Managing Technology

Chapter 9

Introduction The first commercial installation of

computer equipment, were managed by highly qualified technicians

Decentralization In the seventies and eighties, computer skills

became less rare as more people entered the profession and major training programmes for graduates underway.

Computer systems were becoming more accessible.

By this time, the computer manager had to develop and display most of the more general management skills.

Decentralization 2 Expectations of business benefit were sharply

raised. Those computer managers who sought to counsel (recommend, encourage) caution were often seen as defending their ‘empires’

Computer manager needed to demonstrate their understanding of the business issues involved and to be seen be running and effective department. Otherwise, they were unable to maintain their credibility (reliability) with their peers.

Decentralization 3 The introduction of relatively cheap

microcomputers, and subsequently PC’s, exacerbated (worsened) the situation.

Outsourcing In the later 1980s and into 90’s, the move

was towards outsourcing the provision of technology from an external source, rather than from anywhere in the organization. The advantages to senior management seemed clear and the list below includes some of those perceived advantages: Controllable costs Less management effort

Outsourcing 2 Staff reduction Improved focus on strategic issues, rather than operating a

mainframe Less need for expensive IT specialists Professional standards and expertise

Outsourcing skills. The first requirement of a successful outsourcing exercise is to know what is being outsourced. The first skill, then, is contract definition. The second skill is contract negotiation The third is contract monitoring

Outsourcing 3 It is interesting to note that some of the

most successful managers in technology field are NOT technicians by education or background, but are extremely skilled managers. They can specify, measure, monitor and manage a contract.

Despite the increased level of outsourcing, the IT manager is still responsible for the effective provision of technology.

Operational Management Today’s technology manager manages

technology, business relationships and the alignment of technology with the business.

All managers are measured by their bosses, their peer group and their subordinates. The wise manager ensures that the measurements are based on facts rather than perceptions, or last bad experience.

Operational Management 2 They do this in three ways:

Devising measures which are meaningful to business managers

Agreeing with their boss and their peer group that these measures are applicable and useful, and that if they score highly in this group of measures, they will be seen to be doing the job well

Reporting regularly and striving for continuous improvement in these key areas

Operational Management 3 Service levels.

Measures must be meaningful to the customer. That holds good whether the customer is internal or external. The agreement should be based on predetermined volumes just as an outsourcing contract would certainly be based on such volumes.

Handling faults. ‘ How should IT manager response to faults in

computer?’ If a fault is reported what are the agreed priorities?are there any or does the response depend on the seniority of the complainant? If priorities have been agreed, are they well understood and accepted?

Operational Management 4 Performance reporting.

This is to inform others how IT of the company has improved, and what areas are yet to be improved.

Hence, accurate and regular reporting is essential. Contingency and security planning.

This is to ensure that the business continues to operate when there is any interruption to the environment of the business.

Hence, IT manager must have a IT contingency so that computers can continue to work if something goes wrong with the computer hardware, software or the data.

Operational Management 5 Contingency Plan

Such plan is called business continuity planning, which is a far better description. Terrorist attack, fire, flood and other natural disaster cannot be discounted.

Security, both physical and the security of the information must be a major concern when managing technology.

System Delivery This only applies when IT Dept is

developing an In-House or the ‘be-spoke Application.

Delivery of such software is normally late, over budget and under specification. This has always been challenge of Computer

Manager Such failure causes mistrust in technology

managers among colleagues.

System Delivery 2 Ownership.

This is an issue. Many people believe that the problems begin with the ownership

There is no specific purpose of the development of the software and thus resulting into high complexity of the system.

If a system is concerned with the problems and processes of a single department or function, sound sponsorship is likely to come from that department.

System Delivery Cost benefit analysis.

Individual managers persist in minimising costs and inflating potential benefits when promoting new projects.

Hence, the cost has never been expressed in financial terms. It is the LIMITED input of time from the user community.

Users’ involvement is low and thus the development process is slow

Finally, the cost of business change are often underestimated or ignored completely. This omission is most caused because the people who would be able to identify such as business change requirements most readily are not involved.

Project Management for successful delivery of the system This skills are increasingly recognized as

specialized and vital to the success of any project. However, in many cases it is inexpert or inadequate project estimation that causes more problem.

It should be the responsibility of a newly appointed project manager to validate the project estimates and the plans that have been made.

Risks (mutual understanding) for successful delivery of the system

Technical risks should be identified by the technologists, but must be understood and the implications appreciated by the business.

Business risks should be identified by the business, but must be understood and appreciated by the technologists.

Success Measure An effective technology manager should estimate and

plan as suggested for bespoke development and ensure that the ownership of cost, benefit and risk is clearly understood and agreed.

The success of training in the new systems, and the requirement for any retraining, are powerful indicators.

Assess the new software if it fits the business changes. This is one of the major factor.

Software Package: many organization have adopted to the use of software package to limit the risks and uncertainty associated with n-house or bespoke development.

Setting Standards This task is becoming more and more important

as communication allow greater integration both within an organization and out into alliances within the value chain.

IT manager should spend time and money on ‘standardization’

This has to be a continuous process even after the end of a project

Policy of using computers should be policy of the organization

Managing the relationships IT managers are particularly prone to be

viewed in this FALSE light. They are often perceived as specialists in their field with a limited knowledge of business.

The starting point for the respect of peers is to run one’s own part of the organization efficiently. IT needs to integrate into the very fibre of the organization.

Managing the relationships 2 Demonstrating cost effectiveness: The first

factor is cost control. A manager who can demonstrate that his cost are under close scrutiny will always create confidence in his peer group. Second is to make sure that the alignment of spend with business focus is clearly understood.

2 key factors: system Appraisal Business Process cost

Managing the relationships 3 User Satisfaction.

In this field perception is the only reality. If the Chief Executive is regularly told that the service provided by IT is poor, he is likely to believe it.

The only way to combat impact of this perception is by measuring reporting and education. A successful IT manager looks on his internal customers as real customers who could take their business elsewhere.

Education IT illiteracy is becoming less widespread as

generations of people with experience of IT at school and university enter the workplace.

The prime purpose is education; the demonstration that their IT manager thinks in business terms will do him no harm either.

Integrating IT with business This is the key role of IT managers. If they

can achieve a situation where both technology and information management are seen as a key part of the organization’s strategic planning for the future, they have at least positioned information management appropriately.