The Top Business Issues facing CIOs / IT Directors

 

chase-zander-h78 cio-magazne

I am collaborating with Chase Zander to set up an IT Directors’ Forum for later in the year. Rather than focussing on technology issues, our idea is to focus on the nexus between IT and business, something that I am obviously interested in given my background.

In the IT and change projects I have led, I always prided myself on going an extra mile to understand user requirements. One way in which the group of us organising the seminar is trying to get such user feedback is from LinkedIn.com and specifically the CIO Magazine group (you will need to be a member of LinkedIn.com and the group to view this).

The question that I posed there is as follows: –

I’m looking for business-focussed topics for a CIO / IT Director forum that I am helping to arrange. I would be very interested in what areas are at the top of people’s priority lists.

The forum is for senior IT people, but it is not going to be focussed on technology (there are enough SOA seminars out there already). Instead possible areas would include:

  • Managing the ever increasing pace of business change
  • IT / Business alignment; IT Governance / prioritisation
  • Managing IT in the current economic climate
  • The interplay between IT strategy and shorter-term tactics
  • Increasing the influence of IT at the board level.

Of course some of these overlap. The seminar is meant to be a forum for discussion between delegates, not just presentations. If you were to go to such an event, what topics would you like to discuss? Thank you in advance for your help.

Peter

There has been a lot of very interesting feedback to this question, showing once more how helpful the on-line community can be in addressing issues.
 


 
UPDATE: The results of this survey are now available and may be viewed here.
 

Gartner says “BI must transform and improve businesses”

The title is paraphrased. The actual quote, as reported on BeyeNETWORK, is as follows: –

“Organizations will expect IT leaders in charge of BI and performance management initiatives to help transform and significantly improve their business,” said Nigel Rayner, research vice president of Gartner. “This year’s predictions focus on the need for BI and performance management to deliver greater business value.”

To me this immediately suggests one, potentially awkward, question – what on Earth have some BI initiatives been focussed on before 2009 if it was not transforming and improving business?
 

BeyeNETWORK article about the economy and BI

beyenetwork

For obvious reasons, this has become something of a theme recently and is an area that I have touched on in two earlier posts: Will the economic crisis actually be positive for BI? and Pitching BI in difficult economic circumstances.

The BeyeNETWORK article by Nancy Williams provides an interesting perspective and some practical guidance for BI practitioners who are grappling with the current situation. It is and is well-worth reading.
 


 
BeyeNETWORK provides viewers with access to the thought leaders in business intelligence, performance management, business integration, information quality, data warehousing and more.
 
Nancy serves as Vice President of DecisionPath’s Business Intelligence and Data Warehousing Consulting practice. She has more than 17 years of consulting and management experience, and is a highly sought after authority on data warehousing and business intelligence issues. Nancy is a regular instructor at TDWI World and Regional Conferences and has taught the TDWI Fundamentals and Data Modelling courses for a number of Fortune 500 companies and Government agencies. She holds an MBA from the Darden School at the University of Virginia and a BS in Education from the University of Virginia.
 

Pitching BI in difficult economic circumstances

linkedin EPM Business Intelligence

This brief article simply reprises a response I made to a question on the LinkedIn.com EPM – Business Intelligence group (you will need to be a menber of LinkedIn.com and the group to view the link).

The essence of the question was what key BI-related words would resonate with Executive teams. Here is what I said: –
 

“In an unfavourable economic climate, many companies will be thinking first about survival and defensive measures. Only the very best will consider this environment an opportunity, and the very best will already have established BI that this part of their corporate DNA. Let’s rule these paragons out and think about the rest of the herd.

If you are focussed on survival, then it is probably worth extending the metaphor to think about an animal that is in a daily life-or-death situation. It would want to have as much information about impending threats as possible (what can I see?, what can I hear?, what can I smell?, etc.). It will err on the side of caution assuming that half-glimpsed shapes are potential predators and act accordingly. It will want to understand its current environment (how far am I from a place to hide?, are there other animals around who might also be a target – reducing the risk for me?, what is the terrain like and how fast can I move over it?, are there any blind-spots around me?, etc.).

Translating this into a business arena, maybe you can pitch BI by saying that when every penny is precious, having an in-depth understanding of what you do, what it costs, and what value it generates is crucial. Also understanding trends in your book of business is important; am I starting to lose business, if so, what types and why?, are prices eroding, if so, for what products and in which territories?, where are the pain points?, are there any areas that are still doing well that I could focus on more?, etc.

BI can play a major part in identifying what is going well and what is going badly. It can also track the impact of your current tactics, be these aggressive or defensive. Maybe these are some themes that you could pick up on.

When the seas are very rough, having good navigational equipment becomes essential to avoid running aground. “

 


 
My earlier article focusing on whether the economic crisis will be positive for BI may also be of interest in this area.

Since writing this article, I have penned some others in the same area and also found a number of interesting pieces elsewhere on the web. In response to this I have created a WordPress category “BI and the Economic Crisis“, which will hopefully provide a hub for this important area.
 

Sarah Burnett’s predictions for BI in 2009

sarah-burnett

A brief note about an set of predictions for BI in 2009 on Sarah Burnett’s blog, which is always worth reading. She is perhaps more up-beat than I was in my article about BI and the Financial Crisis and it is interesting to get a different perspective.
 


 
Sarah Burnett is a software industry analyst. Her main area of research is Business Intelligence. She am also interested in Public Sector IT and Green IT.
 

