Posts Tagged ‘IT projects’

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Unified Communications Is An Opportunity For CIOs To Show Their Value

Wednesday, June 17th, 2009
The Arrival Of Unified Communication Solutions Is An Opportunity For CIOs To Shine

The Arrival Of Unified Communication Solutions Is An Opportunity For CIOs To Shine

The role of a  CIO in any organization is to find ways to enable the company to be more successful. This can include introducing new products quicker, reacting to changes in the marketplace faster, or even lowering the cost of doing business.

Underlying all of these different ways to assist the business there is one area that every CIO must master first: providing great internal communications. An opportunity to radically transform how a firm’s employees communicate has arrived and it’s time for CIOs to step up and lead the charge.

Just What Is Unified Communications?

“Unified Communications” (UC) is starting to take on all the characteristics of a high-tech buzzword and in the process folks are losing track of just what it really means. If you boil it down to its bare essence, unified communications is all about moving all of your voice, video, and data business communications to a single network. Instead of having a phone network, a LAN, and the Internet, you combine all three of these into a single unified (get it?) network that carries all business communication.

Is This Really The Right Time To Be Talking About This?

Hey, there’s a recession going on – right? Despite the current economic problems that the world is facing, CIOs still have a job to do and studying and implementing a unified communications solution is a key part of this. The world markets will recover and if the company is left behind while its competition zooms ahead because they didn’t stop innovating then there’s going to be an opening for a new CIO.

Nicholas Hoover over at InformationWeek has been asking around and he’s found out that:

  • 57% of companies have not gotten past the pilot stage
  • 86% say that they can make a good business case for it
  • 55% admit that their company is confused about the value of UC

What Global Crossing Did

Just in case you need some more motivation to look into what unified communication can do for your firm, how about if we take a look at what the communication company Global Crossing did.

Global Crossing has embraced unified communications in a big way. Their chief operations officer uses it to hold weekly global staff meetings with his 16 direct reports. They use the video conferencing capabilities that they now have. The savings of using a unified communications solution for this type of meeting can be calculated in terms of savings on conferencing services, long distance calls, and even travel costs.

Global Crossing has taken unified communications one step further. They’ve discovered that the real hidden value to this new service is what is called “presence awareness” – who’s currently there for you to communicate with? They’ve integrated this functionality into their day-to-day business applications so that people using them will know who they can contact if something goes wrong.

Final Thoughts

All too rarely does an opportunity like this come along that will allow CIOs to clearly demonstrate their value to the firm. As existing PBXs and data network components start to become obsolete, there has never been a better time to start to analyze WHEN will be the right time to upgrade to a unified communications solution. Your company needs you now…

Questions For You

Is there a driver that you can use to start to build a business case for upgrading to a unified communications system? What features does your firm need most urgently: voice features, instant messaging, location awareness, video conferencing, etc.? Who do you think will be your biggest booster in the firm? Who will be your greatest challenge? Why? Leave me a comment and let me know what you are thinking.

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What We’ll Be Talking About Next Time

The job of  a CIO and the IT department is to equip the rest of the company to move faster and do more. One of the ways that a CIO can do this is by staying on top of new and emerging technologie. One such technology is called Complex-Event Processing…

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Posted in communication | 1 Comment »

5 Things That CIOs Need To Stop Doing

Monday, June 15th, 2009

CIOs Need To Stop Doing Things That Hold The Company Back

CIOs Need To Stop Doing Things That Hold The Company Back

I firmly believe that the reason that any firm has a CIO is so that they have someone who can drive the company’s IT department to provide services and support that will enable the rest of the business to grow faster. It really is that simple – if you can leverage your IT department to support what the business is trying to do, then you’ll be more successful. Of course, this only works if the CIO is doing his / her job…

First You Need Respect

Bob Evans (no, not the breakfast sausage Bob Evans) over at InformationWeek has been thinking about why, of all of a company’s senior leadership, CIOs seem to be the ones who get the least amount of respect.

