TRANSFORMATION OF IT SYSTEMS SOCIALLY ACCEPTABLE, EFFICIENT, SUCCESSFUL

Transcription

1 CAISE th International Conference on Advanced Information Systems Engineering Valencia, Spain June TRANSFORMATION OF IT SYSTEMS SOCIALLY ACCEPTABLE, EFFICIENT, SUCCESSFUL Pierre-Yves Cloux Managing Director Andreas Eberhardt Project Management Professional

2 about the authors Andreas Eberhardt German national, living in Switzerland Master degree in business administration, certified Project Manager, Scrum Master small but passionate handball player Pierre-Yves Cloux French national, living in Switzerland Former Executive in France Telecom / Orange Senior IT Consultant

3 IT as a facility : the paradox! There is a more and more IT enabled world Mastering IT = having success Google (Data Management) Apple (supply chain management) Wall-Mart (BI enabled management

4 IT legacy IT is one of the rare domains where history and legacy is bad by default!!! The complexity of legacy is proportional to several parameters: The choice of organization (internal, partially or completely outsourced) The choice of architecture / products (rec. maintenance, license costs) The speed of growth of the company in its first years The amount of available investments for IT systems

5 let s transform! The choice for the transformation delivery and implementation strategy gets a critical success factor. Expected objectives of IT transformations (at the same time): Reduce costs for IT in proportion of the company revenue Achieve higher efficacy of investments (less CAPEX for the same result) Increase projects efficiency, focus to reduce the project duration

6 WHAT ARE CONCEIVABLE OPTIONS FOR SYSTEM TRANSFORMATIONS?

7 The two common approaches Option n 1 : Transfer the problem to a partner (outsourcing) Switch to a full managed service approach for the entire IT Commonly the outsourcing is done step by step starting with infrastructure and operation. Option n 2 : Transform the IT, motivation: need to control the transformation delivery. need to keep control of legacy, avoid impact on business strategy. need to comply with certain ethical or political principles.

8 The risky transformation strategies Two dimensions influence the costs for the information system: The number of systems The total cost of ownership per system The bad recipes reduce recurring costs via elimination (easy way strategy). Transform the business, adapt to an out of the box product for some system domains.

9 The iterative tactical approach Business impact 28% recurring costs, 60% external IT OPEX. 40% TTM (increase of efficiency) 60% critical incidents per week No impact on business strategy Success factors for a tactical delivery strategy Leadership Measuring and Communication Delegation and Professionalization Planning and Piloting

10 Leadership in IT transformation There is a component purely linked to (technical) competencies for IT Executives! We understand leadership as the capability to judge the efficiency of your teams and suppliers the ability to motivate employees, in particular technical people being able to get hands on in technical and operational details

11 Measuring and Communication How do you plan to effectively manage an IT department without performance reporting? The simple answer is you can t... An effective measuring and communication includes a clear definition, alignment, documentation of the KPI catalogue not to limit on high level KPIs only! tracing all changes in order to explain deviations publishing all defined KPIs - as visible as possible.

12 Delegation and Professionalization People are promoted to management positions without having formally validated their competences. The organisation must be ready for a transformation announce the change simplify the job descriptions and link them to a career path define and centralize a professional team of project managers distribute the responsibility for the TCO to the technical lines

13 Planning and Piloting First concentrate on the basics, the things to get right! Despite tools, methodologies buy in and confidence is crucial improve the level of confidence for your delivery capacities request formal management expectations and objectives for IT define a vision of the future IT architecture constantly align the management expectations and the business strategy

14 Why socially acceptable? We recommend to leverage on internal resources, to train them, to include them in the transformation strategy and to pay them accordingly! Creeping OPEX cost increase in industrialised countries, due to: hesitance about the scope of IT outsourcing ( keep control internal ) no to low verification of competencies for management positions in IT degradation of the salary level of technical functions no on-going training or technical career path

15 The conclusion The delivery of a sustainable IT transformation with low impact on current business activities and low surprises on cost and quality is possible! If the IT executive is able to go into operational details and adopt an entrepreneur management style (technical competence!). the employees get regularly trained and empowered to make technical decisions and participate in the definition of the IT vision and strategy. the performance is constantly monitored, the stakeholders are closely managed and the delivery process is sustainable and constantly meeting expectations.

16 THE END

17 Cost reductions The main motivations for a system transformation are therefore: A reduction of recurring costs A higher efficiency of investments (less CAPEX for the same result) A significant increase of projects efficiency, focus to reduce the project duration Time is money