Conclusion: The notifiable data breach regulations have had an impact on business priorities. For any organisation subject to the regulations, protection of personal information should have become a priority. One security technology, data loss prevention, could have offered some assistance. But it has had a mixed reception in the past due to many issues in both implementing and operating the service.

The continued move to SaaS for office systems such as document creation and email is also changing the market. Many capabilities that have been previously offered as standalone products are now being subsumed into the SaaS offerings as just adjunct functions. 

This simplifies the selection of the products and their ongoing management. A prime example of this is data loss prevention which is now being offered as a check-box selected capability in several SaaS offerings.

This could put data loss prevention within reach of small to medium businesses as a component of their personal information protection strategy.

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Conclusion: The ICT Disaster Recovery Plan (DRP) is, more often than not, focused on technology providing for redundancy of infrastructure and systems, including data back-up and data recovery. Whilst these components are important and necessary, we often oversimplify the need for business resumption of the ICT business, which in turn will impact ICT availability. The need to ensure people are part of the planning is critical to success. Often the disaster, whether it be a technology issue, a business issue, such as a fire or denial of access to key sites, or an environmental issue such as a flood or storm, can equally affect the need for expanded operations centres and larger than normal help desk support functions.

Effective planning and testing of the plan, for all aspects of a probable disaster scenario and the ICT Business Resumption Plan (BRP) to support the business as a whole, is necessary. Effective testing of the DRP and BRP for ICT must be a high priority for any CIO to ensure service levels are maintained. Failure to do so will increase the risk of ICT to the business.

Any test of your DRP and ICT BRP should include business and customer involvement to provide your organisation confidence that all known risks have been successfully mitigated. The oversight of the testing of these plans must be planned and conducted by an independent body (preferably a consultancy that has knowledge in the organisation business world, or your ICT advisory service).

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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.

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

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

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

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

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Conclusion: The increased use of technical point-solutions has created the need for establishing an in-house core team of generalists capable of defining a coherent set of services that can improve the overall business performance. The key obstacle to building these strategic skills is the IT managers’ attitudes towards assigning work to existing staff. For example, IT managers tend to heavily exploit the existing skills of the technical staff to address specific requirements. Managers rarely give staff the chance to build new strategic skills that are beneficial to themselves and to their business.

Managers should strike a balance between strategic skill building and technical skill exploitation. This requires helping staff to acquire a deep understanding of the business operations, gain awareness of industry latest trends and offerings, and becoming capable of defining ICT solutions that can fix critical business problems.

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Conclusion: This month, attention has been drawn to vendors and managed service providers requiring customer transformation or migration to new frameworks and associated customer reluctance to do so. For instance, platform enhancements may necessitate migration to new systems or upgrades because of an inability to support ageing systems. Old platforms may simply not be compatible with newer resources, technologies or procurement models. However, these types of enhancements can be disruptive or costly for customers if they are not prepared for changes. Further difficulties can arise with existence of intertwined, hybrid systems within enterprises or systems which perform critical functions if changes interfere with business operations. Simply removing the capacity to access ageing systems and associated support is not sufficient. Businesses must prepare in advance when investing in products and services, in conjunction with vendors. The development of strategies and sharing responsibility for forward planning, education and engagement, as well as support for shifts, are necessary. The provision of other resources or advice from vendors, or obtaining services from third-party specialists dedicated to transformation strategy development and implementations, can also be beneficial. Whilst vendors must evolve, customers must also be prepared to make these changes and understand what kind of impact it can have on their operations.

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This document provides a template of specifications and requirements for a modern CRM, categorised by several key areas

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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.

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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.

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Conclusion: ICT health checks enable organisations to better understand risks and prioritise activities to both maintain and improve the performance and reliability of ICT in support of business outcomes.

ICT health checks can be conducted as a light touch in the first instance, with detailed in-depth health checks being conducted as follow-up activities in specific areas where and when necessary.

An effective ICT health check strategy will be business-focused and not based on technology alone. Implanting health checks as part of your annual ICT budget planning will provide timely advice on the organisation’s ICT health and provide in-built regular reviews of ICT health to ensure business outcomes are achieved without unnecessary risk.

