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Another issue came from demands to minimise capital expenditure (capex) and fund IT through
operating expenses (opex) instead. "We even had to put our staff party on opex," said one delegate.
Another said: "A number of major corporate projects mean there is little capex budget left for
anyone. But management are loath to spend out of revenue, so IT is just expected to adapt."
And too often, budget for new initiatives goes to "whoever shouts the loudest" because of a lack of
strategic direction for IT to be able to make a business case."It is about getting the right balance
between tactical and strategic, and between being reactive and responsive," said one IT manager.
Communicating and marketing IT more effectively to the rest of the organisation
The other side of the lack of alignment between strategy and IT is the need for the IT department to
communicate better with the rest of the organisation and the boardroom.
"IT people are not naturally good at marketing themselves," said one delegate. Another added: "We
have to articulate things in a language the business understands."
Guest speaker Denise Plumpton, the non-executive director of the 360IT event and a former CIO in
both government and industry, highlighted an example from one of her former roles, where she was
able to demonstrate that giving a Blackberry to sales staff allowed them to make one extra sales call
per day. The sales director, who had previously been sceptical of the technology, translated that into
the number of extra calls across the sales force, the likely contract conversion rates, and on the back
of an envelope proved the business case for equipping his team with handheld devices - all because
the case was made in a language he understood.
Another delegate warned of the danger of IT being seen as "the 'no' department" - always pointing
out the reasons users cannot do something, rather than how to achieve it or the implications of
doing so. "IT is seen as negative to users - they think we always say what can't be done rather than
what could be done," he said.
IT departments need to treat users as individuals, and understand their needs and how to meet
those requirements, said a delegate.
Compliance, governance, metrics and risk management
One way for IT to be noticed is for anything associated with regulatory compliance.
"If it's to do with compliance, it will happen," said a delegate. "Compliance can drive the rest of the
business to consider IT more."
A risk management approach was highlighted as an effective way to make sure the board
understands the impact of an IT business case. For example, if a business risk that could cost the
company, say, one per cent of its revenue could be eliminated by better IT, that makes a compelling
argument to proceed.
Agreeing metrics for measuring the value and success of IT was identified as another effective tool especially the concept of a management dashboard of key measures - something that would also
help with other challenges mentioned above, such as the relationship between IT and the
organisation.
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Supplier relations
One challenge that particularly animated our roundtable guests was supplier relations - with
everyone highlighting problems with the key vendors they buy from. Here's a selection of comments:
"We want flexibility from our suppliers - but they all work to SLAs."
"What we bought is not what we wanted, but it was what the board thought we wanted."
"There is no partnership in the relationship with suppliers."
"We want transparency from suppliers - they need to be honest about what they can and cannot
deliver."
There was complete agreement that suppliers are too focused on products and technologies, and not
enough on the real challenges that IT managers face. "They are just not on the same wavelength,"
said one.
Another added: "The supplier has already won the business with us, yet it is always trying to sell
more. "
The IT managers acknowledged that they as the customer must also take responsibility for what they
want from suppliers, but many felt that suppliers were simply trying to sell "out of the box solutions".
"What we want is value added after purchase, help to make it work in our environment," said a
delegate.
Technology is not the problem
In the course of nearly two hours discussion at a roundtable billed as covering IT infrastructure
challenges, it was notable that technology and products were barely mentioned.
In a group of large-company CIOs, it would be expected that technology would rarely feature, but it
was instructive to see that in an audience of mid-sized organisations, IT managers are also noticeably
less concerned about technical issues than about business, strategy and people matters.
"Technology is not the issue, it's about skills, training, processes," said one delegate.
"I'm not interested in 'stuff'," said another. "We've got the stuff, what we want is to use it better."
A similar group assembled even five years ago would, in my experience, have spent the time
discussing the relative merits of the latest technology, or the "next big thing". But products and
technologies are now seen merely as the enabler, a tool that allows IT managers to contribute to the
success of their organisation. That will increasingly prove to be a big step towards addressing the first
two challenges highlighted above, of better aligning IT and the business, and of IT staff talking the
language of the business.
It also sends out an important message to IT suppliers that their customers' expectations of them are
changing rapidly.