Integrating the business
The successful integration of data and processes is one of the most crucial issues in business computing. Managing information is, therefore, a significant burden for chief information officers (CIOs). What tools and techniques have worked for you in your attempts to effectively provide timely information across the enterprise?
Integration becomes even more critical when you have to bring together a newly acquired business. If only the merger and acquisition folks would consider purchasing a business that used the same platform, same database and same application toolkit – but that is a pipe dream.
In reality, the new business does everything differently, but the challenge for the CIO is to bring the systems together, prepare a set of consistent and accurate reports so the synergy values of the integrating business units can be fairly measured.
It all starts with the process owners of the key visibility metrics for the business: operational key performance indicators (KPIs), volume and revenue stats, contract compliance reports and customer performance reports.
Integrating businesses is not easy and can take a lot longer than you may think – the key to success is to be able to measure the process accurately.
Graham Nugent, European strategic information services manager, UPS Europe
We are a public-facing, 24/7 business that generates vast amounts of sensitive information that we must manage with consistent speed and quality across multiple countries.
Real-time visibility is critical to Betfair and so we have developed an integrated set of applications that ensure we have the correct information at the right time to support rapid decision making.
We have invested in a data warehouse and management information system, handled via Business Objects Universe, which is at the core of our performance management.
This is supported by a range of carefully selected internal data management tools, internal transaction reporting and alerting and external transaction monitoring tools.
Data and process are important, but do not form decisions by themselves. By getting the correct information to the correct people at Betfair – it empowers them to make the business decisions that help grow our business.
Rorie Devine, IS director, Betfair
If the technology is not working, then a focus on information is more difficult. As technology becomes more robust, information becomes a more important differentiator for organisational effectiveness. What can a CIO do in practical terms?
First, there should be some measures of information quality, not theoretical but geared around fitness for purpose and business value.
Second, there should be a clear understanding of the business risk from a lack of compliance and security.
Third, accountability should be assigned for information quality and risk, as part of an approach to data governance.
Beyond that, forward-thinking CIOs have the capability to extend their influence from structured to unstructured information and from the control of information to its exploitation.
Sharm Manwani, Henley Management College
In the past the term CIO has really meant CITO – with technology being the management focus, more than information. But the balance is set to change.
Our most recent business executive survey suggests many more chief executives will be holding the CIO responsible for exploiting information as a strategic asset in five years’ time. Beyond getting a grip on today’s problems of corporate data models and master data management – this will mean securing new skills in information management.
We expect to see more headcount allocated to information modellers, taxonomists, ontologists, informatics and search specialists.
Mark Raskino, vice president and research Fellow, Gartner
Bringing technology in-house
The media often concentrates on the effects of high-profile outsourcing contracts. But there has been a growing trend over the past 12 months for CIOs to bring IT processes back in-house. What is your best practice advice for technology chiefs considering such a move?
CIOs should start planning bringing processes back in-house before they outsource it in the first place. Unfortunately many organisations saw this as more of a cost reduction than a best-value capability sourcing decision. However, if this is not the case, what else can the CIO do?
Essentially, it is all about taking good business decisions. It requires matching capability to demand, evaluating and addressing risks, recognising the people and organisation transition challenges while retaining a strong focus on the business benefits. Partnering is critical and you will need to work closely with the HR director, the suppliers, your IT team, chief financial officer and chief executive officer.
Sharm Manwani, Henley Management College
The apparent rise of insourcing can be partly attributed to poorly framed sourcing agreements that were drawn up too hastily in 2002 to 2003.
During that economic downturn, some CIOs were forced to remove things from the books quickly and some vendors were desperate for any revenue they could get.
If the relationship cannot be salvaged and a new deal struck, there might not be a strong alternative services supplier in the market. And choosing a weak one can compound the problem.
If you do have to bring a system back in-house, you might import a whole operating unit, with good people alongside the system. That way you could mitigate a lot of risk. The transfer of undertakings legal implications might burden your human resources director now, but save operational headaches down the line.
Mark Raskino, vice president and research Fellow, Gartner
My advice is to repeat the analysis that was conducted when the decision to outsource was originally made. For example ask the questions that relate competitive strategy to business process.
Has my market or strategy changed such that business processes need to be re-evaluated? How do business processes affect competitiveness? There is no one-size-fits-all solution. Ask yourself: ‘How will I measure and optimise differentiating processes if I move them back in-house?’
If answers to these questions justify resuming an in-house approach, and the financial models support this conclusion, then success lies in execution. During the architecture and design phases of the process and system implementations, be sure to preserve the flexibility to realise the strategic benefits that justified in-sourcing.
For example, the choice of an off-the-shelf software package must include an analysis of whether or not a newly envisioned process can be realised within the constraints of the package. Also, because all in-house processes must be continually optimised, measurement and development tools must support continual enhancement and deployment activities.
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