a number of already-known initiatives aimed at enhancing Australia's cyber security over the next decade. IBRS provides their key takeaways from the strategy.


Most of the funding for the Strategy 2020 is from July’s announced $1.35 billion cyber enhanced situational awareness and response (CESAR) package much of the Strategy details will be contained in legislation to be put before parliament.

"There is more security work to go round than there are resources. So I don't think the market is that crowded. It's important to remember that security is not something you buy and then it's done; it is an ongoing evolution within any organisation and requires constant care and feeding," IBRS adviser Peter Sandilands said.

"The big four has done a lot of their security work using fresh grads. They can use the tools but don't necessarily understand the real world implications."

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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: 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: 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.

Conclusion: While many IT organisations believe that using public IaaS (e.g. AWS, Microsoft Azure, Google) to host business applications is a cost-effective strategy, they still require to manage the hosted environment themselves or select an external service provider to manage it for them. Towards this, it is critical to understand the current service management maturity level prior to choosing an in-house or outsourced solution. This note provides a self-assessment service management maturity model to create a solid foundation for selecting sourcing options. IBRS recommend that IT organisations with maturity level 3 or higher retain the service management function in-house, whereas, IT organisations below maturity level 3 should outsource the service management function.

Conclusion: There is ample evidence from industry studies 1 that the IT systems environment is becoming more complex to manage and this is unlikely to change. Reasons for extra complexity vary from the need to offer enhanced services to clients to legislative compliance to the need to manage an increasing number of interactions between people in today’s workplace.

Unless the impact is addressed systems support costs will increase, availability of enhanced client services with a systems component will become slower and cost competitiveness adversely impacted.

Put simply, IT management’s challenge is to minimise the increasing cost of systems complexity, while ensuring the organisation’s information systems deliver quality solutions. Business managers for their part must minimise exception processing and include realistic systems life cycle support costs in their evaluation of enhanced client services.

Conclusion: Organisations, which enable customers to transact business over the phone must continually re-evaluate the effectiveness of their business model and exploit emerging technologies to enhance the customer’s experience. Failure to do so will put them at a competitive disadvantage.