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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 delivery. As a result, it was neither adequate to buy external services nor sufficient to assess the value that an IT organisation can bring to the business lines. IT organisations should adopt the Total Cost of Service (TCS) model to accurately estimate services’ internal costs, benchmark the external services cost and justify the services costs in terms of business imperatives.
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Workforce transformation embraces far more than just mobility: it embraces not only where work gets done, but how, when and by whom. Much has been written about the fact that many jobs will cease to exist, while many others will transform beyond all recognition. And the impact these workforce changes will have on hiring practices and the structure of business is significant.
Conclusion: Business prefers certainty to doubt and some issues now appear to be clear:
Conclusion: The drive for digital disruption has forced many organisations to implement contact centres’ online chat facilities (or equivalent). The rationale is to instantly connect customers with service experts and to resolve inquiries at the first contact whenever possible. While customers enjoy the ability to initiate a chat anytime and from any device, the ability of service providers to resolve inquiries to customers’ satisfaction remains unfulfilled in many cases, especially in the telecommunication carriers industry. Organisations should realise that a digital transformation is not only about implementing online facilities; it requires significant business process re-engineering to improve end-user experience across all types of inquiries.
Conclusion: Even though stakeholders may support ‘Digital’ initiatives – due in no small part to the all-encompassing nature of the term ‘Digital’ in today’s market – many of these initiatives will fail to deliver on the original intent. This is because the term ‘Digital’ enables stakeholders to reinterpret the intent of an initiative in a number of different ways. This can cause stakeholders – both within ICT groups and within the organisation more broadly – to take actions that deviate from the original intent, or that resist attempts to change. Even when organisations have put in place governance and processes to reconfirm stakeholders’ understanding of the initiative’s intentions, reinterpretations and misaligned actions can still occur.
By understanding the types of ‘mutation’ that stem from the use of ‘Digital’, and by appreciating the limitations of traditional methods of checking stakeholder alignment, policy and program leads can minimise the risk of projects being implemented in unexpected ways.
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: 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.
Conclusion: The Australian Bureau of Statistics’ annual innovation survey quantifies the efforts of businesses in all industries. The status of innovation is quite mixed, between small businesses which tinker at the edges and larger enterprises which are more thorough.
Innovation is not one thing – it is a variety of actions which can be implemented. Improving technological capability is not a high priority and that could be a concern for CIOs, CTOs, CDOs and vendors because the purpose and value of technology, and related investments, appear less directly important to business.
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 a failure will be significant as clients may place their orders with a competitor when they face an unavailable service for a prolonged period of time. IT organisations should deliver recovery-as-a-service that provides non-stop business operations.
Conclusion: Just as every marketable motor vehicle needs skilful designers and a proficient driver to reach its destination, an organisation needs visionary leaders and skilled staff to digitally transform its business model.
Technology, whilst important, represents just one wheel of the motor vehicle. Overstating technology’s value is simplistic. Vendors who promote technology, and their solution, as the cornerstone of the digital transformation strategy do themselves a disservice.
Conclusion: Organisations typically discuss the selection of enterprise mobility development in terms of web-based applications versus native applications, which quickly leads to debates regarding cross-platform tools versus standardising on one platform, such as iOS or Windows10. This is entirely the wrong way to think about enterprise mobile application development, resulting in unsustainable portfolios of fragmented and increasingly difficult to maintain applications. Instead, organisations should first identify the generalised use cases (i.e. common patterns of work) and seek to select mobile solution architectures (as opposed development tools) that meet each use case.
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 adopt DevOps. This is because firstly, DevOps covers only Release Management which is only one process of the 26 processes of ITIL v3 and secondly, DevOps in not different from mature2 ITIL Release Management. In this light, existing ITIL organisations embarking on digital transformation should plan to mature Release Management to match DevOps principles. DevOps3 sites need to leverage the lessons learnt from ITIL implementation to enjoy a smooth business transformation as fixing only the software release process without integrating this with the remaining 25 ITIL processes is insufficient to raise the overall IT performance to the level needed by the digital world. This research outlines that ITIL and DevOps can co-exist in the same organisation once brought to the right maturity level.
This Compass is a companion document to IBRS’ Master Advisory Presentation (MAP) “Delivering Digital Business Transformation” which outlines business and management issues and provides guidance on delivering an effective digital business transformation.
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 business benefits.
