Experts look ahead to developments in 2005

The recommendations are:

On bridging the gap between IT and the rest of the enterprise:

• * Improve the standards and professionalism of IT to engineering-level quality
• * Educate IT about the business, educate the business about IT
• * All IT projects must have a business owner
• * Programme and project management skills are the glue between IT and business
• * Improve the documentation, communication and delivery of project requirements

On the role of the government:

• * Provide IT for all
• * Act as an incubator for innovation
• * Be a provider of better education
• * Be an exemplar for the market

On attracting the best into IT:

• * Invest to create better IT leaders
• * Develop a wider range of career paths
• * Promote and develop cross-functional skills
• * Show people that IT can be exciting and relevant
• * Mix computer science with other disciplines at university

On ensuring that IT still matters:

• * Develop a culture of innovation
• * Shake up education at all levels
• * Allocate budget for high-risk projects
• * Have the government act as incubator and sponsor

On trust in IT:

• * Get the basics right
• * Openness breeds trust
• * Manage expectations
• * Demonstrate business value
• * Educate users of technology

Computing's Agenda Setters take a look at the challenges and priorities facing IT leaders in the year ahead

Peter Lowe, director: information management and technology, Home Office

It sounds like a broken record but it's fairly simple: more value from the money we spend on IT. The answer is not so simple though. We can all trot out the usual methods for achieving this, including: Improved professionalism in our IT teams; Standardisation and simplification; Using benchmarking to highlight opportunities for improvement. But I think the greatest opportunity in 2005 is to use true 'vendor management best practices', so with the support of our suppliers we can jointly identify areas to drive out cost while improving services.

Ned Booth, managing director, Travelocity.co.uk

There are three challenges facing those using ecommerce: customer loyalty, improving systems to lower the cost of sale still further, and differentiating products from hundreds of other online retailers. The drive for customer loyalty will spur greater personalisation. Customers will start to become aware that we are, in some way, tailoring our service to them as individuals. We will also be implementing shared technology to lower cost of sale through sites around the world, while advances in multimedia technology and broadband internet will help differentiate by injecting more fun into the online shopping process.

Kevin Lloyd, chief technology officer, Barclays

Striking the right balance on onshore/offshore delivery will be a priority for 2005, as will the developing, acquiring and retaining of the necessary skills needed for this change. Compliance has been the buzzword for 2004 and I expect it will continue to be in early 2005 with companies delivering on mandatory programmes, such as Basel II, Sarbanes-Oxley and international accounting standards (IAS). Security will also be an ongoing challenge for IT leaders as security techniques and criminals become ever more sophisticated and confident. I also expect that it will be increasingly important for IT leaders to show value creation for every IT programme and investment. They will also keep a keen eye on customer insight, delivering the right customer proposition at the right time and cost control programmes.

Obi Nwosu, head of e-solutions, eBookers

Priorities and challenges for 2005 will be in many areas. Three of interest will be: 1. Compliance and Risk Management. With Sarbanes-Oxley coming into full effect many people will be looking to implement much needed but expensive processes. 2. Remote and outsourced working. This will continue to grow but will also diversify. Expect to see new offshoring locations in Africa and Latin America. Also, new working practices will begin to form at home as employers see that offshoring and outsourcing can work. 3. Leveraging new wired and wireless communication paradigms. WiFi, VoIP, instant messaging and portable email tools such as the Blackberry all offer massive productivity benefits and are destined to become essential parts of the business infrastructure.

Richard Adams, senior vice president Europe, Sabre Travel Network

IT leaders in travel will have their hands full this year. Rapid evolution in the sector means traditional package holidays are being replaced by flexible packages that travellers can put together themselves. Travel suppliers are increasingly selling products directly to travellers, and business travel has never been so competitive. Technology that has supported the industry for decades will be replaced by scalable solutions that meet specific requirements of different customer groups, but which can be driven from a common, flexible platform.

Gary Price, chief information officer, Egg

A key priority for online banks in 2005 is to fully comprehend the changing technological environment in which our customers are operating. Five million people in the UK now access the internet using broadband and this is changing the way in which customers interact with the web. While technology continues to move rapidly, it is important to introduce relevant technologies to our customers at the appropriate time for them. The challenge is to use the technologies that customers have available to the greatest advantage, providing them with the best experience possible. A further challenge is deciding at which point new technologies are introduced and exploited in order to always exceed customers expectations.

Jeff Rodwell, partner, Reed Smith

A wide range of legal issues need to be noted by IT managers in the year ahead: 1. Database directive. Recent decisions have destroyed the value of some businesses dependent on database content. IT managers need to consider this issue in database design if the database content will be sold to third parties. 2. Instant messaging monitoring. There is increased use of IM and peer to peer IP telephony. In certain regulated businesses these communications must be monitored and/or recorded. 3. Increasing mobility. As the workforce becomes more mobile, the security demands increase significantly. Businesses that do not adequately secure mobile data are at risk legally and commercially. 4. Management training. With increased outsourcing of functional work areas, IT managers must provide well rounded training for future managers. 5. Multi-sourcing. IT managers have to become more competent at managing multiple outsourcing suppliers who must interact with each other in order to provide integrated service.

Jan Babiak, managing partner: IS assurance & advisory service, Ernst & Young

Regulatory compliance and the related demands on resources that have challenged IT leaders in 2004 will continue in 2005. Leaders will need to prioritise compliance needs against investment in new technologies and major change programmes and will need to address possible skill shortages as well as ensuring their teams remain motivated. Security will also be high on the agenda for all organisations, particularly those being targeted by phishing and spam. Increasing workforce security 'education' as well as controls over growing 'extended enterprises' will be important dimensions to managing the internal and external threats and associated risks for the business.

Paul Coby, chief information officer, British Airways

My prediction for 2005 divides into two areas. 'External verities' which do not change, including: 1. Totally reliable IT operations remains the 'entrance fee' to the leadership team. 2. Doing this for ever lower, not just unit cost but total cost will be essential. 3. External vigilance against the threat from hackers and after the attack must be on the agenda. And then the new stuff: 1. The IT department will become credible champions of business process transformation. 2. VOIP, web services and open source will become mainstream. 3. Community service providers like salesforce.com. Can these become very fashionable?