nus-iss learning day 2015 - making dollars and cents of it
TRANSCRIPT
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Unconference
• “Crowd‐sourced” • Participant‐driven meeting• Participants to decide on the agenda• Open discussion
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Outline
1:00 Intro1:10 Decide topics to discuss1:15 Unconference **see our pledge
1:40 Wrap‐up, summarise, document for sharing1:45 Sharing
1:50 Next session …
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Our Pledge aka ground rules
• We listen actively, respect others ‐ are present
• We share own experiences & stories – concise, time is short
• We respectfully challenge each other ‐ ask questions, focus on ideas
• We participate actively, to fullest of our ability – collective growth depends everyone’s voice
• We let others share, we let at least 2 others share before we speak again
• Our goal is to gain deeper understanding of the subject together
• We record our discussion to benefit the wider community
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www.edchange.org/multicultural/activities/groundrules.htmlwww.education.com/reference/article/nine‐rules‐good‐discussion
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Our Reflections …
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• Companies should looking into Improving
Innovating
Integrating
• Improving current process to provide competitive advantage and facilitate business needs and long term strategic goals that need to achieved
• IT should be closely in line with business requirements and innovate current way of doing and integrate all the process in solid foundation of business
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Our Reflections …
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• IT as a cost centre vs IT as a business Not so much of either categorization but more how IT can understand the
business and partner them to value add
• In terms of justifying the $ and ₵, the difficulty is usually in infrastructure projects where it is difficult to explain and justify in less technical terms
• Strategic projects tend to be “easiest” with strong business support
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Our Reflections …
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• How to justify investment
• IT portfolio
• Monitoring of the IT investment
• IT as a business vs cost centre
• How to convince management for an investment Productivity/revenue loss
Benchmark
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Our Reflections …
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• IT as a cost & business
• Investment of equipment – for facilitating of business
• How to convey the need for investment to the management
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Our Reflections …
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• IT cost centre vs business There is an another dimension to be considered, that is, IT as a shared
services
Organisations are moving towards IT as a strategic partner but they face some struggle as businesses still consider IT as a cost centre
• Investment & budgeting IT is expected to do innovation more than anything for now
Most of the budget goes to strategic capital investment
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Our Reflections …
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• IT investment / cost Should consider tangible benefit
Return generated Cost reduced Cost avoided
Also consider intangible benefit Ease of use / engagement Efficiency of desired objective
• IT budget Generally the classification of assets as
Infrastructure Transaction Information Strategicare universal
• Running IT as business Still in the progression Have pros/cons
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Our Reflections …
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• IT is slowly evolving from cost centre to business centre
• The challenge is how to create value to the “internal customer”
• Intangible benefits play an important part in the decision of external customers where they emphasisemore on customer experience than the investment that the company has to put in
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Our Reflections …
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• Types of IT costs To reflect if the current spending in each category align with the
organisation’s strategy
To use the categories as reality check – target percentages vs actual spent => gap analysis
• Justification of IT investment Cost / capital savings
Cost / capital avoided
Revenue enhancements
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Our Reflections …
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• Portfolio Time dimension
Industry that we are in
Life stage of the company
Should not focus on the percentage (arbitrary)
• IT as a business Shadow IT
Stagnation of service
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Our Reflections …
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• Is running IT as a business the right model for an organisation?
• Does it have more benefits than downsides?
• It may be a bad idea, for reasons such as: Unproductive employees due to time spent in getting IT for help
Increased product cost due to internal changes
Unhappy employees & organisation