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 multiple service providers to satisfy all their needs. This will increase clients’ governance cost of service providers and extend the duration of external services acquisition. As a result, a service broker model has emerged to provide one single point of accountability to all sourcing deliverables, simplify go-to-market strategies and fulfil the Cloud migration requirements in a cost-effective manner. IT organisations should assess the applicability of this model to their environment.
Conclusion: To facilitate business and IT transformation PMOs must be given a role that puts them at the forefront of advising management where best to invest scarce resources in business and IT-related projects whilst ensuring business systems are successfully implemented.
To be successful PMO staff need:
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 competitive price. The value chain firstly requires to address service delivery processes by constructing the IT value chain1 , secondly to realise cost advantage2 and thirdly to create service differentiation (this note).
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.
Conclusion: IT organisations should not be treating software releases to support the digital transformation as “business as usual”, because they may overlook the demand for extra-company IT management process integration, rapid application deployment, and speedy problem resolution. IT organisations should recreate their “release to production” processes to address the new applications’ unique requirements for appropriate security, resilient architecture, and elevated service level standards.
Conclusion: Deployment of Office 365 as a pure Cloud solution has lagged the sales of Office 365 licences. This is partly due to lack of formal migration strategies, confusion over the licensing and user options1, although non-technical issues play a bigger role. To assist in the move to Office 365, IBRS has identified a framework that will assist organisations in their journey.
"The journey of Office 365: A guiding framework Part 3: Post-implementation" IBRS, 2016-05-05 00:21:00
"The Journey to Office 365" IBRS, 2015-05-01 14:58:56
"The journey to Office 365: A guiding framework Part 1" IBRS, 2016-03-01 04:23:10
"The journey to Office 365: Part 4 – Skills" IBRS, 2016-06-02 00:26:00
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 and influencing cost drivers.
Conclusion: Traditional on-premises approaches to infrastructure can create unnecessary costs, risks and bottlenecks. This is particularly a problem for projects delivering new systems that have a high-risk (i. e., uncertain benefits, functionality, capacity) which are often associated with innovation and digital strategies.
IT organisations should look at alternative methods for delivering IT infrastructure to ensure it is not a barrier to business innovation.
Conclusion: Although virtualisation is widespread in computing and storage, software-defined everything (SDE) is 3–5 years away from broad adoption by enterprises. Early adopters are major ICT Service Providers and enterprises with specific opportunities.
Enterprise architects need to understand the implications of SDE now as Cloud and managed services projects using software-defined technologies ramp up, or risk becoming irrelevant and wedded to displaced traditional sourcing and delivery concepts.
Failure to appreciate the impacts of software-defined ICT will mean that businesses will be making planning and budget decisions today for ICT futures based only on current practices that are becoming superceded.
When the leadership of IT and business management work well as a team there are few limits to what they can achieve in delivering services to clients. However for the teamwork to become a reality line management and IT professionals must put aside special interests and focus on implementing initiatives that deliver outcomes that meet the objectives of the organisation.
Agility is achieved when the team is able to quickly identify the source of a problem or business opportunity, corral their resources and expertise and respond with alacrity.
One area where teams struggle is identifying and putting into practice the guiding principles under which they will pool their resources.
This MAP is designed to guide and stimulate discussion between business and technology groups, and point the way for more detailed activity. It also provides links to further reading to support these follow-up activities.
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 create internal service differentiation. IT organisations should construct service value chain models to diagnose the IT organisation’s deficiencies, improve image, and link to vendors’ value chains. This can be achieved by disaggregating the business of IT into its strategic activities (e. g. service definition and communication, customer service). This will result in understanding the cost behaviour and identifying existing and potential differentiation sources such as accelerating the release of business products to market and improving IT and business lines interaction.
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 on initiatives that do not necessarily contribute to business performance improvement and business cost reduction initiatives. IT organisations should revive the enterprise architecture practice by delivering IT-as-a-Service with an outward focus targeting business, information, applications, and infrastructure domains. This will increase IT organisations’ credibility to become key players in business transformation projects.
Conclusion:Within the ICT industry new technology is deferred to as the catalyst of innovation. While this is partially true at the current time and over the next 3-5 years, the shifting structure of the wider economy is the more likely agent of transformation, and even perhaps of disruption, which will be seen through the adoption of various technologies.