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Conclusion: Despite market hype around the role of data scientists and in-house developers for the successful exploitation of artificial intelligence (AI), organisations are increasingly looking to their vendor partners to provide ready-made solutions. Both business and technology leaders are expecting solutions to be based on the vendor’s ability to leverage their customer base across various industries to create AI features such as machine learning models.

Vendors are responding by increasingly incorporating these features into their offerings, along with a new breed of vendors that are producing pre-trained or baseline machine learning models for common use cases for specific industries.

However, organisations must be prepared to contribute to this AI product development or continuous improvement process which in practical terms means giving major vendors access to data. Without access to good data the result will be sub-optimal for both parties.

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

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

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Conclusion: The three largest service providers in Australia for mobile phone services, Telstra, Optus and Vodafone, have all committed to providing 5G networks. 2019 has seen the introduction of 5G networks and devices; however, the coverage is still limited. Initial coverage by the service providers will focus on areas with the highest population density, providing coverage to a greater number of potential users. In 2019, it is estimated that coverage should be available to about 4 million potential subscribers.

The jump in speed and reduction in network latency will open up opportunities for new services and customer experiences that would not be practical using existing 3G or 4G networks. There is a large potential economic upside and organisations should be planning for future use cases.

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Conclusion: Business ethics is not a new topic. It is as old as business itself and many of the issues and questions posed during ethical considerations are just as old. Digital ethics takes a fresh look at many of these issues from a new perspective, that of a technology-enabled society and the business community. Digital capabilities introduce new complexities and challenges to the business environment. Many ethical issues arising from technology advancements cannot be solved simply. However, without addressing these matters, the business community puts itself, its customers and the community at risk. Viewing ethical issues with a technology focus and adherence to ethical principles can mitigate some of these risks.

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Conclusion: Asset management can be described as ‘the life cycle management of physical assets to achieve the stated outputs of the enterprise’. To achieve the appropriate level of asset management maturity, investment in people, processes and technology all increase the likelihood of developing an effective asset management system. Under-investment could result in asset leakage or increased maintenance costs, thus diminishing the expected returns of the assets.

Where asset management maturity model reaches the level of being ‘integral part of everything we do’, organisations can seek accreditation of the asset management framework using ISO 55000:2014.1

Where the common question is often ‘why waste our time on asset management’ then assets are usually at risk of leakage or poor customer satisfaction ratings. Outages and incidents may occur regularly. The risk of business collapse increases without recognition and change. Here organisations need to consider the steps to commence a review using the asset management model.

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Conclusion: ICT disaster recovery plans (DRPs) have been in place for many years. Fortunately, invoking these plans is rare, but just like insurance plans, it is wise to ensure the fine print is valid, up to date and tested on a regular basis to minimise restoration of business services reliant on the complex range of IT enablers in place. Adoption of general Cloud services and the ever-changing ICT asset landscape requires careful alignment with the DRP to be ready when the restoration is required.

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Conclusion: Running IT-as-a-Service requires emulating vendors’ account management function by creating a business relationship manager (BRM) role. The role’s rationale is to provide strategic advice to business stakeholders and act as a single point of coordination between IT groups and business lines. BRM’s focus is to manage the relationship with business strategists and recommend IT solutions relevant to business performance improvement and cost reduction initiatives where applicable.

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Conclusion: Organisations everywhere have been embracing agile as a project delivery approach, agile for creativity and product development and even agile and lean for new business models. Seeking to fast-track their way to value often means embracing the minimum viable product (MVP) method. MVP is often bandied about but rarely is this method being utilised as intended. The reasons are many and varied and understanding what MVP really is and how to leverage the method effectively can provide significant value for teams and organisations alike.

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 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.

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Shadow IT sounds like a covert — quite possibly dark — force. And to some people it may well be. But the truth is both far simpler and more complex.

According to Cisco, Shadow IT is the use of IT-related hardware or software by a department or individual without the knowledge of the IT or security group within the organisation.

“Shadow IT is a term that originally came from people having little apps they brought into the business themselves. Dropbox is the classic one, but there are plenty of them,” says Dr Joseph Sweeney, advisor at leading Australian IT research firm, IBRS.

