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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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.

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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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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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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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Conclusion: Regular testing of the business continuity plan (BCP) has many benefits which go beyond ticking the mandatory compliance box to keep audit off the back of executives. Effective testing exercises ensure the BCP has been updated and includes sense-checking the completeness of resources required in the recovery strategies of critical business functions. Running regular BCP exercises also has the benefits of raising the importance of identifying weaknesses, aligning restoration time expectations and ensuring continuous improvement.

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Conclusion: New digital services introduce new challenges and opportunities to traditional performance measurement. Start with simple, repeatable metrics and recognise the imperfections in the initial stages of implementation. It is more important to capture data consistently and identify trends than it is to achieve precision. As the new services bed down and the organisation matures digitally, more sophisticated measures will emerge.

Measurement alone will not lead to digital success. Reliable data capture and critical analysis will yield valuable insights. Acting on these insights can lead to further investment in digital programs and be used to fine-tune existing digital services.

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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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Conclusion: This month, the number of tenders and plans has continued to grow, highlighting the important role projects play when it becomes necessary to replace legacy systems, capitalise on new or evolving solutions or simply adapt to changed business operations or environments. Customers understand that avoiding complacency and market disconnect is critical, yet this still exists, with project plans to replace technologies such as paper-based messaging or tape data storage being announced just this month. It is critical for vendors to provide advice and ongoing support for customers in order to strengthen and simplify migrations and transformation, and more importantly, identify project objectives and final goals when replacing legacy systems.

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Conclusion: With both the NSW and commonwealth parliaments passing respective Modern Slavery Acts in 20181, there are now real implications and consequences for business leaders and their suppliers who ignore the risks of slavery within their supply chains.

Unlike the California Transparency in Supply Chains Act 2010 which applies to tangible goods offered for sale, Australian firms will need to disclose their efforts to eradicate slavery and human trafficking from their supply chain of both goods and services. This means at least 2,100 public and private firms2 have until 1 July 2019 to ask explicitly of suppliers, whether local or foreign, off-premise Cloud or on-premise device manufacturer: What are you and your organisation doing with respect to modern slavery risks?

For many organisations in Australia this will mean more than just adding new evaluation criteria to be applied to current and potential suppliers. Rather it requires providing an accurate attestation on the issue of modern slavery which will require lifting the hood on all manner of “as-a-Service” offerings. Thereby exposing aspects of service delivery that the majority of firms previously thought they no longer needed to concern themselves with, having “transferred” risks, such as those found in supply chains, to their vendor partners.

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

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

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

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Conclusion: Organisations are structured into business units or divisions to undertake day-to-day business activities. Technology projects are often initiated and executed with a combination of specialist technology partners, contracted specialist staff to augment staff levels and contributions from permanent staff in either a full-time or-part time capacity. Project planning and delivery approaches may take a traditional waterfall or a modern agile method. However, resource management and the effective utilisation of resources continues to be a significant problem for many organisations with critical capacity management approaches severely lacking. The implications are poor performance in terms of meeting project timeframes, significant de-scoping of project, or sprint deliverables or constant friction with business units to access resources to complete project activities. Effective resource capacity management provides an opportunity to understand the true available capacity, how to calculate the utilisation and how to plan and accommodate changes to the capacity requirements.

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Conclusion: Finding superior talent has always been a challenge, even more so now. Traditional attraction and retention strategies still have value in most situations. However, there are novel ways to think about attracting talent in a digital world, including rethinking the need to attract talent at all by rethinking the business problem.

In many cases, technical skills can be taught on the job. What is harder to teach – and is therefore highly sought after – is the triple-crown of critical thinking, creativity in problem solving and curiosity. Consider putting those three characteristics at the top of the talent wish list and adapt existing recruitment practices to identify, attract and retain the right talent.

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Demand for chatbots – automated conversational agents that may be deployed across multiple digital channels, including websites, social media feeds, instant messaging, voice assistants etc. – is growing. As outlined in Chatbots Part 1, organisations should take an evolutional approach to develop an understanding of chatbots, and the skills and capabilities needed to harness them.

