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In this issue: Growing IT's strategic worth |
February 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A letter from the executive officeStrengthening the role of IT as business partnerWhat have you done for me lately? It’s a question businesses are asking their IT departments with increasing frequency. It is no surprise that in the economic realities we find ourselves in, IT is being pressed to demonstrate their strategic value in meeting organization-wide objectives. Simply put, today’s IT professionals always need to show that they are helping to:
At the same time, IT departments are experiencing the pressure of increased organizational complexity and change. So how do IT departments succeed in this climate? The key will be to adopt a business partnership approach and customer experience focus. Obviously a big part of this evolution will be improving the efficiency and functionality of network infrastructure. And IT departments would be well advised to focus on the rigidity of their processes, in conjunction with the adoption of tools and approaches such as automation, IT optimization, virtualization and system management tools. To help you navigate this critical transformation, we’ve put together some helpful resources this month. We’ve got a great infrastructure optimization assessment that will help propel your organization to a higher level of efficiency. We’ve also got a business transformation checklist which looks at four key areas that will help you adapt to change more smoothly. There is also a great Q&A with our own Andrew Jones that gets to the heart of what IT departments will need to focus on for success in 2009. If you are looking to turn your IT department into a strategic business partner, there are a number of ways you can leverage existing and emerging technologies to help you achieve your business objectives. We’ve worked with large organizations in a variety of sectors to get better results from IT resources, and can do the same for you, so contact us today for an overview or an audit on your environment. As always, we welcome your feedback on the tools and resources we offer you in Impact and on any other aspect of our service to you. Best regards, Stéphane Boisvert President, Bell Enterprise ... The role of IT is changing: How to succeed in 2009Information technology is no longer just back-office infrastructure: it is an integral part of every business endeavour and a vital part of the customer experience. IT departments, similarly, need to become key strategic partners for the rest of their organization. Impact sat down with Andrew Jones, Senior Director of Strategy and Planning for Bell Enterprise, to find out:
Managing costs while optimizing Impact: At a time when everyone is tightening their belts, what are the most effective ways for IT managers to manage their costs? Andrew: In the current environment you're dealing with uncertain resources and demand so you have to be able to respond flexibly to changes. The best way to put yourself in a position to do that is to change your fixed costs to variable costs, exit high-capital intensity projects or lines of business, and consider outsourcing. The surprise answer may also be to spend more money. It's important to remember that reducing costs is only one aspect of a business strategy for tough times: others include maintaining your current client base, gaining clients from your competitors, managing your capital, and reducing your risks. Cost cutting without understanding the implications may have a net negative impact on your bottom line while some prudent investments might improve it. Impact: The holy grail would be to optimize infrastructure while simultaneously controlling costs. Is this possible, and if so, how? Andrew: In many cases it is possible. Not necessarily just by upgrading IT systems, but by exiting things you're not expert at. Unless IT is your core capability you may not be expert at managing all aspects of IT. Maybe you should consider outsourcing those elements to someone who is expert in that area. Managed service providers can help you to access economies of scale, and where appropriate, offshore labour rates. This can reduce your capital investment and your costs, or at least change them from fixed to variable, with no reduction in service quality. Maintaining your customer base Impact: How can IT help maintain your customer base? Andrew: What you do with technology can be a real differentiator. From multimedia contact centres to your online presence, which is probably the first way that today's customer hits your company, IT is at the heart of the customer experience. The key is to get the basics right – and that requires good IT solutions. Simple things like the usability of your online presence can make a huge difference. Make the experience better for clients by providing them with the most relevant information, and getting it to them faster. Resiliency, security, compliance – musts even in a downturn Impact: A survey indicates that a catastrophic IT failure heads the list of potential disasters that keep managers up at night. Is resilience still a top priority during a downturn, or are other needs more essential? Andrew: If you are facing a crisis, the last thing you want is another. Data security and resilient systems are at least as important in economic tough times as in good times. Also, accurate and timely business intelligence is crucial to identifying problems before they become catastrophes. There's never a good time for a crisis, but at times like these, a major infrastructure failure, security breach, or product liability issue may call into question the overall future of the company itself. Impact: What about maintaining security and standards compliance? Andrew: No one can afford to be offside with legislative and regulatory compliance. The best way to ensure you've factored it in is to make these requirements, and how they might evolve, a priority early on when making decisions about your IT infrastructure. Good green initiatives to consider this year Impact: The green shift to more environmentally friendly infrastructure is underway. What are the most cost-efficient ways for an IT department to go green that should be considered this year? Andrew: One simple example is increased videoconferencing. It's more time-efficient and cost-effective than employee travel, and it reduces