CIOs usually have a pretty good view of the corporation and understand how processes work. Are CIOs better able to effect these types of business management changes compared with other executives?
HAMMER: In general—there are exceptions to everything—the CIO is not in a position to drive and lead this effort. It can only be done by a senior, business-line executive. But the CIO is extremely well positioned to be what I call a catalyst, where the CIO—because IT sits outside the various functions—really has a bird's-eye perspective on the process issues in the enterprise. In fact, a lot of these process issues often show up in systems terms. And the CIO can really be the catalyst to alert senior executive management to the problems with processes and to the opportunities that process management presents. Once an organization gets going with processes, the CIO often becomes what I call the chief process officer. The chief process officer is not the boss of the process owners. The chief process officer is sort of the organization' s chief of staff for process work, the center of expertise, the keeper of skills and methodology. And we see more and more organizations where the CIO takes on this additional role of chief process officer. If you're the chief process officer—the change agent within the company that's bringing about these process management improvements—where do you start?
HAMMER: The first thing to do is to assess your readiness as an organization to proceed. Do you have the leadership? Do you have the right culture in the organization? And if not, you have to start working on those gaps. What you need to do is identify your processes. If you don't know what they are, you're nowhere. You also need to do a major assessment of those processes in terms of some key issues: What's the status of the design of that process? Do you have one? Is it a good one or not? What about the metrics? Do you have end-to-end metrics or not? Do you have a process owner or not? Do the people who work in the process understand it? Does your infrastructure, which includes your IT systems, support the process? Based on that audit, you've identified what issues you need to work on. And so you say, "OK, I'm pretty good in process owner, not good in process metrics. Let me work on process metrics."
Sunday, November 18, 2007
As CIO Role Evolves, IT's Never Easy
Every now and then you hear something different, something coming from a different perspective and a different vantage point. That's when it's time to sit up and pay attention. Recently, two of the most respected individuals in their fields made the following observations: "I think you'll see a much higher degree of technical focus in the CIO and a higher understanding of technology in business across the C suite. The distinction that we're all so comfortable with -- that there's technology and there's business -- that distinction is going to vanish." That's Google CIO Douglas Merrill. "The role of the CIO is at a crossroads. CIOs can once again reinvent themselves -- and enhance their standing, influence and contribution to the corporation -- or their role will be marginalized: setters of technology standards, managers of infrastructure. ..or worse, overseers of a technically savvy procurement shop." That's IBM CEO Sam Palmisano. When I first read these statements, I immediately wanted to check my calendar because I thought I had gone back in time and was listening to Nicholas ("Does IT Matter?") Carr. Then I started thinking about why these two accomplished men were choosing this particular time to question the CIO's future when to me it seemed that the CIO role had regained whatever creditability it may have lost and has today more than earned its front row seat in the C suite. One reason I came up with is that the rapid adoption of consumer IT in the enterprise is causing the computing platform to shift under the CIO's feet, pushing him to once again immerse himself in technology and perhaps distracting him from the business of being strategic and driving innovation. A year ago it was rare that CIOs would mention mash-ups, RSS, blogs or wikis, Ajax and APIs as topics and technologies they were focused on. Now it's common. As Merrill says, "It's very difficult for classic CIOs to understand how to respond in the best way to this consumerization of IT. The nature of risk management is changing from clean cost-flow across technology to clean talent-flow into technology, which is a very different thing to manage." And a new challenge for CIOs. It is this challenge and opportunity that CIOs will need to address in the coming year to ensure that they don't, as Palmisano warns, get marginalized. Is the CIO once again at a crossroads? I would enjoy hearing your thoughts.
Michael Friedenberg is CEO and president of CXO Media. He can be reached at mfriedenberg@ cio.com
Michael Friedenberg is CEO and president of CXO Media. He can be reached at mfriedenberg@ cio.com
How to Create a Clear Project Plan
One of the critical factors for project success is having a well-developed project plan Here is a six-step approach to creating a project plan. It not only provides a road map for project managers to follow, but also acts as the project manager's premier communications and control tool throughout the project.
Step 1: Explain the project plan to key stakeholders and discuss its key components. Unfortunately, the "project plan" is one of the most misunderstood terms in project management. Hardly a fixed object, the project plan is a set of living documents that can be expected to change over the life of the project. Like a road map, it provides the direction for the project. And like the traveller, the project manager needs to set the course for the project, which in project management terms means creating the project plan. Just as a driver may encounter road construction or new routes to the final destination, the project manager may need to correct the project course as well. A common misconception is that the plan equates to the project time line, which is only one of the components of the plan. The project plan is the major work product from the entire planning process, so it contains all the planning documents. For example, a project plan for constructing a new office building needs to include not only the specifications for the building, the budget and the schedule, but also the risks, quality metrics, environmental impact, and so on. Components of the project plan include: Baselines: These are sometimes called performance measures because the performance of the entire project is measured against them. They are the project's three approved starting points for scope, schedule and cost. These provide the stakes in the ground, and are used to determine whether or not the project is on track during execution. Baseline management plans: These include documentation on how variances will be handled throughout the project. Other work products from the planning process: These include plans for risk management, quality, procurement, staffing and communications.