His conclusions are that the world at large believes that CIOs lack the business skills that are needed in order to have a seat at a company’s strategy steering table. It doesn’t help that all too often CIOs tend to talk using technology terms that seem to go right over the heads of the rest of the business.

If CIOs are to take the reins of the IT department and turn it into the engine that allows the rest of the company to move faster, then there are 5 things that they need to STOP doing.

#1: Stop Avoiding Customers

In order to provide the firm with the tools and services that it needs to meet the needs of its current and potential customers, CIOs need to be spending time meeting with customers. It’s all too easy to become focused on internal issues, cost cutting, and staffing challenges. Get out and talk to customers in order to find out what you REALLY need to be doing to support the company.

#2: Stop Avoiding Change

It is all too easy for an incoming CIO to adopt the “if it’s not broke, don’t fix it” mentality. However, even as you read this the world is being changed by the arrival of Twitter, the long rumored Apple tablet PC, etc. Changes of this magnitude mean that everything must be constantly reconsidered by the CIO in order to find ways to allow the company to move faster and perform better.

#3: Stop Doing Projects Based On “Gut Feel”

Microsoft is getting ready to come out with a new operating system. Should the firm upgrade all of its PCs? Good question. The answer lies in another question: how would upgrading those PCs help the company achieve its business goals? Could the money be spent on something else that would do a better job of achieving those goals? It’s the ability to justify projects based on solid business reasons and not “gut feel” that has been missing from the way that CIOs have been doing business.

#4: Stop Spending So Much On Support

We’re not just talking about money here, we’re also talking about time. Everyone seems to be hung up on the 80/20 rule when it comes to support / new business. Over at HP they’ve found a way to do it, so why can’t everyone else?

#5: Stop Supporting Stereotypes Of CIOs

Evans points out that both at the online version of CIO magazine as well as over at Fortune magazine, disparaging things have been said about the role that CIOs play in firms. CIOs need to stand up and push back – as long as reporters and press are allowed to push them around, they will. CIOs need to start to publicize the fact that their departments are powerful enablers that the firm desperately needs in order to stay ahead of the pack.

Final Thoughts

No senior leadership position is easy to perform these days. However, CIOs have the double burden of having to stay in front of a rapidly changing technological wave as well as being intimately connected to what’s going on in the firm’s business. This can be done; however, in order to be successful, CIOs need to stop doing things that produce more harm than good.

Questions For You

How often does your CIO meet with customers: once a week, once a month, or once in a blue moon? Does your CIO talk about change or does he/she actually cause it to happen? Does your CIO have the ability to turn off the technology talk and turn on the business talk? Leave me a comment and let me know what you are thinking.

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Coming Up Next Time

The role of a  CIO in any organization is to find ways to enable the company to be more successful. Underlying all of these different ways to assist the business there is one area that every CIO must master first: providing great internal communications. An opportunity to radically transform how a firm’s employees communicate has arrived and it’s time for CIOs to step up and lead the charge…

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Posted in CIO | 1 Comment »

Can’t We All Just Get Along (In IT)?

Monday, January 26th, 2009
IT Departments Need To Work With Colleagues In Other Firms To Understand Technology

IT Departments Need To Work With Colleagues In Other Firms To Understand Technology

So there you are, manning the laptop, doing your utmost best to guide your IT department and, of course, your company on to greater glories. Do you really need to network with your colleagues at other firms? For that matter, do they really have anything to teach you?

Peter Whatnell over at Sunoco has some thoughts on this subject. Whatnell is a bright guy: he’ s been in charge of Sunoco’s IT operations since 2001 (remember the dot.com crash?) and he is now the president of the Society for Information Management. Ben Worthen over at the Wall Street Journal recently had a chance to sit down with Peter and have a chat about the importance of remembering to look outside the company for ideas.