“Today, shadow IT extends beyond consumer apps to the as-a-service delivery of enterprise business capability, such as Human Capital Management.”

Full Story

Conclusion: This month, the high activity in mergers and acquisitions has continued. However, there has been additional discussion on the impact of these acquisitions on the industry in general, as well as the high volume, and whether this type of activity could have a negative effect on the Australian market – in particular, if the current regulatory frameworks governing mergers and acquisitions are sufficient to protect competition and avert potential misuse of market power. It is critical that regulators are aware of industry trends and how new practices may affect the market, as well as be open to feedback from vendors that have direct experience with circumstances regulators may not be familiar with.

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Conclusion: Organisations understand that implementing projects is part of the natural workflow. Delivering projects that meet organisational expectations is expected and demanded. Project management offices (PMOs) have been established to support project management activities and provide some key elements such as project management methodologies, documentation, project manager recruitment and organisational reporting.

While many organisations have implemented a PMO, there are nearly as many organisations that continue to struggle with some key elements such as resourcing, benefits and prioritisation, and the PMO has an opportunity to provide real value to the organisation in addressing these areas.

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Conclusion: Relationships at work between managers and employees are important and can influence the success and effectiveness of individual teams or whole organisations. Both managers and employees need to understand the bias that can occur between a view a manager may take about an employee they have invested in and ‘hired’ or selected, versus an employee that is thrust upon them or that they inherit from another manager; for example, employees that join an organisation as the result of an acquisition.

When managers are ‘invested’ in the selection of employees, a relationship exists that reflects on the managers’ judgement and decision-making skills, having believed that they have made good hiring decisions. No such relationship exists when the managers have no involvement in the selection of the employees but are assigned to managing the employees.

The more that managers understand this, the better they can focus on avoiding viewing employees differently. The more that employees understand this, the better they can recognise potential issues, and work to improve their career prospects by ensuring they work for a manager that has ‘chosen’ them, or at least learnt to understand their abilities and contributions.

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Conclusion: In times of business disruption, the value of a pragmatic and accessible incident response plan (IRP) will become the main tool in getting the business back to normal operation, and minimising loss of revenue, services and reputation. This holds true during the time of stress when attempting to get back to normal operations. Using the analogy of taking out insurance, insurance is usually highly recommended or great to have, but hopefully rarely required and of little or no use when you need it to find it is out of date and/or incomplete. The same principle applies when you need to activate the IRP to quickly get that critical business function operating to sufficient levels.

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Related Articles:

"Pragmatic business continuity planning" IBRS, 2018-08-01 09:12:08

"Testing your business continuity plan" IBRS, 2019-05-31 13:39:29

"Top 10 considerations when running an incident response drill" IBRS, 2018-09-04 13:29:16

"What are the important elements of a Disaster Recovery Plan?" IBRS, 2016-08-30 01:17:08

Conclusion: The IT skills shortage is likely to worsen. In addition to technical skills, technology leaders and workers overwhelmingly recognise the value of creativity in the workplace, yet they lament their inability to effectively cultivate creativity. Creativity can unlock innovation in the enterprise, generate high levels of employee satisfaction, and make a significant contribution to corporate profit margins as well as national economies.

Creativity can be taught and strengthened, in individuals and in teams. Studies in neuroplasticity are demystifying the biology behind training the brain, demonstrating that even ‘set in their ways’ workers can improve their creativity – and productivity – using relatively simple techniques. Neuroscience is showing that we can still teach an old dog new tricks.

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Conclusion: The success of digital transformation, hybrid Cloud deployment and multi-service providers’ governance largely depends on IT services being integrated and managed in a unified and standard way. Service integration and management (SIAM) is an approach to address this requirement. However, its full implementation is a massive undertaking covering delivery processes, organisational structure changes, service cost tracking, service skills and an effective deployment of end-to-end management tools. This note recommends a quick win approach that focuses on getting the service essentials fulfilled depending upon the status of external services used by an IT organisation.

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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.

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Conclusion: On 16 May 2019, IBRS conducted a peer roundtable on issues related to data, analytics and business value. The focus of the roundtable was to allow senior IT executives to explore how different organisations are leveraging data to achieve tangible business benefits.