Step 2: Define roles and responsibilities. Identifying stakeholders - those who have a vested interest in either the project or the project outcome - is challenging and especially difficult on large, risky, high-impact projects. There are likely to be conflicting agendas and requirements among stakeholders, as well as different slants on who needs to be included. For example, the stakeholder list of the city council where a new office building is being constructed could differ from that of an engineering consulting firm. It would certainly include the developer who wants to build the office complex, the engineering firm that will build the office building, citizens who would prefer a city park, consultants to study the environmental impacts, the city council itself, and so on. The engineering firm may have a more limited view. It is important for the project manager to get clarity and agreement on what work needs to be done by whom, as well as which decisions each stakeholder will make.
Step 3: Develop a scope statement. The scope statement is arguably the most important document in the project plan. It is used to get common agreement among the stakeholders about the project definition. It is the basis for getting the buy-in and agreement from the sponsor and other stakeholders and decreases the chances of miscommunication. This document will most likely grow and change with the life of the project. The scope statement should include: Business need and business problem Project objectives, stating what will occur within the project to solve the business problem Benefits of completing the project, as well as the project justification Project scope, stated as which deliverables will be included and excluded from the project Key milestones, the approach and other components as dictated by the size and nature of the project. It can be treated like a contract between the project manager and sponsor, one that can only be changed with sponsor approval.
Step 4: Develop the project baselines. Scope baseline. Once the deliverables are confirmed in the scope statement, they need to be developed into a work breakdown structure (WBS) of all the deliverables in the project. The scope baseline includes all the deliverables produced on the project, and therefore identifies all the work to be done. These deliverables should be inclusive. Building an office building, for example, would include a variety of deliverables related to the building itself, as well as such things as impact studies, recommendations, landscaping plans, and so on. Schedule and cost baselines. 1. Identify activities and tasks needed to produce each of the deliverables identified in the scope baseline. How detailed the task list needs to be depends on many factors, including the experience of the team, project risk and uncertainties, ambiguity of specifications, amount of buy-in expected, etc. 2. Identify resources for each task, if known. 3. Estimate how many hours it will take to complete each task. 4. Estimate cost of each task, using an average hourly rate for each resource. 5. Consider resource constraints, or how much time each resource can realistically devote to this one project. 6. Determine which tasks are dependent on other tasks, and develop critical path. 7. Develop schedule, which puts all tasks and estimates in a calendar. It shows by chosen time period (week, month, quarter or year) which resource is doing which tasks, how much time each task is expected to take, and when each task is scheduled to begin and end. 8. Develop the cost baseline, which is a time-phased budget, or cost by time period. This process is not a one-time effort. Throughout the project, you will most likely be adding to and repeating some or all of these steps.
Step 5: Create baseline management plans. Once the scope, schedule and cost baselines have been established, create the steps the team will take to manage variances to these plans. All these management plans usually include a review and approval process for modifying the baselines. Different approval levels are usually needed for different types of changes. Not all new requests will result in changes to the scope, schedule or budget, but a process is needed to study all new requests to determine their impact to the project.
Step 6: Communicate!One important aspect of the project plan is the communications plan. This document states such things as: Who on the project wants which reports, how often, in what format and using what media How issues will be escalated and when Where project information will be stored and who can access it What new risks have surfaced and what the risk response will include What metrics will be used to ensure a quality product is built What reserves have been used for which uncertainties. Once the project plan is complete, it is important that its contents be delivered to key stakeholders. This communication should include such things as: Review and approval of the project plan Process for changing the contents of the plan Next steps - executing and controlling the project plan and key stakeholder roles/responsibilit ies in the upcoming phases.Destination SuccessDeveloping a clear project plan takes time. The project manager will probably be tempted to skip the planning and jump straight into execution. However, the traveller who plans the route before beginning a journey ultimately reaches the intended destination more quickly and more easily than the disorganized traveller who gets lost along the way. Similarly, the project manager who takes time to create a clear project plan will follow a more direct route toward project success.
Step 1: Explain the project plan to key stakeholders and discuss its key components. Unfortunately, the "project plan" is one of the most misunderstood terms in project management. Hardly a fixed object, the project plan is a set of living documents that can be expected to change over the life of the project. Like a road map, it provides the direction for the project. And like the traveller, the project manager needs to set the course for the project, which in project management terms means creating the project plan. Just as a driver may encounter road construction or new routes to the final destination, the project manager may need to correct the project course as well. A common misconception is that the plan equates to the project time line, which is only one of the components of the plan. The project plan is the major work product from the entire planning process, so it contains all the planning documents. For example, a project plan for constructing a new office building needs to include not only the specifications for the building, the budget and the schedule, but also the risks, quality metrics, environmental impact, and so on. Components of the project plan include: Baselines: These are sometimes called performance measures because the performance of the entire project is measured against them. They are the project's three approved starting points for scope, schedule and cost. These provide the stakes in the ground, and are used to determine whether or not the project is on track during execution. Baseline management plans: These include documentation on how variances will be handled throughout the project. Other work products from the planning process: These include plans for risk management, quality, procurement, staffing and communications.
