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.

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Conclusion: Organisations building new products and services need new tools and skills to reinvent old business offerings or build completely new business products and services. To be successful, organisations and key decision makers need to be continually assessing the environment for tools and techniques that can be introduced to assist in providing creative thinking and service design activities. Rather than focus on volumes of detailed assessments and documentation the new approach for tools and techniques is creative and visual. Combined with a culture that supports innovation and change, these tools assist organisations to confirm their service and value direction or to identify and build new value for their customers and their organisation. Having staff who have the right skills and the right aptitude to be creative will be critical even if an organisation partners with a specialist business.

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Conclusion: Organisations must understand that cyber risk is not merely a technical issue that can be delegated to IT but is a business issue that comes hand-in-hand from operating in a modern, online, ecosystem. Until cyber risk is treated as a business risk, we will continue to see organisations fighting a rear-guard action to threats that should have been designed-against through better digital business strategy.

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Conclusion: This month, discussions regarding a number of failed public sector outsourcing projects, which resulted in significant cost overruns have been prominent. Weaknesses were identified in a range of areas, from inappropriate vendor engagement processes to insufficient monitoring and response measures to problems that were identified during the course of a contract. It is critical for clients to establish protocols for contract management as well as frameworks to ensure these protocols can be followed.

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Conclusion: Return on investment is the touchstone of business investment success. Within marketing and in practice its use and definition is imprecise. The lack of precision is a challenge for marketing to the degree that it is difficult to assess its value in various dimensions.

Marketing and IT business case managers need to establish the baseline rules for return on investment and put them into practice for the long term.

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Four technology forces will shape the business strategy in 2016, writes IBRS' Dr Joe Sweeney

In the view of IBRS, four technology forces will shape business strategy in 2016:

  • Mobility, the Post PC Era, and Future Workplace Innovation
  • As-a-Service
  • Security Leadership
  • Data Driven Business

 

Conclusion: Unless an organisation has an already strong cyber security capability, or the budget and appetite to progress its maturity very quickly through expanding its headcount and changing business processes, it is unlikely that any security tool purchases will help. Instead, organisations aspiring to improve their cyber security maturity should focus on business alignment through risk driven conversations, and addressing and automating technical hygiene issues.

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Conclusion: Many organisations looking to transform or innovate their existing business find it difficult to think about it in a completely new way as the past is always present. One way to approach the common strategic planning activity is take the perspective used by start-ups and build a business model for the future which re-evaluates current paradigms. Existing business models can be dissected into key elements and each element can be critically examined and evaluated in terms of its contribution to the desired value proposition.

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Conclusion: The role and responsibilities of procurement and corporate services organisations is increasing relative to those of ICT groups as ICT becomes increasingly bought ‘as-a-service’ rather than installed as capital-intensive internal infrastructure.1

This demand is driving the trend to focus on governance, probity and sourcing management issues in buying decision frameworks.

Neither corporate procurement nor ICT sourcing teams can succeed in isolation: both will sink or swim together. The near-term challenge for most enterprise buying activities will continue to be the ability for both procurement and ICT to keep each other adequately informed and sufficiently knowledgeable in the other’s domain2.

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Conclusion: Most organisations have an unbalanced ICT investment portfolio where back-office systems (including ICT operations) consume more than their fair share of the ICT budget and capability. Consequently, emerging initiatives may fail to gain organisational support relevant to their potential business and organisational benefits.

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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.

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Conclusion: As the concept of digital disruption and digital transformation takes hold, it is vital that IT is not only aligned with, but synonymous with business. Both business executives and IT groups find themselves in a constant race against competitors who have embraced new technologies and new business models. Unfortunately, this situation results in a mad dash between one hot new technology and another in an effort to meet evolving business priorities. In any race, having a skilled navigator and an accurate map is vital. IBRS’s Business Priorities Atlas (see Figure 1) presents the highest-level view of Australian business priorities and the likely technological landmarks along the way towards meeting the organisation’s desired destinations. The Atlas may be used to stimulate discussion between senior IT and non-IT executives as to what, where, and when to invest.