IBRS conducted the Domo-sponsored event, under the Chatham House rule. Participants included senior IT executives from a broad range of Australian organisations both in the public and private sector.

This paper provides a summary of the key learnings from the event.

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Related Articles:

"Data: An Asset and a Liability" IBRS, 2016-12-03 02:41:05

"Machine learning will displace “extract, transform and load” in business intelligence and data integration" IBRS, 2018-02-01 10:03:37

"Prepare to manage the “evolution” of AI-based solutions with “DataOps”" IBRS, 2018-03-31 06:43:42

"Reframing Business Intelligence as Critical Business Imperatives" IBRS, 2015-10-03 00:03:12

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.

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Conclusion: Increasing competition where thin profit margins are the norm forces management to analyse business data more intently to identify ways to increase revenue and/or reduce operating costs. Similarly, in the public sector the aim is often to connect common data from multiple sources and determine if government programs are achieving their objectives.

To ensure the analysis is sound and the resulting scenarios can withstand scrutiny, management must rely on skilled and commercially astute data analysts1. The latter typically operate in small teams and may need to resolve data errors or inconsistent definitions of it to process the data correctly and interpret the results.

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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.

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Organisations that are resisting the shift to Cloud computing are often basing their decisions on common misconceptions around security, price and integration.

That’s a key finding in a recent report conducted by IBRS, The State of Enterprise Software Report 2019.

The Security Myth

Many of the organisations surveyed declared security as the primary reason for not moving to Cloud services.

Concern over the security of systems — and, critically, of the data they hold — was common in the early days of Cloud computing and it seems at least some of that legacy remains. But it’s a myth.

Dr Joe Sweeney, author of the report said cloud service providers exceed most organisations’ budget and capacity to manage complex cyber security risks.

That’s certainly the view of the Commonwealth Government, which is moving to Cloud-delivered enterprise solutions aggressively.

Full Story

Conclusion: This month, a number of failures due to external vendor systems performing essential functions have been prominent. Disruption caused by these types of outsourced solution failures become disproportionate when they facilitate critical tasks conducted by consumers. Similarly, reactions can be disproportionate when tasks are deeply intertwined with others, such as government agencies requiring submissions of consumer information or reports to set schedules. These types of failures highlight the fragility of systems and the need for sturdy response measures in case of disruption – responses which must extend beyond technical and local issues, but also cater to practical matters. For instance, an acknowledgement from certain government agencies that consumers depend on vendors to fulfil regulatory requirements, and allowances from agencies when failures interfere with customers meeting their responsibilities to these agencies. Vendors require different layers of protection and responses. This includes dealing with externals and their associated issues that can increase difficulties of failures if not identified and factored into vendor response measures.

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Conclusion: Increasing emphasis in the media and in industry literature on cyber security and the risks of data breaches with service disruptions is likely to get extra attention in future from the board and their audit and risk committee (or ICT governance group).

Not only must the committee be concerned with risk prevention, astute members will also want to know how the organisation will recover from a data breach or ransomware attempt and restore the organisation’s operations, if an unexpected disruption to services occurs.

To minimise business risks, committee members must stay aware of local and international cyber security incidents, how they occurred and were addressed and what they need to do to make sure they are not replicated in their organisation.

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Conclusion: Recently, several architectural models and tools have become available to enable the microsegmentation of networks, which helps improve overall security within organisations and can help limit the scope of any potential breach within an organisation. This can be achieved by aligning microsegmentation of networks with the organisation’s mission-critical systems profile.

Organisations should ensure microsegmentation is included in their security strategy. However, there are several different architectural approaches and organisations should explore these and select the approach that most suits their current or planned enterprise architecture and assess the benefits each approach may offer.

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Related Articles:

"Network Virtualisation – Security drives adoption" IBRS, 2016-09-02 05:06:16

Conclusion: External Cloud services can realise cost reduction up to 50 % p. a. and promise no set-up or exit fees. While the ongoing cost reduction is realistic, there are significant other costs related to third-party services that should be considered to calculate the overall cost saving of Cloud migration. They are:

  • Transition-in cost due to the use of external consulting services to set up the new environment (up to $2.5 million for 7,000 users), as well as procurement cost to prepare tenders, select vendors and negotiate contracts (up to $300,000)
  • Transition-out fees to migrate the current service to another service provider (similar to transition-in cost)
  • Hardware depreciation related to private Cloud exit
  • Governance fees to ensure Cloud consumption remains within budget and the desired service levels are tracked and met (up to 7 % of the annual cost)
  • Risk mitigation strategies to ensure the Cloud service remains secure.

