Showing posts with label industry. Show all posts
Showing posts with label industry. Show all posts

Wednesday, January 14, 2009

Business process improvement tops IT '09 agenda, say Gartner, IT execs

“CIOs are essentially going to have the same resources as last year to address a whole new range of problems.”



Enterprise IT budgets in 2009 are nearly flat, and CIOs must drive business process improvement while creatively using existing resources to advance their organizations' agendas.

So says the latest research from Gartner Inc., a Stamford, Conn.-based consultancy, as well as interviews with CIOs, who put business process improvement atop their agenda for 2009. Today, Gartner releases the results of its 2009 CIO Agenda survey, which took the pulse of more than 1,500 CIOs between Sept. 15 -- just as news of Lehman Brothers Holdings Inc.'s bankruptcy filing broke and stock markets subsequently tumbled -- and Dec. 15, 2008


The survey finds that IT budgets in 2009 will rise, but by such a miniscule percentage -- .16% -- as to be considered flat.

Therefore, organizations are not slashing their IT budgets wholesale -- "in fact, they are using IT to change the way the company works, to make it more effective and efficient," said Mark McDonald, a group vice president at Gartner and author of the study. "CIOs are essentially going to have the same resources as last year to address a whole new range of problems."

The survey, which ranked CIOs' top priorities, found that "improving business processes" topped the list once again this year, with 57% naming it as a top concern. Following that was "reducing enterprise costs" with 51% and "improving enterprise workforce effectiveness," which was up three spots from last year and garnered 37%.

Those pretty much mirror the mandates for Kathy Schue, district technician for the Gresham-Barlow School District in Gresham, Ore. "With the budget downturn, our No. 1 priority in the coming year is finding efficiencies in all processes -- not only in the technology department with network infrastructure, but since this is education, we have teachers, administrators and everybody else," she said.

The school system serves 13,000 users, including staff, employees and students. Six people work in IT, and Schue says her department's budget is down close to 12%, making it all the more important to accomplish as much as possible with the resources it already has.

"We're analyzing how things are currently done, and finding out if there's a way to either automate them or use other tools we currently have, or invest in new tools if they show efficiency," Schue said.

For instance, the department has decided to build a database in-house for its work order system, and expand it down to the user level. "We figure it's saving us at least $20,000 just on implementation and development," Schue said. "We have very talented staff, and they're always wanting to learn new things, so we're making sure we're cross-training so, if we lose someone, we're not left in a hole with services not being maintained."

Randy Meyers, information security officer at Ithaca College in Ithaca, N.Y., said he certainly agreed with the top priorities cited in Gartner's survey. "We're obviously looking at things at a much more tactical level and figuring out what are the points of pain," he said.

There are about 1,500 faculty and staff members at Ithaca College, with about 75 working in IT. The school is looking at virtualization for consolidation of servers, as well as modernizing a lot of its infrastructure.

Although IT's budget is down a bit -- less than 5%, Meyers said -- the school is still following through on a three-year, multimillion-dollar network security rearchitecture.

"IT, historically, is not a budget priority, but people are starting to learn the value of IT," he said. "They can save time and money and energy on their end -- the business unit -- if their IT systems are good and efficient."

Schue said her school district is also following through on previous plans, such as a five-year desktop computer renewal plan. "With the rate that technology grows and changes, it's just not possible to get off that schedule," she said.

Schue said she also sees a positive attitude toward investing in IT despite the recession. For decision makers in the school district, "this has been a very big year for opening their eyes," she said. "They've never really paid attention to what IT does before. Now they're looking for efficiencies and ways to transform processes. They're looking more to IT for ideas, suggestions and implementations of new approaches. It's good for us."

IT restructuring includes focus on governance

For its part, Gartner is seeing organizations change their cost structures and use IT differently.

In particular, some companies are restructuring IT to make it more flexible, both in terms of costs and resources, to enhance the ability to do different kids of projects. "A lot of IT organizations are organized around specific IT assets -- ERP, CRM -- so when the business wants to make a change, it has to negotiate with multiple teams to accomplish a particular goal," McDonald said. "So we are now seeing a reorganization around processes and products, as opposed to around teams, to be more responsive to those needs."

For instance, Deutsche Bank AG has implemented a service delivery framework, which reflects a greater focus on products and processes and makes IT resources more flexible to move across individual processes and initiatives, McDonald said.

Intel Corp. has simplified its IT governance by eliminating multiple governance structures. It has established a formal application retirement initiative, and this year expects to eliminate more than 200 applications, McDonald said. In addition, staff is being reorganized so more people are working on development.