your carbon footprint. Another example is multicasting for training purposes, which gets material out without printing it or sending people to training sessions. The more you use your network to transmit data, rather than physically move people or paper, the more eco-friendly your firm becomes. Virtualization can help you consolidate hardware and reduce power demands. For large data centers, upgrading your equipment can be better for both your costs and the environment. I believe you still have to focus on your strategic business goals and prioritize investments on economic measures, then look for ways to gain concomitant environmental benefits, not the other way around. Coping with the IT skills shortage Impact: The IT skills shortage isn't going away anytime soon. What strategy will the wise IT manager use to deal with this ongoing talent drought? Andrew: I think there are opportunities in the current environment to find talent. I'm sorry to say that some firms in Canada aren't going to be hiring, and some may be shedding great talent as they struggle to survive. Smart companies looking to the future should actually look into snapping up those people who are really in demand. Outsourcing and subcontracting, as I said earlier, can help by allowing your talent to focus on the core technology for your business. Impact: If you could leave us with just one thought, what would it be? Andrew: How about two thoughts? The first is very simple: IT has become engrained into how the entire business operates, so whatever actions you decide on, make sure that you, your CMO, your CFO, and other functional leaders have a complete understanding of the wider implications for the business. The other is that it's important to have a very clear understanding of what you're truly trying to achieve in terms of your business strategy. When surrounded by competing demands you need to step back and say, what are my business priorities? Because you're stretched and have more to take on, often with more limited resources, you have to strongly question anything not directly related to a strategic priority. If you'd like to talk to Bell about managing costs, executing more efficiently, maintaining resiliency, and/or going green, click here to have a representative contact you. Andrew Jones is responsible for the business strategy and market research for Bell Enterprise. He has held a number of strategic planning and corporate development roles over the last thirteen years at Bell. ... Optimize your IT infrastructure. Start with this tool!Could your IT infrastructure be more efficient and productive? IT departments everywhere are experiencing the pressure of increased organizational complexity and change. The key in this environment will be to adopt a business partnership approach and customer experience focus. Optimizing your existing infrastructure, increasing productivity and controlling costs are a critical part of making this shift. The tips in this tool will help you add to your organization’s bottom line in terms of productivity and reduced cost – in every area. Download IT optimization tool now! ... Business transformation checklist – 4 steps to better processes, agility and resilienceThere’s no doubt about it: aligning people, processes and technology with business strategy and vision is a massive undertaking. There are precedents and guidelines, but certainly no clear roadmap. But careful prior planning, solid architecture and proven processes can dampen the impact of twists and turns along the way. For IT, business transformation means changes in equipment, system management and ensuring that employees keep up with new processes. The tips in this tool are designed to help you ensure sufficient rigidity of process, while maintaining flexibility, to weather changes with aplomb. Download business transformation checklist now! ... More resources to help you build value
Take a deeper dive into optimizing your infrastructure with other excellent downloads from our resource centre:
... How are you handling the IT skills shortage? Take our survey!Enrolment in post-secondary IT-related programs is down worldwide, by as much as 70 percent in some areas. In Canada, enrolment declined 22 percent between 2002 and 2007. Over the next six years, employers across the country will need to fill approximately 150,000 IT positions. Not filling those positions would cost the economy some $18 billion - $119,000 per job. But take heart: there is light at the end of the tunnel. A force to be reckoned with, the newly formed Canadian Coalition for Tomorrow’s ICT Skills includes 40 major companies, 25 universities, and a number of leading subject matter experts. Together, we hope to reverse the situation. You can help, too. Take a few minutes to share your experiences and perspectives – and we will publish the survey results in an upcoming issue. ... SAP ECC 6.0: What’s changing and what you need to knowWhat’s new Upgrading your software will open new doors for your organization by allowing you to take advantage of all the developments SAP has made since the release of the version you are currently using. Since this will represent a considerable effort, it is critical to ensure that the appropriate assessments are carried out with knowledgeable experts to help you plan and implement the upgrade, and understand which functions of the new environment will generate the greatest return for your business. Benefits of the SAP Upgrade For example, this new version offers tools such as:
How you can get the most out of the new SAP Upgrade Our specialists have expertise in this latest SAP upgrade, and will not only install it for you, but help during every step of the transition – thus minimizing risk, complexity and cost. This includes conducting upgrade assessments, project planning, integration and testing, as well as SAP training designed to educate your ERP users on the newly deployed applications and enhanced features. We can also help you build business cases, define your ROI, and determine which functions of the new version are appropriate for your organization’s needs, increasing your efficiency and ensuring that you maximize the value from your SAP upgrade. To learn more, contact your Bell representative today, or click here to request a contact. ... Quick linksHere are quick links to different solutions and services offered by Bell Enterprise:
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