Conclusion: The term ‘digital disruption’ exerts a powerful cocktail of possibilities. While the term has limited application in specific cases, its general use has diluted its meaning. Whether this is significant may be judged individually but the general use of digital disruption to any and all events coinciding with the introduction of new technologies is misleading.
For the most part executives and strategists can understand technologies and their implementation as progressive evolution. This is especially true for buyers of technology. For some technology vendors and industries the effect of digital technologies may be disruptive, even destructive, insofar as markets, capital and stock value are lost.
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 (e. g. storage) that should be delivered under outcome-based service contracts.
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 organisations should review their Configuration Management plans in view of the latest public Cloud offerings and adopt a phased implementation approach.
Conclusion: Microsoft’s consumer-led strategy for Windows 10 will create ‘pester power’ for the new OS within the enterprise. However, simply upgrading to Windows 10 will re-entrench old assumptions, and continue an out-dated SOE model, yet with no additional business value. An alternative approach is to delay the introduction of Window 10 while a new digital workspaces strategy is developed to transform the business environment. A digital workspace strategy will take time to define and execute, so the CIO must prepare activities to avoid the negative impact of pester-power, while engaging the business in a re-envisioning of the work environment.
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 use of standard SaaS architecture without re-engineering the business processes. However, it is worth noting that there are third party ERP maintenance and support services, which used in the short term may result in up-to 50 % reduction in the current yearly maintenance and support cost.
Conclusion: Based on usage patterns and personalisation MCPs (Smartphones and Tablets) offer an opportunity to build a more intimate relationship with customers. While there is great opportunity there are some technology and cultural challenges that need to be addressed.
Conclusion: Digital disruption is now a given in every industry vertical, although each is impacted in its own distinctive ways.
The drivers for connecting everything and transforming business are the desires for improving corporate agility and personal productivity. The use of utility information and communications technologies (ICT) such as Cloud and Mobility is proving to be a key enabler of Digital Transformation for any size of private or public sector business in any sector.
Transformation, agility and productivity are coming from hyper-connected people and processes.
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 manner.
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 exceeding SLA targets will demonstrate the IT organisation’s contribution to business performance improvement and cost reduction undertakings.
Conclusion: organisations planning to move to Microsoft Cloud-based Office 365 should first examine and segment their workforce to identify the most appropriate mix of Office 365 editions (which Microsoft calls SKUs) for staff, and then examine Microsoft’s various licensing options. Organisations with existing enterprise agreements need to be particularly careful with the latter, not so much to avoid compliance issues, but rather to minimise spend.
"The journey to Office 365: A guiding framework Part 2 migration" IBRS, 2016-04-01 04:43:19
Conclusion: the adoption of Cloud-based applications and data, the proliferation of mobile devices (i.e. Smartphones and Tablets) and the increased interest in BYOD is driving a radical change in end user computing. The old device-centric model, based on a stateful Windows desktop, is being replaced by an application-centric model where device state is transient. While this is not yet the end of the Windows desktop, the beginning of the end has arrived.
Conclusion: when managing both client server (legacy) and Anything-as-a-Service (XaaS) environment it is important the legacy environment does not constrain the potentially superior XaaS environment.
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 workload backlogs, and set the foundation for effective resource management methods.
Conclusion: softening business conditions in Australia demand that IT operations executives find current cost (cash) savings, optimise the cost of existing operations and/or make valuable new contributions to the enterprise by leveraging networking technologies and practices throughout IT.
IBRS has identified ten practical ways to cut enterprise networking costs while preparing to execute a business’s digital strategy.
Expect to obtain a mix of cost savings, cost optimisation and revenue contributions from networking. Aim to create business insights into making savings from using communications creatively rather than just connecting data, processes, devices and people.
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 clients will be at risk recovering services on time and without data loss. To address this issue, several escrow services have been evolving. IT organisations wishing to migrate critical services to public SaaS should explore escrow1 services. Unfortunately, escrow service costs have to-date been fully absorbed by the buyer. In this light, IT organisations should incorporate the escrow services cost into the SaaS migration business case.
Conclusion: To meet the demand for more online services, IT and business management must identify and filter the opportunities and vigorously pursue those with high client visibility, ensure adherence to legislation and reduce the cost of doing business.
Conclusion: When moving from traditional on-premises IT to Cloud it is important to update the Business Leaders and Executive on the risks. Rather than try to quantify the absolute risks, as the first step in gaining acceptance, explain how the risks of Cloud compare with the current on-premises, or MSP, solution. Offer ideas on risk mitigation that might be necessary and liberally apply simple examples and analogies to aid comprehension.