Step 2: Define roles and responsibilities. Identifying stakeholders - those who have a vested interest in either the project or the project outcome - is challenging and especially difficult on large, risky, high-impact projects. There are likely to be conflicting agendas and requirements among stakeholders, as well as different slants on who needs to be included. For example, the stakeholder list of the city council where a new office building is being constructed could differ from that of an engineering consulting firm. It would certainly include the developer who wants to build the office complex, the engineering firm that will build the office building, citizens who would prefer a city park, consultants to study the environmental impacts, the city council itself, and so on. The engineering firm may have a more limited view. It is important for the project manager to get clarity and agreement on what work needs to be done by whom, as well as which decisions each stakeholder will make.
Step 3: Develop a scope statement. The scope statement is arguably the most important document in the project plan. It is used to get common agreement among the stakeholders about the project definition. It is the basis for getting the buy-in and agreement from the sponsor and other stakeholders and decreases the chances of miscommunication. This document will most likely grow and change with the life of the project. The scope statement should include: Business need and business problem Project objectives, stating what will occur within the project to solve the business problem Benefits of completing the project, as well as the project justification Project scope, stated as which deliverables will be included and excluded from the project Key milestones, the approach and other components as dictated by the size and nature of the project. It can be treated like a contract between the project manager and sponsor, one that can only be changed with sponsor approval.
Step 4: Develop the project baselines. Scope baseline. Once the deliverables are confirmed in the scope statement, they need to be developed into a work breakdown structure (WBS) of all the deliverables in the project. The scope baseline includes all the deliverables produced on the project, and therefore identifies all the work to be done. These deliverables should be inclusive. Building an office building, for example, would include a variety of deliverables related to the building itself, as well as such things as impact studies, recommendations, landscaping plans, and so on. Schedule and cost baselines. 1. Identify activities and tasks needed to produce each of the deliverables identified in the scope baseline. How detailed the task list needs to be depends on many factors, including the experience of the team, project risk and uncertainties, ambiguity of specifications, amount of buy-in expected, etc. 2. Identify resources for each task, if known. 3. Estimate how many hours it will take to complete each task. 4. Estimate cost of each task, using an average hourly rate for each resource. 5. Consider resource constraints, or how much time each resource can realistically devote to this one project. 6. Determine which tasks are dependent on other tasks, and develop critical path. 7. Develop schedule, which puts all tasks and estimates in a calendar. It shows by chosen time period (week, month, quarter or year) which resource is doing which tasks, how much time each task is expected to take, and when each task is scheduled to begin and end. 8. Develop the cost baseline, which is a time-phased budget, or cost by time period. This process is not a one-time effort. Throughout the project, you will most likely be adding to and repeating some or all of these steps.
Step 5: Create baseline management plans. Once the scope, schedule and cost baselines have been established, create the steps the team will take to manage variances to these plans. All these management plans usually include a review and approval process for modifying the baselines. Different approval levels are usually needed for different types of changes. Not all new requests will result in changes to the scope, schedule or budget, but a process is needed to study all new requests to determine their impact to the project.
Step 6: Communicate!One important aspect of the project plan is the communications plan. This document states such things as: Who on the project wants which reports, how often, in what format and using what media How issues will be escalated and when Where project information will be stored and who can access it What new risks have surfaced and what the risk response will include What metrics will be used to ensure a quality product is built What reserves have been used for which uncertainties. Once the project plan is complete, it is important that its contents be delivered to key stakeholders. This communication should include such things as: Review and approval of the project plan Process for changing the contents of the plan Next steps - executing and controlling the project plan and key stakeholder roles/responsibilit ies in the upcoming phases.Destination SuccessDeveloping a clear project plan takes time. The project manager will probably be tempted to skip the planning and jump straight into execution. However, the traveller who plans the route before beginning a journey ultimately reaches the intended destination more quickly and more easily than the disorganized traveller who gets lost along the way. Similarly, the project manager who takes time to create a clear project plan will follow a more direct route toward project success.
Friday, November 16, 2007
How CIOs Should Spend Their Day
Deliberately Distribute Time Across Constituents And Yourself
This is the first document in the “CIO Time Allocation Best Practices” series.
by Lewis Cardin
with Laurie M. Orlov and Bo Belanger
FORRESTER’S 30-30-30-10 TIME DISTRIBUTION FOR CIOS
CIOs often have difficulty balancing their time and focus between their different constituencies, which include their staff, senior execs, and peers. Too often, CIOs are overly focused on one specific area, such as on issues inside their own organization, at the expense of other critical but neglected interactions, such as working closely with a peer business group or executive.