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Conclusion: The ubiquitous availability of smartphone and wearable technology has opened up opportunities for a wide range of new applications that take advantage of knowing the location and proximity of these devices.

One of the newer underlying technologies that enable these new apps are low-cost small beacons that provide regular transmissions, usually to Bluetooth-enabled devices. When working on digital transformation projects or opportunities to innovate, these technologies should be included in the developer’s tool bag.

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

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

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Conclusion: Conducting effective business impact analysis details the business functions and provides further insight into the relative importance of each function and its criticality. The information is then used as the main source to develop business recovery strategies, the priority of restoration and identification of resources to aid in the restoration of business services. However, there are many challenges in performing this critical step in order to be best prepared when those business disruptions do occur.

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Conclusion: The current Business Relationship Managers mostly act as a service desk to manage the implementation of business stakeholders’ service requests. While this is an important business relationship function, the current incumbents are not engaging with business stakeholders’ strategic discussions that require the selection and implementation of new technology that can improve the business presence and performance in the market. As a result, Business Relationship Managers are not earning a “trusted advisor” status. The Business Relationship Manager’s job focus and skills should expand to promote the value of IT services that contribute to business value creation, measurement and communication. This should allow the IT organisation to become the service provider of choice.

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Conducted by Australia’s Intelligent Business Research Services (IBRS) and commissioned by TechnologyOne, the survey of 261 business leaders in ANZ has shown that business functions are having more sway about technology decisions and are increasingly opting for Cloud-based applications.

But it is not always a case of “shadow IT” in the traditional sense where a business unit goes behind the technology department’s back to buy a product or service.

Instead, it is “enterprise shadow IT” selected with the blessings of IT, said Joe Sweeney, principal analyst at IBRS, adding that in some organisations, CIOs have transformed and are more supportive and consultative.

 

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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Conclusion: This month, discussions regarding rising costs associated with outsourcing have been prominent. Whilst benefits from outsourcing in the form of efficiency and financial savings have been clear for some time, customers can find that savings are not as high as expected due to increased complexities associated with new offerings and associated implementation. For instance, customers that moved to the Cloud for storage and compute solutions benefited from the large number of vendors in the market and more competition. However, as the market has matured, customers demand more sophisticated offerings to leverage new technologies such as artificial intelligence and machine learning. As a result, infrastructure and associated services have become more costly, coupled with add-ons and Software-as-a-Service costs. Whilst cost benefits remain a priority for customers, it is also important for thorough cost optimisation reviews, and the engagement of specialist services to rationalise and assist with the management and restraint of outsourcing expenses.

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Conclusion: Chatbots have become a hot topic among senior executives, especially in HR, customer services, citizen service, marketing and sales groups. Chatbots, powered by the increasingly accurate natural language processing capabilities, hold the potential to radically change the way people interact with an organisation without human intervention.

Separating chatbots into two aspects – clients and engines – provides a basis for very low-cost proof of concepts, while also protecting investments in the most valuable asset of the bot: the training data.

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Conclusion: Globally, organisations are dealing with the challenges of “digital transformations” and the need to “innovate”. Chief information officers (CIOs) need to support their organisations in these initiatives, but the ownership in defining what is required rests with the business managers, and the key executives such as the chief marketing officers, chief supply chain officers, chief human resources officers and chief executive officers. If the organisation has one, chief technology officers would be a contributor in terms of how technology can be included in innovation initiatives.

CIOs need to be valued as trusted advisors to the business leaders in terms of what technology solutions will support their businesses’ initiatives.

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Conclusion: Effective project managers prize the importance of capturing lessons learnt during the life of a project, but too often, it is just a necessary task to complete at project closure. By following simple tips and adhering to some techniques, project managers can get increased benefits for themselves and the organisations they work with.

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Conclusion: In an environment where the quality of front line services is critical for customer loyalty, the call centre’s (or contact centre or help desk) performance is pivotal. A salient way to measure the call centre’s performance is to calculate its First Call issue Resolution rate (FCR), i. e. the rate at which received calls are resolved the first time while the caller stays online.