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 business strategic requirements. As a result, business lines perceive IT as a support function instead of being a strategic business partner.
Conclusion: The first generation of the Internet of Things (IoT) is now reliably internetworking uniquely identifiable embedded computer devices.
However, the emerging Internet of Everything (IoE) will go beyond the IoT and its machine-to-machine (M2M) communications between devices, systems and services. The demands from popular consumer IT will lead to a broad adoption of IoE in enterprises although corporations will focus on the IoE for its business process improvement.
Use of common collaboration tools will become the most prevalent and valuable way to extend isolated low level IoT interactions into sophisticated orchestrated IoE apps that deliver valuable experiences and tangible benefits to both consumers and corporate users.
Many Australian IT organisations have been implementing Configuration Management practices since 1994. However, with limited success when assessed against the key objectives of Configuration Management process and its associated database (CMDB).
Conclusion: Cloud migration should not be a quick and dirty job just to upload the current business systems with their inefficiencies, only to get rid of the in-house hardware ownership. It should be considered as an opportunity to clean IT and business inefficiencies at the same time. IT organisations wishing to migrate to public Cloud require a new methodology to avoid incurring unforeseen consumption cost and to address business processes overheads. Strategies are needed to measure code inefficiencies and develop a remedy roadmap whilst building the case for public Cloud. Only efficient code should be released to public Cloud unless there are other benefits which make the overall migration cost-effective. This will ensure IaaS usage remains within IT budget.
Conclusion: To reduce Service Desk costs and improve resources scheduling, some IT organisations are exploring the potential of Virtual Service Desk Agents to either improve self-service and/or reach to the right subject matter expert at the right time. However self-service success depends on the quality of information available to the virtual agents. It is critical for the virtual agent tool to be enabled by a mature service management engine that describes the service’s known errors and their resolution alternatives. Failure to do so will leave the virtual agent with no alternative but to call the live agents, thereby making the investment in virtual agent technology questionable.
Conclusion: The popularity and growth of online social media platforms has pushed social data into the spotlight. Humans using the Web mainly interact with human-produced data. Yet the floods of machine-generated data that flow through the Internet remain invisible to humans. For a number of reasons attempts by organisations to mine big social data to improve marketing and to increase sales will fall significantly short of expectations. Data from digital devices and sensor networks that are part of the Internet of Things is eclipsing human produced data. Machines have replaced humans as the most social species on the planet, and this must inform the approach to data science and the development of healthy economic ecosystems.
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 practices2 should be leveraged to develop reliable and practical policies. The resources needed to develop the new policies should come from both sides and a business benefits realisation plan should jointly be developed and tracked.
Conclusion: The development of new digital services often entails not only changes to workflows but also changes to the business rules that must be enforced by software. Whilst vendors of business rule engine technology often market their products as powerful and highly generic tools, the best results are achieved when restricting the use of the different approaches to specific use cases.
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 satisfaction.
Business-centric IT strategies focus on addressing the business critical issues by implementing new IT solutions in a timely and cost-effective manner. The proposed IT solutions should provide capabilities that address the current and emerging market forces such as consumerisation, mobility, social media and Cloud. This will signal to business lines that IT is being modernised to meet consumers’ exigent needs.
It is critical for business-centric IT strategies to be developed within two months to accelerate IT-as-a-Service transitioning.
Conclusion: Vendor offerings for end-to-end solutions for ‘self-service desktops’ are both limited and immature. Furthermore, organisations are likely to have many of the individual components that comprise a self-service desktop solution. For the next 4-6 years end-user computing cycle, organisations should look to construct self-service portals from existing point solutions, rather than looking for a pre-integrated stack.
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 organisations should emulate the commercial practices related to delivering quality IT solutions at reasonable costs.
Conclusion: There are many different Hybrid Cloud approaches, each with different costs, risks and benefits. Organisations should evaluate the alternatives to find which is best aligned to their business requirements, then update IT governance processes to guide the organisation towards the chosen Hybrid Cloud strategy. Failure to align to the right Hybrid Cloud strategy will either result in the creation of new IT silos, which becomes a barrier to the business strategy, or will adopt an approach that stifles business innovation and agility.
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, the lack of IaaS usage planning will most likely increase consumption cost. IBRS recommends that IT organisations undertake a self-assessment of their usage management practices prior to migration to public IaaS1.