Forrester’s model is based on the premise that there are four areas where CIOs must direct their time: above, across, below, and with yourself. Sounds simple, right? Putting this into practice, however, requires a paradigm shift in how CIOs think about and plan their calendar. It’s important to note that this is not merely about the time spent with these constituents. It is highly unlikely that a CIO will spend 3 hours a day with the CEO. Instead, this is time invested on behalf of each constituent. CIOs must distribute their energy with deliberate balance because constituents that are:
· Above the CIO direct the CIO’s agenda. This group should expect and receive 30% of the CIO’s attention. This constituency can be the board of directors, audit committee, CEO, and/or the senior executive team. Time invested with this group of CIO stakeholders builds credibility, proves the enterprise value of IT, enables the CIO to become an architect of corporate strategy, and develops the CIO’s ability to deal from a position of strength.
· Across from the CIO are the constituents of IT organization results. Demanding another 30% of the CIO’s time, this constituency is made up of peers, CxO executive colleagues, and key vendors. They are the customers of IT in the enterprise. CIOs may rely heavily on team members to work closely with these other groups, which, while necessary, is insufficient to ensure that a CIO fully understands key business issues and concerns.
· Below the CIO make up the team that collectively delivers IT value to the business. Requiring another 30%, this group is the CIO’s own organization. For CIOs, time invested with their own organization provides the leadership for IT to perform effectively, deliver on expectations, and to run like a well-oiled machine. Sometimes, CIOs are so busy working with other execs and above, the “well-oiled machine” becomes badly in need of management maintenance — and this becomes all too apparent to those outside of IT.
· You: CIOs need private time to restore and keep perspective. The CIO should reserve 10% of business time for strategizing, perspective setting, and reflection. This time should be used for consultation with mentors and coaches and dialogue with trusted colleagues and business role models. This should also include self-assessment as to which behaviors and relationships are working well and which are not. This time contributes greatly to the CIO’s effectiveness.
WHY CIOS SHOULD BE DELIBERATE AND BALANCED IN MANAGING THEIR TIME
CIOs should deliberately structure and organize calendars in a 30-30-30-10 distribution to maximize effectiveness in the role and to ensure that constituents are pleased with IT and that IT is looking ahead. And no portion of the CIO’s time should ever exceed 40%, even allowing for IT organizational structure variants like federated or decentralized. The risk of imbalance inevitably results in issues surfacing with one constituency or another.
An Approach To Solving The Current Balance Problem
Consciously keeping this balance in mind, whether it is through daily, weekly, or even biweekly reflections is the key ingredient to success. Forrester recently interviewed 18 CIOs to learn about how they distribute their time. They generally agree that the model makes sense, but some report that they struggle with balance:
· I spend too much time reacting and fixing problems below. Unsuccessful CIOs sometimes spend too much time below them, which takes away opportunities for them to prove IT’s value to the rest of the business, namely in the above and across categories. Anytime a CIO is spending more than 50% of their day on behalf of the constituents below them, with at least half of that time on reactive problem-solving, they are in trouble.
Solution: Interestingly, CIOs with technology backgrounds get stuck in this rut more often than their colleagues with a business background. The reason? They instinctively want to fix problems themselves because they can. CIOs should deliberately teach and mentor a strong management team that is constructed to handle all tactical problems that should not need CIO attention. Cultivating this team in the long run will make the team’s job easier and, more importantly, the IT organization more efficient.
Example: If a CIO finds that he or she is spending too much time putting out fires inside IT, and his or her team isn’t strong, it may be in the CIO’s best interest to appoint an operations executive to handle all of these problems until a solid management team is in place beneath them. This way the CIO can continue to serve all other constituents without getting sucked into a reactive problem-solving role. For example, one newly appointed senior IT VP in a nationwide bank is consolidating support responsibilities under a single trusted leader who will run day-to-day operations while the VP spends more time developing and promoting new technology enabled business ideas that the bank can use.
· My peers’ expectations of my IT organization are too high. CIOs who cite this are really saying that there is a lack of communication between the CIO and the execs of the business lines, the customers of IT. If peer execs don’t understand what IT is doing or what they should expect from IT, exec grumbling and frustration grows.
Solution: CIOs must work hard to market IT more effectively, boost communication with their peers, better understand their peers’ issues, and manage their peers’ expectations of IT. This proactive effort can in some instances feel awkward, but these relationships must be developed through one-on-one meetings or even something as simple as a weekly lunch. Once this relationship is built and the communication is improved, the CIO’s peers become credible sources about the value of IT to their businesses — a topic the CIO’s executive team above should constantly be reminded of.
Example: The CIO at one of the world’s largest multinational consumer products companies said: “I tend to engage my peers in new possibilities, new ideas, and new strategies that we can work on together. We get a lot of insight early on. People want to help — they want to feel that what they think is interesting. Three years ago, we created new strategies for IT here. We had very early discussions with these people to get their reactions, and it worked beautifully.”