A 2019 survey of 300 contact/call centre managers found if the rate is around 70 %1, the call centre is performing well and likely to be satisfying the needs of customers. Conversely if the FCR is well below 70 %, IT management must initiate strategies to increase it. Failure to do so will adversely affect the customer satisfaction rate.

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Conclusion: Cognitive bias has the potential to reduce decision-making effectiveness. Although bias can often streamline the process of coming to a decision, the quality of such decisions may suffer. In emerging technology areas such as process and decision automation, as well as in mainstream activities such as procurement and recruiting, unconscious biases can have a significant negative impact on individuals and on business outcomes.

Recognising the most common biases and the tendency for people to exercise these biases will increase the likelihood that sound, defensible decisions will be made. Critical thinking, empathy and actively seeking diversity are all strategies that can be used to manage these risks.

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Conclusion: The Agency Head/CEO is responsible to accredit the ICT system for use at the PROTECTED level. The accreditation process is specific to the services being delivered for the organisation. The Australian Signals Directorate (ASD) certification process is a generic process that assesses the Cloud Service Provider’s (CSP) level of security only.

The Agency Head/CEO remains responsible as the Accreditation Authority (AA) to accredit the security readiness for the services to be delivered for their organisation. In practice the CIO/CISO will lead the accreditation process on behalf of the CEO.

ASD’s role as the Certifying Authority (CA) for PROTECTED Cloud services provides the agency/organisation using the CSP with independent assurance that the services offered meet government Information Security Registered Assessors Program (IRAP) requirements and vulnerability assessment requirements at the PROTECTED level. The certification process provides a consistent approach to the cyber risk assessment of the CSP’s environment only. The PROTECTED Cloud certification does not cover security assessment related to the design and maintenance of the customers’ services and/or software to be run on the PROTECTED Cloud platform.

The adoption of a PROTECTED Cloud solution will still require a regular review of the security posture. ASD will conduct regular reviews of their processes as the certifying authority (CA), and the Agency Head/CEO will be required to regularly review the accreditation of the service as a whole.

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

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Conclusion: Medium and large sized enterprises are complex, socio-technical systems that comprise many interdependent resources – including people, information and technology – that must interact with each other and their environment in support of a common mission1. These complex entities undergo varying levels of transformation throughout their useful life in a continual quest to remain capable of fulfilling the business mission and achieving their desired business outcomes.

A mature enterprise architecture (EA) practice is extremely beneficial in supporting and enabling a business to transform in a considered manner, to formulate and execute their evolving strategies. Whether in response to traditional business, modern digital or the emerging AI-enabled transformation agendas, the case for adoption of EA remains as strong as ever.

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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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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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Conclusion: This month, discussions regarding offshoring initiatives have been prominent following announcements by two vendors that plans are in progress to send work overseas. Though offshoring can be beneficial in terms of cost and the ability to obtain talent not available in the local market, the approach can cause difficulties for organisations. For instance, local protest or a loss of customer confidence can arise due to perceptions that offshoring practices are simple cost-cutting efforts which come at the expense of quality service. However, offshoring initiatives can be critical to meet demands for vendors to provide new, quality offerings in a highly competitive environment. The need to go beyond the local market is driven by more than mounting staff costs. Although risks associated with cultural barriers or customer backlash exist, benefits can be significant when providing unique and high-quality offerings. Vendors must achieve a balance between local and overseas services, as well as maintaining a positive view of offshoring as more than a simple cost-cutting exercise which results in low quality service, to an exercise that can enhance offerings resulting in improved services.

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Conclusion: The blending of different corporate cultures can be a huge risk factor that can significantly impact the success or failure of an acquisition. Maintaining multiple corporate cultures is extremely difficult to do, and the chances of failure are high. Cultures usually have upsides and downsides. When trying to keep cultures separate, employees tend to only see the “upsides” of what their peers have, and downside issues undermine employee morale due to feelings that they are not being treated fairly or equally.

It is IBRS’s view that ultimately efforts to have two conflicting corporate cultures coexist after an acquisition are likely to fail over time. The most dominant culture will ultimately be the culture of the organisation and employees who did not sign up for that culture will look for exit opportunities.

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