Conclusion: The Standard Operating Environment (SOE) desktop has long been considered a best practice and is widely used. However, in recent years consumer IT has dramatically changed users’ expectations resulting in frequent complaints that the SOE desktop is inflexible and a hindrance to doing business.
With corporate supplied desktop continuing to be a key application access platform for the foreseeable future, IT organisations need to find an approach that meet the user’s expectations while controlling complexity, manageability, security and cost. One solution is a Dynamic Desktop1 extended with a self-service portal that emulates an ‘app store’ experience.
Conclusion: IT organisations' lack of IaaS usage planning will most likely increase consumption cost. As a result, IT organisations should work closely with business units to understand usage patterns and track monthly usage against forecasts. This will more likely ensure that IaaS usage levels remain within budget. This note provides the usage management framework. Part 2 planned for release in August 2014 will provide User Management maturity self-assessment approach.
Conclusion: WhileI SaaS and PaaS adoption has been increasing during the last two years, most IT organisations are hesitant to migrate their legacy systems to public SaaS. This is primarily due to the applications being highly customised to support the current business mode of operations. As a result, migration to cloud requires significant effort to retrofit the existing systems in public SaaS architecture. One of the options to address the customisation obstacle is to adopt a rapid business process redesign approach.
Conclusions: Based on cost modelling, organisations looking to provide a ‘Windows virtual desktop’ experience should consider centralised, Windows Server OS based computing as opposed to Windows Desktop OS based computing. In addition to lower costs for hardware and simpler management and deployment, Windows Server OS based computing has a licensing model that can be just 25% of the cost of Windows Desktop OS based computing. Furthermore, Windows Server OS based computing licensing provides for greater freedom of where and on what devices the end-user desktop experience may be deployed.
While IBM is planning to invest A$1.4 million to grow its global datacentre facilities, its focus remains on private cloud with no serious public cloud offerings, As a result, IT organisations under traditional outsourcing contracts with IBM should examine the feasibility and cost-effectiveness of third party public cloud alternatives prior to renewing the existing outsourcing contracts.1
Conclusion: Organisations that need to run legacy applications under Windows XP will no longer have access to economically sustainable options. In short, there is no way to maintain an XP environment without Software Assurance, and thus there is no practical way for an organisation to continue to run legacy applications without investing in Software Assurance or Enterprise Agreements for the desktop. Organisations should factor in the significant licensing costs when considering the business case for continued support of ‘XP only’ to legacy applications.
Conclusion: With the migration to complex hybrid sourcing strategies, traditional IT organisations based on ‘plan/build/run’ models won’t be suitable for acquiring public cloud services in an increasingly changing market. This is due to vague understanding of service total cost of ownership and limited contract negotiation skills. IT organisations wishing to rely on external services must evolve to ‘plan/procure/govern’ structure to emphasise strategic service planning and hire specialised service procurement skills. This paradigm shift requires CIOs to restructure IT procurement with a view to run it as-a-service to other IT groups and business lines.
Conclusion: Organisations that do not upgrade their major assets to reflect new technologies and practices quickly fall by the wayside. Similarly, organisations that do not critically review the effectiveness of their ERP solution, and either replace it or reinvigorate it, are failing their stakeholders.
Conclusion: IT organisations wishing to maximise Public Cloud return on investment should adopt a Cloud Governance Maturity Model that ensures consistent delivery, builds trust and leverages new technology. This will enable IT organisations to effectively manage their sourcing portfolio by balancing cost and risks, creating value and realising the desired benefits.
Conclusion: In-house IT Service Management (ITSM) initiatives require considerable time and investment (up-to three years, up-to $1.5 million approximately). This has resulted in limited senior management continuous buy-in and reduced ITSM benefits realisation. Therefore, IT organisations wishing to implement ITSM should evaluate a public cloud alternative versus the cost and merits of establishing in-house service management capability.
Conclusion: Some SaaS service providers can exercise ‘exit for convenience’ contractual terms by giving no more than thirty days termination notice. As a result, SaaS users will be at a high risk to recover services on time and without data loss. Therefore, IT organisations wishing to migrate critical services to public SaaS should develop a Contingency Plan and test it regularly. The Contingency Plan establishment cost should be incorporated into the business case for public SaaS migration.