· My executive team doesn’t care about strategic input from IT. The executive team in some firms recognizes the importance of IT and regularly discusses IT’s impact on the business. Where that doesn’t happen, it is not the CEO’s or anyone else on the executive team’s job to make this connection — it is the CIO’s job. Again, this involves proactively finding opportunities to provide business value through casual or formal meetings in the office or outside of it. It requires going beyond learning about other parts of the business to find areas where IT can provide value.
Example: When asked about which topics were covered during executive dialogues with constituents above and across from the CIO, the CIO of a $1 billion-plus manufacturer and retailer said: “I tailor the message to who is in the room and how they can help IT in the next 60 days. I coach the CEO on how other division presidents can use IT efficiently and more effectively, and this works.”
· I don’t have time to even think about balancing my time! Often CIOs will be so caught up in day-to-day crises and tasks, they lose the time to reflect and make adjustments moving forward. When CIOs find themselves in this situation they must realize that this comes from constantly reacting to problems in the business and not being able to execute their own agenda.
Solution: Alone time is significant because it allows CIOs to step back and see exactly where they have been spending their time and how effectively it has been spent. Taking a half hour daily or a few hours at the end of the week for this reflection is a good investment of time because it allows CIOs to correct their mistakes and work more confidently and efficiently moving forward. Also, this alone time is an opportunity to seek help from fellow CIOs or trusted advisors within or outside company walls with tough questions that are troubling
them. Often times, a fresh outlook will be exactly what CIOs need to solve a problem. Simply, networking with other CIOs on a regular basis is best practice to succeed in this role.
Example: Following an old adage to a T, the CIO at a billion dollar information service and technology firm never eats lunch alone. The CIO says: “I frequently connect with peers, vendors, and other CIOs informally. This is invaluable, especially with CIOs at bigger companies. Their organizations are more complex, and they deal with much larger issues. They offer an idea that I haven’t even imagined.”
It's OK to be a spreadsheet junkie
Beverley Head, Information Age
Beverley Head, Information Age
Until it implemented an integrated enterprise management solution, travel guide company Lonely Planet was managing the business using 40,000 different spreadsheets.
It's easy to scoff, but Lonely Planet got to be a very successful international business with those 40,000 spreadsheets - it just believed it could do better if it had better management reports based on accurate and timely information.
It's easy to scoff, but Lonely Planet got to be a very successful international business with those 40,000 spreadsheets - it just believed it could do better if it had better management reports based on accurate and timely information.
In the past, business intelligence systems and their ilk have largely been the province of big business and government, but medium enterprises like Lonely Planet are now also turning to such systems in their search for efficiencies and agility.
According to Rob Wells, managing director of Business Objects, more than a third of the company's 2006 licence revenues came from small and medium businesses.
"The basic requirements and needs of the mid market are fundamentally the same as the largest organisations - they want access to information quickly and from a trusted source. And they suffer from having sales directors around the country who believe that their Excel spreadsheet is the truth and their core financial system is telling porkies," said Wells.
"The basic requirements and needs of the mid market are fundamentally the same as the largest organisations - they want access to information quickly and from a trusted source. And they suffer from having sales directors around the country who believe that their Excel spreadsheet is the truth and their core financial system is telling porkies," said Wells.
However, Associate Professor Beth Walker, director of the Small and Medium Enterprise Research Centre at Edith Cowan University, warns that there is no such thing as an homogenous SME, and for many small companies if the spreadsheet approach works, then there's little point in upgrading to a bigger more complex computer system on the vendor's say-so.
Although Australia has a huge population of small and medium enterprises, only a small percentage of them would be ripe for investing in business intelligence, according to Prof Walker.
According to the Australian Bureau of Statistics there are 1.86 million businesses operating in Australia. Of those, 1.79 million have fewer than 20 people working in them. A small fraction of those micro businesses are what she refers to as "gazelles" - fast movers with lofty ambitions - and many of them do have advanced information systems.
According to the Australian Bureau of Statistics there are 1.86 million businesses operating in Australia. Of those, 1.79 million have fewer than 20 people working in them. A small fraction of those micro businesses are what she refers to as "gazelles" - fast movers with lofty ambitions - and many of them do have advanced information systems.
But for a great many more, "MYOB does the job". For those small businesses which actually don't want to grow (and this she claims is as many as half of them) installing information systems geared at growing the business can be counter-productive she warns.
"Whatever you do, ask if it adds value. If it does then it's probably a good idea. If it's going to take you time, and money with no clear benefit then it's probably not."
She said that a lot of the information systems that small and medium businesses do implement are required for compliance; for tax purposes or meet the requirements foisted by Australia's three layers of government. Staying a spreadsheet junkie may be just fine for many successful businesses.
"Whatever you do, ask if it adds value. If it does then it's probably a good idea. If it's going to take you time, and money with no clear benefit then it's probably not."
She said that a lot of the information systems that small and medium businesses do implement are required for compliance; for tax purposes or meet the requirements foisted by Australia's three layers of government. Staying a spreadsheet junkie may be just fine for many successful businesses.
"The mid market Australian firm still does it on Excel", John Hoffman, general manager of Altis Consulting confirmed. He believes though that businesses that want to grow, (and do )grow, taking on multiple product lines or services, or moving into new markets, will have to look at more sophisticated business intelligence tools.
