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Strategy clinic: consult the experts

Yvonne Earl
Thursday 20 February 2003 10:29

What will be the top five issues on the IT director's agenda this year?

 
A question of survival

Nowadays, unfortunately the question that must remain high on the IT director's agenda is "will I survive the next 12 months?" The survival rate is short and getting shorter.

Security: ensuring a balance between good security and customer friendliness so the customer does not become frustrated.

Business opportunities: ensure you have the right dialogue with your users to exploit opportunities that technology presents and, equally, listen for needs for which a technical solution may need to be found.

Supplier relationships: build sensible two-sided relationships. With strategic suppliers get into real confidentiality agreements so that you can discuss future needs and they their future offerings so as to speed up the time to market when the opportunity arises.

Continuity: ensure a balance between continuing with existing systems, almost certainly running at low cost and virtually error free, against the functionality offered by new products.

Robin Laidlaw, president, Computer Weekly 500 Club



Cost control comes first

As yet, 2003 shows little sign of economic recovery, so the control of costs will continue to be at the very top of the IT director's agenda. The bean counters will remain a threat.

Service delivery versus cost reduction: all those well-trodden routes towards cost reduction will remain near the top of the IT director's agenda. However these will inevitably have a knock-on effect on service delivery (and hence direct criticism of IT and the IT director) and hence juggling will be a key competence this year.

Manage the structure of systems delivery: should we outsource more of services, allow user departments to undertake more, or should the IT director's group remain the primary source of supply?

Web services: this has to be on the list, if only to determine exactly what it means. Many business managers use Google at home and just want to ask questions of all the organisation's databases and expect exhaustive answers, but few businesses can deliver this at present. Perhaps reducing customer expectations is nearly as good as delivering the goods!

And, of course, securing a seat on the board. Never forget personal aspirations.

Chris Edwards, professor of management IS, Cranfield School of Management



Aiming for maximum value

IT directors need to maximise the value of the organisation's investment in IT. This will, for example, involve infrastructure consolidation to reduce costs and complexity, innovative sourcing strategies to reduce costs, risks and implementation timescales, and increased deployment of enterprise management tools to reduce costs and ease the support burden.

Business alignment remains a critical issue:  IT directors need to ensure they focus on achieving business outcomes, rather than focusing on inward-looking technical issues. IT directors should take a hard look at what the business wants to achieve, and ensure that IT supports these objectives. The days of internal IT strategists defining standards based on technical merit, rather than business requirements, have now ended.

Post-Enron, many organisations will be looking at their corporate governance arrangements, and the IT director should be leading the way. IT governance, relating particularly to how organisations exploit IT and a skilled delivery workforce to its advantage while managing key risks, should be on every organisation's agenda.

Security, privacy and risk management is now a key concern. Threats posed by global terrorism mean that organisations must turn their attention to business continuity (rather than just IT disaster recovery). Legislation such as the Data Protection Act, the Freedom of Information Act and the Human Rights Act means organisations cannot ignore their responsibilities to both protect privacy and comply with requirements to provide citizens and customers with information.

IT directors should expect significant supplier consolidation. Picking the winners now, and making contingency plans for how to deal with non-viable suppliers will be a key issue.

Anthony Harrison, The NCC Group



Agree the budget, meet the target

Budgeting and cost management are top of the list. All the pressure on budgets and costs is downwards. Agreeing on spending in the face of stagnant markets and scepticism about IT's capability to deliver is the first challenge for the IT director; meeting this target is the second.

Maintain service quality while rightsizing: the IT director needs to understand and demonstrate that IT is generating an acceptable return on investment, and is considering all appropriate cost saving opportunities such as business process outsourcing. It is not scale anymore, it is bottom line.

Understand the scale and pace of market consolidation in the IT sector: the names of service providers may change, and more importantly their ability to deliver in the short- and medium term. The IT director will want to know if he can continue to rely on key third parties to deliver.

Identify opportunities provided by the depressed market. The glut of skilled IT professionals on the market allows managers to strengthen their teams. There are also great deals on capital expenditure, particularly with some hardware suppliers seeking sales.

Manage expectations: the business needs to know what service delivery can be provided by IT given the changes in market conditions and any internal reorganisation. The IT director also has to manage the IT team. Keeping people isn't hard; keeping them happy is.

David Hughes, Deloitte and Touche



IT team must add value to business

Top IT directors are focused on one thing and one thing alone: increasing the value that they and the IT team are delivering to the business through helping it to increase its strategic options and maintain short-term agility. They are working to achieve this through a number of strands.

Demonstration and measurement of the value in terms that are meaningful to the business

Identify opportunities for generating more value out of completed investment projects

Create new ways of generating revenues, for example, using corporate assets in new ways

Increase the performance of the individuals in the IT team to deliver faster, better and cheaper

Take partnerships and sourcing relationships to a new level and create new value.

Christopher Young, Impact Programme

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