IT management insights from Sandra Smith, head of informations systems at Toshiba UK IT management insights from Sandra Smith, head of informations systems at Toshiba UK IT management insights from Sandra Smith, head of informations systems at Toshiba UK

Tuesday, 24 February 2009

More bang for the IT department's buck

As the recession deepens, every business is thinking of new ways to cut costs and the IT department’s role is becoming more and more important in this process. A large proportion of annual expenditure goes on ‘maintenance’, but sometimes a more efficient use of internal resources can help reduce this financial drain. It’s time we became a bit more self-sufficient. I’m not suggesting we panic and go back to the ‘make do and mend’ mentality, but sometimes it’s possible to be a bit smarter about how we use what we’ve got.

Modern businesses are entirely reliant on functioning IT equipment, and a fair amount goes out on hardware maintenance contracts. However, rather than pay out for maintenance year after year, it is often significantly cheaper to purchase and hold spare routers, switches and servers, and utilise technically competent in-house staff to swap hardware.  For items which you choose to keep on maintenance this year, a contracts database can be a useful tool to remind you of pending renewals three months in advance, so that every year you have time to reconsider, before automatic renewals kick in.

Careful management of software and communications contracts can also result in significant cost savings. Renting software packages rather than purchasing outright can help create a healthier cash flow and reduce the need for large one-off payments, and companies can also realise cash flow benefits from using software-as-a-service applications.

Additionally, as laptop and mobile technology continues to advance rapidly, remote working is becoming an increasingly attractive option. As the communications industry becomes ever more competitive we should be able to negotiate better contracts every year, with less money for more bandwidth to make this even more viable. To continue to get the best deal, a two-year contract should really be the maximum, preferably with a review against the market built in halfway through.  Costs can also be saved in land-line and mobile phone communications, but the IT department should be responsible for both sides. This avoids any conflict of strategy between land-line and mobile use, and also increases opportunities for the take-up of voice over IP and its inherent cost savings.

Most IT departments will be adopting these or similar, maybe better strategies already.  Perhaps it’s now time for some evangelising to the rest of the business about taking a hard look at recurring expenditure, and ways to cut it down to size without reducing service levels. By clearly aligning its strategies with the financial focus of the business at this time, the IT department can demonstrate that it does understand what’s going on, and can make a positive contribution to the situation.

Friday, 16 January 2009

The downturn is a challenge for IT managers, but could it also be an opportunity?

As well as all the normal challenges faced by IT managers, the current financial crisis has brought a new one - the non-availability of credit for otherwise perfectly viable companies and their investment plans. Even the best cost-justified projects and investments have to be funded from somewhere, and if the cash is not forthcoming from the bank, the soundest project in the world may not get approval.

So, 2009 may be the first year that IT managers have to get involved not only in preparing a sound business case, but also in organising the fine details of investment financing. With bank loans in short supply, IT managers may need to become overnight experts in leasing and rental contracts, discounted cash flow calculations and the like, and suppliers whose current sales models are based on one large cash receipt may need to radically change to live with smaller, staged payments. 

IT managers need to suggest new projects in terms of simple pounds and pence. Understanding all the financial ramifications of a proposal, including the detail of money supply, may be crucial in preparing a business case the board will approve.

The tough financial climate means that it will be harder than ever to implement new IT projects, but it may also give IT managers the opportunity to broaden their knowledge, integrate themselves further with the financial running of the business, and come out of the downturn with more credibility on the board than ever.

Friday, 18 April 2008

It’s time for IT students to get down to business

We have the most techie generation of kids ever, with many youngsters knowing how to type, plug or print before they can properly walk. Yet the numbers of students opting to study IT at school is continuing to drop.

What is even more worrying is that the dwindling number of students who actually do go on to study IT at university count for one of the highest unemployment rates across all degree subjects in 2007. Yet there are jobs out there needing to be filled.

So if there is so much panic of a skills crisis across the IT industry, why is it those who do leave university with a qualification in IT, often don’t go into a job in IT, or have no job at all?

If we take a look at the popular university subjects it is clear to see that many students now chose non-technology subjects such as business studies. Possibly they are not sure which career path they will choose when they leave university - after all, who knows what will be in demand in four years time - and they are sensibly looking for a good all-round degree.

Of course, although students may not be aware of this yet, employers know that you are likely to get further in most industries if you are strong in communication, teamwork, and attention to detail. The specifics of a degree subject, such as IT, shouldn’t detract from these, which are character attributes as much as skills, but can be considerably enhanced with education.