Whatever the vendors and consultants say, even committed medium businesses find the migration from management by spreadsheet to integrated information system a challenge. Lonely Planet for example, found that in spite of its planning in advance of the migration to an SAP integrated information system, it was under-resourced in just about every area, and regretted not talking to other small and medium businesses about their experience in moving to integrated information systems.
And while many large enterprises have their own internal or consulting business analysts, able to identify the information reports required by managers, and translate that into an information systems specification for IT, smaller companies often struggle to crystallise what they want - or just as importantly know when to stop asking for more and more reports just because they can.
Michael Horsfall is systems developer for Perth-based Cash Converters. Like Lonely Planet his company wanted access to a single view of the truth. It had been running non-relational Domino databases along with a range of other data systems which held information vital to obtaining a clear view of the company's workings.
Michael Horsfall is systems developer for Perth-based Cash Converters. Like Lonely Planet his company wanted access to a single view of the truth. It had been running non-relational Domino databases along with a range of other data systems which held information vital to obtaining a clear view of the company's workings.
In the past, store managers were cutting and pasting data from the Domino databases into spreadsheets, and then sending these across to head office. "Management was saying that they had not got the information to help them make business decisions," according to Horsfall. After implementing Business Objects' Crystal Reporting he said there is a single view of the information available and "we have done a reconciliation report that was taking an accounts person three or four days and now takes 10 minutes".
Cash Converters has a particular need for improved reporting following the December 2006 passage of new anti money laundering and counter terrorist financing legislation which will require many businesses, especially those involved in financial services, to overhaul their reporting systems. Companies involved in lending, leasing, hire purchase, asset management (there are 70 designated services affected by the new rules) must maintain detailed records about customers of those services. Prof Walker expects many SMEs to get caught up in the new compliance regime.
Even without the regulatory stick, Doug Goethal technical director of eBI, believes that business intelligence is a growing issue for small and medium companies. But where in large enterprises business intelligence is championed by the IT director pushing upwards the benefits of technology, in smaller companies demand is often seeded by management according to Goethal.
The challenge comes in balancing management's hunger for more and more information reports with IT's ability to deliver. "It rips the efficiency out of the IT team - but it can turn them from being a cost centre to being a profit centre," Goethal said.
The challenge comes in balancing management's hunger for more and more information reports with IT's ability to deliver. "It rips the efficiency out of the IT team - but it can turn them from being a cost centre to being a profit centre," Goethal said.
Michael Horsfall has limited the ability to create reports initially, although "In the future we'll be giving this to the managers to build the reports they want".
Gavin Cooke, director of technical services at Altis, warns against companies seeking too much information, and getting bogged down by reports, however: "If you have more than five key performance indicators then you are fooling yourself. We know of one business unit with 216 KPIs and the executives say they use the Powerpoint printout as a doorstop."
Cooke believes companies need to identify the handful of KPIs that they need to monitor and focus their efforts on those - but he warns that "As an organisation is maturing and developing the indicators will change."
For any organisation, of any scale, considering an adventure in business intelligence it is worth remembering that there is no off-the-shelf product; intelligence and insight comes from careful analysis of needs which then acts as the foundation for whatever technological solution most closely fits the bill. Sometimes, for some companies, that will still be a spreadsheet.
In any case picking the technology should be the last step taken when companies design a better information system. According to John Hoffman "In the real world, IT says 'good we've got a budget let's buy a new toy'."
Gavin Cooke stressed: "They should ask what problems the business is trying to solve, and identify the outcomes required and then the data and the people they need to provide those outcomes, and lastly the technology.
"I've seen BI projects where a company replaces one BI tool with another. It's like a builder saying it's a crap house because my hammer was useless."
To adapt his vernacular, it might not be a crap company just because of a spreadsheet. Business intelligence will often make a good company better, but it will rarely rescue a dud.
Wednesday, October 24, 2007
e-Commerce in Malaysia
Well, since many of us would be soon finishing our MSC IT for good, perhaps the free Saturdays would be put into good use by plunging into the e-commerce kinda thing (read ebay-ing). At least we're still going to be connected with IT innit?
These are some (Malaysianised) tips and info for those intending to venture into e-commerce:
E-COMMERCE SUCCESS TIPS
By CHRISTY LEE S.W.
BUDDING e-commerce merchants should keep one thing in mind: The Internet business platform is not immune to bad business practices, said Blooming.com.my’s managing director, Martin Cheah.
“You will still need a sound business model that works. The usual business basics apply to e-commerce, but keep in mind that there are also other factors to consider,” he said.
“Some business models may appear logical on paper, but it may not work online,” he said.
“And just because an idea worked in one place at one point in time does not mean it’ll work again at another place and time,” he said.
For example, several local companies failed when they tried to set up a virtual mall in Malaysia. But when Yahoo! did it, it was very successful, said Cheah.