Mitigating problems with the IT cycle

Introduction
 
This article is the second of two focused on problems arising from the IT cycle. The first piece, which may be viewed here, talked about what can sometimes be the unfortunate aftermath of a successful IT project; the team seeking new work rather than the allocation of resources to the most pressing business needs. As previously explored, the problem is basically one of human nature and therefore addressing it is not straightforward. However here I make some suggestions that could possibly help.
 
It is not possible to totally “solve” the problem of the IT cycle; however there are some steps which can be taken which can reduce its impact. Happily, several of these are also positive for the organisation in their own right.
 
 
The Basic Problem
 
1. Communicate better about projects

A prerequisite to not building up monolithic, inflexible IT departments is awareness of opportunities elsewhere in the organisation. Where people have some perspective of other current and future projects, they may see opportunities for advancing themselves which, in turn, can provide opportunities to mitigate the IT Cycle problem.
 
2. Use similar technologies / development methodologies

The more similar the approach taken in different teams, the easier it will be for people to migrate between them. Obviously using similar development tools is one area; however it is perhaps even more important that teams adopt similar development methodologies. People can adapt much more quickly to doing the same sort of thing in a different development environment than they can adapt to doing something quite different in the same development environment. Having said this, the best case would clearly be to work in a new team in a similar way and with the same tools.

Different tools will always be needed when, for example, development of reporting and transaction processing systems. Even here, it will be helpful to enhancing flexibility if the same databases are used and if the same terminology is adopted for business objects.
 
3. Cross train staff

This is pertinent to development environments where these differ between teams. However, even if all teams share a common development tool-set, cross training can give people an appreciation of systems which they did not develop, both their technical architecture and business purpose. This will stand them in good stead should they be required to work on these systems.

Cross training does not have to be extremely time-consuming and extensive in scope. Much could be learnt by 30 – 60 minute seminars held at lunch time. Such work not only prepares staff for changing teams, finding out more about other systems and projects it may also encourage them to consider other roles within IT.
 
4. Cross train managers

At least of equal importance is making managers aware of what is happening in other teams and how. With the right attitude, such information can be the genesis of a more flexible attitude to staff deployment and career development.
 
5. Make use of temporary secondment

The nature of IT work (or most other kinds of work if it comes to that) is that what was a priority last year may not be one this year, but may become important again in six or twelve months. This volatility argues for some flexibility in resourcing. If department X has a trough in workload which is anticipated to last six months and department Y has a peak which is also anticipated to last six months, then seconding some of department X’s people to department Y may be an answer (this of course assumes that people’s skills are transportable – see the last two points). Of course the peaks and troughs will not always coincide so conveniently. Nevertheless, secondment can be a tool in both increasing the breadth of knowledge of IT staff and in managing fluctuations in demand for people between different departments.
 
6. Make appropriate use of contractors

Particularly when there is a focus on expense, contractors are often seen as a bad thing. They cost a lot, they have little commitment to the company, any intellectual capital which they accumulate during an assignment is not retained by the company when they leave, and so on. However some of these criticisms could also be applied to at least a substantial section of permanent staff. Contractors are expensive because they offer specific skills at short notice and do not require much commitment from the company. Replacing contractors with permanent staff reduces our ability to cope with the IT Cycle (though clearly when managers retain contractors beyond their useful life, this contributes to the IT Cycle problem).
 
 
The Budget Problem
 
7. Build IT budgets from the ground up

Rather than starting with the existing IT staff in their existing departments, a potential approach might be to assess the priorities for each year and then allocate resources accordingly. This might introduce a note of instability to IT, but this could be managed and the process would also better reflect business realities.
 
8. Rank projects by business benefit

If the above is not practicable, it would still be beneficial to rank the business benefits of projects undertaken by different departments. The difference here is that the assessment comes after budget submission, rather than before. However the results might be somewhat similar. If one department’s new projects all ranked lowly, then thought should be given to reallocating some of their staff to higher priorities.
 
9. Have departmental IT budgets vetted in detail by other IT managers

It is difficult and time-consuming for non-IT people to assess the intricacies of projects. However IT professionals are familiar with these. A review of an IT department’s budget by an IT manager who is not part of that department can improve the likelihood of the budget being closely aligned with business value. This need not be an adversarial process if seen as a method by which to enhance the quality of the budget.
 
 
The “Latest and Greatest” Problem
 
10. Identify what new technologies are most applicable to the organisation

As well as exciting IT professionals, the “latest and greatest” technologies may often have solid business benefits. However the state of the art in IT moves forward so fast and in so many simultaneous directions that it would be nigh on impossible to keep apprised of all of them. A better starting point might be to assess what capabilities are the basis of an organisation (e.g. an organisation might decide that the expertise of its staff and the quality of the relationships with its customers are fundamental) and then investigate what technologies best support this. This can lead to a good alignment between employing newer technologies (happy IT people) and focused business benefit (happy profit centre managers).
 
11. Be prepared to let some people go

Ultimately, if people want to be into the latest cool thing then sometimes we will have to let them go a do that elsewhere. It is better to try to build a culture where success rather than use of “cool stuff” is important. IT staff with a strong appreciation of the organisations business and how to support it will ultimately be a more valuable resource than a group of talented technicians.
 
 
A General Suggestion
 
The above problems are all essentially managerial in nature. The final strategy addresses this head on and is perhaps a prerequisite for progress on the other ideas.
 
12. Provide incentives to IT Managers who effectively manage staff numbers

People are after all human and nothing helps quite so much in aligning the goals of the corporation and the individual as targeted incentives. Such incentives can be direct (e.g. bonuses for re-deploying staff) or indirect (e.g. annual objectives including one pertinent to this area or the manager’s attitude to effective use of resource being a criteria for advancement).

If an organisation is suffering from the problems inherent in the IT cycle, then I would recommend this final step as the first one to take.