A non-technical degree can be just as valuable as an IT, mathematics or science one, if it teaches graduates self-discipline, team working and cognitive skills. A musician, for instance, has already proved that they can read and write code, work in a team, and will have manual dexterity which will hold them in very good stead in IT. With blurred boundaries between technical and non-technical roles, the softer skills are becoming necessary much earlier in IT careers.

It is excellent to see some response from the government with the new IT management for business (ITMB) degree, which is on offer at 13 universities throughout the UK.

Most shortcomings in new recruits are not technical in nature and this degree is designed, I think, to jump-start students into an IT/business environment, critical now because so many of the traditional career development routes are blocked by outsourcing. The syllabus will allow pupils to develop a sound knowledge of the essential elements of business IT, while acquiring practical and problem solving skills. Many courses will also incorporate a year’s business placement.

Although this degree has only been running for just over a year, it would be interesting to see what results it has begun to yield. Could it be the answer to the skills crisis that  has been looming over us? We’ll probably start to see the answer to this when the universities start phoning round for placements in 2009.  If it’s going to be a success, the undergraduates should go like hotcakes.

Wednesday, 03 October 2007

Poor change and project management skills are hindering business transformation

With business and IT still speaking two different languages it looks like the barriers between the two aren’t going to come down unless someone takes the first step and learns to bridge the gap. 

IT’s lack of business and communication skills is stalling business change projects, according to a CIO Connect survey, which found that 64 per cent of IT managers had to change the people in charge of projects to ensure success.

But I think the problem is not just about simple ‘lack of skills’. We all tend to retreat back to our comfort zones and clearly defined responsibilities in times of stress - and what project isn’t a source of that?

For IT people, the comfort zone is around methodologies, the technicalities of set-up, the coding, the flowcharts of predicted business flows and transactions. For business people, it’s the interaction with customers, with suppliers, with regulators and with reporting systems, with what they want IT to do for them. 

So in whose comfort zone is change management, conflict resolution, the painstaking reiteration of changing processes to those affected, the detailed analysis of cause and effect, and the focus on motivation and self interest? What project last allocated a third of its budget to the time and travel needed to construct and institutionalise the new processes which are essential if the system is to be a success?   

If these are no-one’s clear responsibility and comfort zone, then they‘ll be the first to get dropped when deadlines lurch closer and stress levels grow.

To deal with this stress-induced polarization, some CIOs are going down a joint venture route - working with outsourcing specialists to gain access to change management, communication skills and other resources they don’t have in-house.  But for IT to take a lead in business programmes and significantly raise its profile within the business, it needs to provide in-depth change management, commercial, leadership and communication skills, in addition to more traditional IT project management abilities. 

CIOs can start the process by consciously putting IT staff into project roles which will stretch them out of their comfort zone and into these terrifying areas.  And not surprisingly, once they’ve been there for a while and overcome some major setbacks, that becomes their new comfort zone.

Friday, 22 June 2007

Women in IT - It’s hard getting your first break in IT regardless of your sex

Female IT workers believe it’s harder to get their foot in the door than progress up the IT career ladder, according to a recent study by the Training Camp.

Two thirds of the 100 female IT professionals surveyed said it’s more difficult to get into the industry as a woman than to progress and be promoted once they have secured a tech job. 

The survey suggests this is because companies don’t think women are as technically focused as men and that females looking for their first job have to work hard to convince potential employers of their genuine technical potential.

For me, it would be interesting to know how long the female IT workers surveyed here have actually been in the industry because I don’t think this would reflect female IT first-jobbers’ experiences today.  These days at graduate level the industry is incredibly open to recruiting women. 

The truth of the matter is that it is now very tough for women – and men - to break into IT because of the decline in entry-level positions, due to the offshoring and automation of this type of work, which in turn exacerbates the skills shortage situation. 

In terms of the lack of women in IT, this is really down to perception – women are not really aware of what a fulfilling career choice it can be.  With responsibility for a company’s critical business systems, being technically competent and commercially aware go hand in hand.  A career in technology is so much more than just sitting in a corner coding.  I doubt that anyone thinks that a musical composer has a boring job, but he has to do a highly-technical coding job too in order to implement his vision.

Our research of 1,000 UK teenage schoolgirls showed a strong interest in technology with 76 per cent claiming to be ‘very interested’, yet the majority of these (76 per cent) just were not interested in a job in IT.

Somewhere between secondary school and university, girls decide that IT isn’t for them, or perhaps they just don’t consider it.  Either way the UK is missing out on wealth of talent. 