Conclusion: Mobile devices have fundamentally different patching and upgrade cycles compared to the desktop models of which IT services staff are familiar. The key differences are: more frequent refresh cycles, cloud-based updates that generally are not manageable by the organisation, Internet-based rather than intranet-based delivery of upgrades. Managing mobile patches and upgrades will more about end-user communication, training, and change management than technology.
Conclusion: IT organisations wishing to migrate in-house services to public cloud should ensure that service providers understand the complexity of the in-house architecture candidate for cloud migration. This can be achieved by identifying the in-house service failure points within the legacy applications and their associated infrastructure. The service providers’ lack of understanding of the existing operational weaknesses will most likely extend the transition period and delay achieving the expected service levels in a gradual and cost-effective manner.
Conclusion: IT organisations managing a multi-sourced environment and wishing to reduce unscheduled service downtime, should establish end-to-end Change Management Frameworks. This will ensure that business operations remain unaffected by service providers’ system changes.
Conclusion: Given previous uncertainties regarding the future of TRIM, and dissatisfaction with what is perceived to be onerous knowledge management, IBRS has noted that many organisations are considering replacing TRIM with SharePoint. Simply migrating to SharePoint will not alleviate the perceived problems associated with TRIM, nor indeed traditional EDRMS in general. Organisations should recognise that while knowledge management is more important than ever, it will not be met with a single solution. Instead, multiple repositories for different types of knowledge, at different stages of the knowledge lifecycle will be required.
Conclusion: Given that the public cloud value is maximised when end-to-end SaaS is reached, IT organisations’ misunderstanding of SaaS building blocks, business applications architecture integration and lack of mature multi-sourced environment governance will limit SaaS public cloud adoption. CIOs should establish a cloud sourcing strategy to assess the feasibility and cost effectiveness to gradually migrate business applications to public cloud. Failure to do so might minimise public cloud opportunity to improve enterprises’ performance and/or reduce the cost of doing business.
Conclusion: Microsoft’s licensing for its end user products (Windows, Office) attempts to straddle the old desktop-bound paradigm and the new user-centric paradigm brought to the fore by mobility, cloud services and consumerisation of end points. This has resulted in a fragmented and complex set of intertwined usage rights that can confound even the most astute procurement specialist. The only workable approach is to prepare long-term scenarios that deal with specific end-user situations and have Microsoft develop and confirm the licensing requirement in writing prior to deployment: plan for more dynamic application deployment, but externalise the effort, time, costs and risk of the licensing decision back to Microsoft.
Conclusion: The challenge for all organisations is to understand the technology options and work practices that will ensure the durability of the organisation. The rise and acceptance of social media tools is one example of this challenge. Those organisations that have adopted activity based working offer one possible path. For others there may be a combination of work designs and solutions that serve them best.
IT executives should play a role in the decisions that are made on how work is conducted in the future and the technologies to enable the new processes.
Conclusion: Deciding to transition the organisation to activity based working (ABW) will be complicated by meeting various stakeholder interests and aligning the organisation’s culture. In this sense it may involve several iterations. Each one refined from lessons of the previous one.To reduce risk it is essential that the ABW checklist be precise about the objectives and the organisation’s capacity to transition to a new working model.
Conclusion: Organisations looking at building enterprise mobile applications too often put the device selection and coding tools selection as their primary concerns. Instead, organisations should be focusing on identifying the mobility architectures need to support business strategy. Technological priorities then become identification of broad mobile service platforms, integration infrastructure and abstraction of the client.
Conclusion: VMware’s new strategy of directly entering the IaaS market will create confusion and ultimately decimate VMware based IaaS vendors. IT organisations should manage the risks this creates with their current (or future) VMware based IaaS partners. In the long run the new strategy will benefit all customers by creating a global scale, VMware based, IaaS that reduces costs, increases service quality and drives greater innovation.
VMware does not lead the IaaS market and faces massive competition from non-VMware based hyperscale IaaS providers, such as Amazon, Rackspace and Microsoft. VMware centric organisations should not blithely assume that a VMware based IaaS is the best option and should evaluate the IaaS alternatives from hyperscale providers, especially Amazon.
Conclusion: Search was always the most important utility online. Now it is moving into a new phase with higher functionality and relevance. In the next phase search will unite facts with opinions and personal needs. The umbrella term for this evolution is semantic search. When this search functionality is inside the devices consumers use it may be highly influential.