“And what doesn’t work at one point doesn’t mean it would not always work – perhaps it is just not the right time or marketplace,” Lelong.com.my’s Tan added.
Also, not all products are suitable to be sold online, he said.
“You have to evaluate the type of product – whether it is breakable and how you’re going to ship it,” he said.
If you’re new to e-commerce, you need to find a way to differentiate yourself, he added.
“You need to bring something new to the table that others are not offering or cannot provide,” he said.
“Since the entry barriers to e-commerce are low, anyone else can easily come in and take over your market,” he said.
Traditional business might be more slow-moving and predictable, but the e-commerce landscape is not, said Cheah.
“It allows creative energy from anyone and anywhere to compete on the same platform,” he said.
He said those who want to venture into e-commerce have to understand that rapidly changes and continually evolves everyday.
“In this business, you need to expect surprises and be ready to react to it – you’ll never know when a young boy with a bright idea might just come and change everything,” he said.
These are some (Malaysianised) tips and info for those intending to venture into e-commerce:
E-COMMERCE SUCCESS TIPS
By CHRISTY LEE S.W.
BUDDING e-commerce merchants should keep one thing in mind: The Internet business platform is not immune to bad business practices, said Blooming.com.my’s managing director, Martin Cheah.
“You will still need a sound business model that works. The usual business basics apply to e-commerce, but keep in mind that there are also other factors to consider,” he said.
“Some business models may appear logical on paper, but it may not work online,” he said.
“And just because an idea worked in one place at one point in time does not mean it’ll work again at another place and time,” he said.
For example, several local companies failed when they tried to set up a virtual mall in Malaysia. But when Yahoo! did it, it was very successful, said Cheah.
“And what doesn’t work at one point doesn’t mean it would not always work – perhaps it is just not the right time or marketplace,” Lelong.com.my’s Tan added.
Also, not all products are suitable to be sold online, he said.
“You have to evaluate the type of product – whether it is breakable and how you’re going to ship it,” he said.
If you’re new to e-commerce, you need to find a way to differentiate yourself, he added.
“You need to bring something new to the table that others are not offering or cannot provide,” he said.
“Since the entry barriers to e-commerce are low, anyone else can easily come in and take over your market,” he said.
Traditional business might be more slow-moving and predictable, but the e-commerce landscape is not, said Cheah.
“It allows creative energy from anyone and anywhere to compete on the same platform,” he said.
He said those who want to venture into e-commerce have to understand that rapidly changes and continually evolves everyday.
“In this business, you need to expect surprises and be ready to react to it – you’ll never know when a young boy with a bright idea might just come and change everything,” he said.
10 Ways To Think Like A CEO
For those of you on the road to success, the term CEO is one that you will hear over and over again in the course of your career. The CEO of a company is the "Chief Executive Officer" and his job is to manage the executives at the company. The CEO is the big cheese; the buck stops with him.
CEOs are a very particular bunch. To become CEO means you have reached the top of the company, and your decisions -- even small ones -- will materially affect the company. CEOs usually have their act together more than the average guy (much more), and if you want to succeed in life, you should start thinking like the CEO way before you become one.
In order to become a champion, you have to think like one. When Muhammad Ali beat George Foreman in their classic fight, "The Rumble in the Jungle", everyone thought that Ali would get murdered by Foreman. But Ali saw things differently; he thought like a champion, talked like a champion and was the true champion. He won by knockout in the 8th round in one of the greatest fights of all time.
My point is that you need to have the right attitude and frame of mind if you want to achieve CEO-like success. Basically, you need to think like a CEO from day one. Once you learn a job, it becomes fairly simple. Thus if you learn the job you aspire to, it will be much easier to get because it will have become more simple in your mind (and in practice).
Most people will not become CEOs until much later in their careers, if at all. Furthermore, you don't need to become the CEO in order to be successful. However, you do need to think like a CEO in order to become someone powerful in this world.
At this point, you should be wondering: "How can I think and act like a CEO?" Keep reading and I'll tell you exactly which 10 crucial qualities you need in order to make it to the top and be the CEO of your own success.
Top 10 Ways To Think Like A CEO.
If you aspire to achieve success in your career, then check out many of the qualities you will need to acquire in order to make it to the top.
10. Confidence
You have to be secure in your abilities and confident that you can carry out the task. Never let anyone make you feel inferior; they can only do so if you give them "permission" to.
9. Persistence
As former US President Calvin Coolidge once said: "Nothing can take the place of persistence." Not talent, not genius and not education. "Persistence and determination alone are omnipotent." So don't quit easily.
8. Think (Bigger)
The higher you move up the ladder, the more complex the decisions. Thus, it only follows that you will have to think things through much more carefully and thoroughly, as each decision can potentially affect the whole organization in drastic ways.
7. Continuous Improvement
Always strive to be better than you are today. Don't be afraid to take risks and make mistakes. Remember, failure is only a temporary setback on the road to success.
6. Details, Details & More Details
Ultimately, every business comes down to details. If your strategy is solid but you botch the execution of the details of the plan, you'll end up in the doghouse. Pay attention to the details; small mistakes add up quickly.