As I’ve said before (and as fellow bloggers like Mark Samuels have agreed) we collectively need to get the message across that IT can be a fulfilling career choice for all; consider running IT apprenticeships and work with outsourcers to create opportunities for IT juniors in the UK or we will all miss out in the long term. 

Wednesday, 30 May 2007

Flexible working is smarter working

Despite all the bank holidays, this month seems to be all about working – smarter, flexible working. 

With the launch of the new Work Wise UK Quality Mark, flexible working awareness week from 16 to 22 May, and the publication of the British Chamber of Commerce’s Work and Life: How business is striking the right balance report earlier in the month, it looks like businesses up and down the country are finally understanding the necessity of flexible working.

UK plc is finally catching on that adopting smarter working practices can significantly improve productivity and employee relations. 

Great as these benefits are to business, supporting remote working arrangements can place quite a strain on IT departments. IT needs to spend time considering the enabling systems it deploys. 

Initially this just looks like 'put in broadband and some security', but if staff working remotely are to be effective, the remit needs to be somewhat wider. 

Consider arrangements such as:

Telephony:  An IP-enabled switch at head office will allow you to give IP phones to remote staff.  This means that business calls made from remote sites can be at the more advantageous rates you have negotiated with your telecoms provider.  For UK calls, this can be the difference between paying less than 1p per minute and paying 4p or 5p.  For calls out to mobiles or overseas, the savings can be much greater. 

ISP or non-ISP broadband:  Many companies don't even realise that you can get broadband which connects straight back to the office, not via an ISP. The ISP portion of broadband monthly rental is usually over half the cost. Why pay for an ISP service for remote workers when they can use your office ISP connection remotely? A non-ISP approach also covers the extension of internet use and email policies into the remote office.

Printing: Support, printing and consumables costs can be very high if printing (and copying, faxing and scanning) is provided on an ad-hoc basis.

The physical working environment: Companies definitely have some responsibilities for the health and safety of remote workers, so the provision of suitable desks, chairs, and even lighting can't just be ignored.  At the very least, companies need to set out standards and probably provide some cash for setting up home offices.

Security: Security is of course critical and needs to protect not just the office network, but also the remote PC. 

Businesses can’t afford to have an ad hoc approach to flexible working as it leads to employees putting in place their own DIY systems, leaving the network vulnerable and wide open to attack.

A small pilot scheme is a good lead-in to the development of a full remote working solution. The technical enthusiasts in the company will be willing participants and will also evangelise about the benefits of remote working. This will help to inform IT, HR and departmental managers about what parameters, policies and expectations should be set and enable them to roll out a secure flexible working structure on a much wider scale. 

Friday, 20 April 2007

Encouraging tech-savvy kids to pursue IT careers

In light of the industry’s concerns about skills shortages facing the UK, parliamentary lobby group Pitcom and IT sector skills council e-skills UK have launched a competition to discover the most innovative young users of IT amongst the next generation. 

The Made IT Happen competition requires schoolkids aged nine to 11 to enter imaginative projects, which make good use of their school’s IT resources and fits the national curriculum.  A positive initiative like this could help to harness kids’ interest in technology and helps them acquire vital skills for the future. Likewise, sowing these seeds of interest in IT as an attractive career choice amongst the next generation is important to growing and sustaining our industry. Butwe need to kill the myth that you can only have a career in IT if you have a degree in IT.  Graduates with degrees in engineering, music, electronics, and any other degrees which require self-motivation, conceptual ability, logical thinking and mental agility can all make a valuable contribution to the industry.

It’s a common misconception that only IT graduates are interested in IT, and you have to have an IT degree to pursue a career in the industry. As far as I’m concerned, all of this goes out the window as soon as a candidate can demonstrate 12 months' practical experience.  Research shows that young people find technology interesting and exciting and we need to actively encourage and nurture this. 

The public and private sectors must work together to publicise IT as a stimulating and rewarding career to young people if it is to compete with better-marketed career choices such as business and marketing.  Alongside initiatives like Made IT Happen, what’s needed are programmes to give young people useful and relevant experience, many more industrial placements and the funding to help employers to do this cheaply.  We also need to create more opportunities for existing employees to move into IT. 

Most companies have hidden pools of talent, perhaps graduates filling in time in shipping departments or on the factory floor until they find a ‘real’ job.  In Germany, apprenticeships are still common and many people opt for IT careers after a two- or three-year apprenticeship in an IT department.  UK businesses and the government have a moral and competitive responsibility to address the skills shortage. The decline of people working in IT won’t just affect this industry today – it will have serious long-term effects on productivity and competitiveness on UK businesses and the economy.