Whatnell makes the good point that the colleagues that you network with don’t even have to be in the same industry as yourself. As an example, if you talk with someone who is working in IT for the construction industry and they start to mention how they are starting to use mobile devices to quickly distribute design changes, then you may have found an idea that you can use in your neck of the woods.

One of the big questions that we all deal with is “am I giving away competitive information if I talk shop with a colleague from another firm?” Whatnell makes the point that by now we should all be able to realize that what makes our firms competitive is not the underlying technology that we use. Talking about technology is not going to reveal any big company secrets.

What makes our firms competitive is how we go about using these pieces of technology in order to solve the problems that our firm is facing. This means that even if you and your competitor have access to the same technology, you’ll end up putting it together much differently.

Whatnell believes that the true source of a competitive advantage is knowing exactly how you can use IT to help make your business more successful. One interesting way to do this is to ask key executives how the firm makes money. If they don’t know, then this is an area that IT can help simplify.

In these tough times, it’s interesting to hear what Whatnell has to say about what his biggest challenge is. Sunoco is an oil company – it’s a commodity business that’s competing in a mature market. In order for Sunoco to be successful, the firm is going to have to find a way to become THE low cost provider.

What this means for IT is that we need to find ways to help the business side of the house cut expenses, reduce cycle times, and improve their overall agility. The goal should be to avoid having IT being told to just “cut your budget to help our bottom line.”

In the end, Whatnell says that an IT department needs to have earned its credibility within the company in order to be able to be able to contribute to helping the company reduce costs. The key here is that you need to have already earned this credibility.

Do you routinely meet and talk with colleagues that work outside of your firm? Do some of these colleagues work in different industries? Does your IT department have the ability to work with the rest of the business to trim costs? Do you feel that your IT department has the credibility that it will need to have these discussions with the rest of the business? Leave me a comment and let me know what you are thinking.

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Posted in it strategy | 3 Comments »

3 Secrets That Oil Companies Use To Run A Great IT Department

Thursday, January 15th, 2009
Peter Whatnell, CIO of Sunoco, Has Some Interesting Thoughts On How To Run A Successful IT Department

Peter Whatnell, CIO of Sunoco, Has Some Interesting Thoughts On How To Run A Successful IT Department

If you had to guess as to what the secret of running a great IT department is, what would you say? Peter Whatnell over at Sunoco has some thoughts on this subject. Peter breaks it down to three key items: knowing how your company makes money, choosing to not run against the company’s culture, and remembering to never fall in love with technology. How hard can that be?

Whatnell is a bright guy: he’ s been in charge of Sunoco’s IT operations since 2001 (remember the dot.com crash?) and he is now the president of the Society for Information Management. Ben Worthen over at the Wall Street Journal recently had a chance to sit down with Peter and have a chat about the role that an IT department plays in a company’s success.

Whatnell pointed out that the arrival of a global recession has caused all IT departments to take any plans that they had created prior to the end of August and basically throw them away. The big hit is going to be especially felt in new projects.

The difference between current events and the dot.com crash that happened back in 2001 is that that crash really only impacted the IT community. This time around, it’s really a global meltdown and it’s impacting the whole business.

IT is facing a significant challenge in that there is now a lot of easy-to-use IT technology that is available to consumers. Examples include the iPhone (of course!) and free on-line email accounts with virtually unlimited storage. What this means is that corporate users are now expecting to see similar products available to them while they are at work.

IT departments have some valid security and support issues for not diving headlong into offering such services internally. However, they do need to seriously consider how to offer their customers such services.

Whatnell stresses that we need to make sure that we don’t “…waste a good crisis.” What he means by this is that 2009 is going to be tough and it’s going to force every IT department to investigate nontraditional ways of delivering IT services.

Whatnell is somewhat famous for saying that he’d consider moving to a cheaper alternative, such as Google’s email system, if he could get 90% of the functionality for 10% of the cost. One of the reasons that he’s taken this stance is because he realizes that most users only scratch the surface of the functionality of the applications that they have available to them. Give the power users access to the fancy, expensive version of the apps and give everyone else the basic version.

