Strategy & Transformation

Flourishing in the modern marketplace relies on an organisation’s ability to make the right choices.

To avoid being left behind in an evolving world it is critical for organisations to jump at opportunities for transformational growth. However, acting without sufficient planning is fraught with risk. 

Transformation can only happen when an organisation is aligned on its strategic intent, and IT leaders need the resources to drive great choice-making across their organisation.

From planning to delivery, IBRS can cut through the confusion and guide your organisation all the way through its transformational journey. Our advisors have first-hand experience delivering digital transformation projects and can develop a tailored roadmap to deliver the outcomes you want. 

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.

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Conclusion: Industry discussion regarding Cloud based IT business models, have found it easy to claim a level of expertise simply by publishing high level observations and unsubstantiated predictions. Unfortunately, while interesting, these observations and predictions have offered little assistance to IT executives looking to design a future IT service based on Cloud. Should an IT executive choose to change their business model, there has been little or no advice on how to proceed.

Several CIOs have expressed concern that research advocating downsizing is negatively impacting their credibility. Faced with a plethora of information and recommendations, many will struggle to maintain ongoing financial and cultural support from within their own organisations.

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Conclusion: To progress digital transformation strategies there are a number of new competencies (such as problem finding and problem framing) that organisations need to recognise and master or partner with specialists to ensure that investments and efforts are aimed at solving the right problems. CIOs and business executives will need to assess the problem finding capabilities within their organisations or risk implementing a better digital solution to a problem that is no longer relevant.

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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.

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Workspaces: At the next desktop upgrade an organisation has two options: It can incrementally improve the desktop, using 20-year-old assumptions, or create a new end user computing platform based on modern technology trends. In this IBRS master advisory presentation (MAP), IBRS outlines the high-level issues surrounding the future of the Digital Workspace from both a business and technology viewpoint.

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.

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Conclusion: The new digital business model for IT is based on selecting, composing, and leveraging a dynamic range of Cloud based external services. Under the new IT paradigm people will work the way they want, when and where they want and with all the tools with which they are familiar; collaborate using a wide range of low-cost commodity services; and use their own devices (and in some cases their own applications) while those responsible for information governance seamlessly maintain control over the organisation’s enterprise information, privacy and security.

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Conclusion: In this note, IBRS defines real-time co-authoring, and outlines the factors hindering its adoption. Real-time co-authoring has been available for almost a decade via products such as Google Apps, and in the past few years, web-based Microsoft Office 365. However, the uptake of this capability has been lacklustre due to immature collaboration environments and, more significantly, deeply held preconceptions about the nature of documents and work.

The introduction of real-time co-authoring in the Microsoft Office 2016 (Word) desktop client removes some barriers to the end user adoption of real-time co-authoring. However, it does not directly address the cultural aspects that hinder adoption. Even so, organisations should expect the use of real-time co-authoring to rise, but in a fragmented, infectious manner.

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Related Articles:

"Real-Time Co-Authoring Part 2" IBRS, 2015-12-02 20:08:00

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.

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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.

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Conclusion: Australian Organisations are actively developing and refining digital transformation strategies in recognition of the changing business and government operational environment. Innovation is generously mentioned in most strategies and there has been an increase in the number of Chief Digital Officer roles being offered and filled to assist organisations to achieve the transformation they are striving for. However, organisations need to actively develop innovation and entrepreneurial skills and capabilities across their organisations to ensure that they have broad skills to contribute to transformation and innovation programs and an entrepreneurial culture to support ongoing experimentation and change.

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Conclusion: Many business leaders around the world have concluded that although information and communications technologies (ICT) are mature, their own business has yet to systematically address digital transformation as an opportunity and a Digital Officer is required to provide that focus. ‘Business-as-Usual’ is an increasingly rejected approach.

A Chief Digital Officer (CDO) or similar appointment with broad responsibilities is clearly needed to deliver radical digital transformation in large or complex enterprises.

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Conclusion: The return on investment in big data and associated analytics projects has been generally positive. It is more likely that returns over the longer term will grow too, provided strategic aims are established. The promise of big data hinges on information analysis, and therefore organisations must be clear as to use and application of the insight.

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Conclusion: The days of viewing BI as a single solution are over. Organisations should view Business Intelligence as four distinct, but interlocking services that each addresses a different critical business imperative: reporting; self-direct data exploration; operational decision support; and data science. Each of these imperatives addresses different stakeholders and will have its own architect.

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

In this IBRS Master Advisory Presentation (MAP), IBRS outlines the high-level issues, surrounding Running IT as a Service from both business and technology viewpoints.This MAP is designed to guide and stimulate discussions 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.

The MAP is provided as a set of presentation slides,  and as a script and executive briefing document.

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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.

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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.

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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.

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Conclusion: To enable the new work practices, processes, organisational structures and cultures that will be required in the Future Workplace1, IT organisations must transform today’s device-centric desktop into a new end user computing platform that is based on modern usage and technology assumptions.

Simply adding a mobility strategy to the existing device-centric desktop only adds complexity and perpetuates a high cost, inflexible device-centric model. The CIO should examine fresh alternatives such as the Digital Workspace2.

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In the search for a competitive edge more organisations are looking to activity-based working (ABW). It is not a quick or low-cost option. Some of the apparent benefits and merits may also lack demonstrable certainty. However, the workplace is changing rapidly for some types of information workers. IT should understand ABW, its potential and pitfalls, and be prepared to engage the rest of the organisation.