The purpose of this research note is to provide a step-by-step approach to determine the ongoing cost-saving opportunities needed for Cloud migration business case1 preparation.

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Conclusion: During periods of business-as-usual activity or low project investment, organisations often consolidate or reduce thei.e.terprise architecture (EA) capability. Conversely, when entering a period of transformation or increased investment, organisations often look to increase their EA activity and so must take stock of the state of current EA practices.

This assessment should not only review the number and calibre of the individual architects within the EA team but also include reviewing and/or renewing the organisation’s commitment to the tools and techniques employed in the form of a chosen EA framework standard.

However, the term “framework” has become overloaded and not all industry offerings are created equal, nor are they contemporary. Therefore, it is important to understand the elements that make up a complete “standard” when it comes to EA frameworks. In most cases, a hybrid approach is required to provide coverage of all the necessary elements needed to ensure the EA team can support the delivery of outcomes aligned to business strategy.

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Related Articles:

"Architecture governance: Part 1 - a plan that is fit for purpose" IBRS, 2012-03-31 00:00:00

"Architecture Governance: Part 2 Effective Models for Project Reviews" IBRS, 2012-04-26 00:00:00

"Business Capability Modelling Part 1 - why you should do it" IBRS, 2011-12-27 00:00:00

"Business Capability Modelling Part 2 - what you should do" IBRS, 2012-01-27 00:00:00

"Business Strategy and Enterprise Architecture" IBRS, 2017-04-04 03:07:52

"Enterprise Architecture - do you need it?" IBRS, 2012-08-26 00:00:00

"Just enough enterprise architecture - supporting CIO decision making" IBRS, 2013-05-26 00:00:00

"Just enough enterprise architecture: supporting defensible strategic planning" IBRS, 2013-06-23 00:00:00

"Measuring the performance of an Enterprise Architecture team" IBRS, 2013-10-28 00:00:00

"The case for EA remains strong in the face of continual waves of transformation" IBRS, 2019-04-04 16:31:49

"The evolving role of Solutions Architects" IBRS, 2016-01-02 12:23:13

"Using models to link Strategy and Architecture" IBRS, 2011-06-30 00:00:00

Conclusion: Many strategic planning activities that are meant to set the future direction for the organisation fail to meet that objective. Current success, a high level of incumbent expertise or even passion can prevent an organisation from considering red flags or other indicators that will impact on future success. At worst, it can result in significant failure; at best, it limits the activities of the organisation to do more of the same with a tactical work plan. Overcoming this myopia is critical to ensuring that strategic planning i.e.fective and provides a useful compass for the organisation.

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Conclusion: Successful businesses need their people to be productive and to perform well. Effective communication may assist i.e.suring they do. Effective communication is about thought leadership, defining a purpose, informing tasking and priorities and, most importantly, listening. Opportunities that impact productivity and the fiscal performance of organisations are often lost or not fully prosecuted due to poor communication. Poor communication will result in less than optimal planning or reduced time to react, causing the need to compromise. This, in turn, results in poor prioritisation, and i.e.erything is urgent, nothing gets the appropriate focus.

To communicate effectively at the personal, work unit and organisational levels requires a level of discipline in adherence to the basic principles of effective communication, which will lay the foundation for success.

Effective communication will improve productivity, reduce risk, reduce costs and reduce time to market. Effective communication will deliver line of sight for your strategic outcomes and in doing so will be a combat multiplier for your business.

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Conclusion: Business executives in different business units are bypassing ICT with enterprise Software-as-a-Service. Two early leaders in this trend – marketing and human resources departments – are now rediscovering age-old challenges of uncoordinated software selection. CIOs must transform the ICT group to run IT-as-a-Service to help the organisation avoid information and process fragmentation, as well as reposition their teams as consultative partners. There is no time to wait.

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