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, 26 September 2008

How a changing working climate can help us enjoy the sunshine – maybe next summer

Well, it wasn’t much of a summer in the end - it seems hard to believe that the nights are already drawing in and the kids are back at school. However, a postcard through my letter box got me thinking how the remote working model in the IT department really has changed over the last few years.

Although summers in the IT department are busier than they’ve ever been, the ability to spend time out of the office to enjoy the odd hour of sunshine is now a much more viable prospect – if only we had more opportunity to use it this summer.

Without a doubt, corporate working culture is now far more supportive of this - it is no longer necessary to be tied to your desk. The concept of occasionally working from home is now widely accepted, meaning staff can avoid unpleasant summertime traffic jams and train journeys. There are also numerous business benefits of remote working - from increased motivation, productivity and retention, to better customer service and considerable reductions in travel costs and C02 emissions.

Obviously, the increasing prevalence of 3G technologies in both laptops and mobile phones have made this much more viable - people are now able to stay in touch almost regardless of where they are.

Staff with scarce and essential skills can now take time off, or work remotely with less restriction - being out of the office no longer means they will be unable to apply their specialist knowledge if needed in an emergency. People who once never dared to be out of the office at month-end can take time off and go away, knowing that they can fix problems remotely if needed.

Mobile broadband also helps to make the transition from the sun lounger abroad back to the office far less stressful. The ability to catch up on unread emails via push email is now a great way to make use of the odd minutes which can really add up on the journey home - in taxis, trains, airport lounges and soon even on planes. It’s often difficult to return to work on a cold September morning - knowing there’ll be no ugly surprises when you walk through the door certainly helps.

With the technology and corporate culture in place to support more flexible working patterns, now all we need is a summer to make use of it – maybe next year...

Thursday, 19 June 2008

Putting IT in the driving seat for business success

Changes in recent years mean that IT directors are more frequently invited to share their opinion on business strategy, after years of sitting in the back seat.

Having successfully cleared the first hurdle, the second – taking the driving seat to implement changes in relation to the business strategy – is proving far more difficult.

The IT department is still regarded as a fixer, rather than a strategic business unit aimed at driving growth. As long as IT is perceived as a utility, as opposed to a method of driving business strategy, IT directors will struggle to influence the direction of the business.

However, as businesses become more reliant on technology, or are even created by technology, IT will continue to be a key driver. How then, can IT directors get out of their pigeonholes and make their voices heard?

Firstly, the IT department needs to establish some credibility for the systems that it runs and delivers, which often provide more value than the business realises. Once this credibility is established, the project management credentials of IT can be promoted, and the IT department can volunteer to manage projects which don't necessarily have high systems content.

By definition, projects are generally the way that organisations implement and manage change, so this is a straightforward way of getting the IT department more involved with business strategy.

Creating a project definition document and getting it agreed is a good way to influence the content of a particular project. From there, it's not a massive leap to proposing projects, whether these are for the growth or rationalisation of an existing business, the creation of a new one, or whatever strategy is being contemplated. 

This is an effective way for IT directors to show that their departments do not work only on an ad hoc, reactive basis, but rather that they are proactively working towards long-term business goals alongside the rest of the organisation. 

Tuesday, 09 October 2007

Do WEEE know enough?

After a slight stall, the WEEE directive  finally come into play earlier this year. All electronic equipment, including computers, printers, scanners, telephones and anything else which used to have an electrical pulse, must be disposed of in an environmentally responsible manner.

With so many staff now adopting remote and flexible working practices, there is a demand for the newest technology to enable staff to work as productively as possible. Swapping large desktop computers for small portable laptops is an inevitable part of this transition, but also produces vast amounts of electrical waste.

A current issue is that very few IT professionals fully understand WEEE, the cost of disposal and where they can dispose of their old equipment. There are worries that WEEE will bring extra costs and inconveniences to the IT manager, as well as security issues around the disposal of hard drives and so on.

But there are actually several options available for companies. IT manufacturers will now willingly take back old equipment (often via a recycling service provider) for a very small charge, and there are numerous contractors who will move your goods on for very little money.

The finances behind WEEE are not widely understood; manufacturers in each sector have to pay for recycling of household WEEE and business WEEE, based on their annual turnover in the various categories and sectors. Most of this currently is to recycle and dispose of ‘historic waste’.  Manufacturers have the option to recoup the fee from sales in the form of a (VAT liable) ‘Visible Fee’ to retailers and ultimately consumers on non-business user sales, but practically, few have introduced this.

In terms of security, most companies would probably choose to wipe the hard drives themselves, but nearly all disposal companies will offer this as a service. And of course recycling the material is not the only option; there are several charities, such as Computer Aid International, who are always looking for old PCs to refurbish cheaply to send onto developing countries.

While the option to recycle has always been available to businesses, what has changed and needs better understanding is how do it in compliance with the new rules. IT managers must work with staff to fully educate them as to the directive, to ensure that all electronic waste is disposed of in a responsible manner, and that all recycling service providers are accredited AATFs - Approved Authorised Treatment Facilities.

Just as businesses have taken on board their environmentally-friendly initiatives, such as encouraging flexible benefits, reducing power consumption and printing less, it is now time for them to take responsibility for the large amounts of electronic waste they produce.

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.

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. 

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.


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