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Conclusion: This month, there has been a particular focus on service-based Cloud offerings. As this market matures, there are increased concerns regarding vulnerabilities that arise when using evolving environments without adopting new enabling tools and processes to support a shift. Approaches, such as retaining legacy applications in a new technological space can cause difficulties in areas such as security, which require more high-level data collection and analysis for success, rather than basic functions offered in legacy systems. With a dramatic increase in vendors offering service-based solutions, it is important for customers to ensure solutions have underlying systems that can support businesses and strategic objectives prior to establishing agreements. It is critical for customers to alter their perspective of service-based Cloud offerings from an alternative hosting platform to an IT toolset that can alter business processes and efficiency, with adequate foundations to achieve business objectives.

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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.

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Conclusion: This month, the Queensland government’s action against IBM for the failed Health payroll system was dismissed, with the liability waiver upheld despite assertions the government was misled by IBM regarding its capabilities during the tender. The Australian Federal Police also announced it has cancelled two five-year outsourcing contracts with Eldbit Systems because of project failure. This underscores the need for clarity during the negotiation phases and establishing clear contract terms such as liability waivers and exit clauses to cater to project failures and disagreements, as well as fostering an environment for positive client/supplier relationships even when projects fail.

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Conclusion: Open Data initiatives have been supported by all levels of enterprises, especially government, for a number of years. To date the success stories have not matched the hype.

In many cases local IT departments have been left out of Open Data initiatives.

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Conclusion: Microsoft is completing a unified communications and collaboration (UCC) product suite development journey begun more than a decade ago as it finally offers missing critical components with Cloud-delivered telephony. In doing so it risks alienating its current UCC partners (especially those in telephony).

UCC strategy, planning and deployment is incomplete, fragmented, or poorly organised in most enterprises due to a lack of curated planning for collaboration and imperfectly orchestrated adoption (especially in training and no mandated use of core UCC tools).

IBRS finds that SfB and similar UCC solutions are only worth the cost if inter-personal collaboration is properly implemented and realised consistently across a business based on a policy. For most businesses, this is a perfect time to review their communications and collaboration strategy because most have massively under-achieved their productivity potential and complete Cloud solutions are now becoming available.

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Conclusion: The role of a cyber security executive is challenging at the best of times, as they need to continually strike a balance between informing and influencing, without continually alarming. But the context surrounding why an organisation creates a cyber security executive role is critical to the success of cyber risk management. Executive level commitment is required continually to ensure that the cyber security executive’s message and mandate are understood by all. Ultimately, a neutered cyber security executive will result in a fragile organisation with excessive, inappropriate, or inadequate controls. Organisations with controls that are mismatched to their objectives will be easy pickings for both attackers and regulators.

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Conclusion: While the need to design current and future state technology platforms has not diminished, the role of the solutions architect in designing tactical business systems and advising management which systems implementation approach to pursue is taking centre stage.

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Conclusion: Progressing digital transformation strategies requires a much more holistic view of service delivery and extends beyond existing business process review and business systems improvement. Designing services that support digital transformation objectives need to look at the end to end service including customer experience. Traditional business analysis activities that captured the requirements of the business process owner and are used to implement business systems will not be adequate.

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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.

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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.

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This Compass expands upon the initial discussion presented in the IBRS Master Advisory Presentation, “Digital Workspaces: Enabling the Future Workplace.”1It outlines IBRS Workspaces Strategy Framework that can guide the development of your end user computing strategy that embraces evolving work practices, such as mobility, activity based working, and self-service.

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In June 2015, the then Minister for Communications, Malcolm Turnbull, introduced a report based on CEDA research titled ‘Australia’s future workforce’. The report examined the impact of the next wave of digital disruption on business activity, how automation will eliminate many of today’s current work roles and the impact of digital disruption on existing business practices.