Organisations will confront search in two ways. Firstly, through the lock-in that users may demonstrate for the devices with the search function they prefer, and secondly, through a better context in which information is presented and through saliency.
Conclusion: The Mobile Document Library is one of the three most common generalised use cases. It provides an enterprise answer to the growing ‘drop box’ problem where users are utilising unmanaged public cloud services to gain mobile access to corporate documentation. While unchecked distribution of enterprise documents should be addressed, any solution put forward by IT must have a user experience that is at least as good as cloud-based, consumer-oriented solutions. In addition, the cost savings of automating mobile document distribution can often pay for a fleet of mobile devices: and therefore mobile document libraries can be used to introduce the foundations for a larger mobility initiative.
Conclusion: Now that Android smartphone have taken the market share lead from Apple, with no signs this will be reversed, IT organisations should create a strategy to deal with this change. It is often claimed that Android is not suitable for enterprise, due to poor security or fragmentation. However our analysis finds this to be more myth that fact, and some simple strategies can be used to deal with both issues.
IT organisations that selectively support Android devices will have access to a larger pool of devices with a more diverse set of capabilities(form factors, price points, features and manufactures). This gives a broader range of capabilities, which benefits the business by ensuring the selected device is fit for purpose rather than forcing one device to all use cases.
"Preparing for Android: Part 1" IBRS, 2012-12-31 00:00:00
Last year, economic growth expert Robert Gordon stirred up the debate about the prospects for growth through technology. Notwithstanding the dismal global economic conditions affecting the US and elsewhere, Gordon said1 the most recent phase of technological growth was smaller than the previous one, and, in fact, his reams of statistical analysis point to indoor plumbing improving productivity and economic growth more than technology.
The Cloud is a significant long-term trend that should not be ignored.Like the introduction of the PC and Open Systems in the ‘80s/‘90s,an IT organisation can either selectively embrace the Cloud, orfind itself bypassed by the business units who will introduce Cloudbased solutions to suit their needs.
Organisations that do not embrace the cloud risk losing control ofthe IT Architecture, which leads to an overly complex, cost andineffective environment. Even worse, while individual business unitsmay gain some temporary benefits, the overall organisational agilitywill decrease and the alignment of IT to strategy breaks down,creating longer-term problems for the organisation as a whole.
On the other hand, if the Cloud is selectively embraced as yetanother IT sourcing strategy, and if best practice IT managementfunctions are retained and expanded to provide appropriate governance,the Cloud can be a positive agent for change that increasesagility and creates greater transparency in cost.
Conclusion: IT organisations are under significant pressure to allow employees to use their own smartphones and tablets at work. Many organisations support Bring Your Own (BYO) iPhone but are reluctant to support Android due to perceived security and/or management weaknesses.Now that Android has decisively taken the market share lead from Apple this position will become difficult to maintain. IT organisations, especially those in Transport or Health, should re-examine the support issues and develop a management and security model to accommodate Android.
"Preparing for Android: Part 2" IBRS, 2013-01-28 00:00:00
Sometimes IT managers feel like Santa: lots of kiddies storming their armchair, sitting on their laps, demanding the latest must-have toys. But unlike Santa, IT managers don’t have a secret ice bunker full of unpaid yet highly-skilled elves, nor can they deploy their gifts faster than the speed of light via magic flying reindeer. No. Instead, they’re lumbered with the financial constraints of The Grinch.
The only hope for them is to figure out the most popular gift and give it to all the kids. This year’s must have gift is mobility. No question about it, it’s the hands-down favourite toy of screaming kiddies and frustrated executives the world over.
Conclusion: The time when IT could triage new technology and take a long view on its adoption is over. The technology/business cycle is now faster, just as business demands and expectations are higher. In addition, the influence of business executives is strong and is partly based on direct experience with certain technologies.
IT departments should re-examine their processes of evaluating technology. Making the process transparent and inclusive is a big step to communicating decisions and sharing in the collective aims of the organisation.
Conclusion: Microsoft licensing continues to be a major point of confusion and disruption to many IT groups, and procurement managers. Understanding the principles underlying Microsoft’s licensing will go a long way to optimising procurement during negotiations and avoiding licensing errors.
Conclusion: Creating a lightweight governance framework for mobility is essential in ensuring that mobility applications are developed quickly and effectively, and are aligned to organisational objectives. The ideal mobility governance framework provides an agile environment to enable solutions to be developed using shared architectures, and focuses on "what can be done" rather than "what can't be done.” The key is to ensure that the governance framework remains focused on decision-making, as opposed to restricting mobility “run-away mobility deployments”.