In this IBRS Master Advisory Presentation (MAP), IBRS outlines the high-level issues, surrounding ABW from both business and technology viewpoints. This MAP is designed to guide and stimulate discussions 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.

The MAP is provided as a set of presentation slides, and as a script and executive briefing document.

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Enterprise Mobility is opening up new approaches to performing business activities. Early adopters of mobility technologies report significant improvements in process quality, as well as dramatically reduced latency for work activities. However, to achieve the expected results of mobility, organisations need to balance tactical mobility projects against longer term architectural approaches. For this reason, it is vital to have an enterprise mobility strategy in place, which can both prioritise mobility initiatives as well as link such initiatives back to business objectives.

In this IBRS Master Advisory Presentation (MAP), IBRS outlines the high-level issues, surrounding enterprise mobility from both business and technology viewpoints. This MAP is designed to guide and stimulate discussions 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.

The MAP is provided as a set of presentation slides, and also as a script and executive briefing document.

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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.

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Conclusion: Telstra’s new shared access WiFi service Telstra Air solves the problems of users’ limited access to WiFi away from their own home, office or WiFi Hotspots by sharing some of other users’ WiFi capacity (2Mbps on a land line).

It uses globally deployed Fon services which also have massive capital expenditure reduction benefits for fixed and mobile telecommunications carriers and global roaming benefits for Internet service providers and users.

Enterprises should evaluate this type of architecture and service for use in novel ways to brand, differentiate and transform their customer engagement. Shared WiFi access to the Internet is another example of recent trends in the ‘sharing’ economy such as airbnb, Uber, GoGet carshare and others that create practical value.

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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.

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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.

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Conclusion: In order to develop an IT transformation program it is important to understand today’s operational and workplace context and use the insights gained to shape the way change can be achieved with a minimum of risk.

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Conclusion: There are almost no examples of traditional organisations metamorphosing their physical products (and related business models) into digital products (supported by new business models). On the other hand the list of organisations that have gone out of business as a result of the digital revolution continues to grow. Three characteristics are common to non-digital organisations that have lost out to digital competitors.

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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.

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Conclusion: The Workspace of the Future is a vision statement on how staff and stakeholders will perform tasks related to their work in the next decade. It includes technological innovation (e. g. mobility, Cloud, data analytics), organisation transformation (e. g. activity-based working) and cultural change (e. g. social, collaboration). To realise this vision, especially given its all-encompassing and potentially transformational impact, requires a strategy that is specifically crafted to fit with an organisation’s long-term objectives. Part of this strategy is a complete rethink of end user computing, by challenging desktop era assumptions.

However, challenging assumptions is difficult. To gain clarity, IBRS recommends mapping assumptions to principles and business impacts. By conducting an assumption mapping exercise, organisations may begin to not only communicate the need for change within both IT and business groups but, also, uncover potential for fundamental business transformation.

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Conclusion: With the local availability of VMware’s Infrastructure as a Service (vCloud Air), all Australian VMware customers should consider it for self-service dev/test environments, virtual desktops, and more importantly DR as a Service (DRaaS). Savvy CIOs will use low risk, low cost practical experiments to develop in-house skills and experience while delivering new capabilities to the business that leads to real adoption of IaaS over the next 18 months.

The risk to CIOs who do not start adopting IaaS is that IT staff and/or business units embark on their own projects in an uncontrolled fashion leading to IT fragmentation and loss of control over the IT strategy.

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Conclusion: Nearly all organisations recognise that the world, their industry, and their customers are changing. Evidence of that realisation can be seen in company restructures, strategy and vision documents, and the discourse used by executive management. Change vocabulary such as transformation, innovation, anything Cloud, as-a-service or mobile is widely used. However, history shows that even highly successful companies find change and transformation difficult, with icons such as Novell and Netscape either failing completely or being relegated to market followers.

Review of these and similar organisations shows that being overly committed to a previously winning formula, misreading the market and competition dynamics or responding to market changes too slowly were common missteps.

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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.

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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.

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Conclusion: the Department of Finance has produced a Cloud Policy that is linked to a paper about Cloud implementation that does not mention modern Cloud architecture, which in turn is linked to an architecture paper that does not mention Cloud.

Agencies looking to adopt Cloud services are advised to look for advice beyond the Australian Government’s Cloud Policy and its supporting documents.

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Conclusion: moving to an activity based working (ABW) environment is a complex multifactor project. Organisations can take stock of their readiness to approach activity based working by using the maturity model. The model will assist in developing the planning criteria required for any ABW strategy.

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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.

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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.

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Related Articles:

"The journey of Office 365: A guiding framework Part 3: Post-implementation" IBRS, 2016-05-05 00:21:00

"The journey to Office 365: A guiding framework Part 1" IBRS, 2016-03-01 04:23:10

"The journey to Office 365: A guiding framework Part 2 migration" IBRS, 2016-04-01 04:43:19

"The journey to Office 365: Part 4 – Skills" IBRS, 2016-06-02 00:26:00

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.

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Conclusion: email and basic collaboration services have reached a point where Cloud-based solutions deliver features, quality of service and reliability at price points that cannot be met by the vast majority of in-house IT groups. The question is not should an organisation move its email and basic collaborations services to the Cloud, or even when an organisation should move to the Cloud, but what additional collaboration services will move to the Cloud at the same time.

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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.

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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.

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