Whatnell has some very specific thoughts when it comes to evaluating potential IT projects. He says that he evaluates projects based on what they do to support the company’s strategy, what the business case is, and finally, what the business risk is.

He points out that the more change that an IT project would cause to how business is conducted, the bigger the risk is. This does not mean that you don’t do the IT project, but that you need to be very careful and make sure that you give your full attention to all of the change management activities that would be required.

What do you think about what Peter has to say? Do you think that his view from inside an oil company is relevant to the rest of the IT industry? Which of his suggestions do you think is the most important? Leave me a comment and let me know what you are thinking.

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Posted in it strategy | 10 Comments »

Risk Management In IT: How Do You Do It Correctly?

Monday, November 10th, 2008
IT Departments Need To Do A Better Job Of Risk Managment

IT Departments Need To Do A Better Job Of Risk Management

The financial melt-down of 2008 had at its core one simple mistake that a whole bunch of companies made at the same time: they did a lousy job of risk management. They made investments in things that were very risky without realizing just how risky they really were. IT departments face the same challenges: at the start of each year we have a number of different projects that we could possibly work on; however, we rarely if ever do a good job of evaluating the risk associated with each of these projects. Instead we focus on things like ROI, business alignment, and which Sr. VP is sponsoring the project to make our decisions. If we don’t want to get caught in our own special version of an IT meltdown, then we had better see if we can figure out a way to measure the risk of an IT project…

So what is risk when you are talking about an IT project? In the simplest terms risk is the chance that an IT project will fail to produce the results that you are expecting because of a given event or set of events. The purpose of risk management is to make sure that you fully understand the risks associated with a project before you start it as well as managing those risks while you are working on the project.

In the world of IT projects, risk is more often then not associated with the company data that we are in charge of collecting, maintaining, and processing. IT teams need to retrain themselves to focus on the value of the data that an IT project is going to be processing and then determine the likelihood that the project won’t be able to do the processing, or in the worst case will corrupt or lose some / all of that data.

What’s really interesting is that outside of IT, the rest of the business has always used risk analysis to determine when they should roll out new products, determine how to spend marketing budgets, and pick which capital investments they want to make. Implementing a good risk management practice within the IT department is yet another way that CIOs can better align their departments with the rest of the business.

Risk management needs to be baked into all of the steps in your IT department’s projects. This runs from project planning all the way to post-production. Everyone knows that fixing a risk earlier in the process is much cheaper than trying to fix it later on down the line.

How much is all of this going to cost? Actually, a fair amount if you end up doing it correctly. You’re going to have to spend money to determine the value of proposed projects, product lines, and any proposed services. Next you’ll have to assign risks to each of these. This can be quite time consuming; however, the process will pay off over time. The key is to have a strategy for how you want to go about doing this. Focusing on where you want the IT department to be in 5 years is a key part of the process because you want whatever project you select to help you to get there.

How can you tell if all of this effort is worth it? There are actually three ways to go about doing this. Most firms use internal audits in order to determine if their IT risk management activities are are paying off. Depending on the industry that you work in, another way is to use regulatory compliance as your measure. Finally, external audits are an expensive but more complete way to measure your effectiveness.

In most IT departments that have an effective risk management function, the funding for the activity comes out of the IT budget. In most companies the belief is that a well executed risk management program will end up saving them money.

In the end, a risk management program will help your IT department to choose the right projects to work on. Once those projects are selected, then it will help you to develop risk mitigation policies, and fix risk vulnerabilities that may end up yielding process efficiencies. It goes without saying that all of this can end up helping a company meet its regulatory compliance needs.

Does your IT department have a way of evaluating the risk of proposed projects? Does your risk management process exist throughout your project process from start to finish? Have you been able to see any savings since you implemented your risk management program? Leave a comment and let me know what you are thinking.

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Posted in risk | 3 Comments »

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