"Coping with Mobility - Part 3: aligning generic use cases to application development approaches" IBRS, 2012-04-30 00:00:00
"Coping with Mobility - part 1: mobile architecture and the enterprise" IBRS, 2012-02-28 00:00:00
"Coping with Mobility - Part 2: First steps towards a holistic mobility strategy" IBRS, 2012-03-29 00:00:00
"Coping with mobility - part 5: developing the strategy" IBRS, 2012-10-28 00:00:00
"Coping with mobility Part 6: Work context" IBRS, 2013-06-26 00:00:00
Conclusion: IBRS has found that many organisations’ mobility needs can be covered by just one or two “generic use case” categories, thus many user demands for mobility can be met with just one or two development approaches.
"Coping with mobility - part 4: governance" IBRS, 2012-05-31 00:00:00
Conclusion: The goals of enterprise architecture include prioritisation and strategic alignment of investments, savings through reduction in unnecessary duplication, and improved agility through reduced complexity. When these goals are achieved the positive impacts can be enormous.
These goals are achieved when the enterprise architecture function has input to investment decision making and the way that solutions chosen and implemented. Astute CEOs will involve enterprise architects in assessment of business cases, procurement decisions and project reviews.
The UK Government reported a direct saving of AU$6.3 billion from project reviews that cost less than $100 million. Many of these were ICT-based projects, which are known to be higher risk than other project types and are placed under greater scrutiny. Astute CIOs have a clearly defined strategy and process for review of projects under their purview.
Conclusion: Without governance, investment in enterprise architecture is usually wasted. Organisations that have implemented effective architecture boards typically realise benefits that include cost savings, better-controlled and structured systems, and better alignment to strategic architectures.
CIOs should draw on the lessons learned from organisations that have implemented effective architecture governance through an architecture board.
Conclusion: Productivity is going to be a real and growing concern for organisations. A widely held view is productivity can be raised through social technologies because these technologies necessarily enhance levels of collaboration. If only it was that simple.
Social technologies can offer better means of performing some processes but improving productivity is not achievable nor a direct result of using social technologies. Productivity is too complex a financial and business issue to be solved by a single IT deployment. Organisations ought to apply social technologies after due diligence and examining their requirements very well.
Conclusion: 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.
Conclusion: Organisations that are still running Windows XP fleets are debating holding off a desktop refresh (to Windows 7) until Windows 8 becomes available. There are three key considerations to this discussion: product functionality, management, and licensing. In each of these three categories, IBRS concludes that there is no compelling reason to wait for Windows 8.
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 and limited way, you risk losing control of the IT Architecture, which will lead to an overly complex, costly and ineffective environment in the long run. Even worse, while individual business units may gain some temporary benefits, the overall organisational agility will decrease and the alignment of IT to the business will break down, creating longer term problems for the organisation as a whole.
Conclusion: The forecast growth of data transmission over the Internet in the next decade means the role of content distribution networks will probably rise. As demands on bandwidth grow, efficient management of online data will be at the centre of many organisations’ online delivery strategy.
While it may seem that improved broadband and the arrival of the NBN (when that occurs) will solve the issues of speed, it will not because more users, richer media and more applications will fill the bandwidth. Consequently a content distribution network (CDN) strategy ought to be part of any organisation’s online planning.
Conclusion: SharePoint is well known as a platform for small-scale knowledge management, team collaboration, and Web applications. However, some organisations have begun experimenting with SharePoint as an alternative to large-scale Enterprise Content Management (ECM) solutions, handling more than 100 million documents. The lessons learned from these initiatives indicate that while SharePoint can deliver ECM, such projects require a great many technical and planning skills that are foreign to most SharePoint implementation teams in Australia. It is almost certain you will need to hire short-term project specialists to be successful.
Conclusion: Mature Unified Communications (MUC) is more than a blending of messaging, voice, and presence information. The coming wave of unified communications will be executed as part of a larger ’worker mobility’ strategy and be more closely coupled with business processes. This type of unified communications allows significant organisational structural change. Thus, planning for MUC begins with an examination of organisational processes and discovery of where knowledge is located within the organisation, and then evolves into a discussion regarding how to restructure teams to gain a competitive advantage.
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