In the past several months, Carquest Corp., an auto-parts retailer, has put additional energy into simplifying its IT governance structure. "It needed to reprioritize its entire project portfolio to focus on essential projects first," McDonald said.

The report also recommends that enterprises "modernize," which will actually aid your organization's bottom line. If an organization's infrastructure is pre-2005, there are significant opportunities to provide more compute power at a lower average cost, and at a lower operating cost, he said. "The new price point for performance and capacity capability of hardware is significantly greater than it was in the past," McDonald said.

Source: Rachel Lebeaux, Associate Editor SearchCIO.com

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Monday, May 12, 2008

British Gas sues Accenture

"Accenture faces a £182 million High Court writ ...”


An IT system that was supposed to make British Gas the darling of consumers nationwide has instead become the focus of a multimillion-pound legal battle.

British Gas had hoped to consign complaints about the business to history, but in the event it was described by watchdogs as being in meltdown and thousands of its customers decided that they had suffered enough and switched to a rival.

Now the origins of the customer service problems a year ago, which caused complaints about Britain's biggest residential energy supplier to rise nearly threefold to record levels, are at the centre of a £182 million High Court writ.

Centrica, the parent company of British Gas, confirmed yesterday that it was suing Accenture, the global consultancy group, about the state-of-the-art IT system.

It claims that the “Project Jupiter” system reduced British Gas's customer billing process to such a mess that the energy supplier had to hire 2,500 extra staff and invest millions more pounds to fix the problems and make it work.

The showdown promises to last for months as each company fights to prove that it was not to blame for inaccurate bills sent to homes across the UK. Complaints to Energywatch, the watchdog, about British Gas hit a record 14,001 in March last year.

Accenture vowed yesterday to fight its corner, stating: “We are confident, based on the facts of the situation, that this claim is baseless and without merit. Centrica is only trying to shift the blame for a situation it created.” Centrica hired Accenture to provide the new billing system seven years ago.
It was to bring together the records of British Gas's 12.5million gas and electricity customers on to one platform capable of handling 250,000 meter readings and 200,000 bills a day.

The £317million fee would come from the £397million of savings that British Gas expected to obtain from the project. Centrica claims that, after a number of glitches, in March 2006 Accenture guaranteed a software upgrade that would work. Centrica argues that, instead, the system continued to struggle and generated a high level of “exceptions” - billing issues that required manual intervention.

Centrica also claims that Accenture failed to provide adequate computer hardware and did not integrate the system properly. The energy supplier formally notified Accenture that it was in breach of contract in February 2007.

A British Gas spokesman said: “An independent analysis of the billing system has concluded that Accenture was responsible for fundamental errors in the design and implementation of the system. British Gas has been left with no option but to pursue legal redress against Accenture.”

In the past year, since British Gas fixed the system itself, complaints to Energywatch about the supplier have fallen 85 per cent, the spokesman said.

Source: Times Online

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Wednesday, May 07, 2008

Did You Know ...

“News in numbers”



23% Y-o-Y fall in new job opportunities in London's financial sector

24% decline in value of the pounf against euro since the launch of the single currency in 2002

Over 100 MBOs went into receivership in 2007 in the UK, which is the biggest number for a long time, they'll be a lot more failures in 2008

By 2011 660 million is the number of virtualised PCs expected to grow worldwide from 5 million in 2007

A fully configured container will use up to 50% less electricity and needs 80% less coolo than a standard data centre

€21,037 million is the total revenue postedfor 2007 by BNP Paribas, the best performance in the firms history and an 11.6% rise on the previous year

66% of social networkers are more likely to buy a product as a result of a recommendation or word of mouth

$45.5 trillion is the current outstanding value of credit default swaps (designed to hedge against losses to banks and shareholders when companies fail to pay their debts), up from $900 billion in 2001

19 bn is what it cost the UK businesses in congestion charge

$70 million will be spent in 2008 by average top-tier investment bank on automating OTC derivatives processing according to Tabb Group, that figure is set to rise to $120 million by 2010

10% is the number of people working from home at least 1 day a week, the figure is expected to grow due to universal broadband, rising rail fares and taxes on parking spaces

3 EU member state countries (Spain, Poland, Czech Republic) will be taken to court for failing to transpose MiFID into national law

6 investment banks (Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley, UBS, Deutsche Bank) started trading US Dollar interest rate swaps on TradeWeb

180 staff will be employed by Deutsche Bank in the Middle East after it annouced plans to develop a resEarch facility in Dubai International Financial Centre to support its global equities business

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