Based on the previous industrial revolution, workers moved to metropolitan areas to gain employment. This model meant that physical proximity to a workplace was the key defining factor to both the worker seeking employment and the organisation seeking skilled and unskilled workers.

However, the CEDA report highlights that many of the current roles undertaken today — up to five million of them — will either disappear or be changed significantly by 2020. Significant automation will replace many manual and predictable activities, including accounting and even roles in the health sector. To date there has been action to adapt to the coming change in technology organisations and private companies; however, there is still significant lag in the public sector

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Conclusion: This month, discussions regarding analytics and data-driven innovation have been prominent. As the role of IT changes from providing technology solutions to driving business outcomes and strategy through the use of technology agile services to support business processes and targets are required. Companies have recognised that data handling and having the capacity to absorb, use and deliver data are becoming core competencies. This has prompted the growth of service providers that manage and analyse data, as well as providing associated services such as security and storage.

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Conclusion: To achieve workplace assimilation of new or replacement business systems, staff must be well trained and convinced it is in their best interests to become proficient operatives. For assimilation to become a reality a comprehensive workplace change management program, that includes a systems training strategy, must be developed.

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Conclusion: The standard method to assess the future is through the type and function of technologies. The starting point is the way new technologies modify processes and thereby rebalance requirements and outputs. An alternative approach is to examine how executive management will adapt to technological innovation because management maintains longstanding principles and objectives which are noteworthy in the implementation of technologies.

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Conclusion: The challenge with handling threat intelligence is in assessing its relevance to an organisation, determining an appropriate response and then continual execution and reassessment. Consequently, the more comprehensive the threat intelligence service is, the greater the requirement for a customer to have existing, mature cyber security capability. Organisations must understand how they will use a threat intelligence service and what business benefit it will deliver to their organisation.

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Conclusion: The fragmented uptake of real-time co-authoring will disrupt current business practices and impact a number of core information technology solutions as it changes how some types of knowledge are created and how people organise to accomplish some types of work. It is imperative the CIO/CDO engage business strategists, those involved with workplace innovation, and human resources executives to discuss the opportunities and impact of real-time co-authoring, and develop policies and cultural change plans to minimise the risks and disruptions, while also taking advantage of the opportunities.

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Related Articles:

"Get ready for Real-Time Co-Authoring: Part 1" IBRS, 2015-11-02 02:59:07

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: To grow their business and deliver sought after online services, organisations must provide error free systems supported by robust IT infrastructure. When unable to deliver one or both of these consumers will seek other suppliers that provide better online services.

To meet consumer expectations online systems must be comprehensively tested and error free before making them publicly available, and operated on IT infrastructure that can be ramped-up when needed to meet consumer demands. The inability to provide quality services when required could put the organisation’s reputation at risk.

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Conclusion: The IT industry has hit a breaking point where the artificial grouping of information security and IT has left many organisations vulnerable. Business units have viewed information security as an IT problem, and IT has abdicated responsibility for many aspects of operations that should be viewed as basic hygiene. It is time for organisations that want to establish a reputation of trust with their stakeholders, to view information security very differently. This will require IT to take on more responsibility for security hygiene issues, and for many security practitioners to make the mental shift from technical do-ers to risk communicators. All organisations must know who, internally, is ultimately accountable for cyber-security and that this person is adequately informed, and empowered to execute on this accountability.

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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: Business leaders who have concluded that a Chief Digital Officer is required to provide a critical focus on their digital transformation plans, will find that defining the role in detail will remain an ongoing challenge because it is intensely context-sensitive.

Consequently, the first iteration of a Chief Digital Officer’s (CDO) role responsibilities, job description and person specification needs to be widely canvassed and tolerant of the ambiguity between maintaining ‘business as usual’ and a digital transformation.

A CDO role action plan is an important first step in setting and clarifying expectations.

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