5. Don't Be Afraid To Lead
Successful people are often leaders. Perhaps you're not the top guy (main leader) according to your job title, but if you're a leader in your field then you still have what it takes to become successful. You can be a great salesperson, so long as you excel at your job and take initiative. So pick up the torch when you see fit and make things happen.
4. Be Competitive
One of the basic tenets of capitalism is the competition that exists in a free market. You will either be the hunter or the prey. If you are not competitive, then you'll end up getting eaten for lunch. It's true and don't ever forget that this is the law of business.
3. Honesty Is The Best Policy
If you wanted to become a crook, you would've joined the mob. If you are in business, your reputation counts for a lot so be sure to be ethical in your dealings with your co-workers and clients. You have to set the example or you'll risk being the head henchman in a den of thieves.
2. Work With People
A big part of your success will consist of learning how to interact with others and how to manage human capital in order to make the most of the organization's resources. Make it a point to work on your people skills as much as possible because at the top, almost all your time will be spent dealing with people.
1. Be Positive
Be positive, infuse your personality and work with positive energy. This is catchy and will set the tone for your team. You'll get more done with a positive outlook rather than a negative one.
If you want to read more on thinking like the head honcho, take a look at Debra A. Benton's How To Think Like A CEO. Now that you know what you need to make it to the top, stop procrastinating, get out there and make it happen!
CEOs are a very particular bunch. To become CEO means you have reached the top of the company, and your decisions -- even small ones -- will materially affect the company. CEOs usually have their act together more than the average guy (much more), and if you want to succeed in life, you should start thinking like the CEO way before you become one.
In order to become a champion, you have to think like one. When Muhammad Ali beat George Foreman in their classic fight, "The Rumble in the Jungle", everyone thought that Ali would get murdered by Foreman. But Ali saw things differently; he thought like a champion, talked like a champion and was the true champion. He won by knockout in the 8th round in one of the greatest fights of all time.
My point is that you need to have the right attitude and frame of mind if you want to achieve CEO-like success. Basically, you need to think like a CEO from day one. Once you learn a job, it becomes fairly simple. Thus if you learn the job you aspire to, it will be much easier to get because it will have become more simple in your mind (and in practice).
Most people will not become CEOs until much later in their careers, if at all. Furthermore, you don't need to become the CEO in order to be successful. However, you do need to think like a CEO in order to become someone powerful in this world.
At this point, you should be wondering: "How can I think and act like a CEO?" Keep reading and I'll tell you exactly which 10 crucial qualities you need in order to make it to the top and be the CEO of your own success.
Top 10 Ways To Think Like A CEO.
If you aspire to achieve success in your career, then check out many of the qualities you will need to acquire in order to make it to the top.
10. Confidence
You have to be secure in your abilities and confident that you can carry out the task. Never let anyone make you feel inferior; they can only do so if you give them "permission" to.
9. Persistence
As former US President Calvin Coolidge once said: "Nothing can take the place of persistence." Not talent, not genius and not education. "Persistence and determination alone are omnipotent." So don't quit easily.
8. Think (Bigger)
The higher you move up the ladder, the more complex the decisions. Thus, it only follows that you will have to think things through much more carefully and thoroughly, as each decision can potentially affect the whole organization in drastic ways.
7. Continuous Improvement
Always strive to be better than you are today. Don't be afraid to take risks and make mistakes. Remember, failure is only a temporary setback on the road to success.
6. Details, Details & More Details
Ultimately, every business comes down to details. If your strategy is solid but you botch the execution of the details of the plan, you'll end up in the doghouse. Pay attention to the details; small mistakes add up quickly.
5. Don't Be Afraid To Lead
Successful people are often leaders. Perhaps you're not the top guy (main leader) according to your job title, but if you're a leader in your field then you still have what it takes to become successful. You can be a great salesperson, so long as you excel at your job and take initiative. So pick up the torch when you see fit and make things happen.
4. Be Competitive
One of the basic tenets of capitalism is the competition that exists in a free market. You will either be the hunter or the prey. If you are not competitive, then you'll end up getting eaten for lunch. It's true and don't ever forget that this is the law of business.
3. Honesty Is The Best Policy
If you wanted to become a crook, you would've joined the mob. If you are in business, your reputation counts for a lot so be sure to be ethical in your dealings with your co-workers and clients. You have to set the example or you'll risk being the head henchman in a den of thieves.
2. Work With People
A big part of your success will consist of learning how to interact with others and how to manage human capital in order to make the most of the organization's resources. Make it a point to work on your people skills as much as possible because at the top, almost all your time will be spent dealing with people.
1. Be Positive
Be positive, infuse your personality and work with positive energy. This is catchy and will set the tone for your team. You'll get more done with a positive outlook rather than a negative one.
If you want to read more on thinking like the head honcho, take a look at Debra A. Benton's How To Think Like A CEO. Now that you know what you need to make it to the top, stop procrastinating, get out there and make it happen!
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