Thursday, 29 March 2007

We should embrace the consumerisation of IT

Over the past few years the growing influence of the generation of ‘digital natives’ has started to impact the way companies use technology. The ‘consumerisation of IT’, as Gartner describes it, is challenging the old established order of centralised development and control.

Whether it’s using instant messaging to communicate with colleagues, suppliers and customers, setting up corporate Wikis to manage internal projects, or trying out advertising concepts on YouTube, the digital natives amongst us are creating a counter-revolution using tools and methods that are often under IT’s radar. It’s not that they’re ever likely to storm the data centre and burn down the servers, but they do have a rebellious tendency to bypass the traditional command and control approach to IT management.

But rather than using baton-wielding IT cops to suppress the insurgency, companies should look to embrace the new ideas and methods born out of Web 2.0.

For example, enhancing productivity through facilitating collaboration has always been a challenging business goal for the IT department. Yet digital natives in their home lives are already part of thriving communities and social networks which are highly efficient channels for sharing and communicating.

Of course it’s not all a one-way street. The proliferation of consumer devices in the workplace and the inherent risk of having unknown assets connecting to the corporate network can create real security breaches. But with the increasing mobilisation of the workforce, the problem of securing moving endpoints needs to be tackled in any case and having a flexible security infrastructure that satisfies both corporate needs and those of gadget junkies will ultimately lead to a better working environment.

So rather than fearing the loss of control which is brought by the consumerisation of IT  we should not be afraid to seek out and  put the best aspects to work for our businesses.

Monday, 05 March 2007

What responsibility does IT have to the environment?

Green issues are certainly climbing the IT agenda. We’ve recently witnessed a real call for businesses to overhaul their IT systems radically and install eco-friendly technology, especially as power costs escalate.

Moreover, legislation such as the Waste Electrical and Electronic Equipment (WEEE) Directive and the RoHS Directive are putting added pressure on organisations to become more green, from both a financial and ethical point of view.

The IT department has a real responsibility towards the environment. According to The Carbon Trust, office equipment now accounts for around 15% of total energy in the UK and this figure is likely to double by 2020. Leaving personal computers, lights, printers and other office equipment switched on wastes an estimated £150 million worth of electricity in English offices every year.

The introduction of green taxes will push IT directors to take steps to minimise the effect on the IT budget, but the IT function can also have a wider perspective and influence on behaviour. IT, for instance, has created the opportunity for flexible working which can significantly reduced the number of people travelling into work each day. IT can provide the vision (and the practicalities) for global businesses to use videoconferencing and file sharing for network meetings, cutting back on international travel.

IT can keep nudging the business to use email and EDI, not printed, posted and delivered paperwork. Some businesses already include the environmental impact and recycling potential of product in their purchasing decisions. IT can take a lead here too, ensuring that the kit they buy will not contribute to a future mountain of electrical waste.

Businesses shouldn’t forget that there is one thing for certain - green IT is no longer an option, it’s a necessity.

Thursday, 08 February 2007

The strategic gap between CIOs and their staff

While the industry has seen a significant shift in recent years with regards to CIOs and IT directors taking on a more strategic role within the business, a recent article in Computing highlights a real dilemma which most IT departments grapple with on a daily basis – the communication and cultural gap that still lingers between CIOs and their team.

It’s certainly true that expecting one person to bear the entire burden of strategically aligning IT projects to the business needs is unrealistic. But practically, if the CIO doesn’t take the lead in tackling the problem, then who will?

The onus is really on CIOs to instil a different mindset into his or her team which empowers IT staff to uncover and take the needs of the business into consideration at every stage of an IT project.

CIOs must help IT staff to understand the bigger picture and give them the training, coaching and confidence which they need to engage with executives and employees outside the IT department. Examples are financial training and presentation skills. It's important that staff are included in the non-technical aspects of project implementation, like budgeting, scheduling, change management and project communications.

Being able to understand key drivers for different departments and individuals and speaking the same language is critical for IT staff. Team building exercises can be an invaluable way to get IT staff thinking with their business hats on. Business games can be great for this. Get an IT team to be responsible for the P&L for a company for two days and throw them some of the curved balls which happen in daily business life, and they'll soon begin to develop more empathy with the business, and to understand that a non-IT paradigm is just as valid as a technical one.


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