7 ways to waste money on it' from it accessed
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2013 IT Accessed Ltd
www.itaccessed.com
7 Ways
To waste money on IT
IT Accessed Ltd
Not!
^
Some important points...
We hope you’ll learn about some management approaches to IT that you can apply to the benefit of your businesses.
Mixture of current best practice, experiences and predictions for the future.
Not just for medium or large size businesses. Apply in some way to all organisations - including sole traders.
More to be found on our website and in our Quick Tips.
No techno-speak!
2013 IT Accessed Ltd
www.itaccessed.com
www.itaccessed.com
7 Ways to Waste Money on IT
7Use the “golf
course” strategy
2011 IT Accessed Ltd
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Don’t underestimate the complexity and the range of choices – it’s YOUR business.
To avoid wasting money:
What works for him/her may not be best for you.
Beware the gadget fiend and “the latest thing” for its own sake.
A bad decision can cost you money and lost opportunities for years.
2013 IT Accessed Ltd
Use the “golf course” strategy
i.e. Adopt methods recommended by friends and acquaintances.
Predictions:“By 2015, 10% of your online ‘friends’ will be non-human”.*
A company, a brand, a group, a computer package...
Growing focus on “appropriate interaction” rather than broadcast.
“Organisations that discover or develop ways to achieve this on a broad scale will gain competitive advantage over those who can’t or won’t.”*
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2013 IT Accessed Ltd
“By 2015, the estimate is that 50% of web sales will be driven by ‘social presence’ & mobile applications”.*
* Gartner Report 2011
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2013 IT Accessed Ltd
A current example of potential “golf course” thinking is the pressure we are under to use social media:
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Their use needs to be relevant to your audience and your available resource.
2013 IT Accessed Ltd
Don’t rush into the world of Linked In, Twitter, Facebook etc. unless you have a strategy.
Statements must always be appropriate - it is easy to be misinterpreted.
The number of options for using social media is growing.
Is your choice going to stay around?
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7 Ways to Waste Money on IT...
6Have unstable,
insecure systems, computerised
chaos & operate illegally
2013 IT Accessed Ltd
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Have unstable, insecure systems.
Get a strategy in place and stick to it.
Technical:
People:
Review training and procedures – have an “acceptable use” policy.
To avoid wasting money:
To avoid wasting money:
If it’s your business it’s your responsibility.
An insecure system is also unstable.
For example: do you know what your employees are downloading?, Would they divulge their password on the phone?
Can you be sure your systems and data are secure?
2013 IT Accessed Ltd
Usage policy.
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“By 2015, a G20 nation’s critical infrastructure will be disrupted and damaged by online sabotage.”*
The best prepared companies will survive with least damage.
2013 IT Accessed Ltd
Prediction:
* Gartner Report 2011
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Computerise Chaos.
Don’t computerise chaos.To avoid wasting money:
The more standard the process, the more easily it is automated, adding speed and efficiency.
While very small companies may be able to function effectively without formalising and standardising back office processes, as they grow, efficiency and control suffers.
2013 IT Accessed Ltd
www.itaccessed.com
Operate illegally.
“Be Right and Proper”To avoid wasting money:
Are you complying with the Data Protection Act (UK)?
If you are not complying with these you could be sending out the wrong message about your business.
Are your e-mails legal? New regulations and investigative powers have come in last few months (UK).
Is your website legal?
2013 IT Accessed Ltd
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7 Ways to Waste Money on IT
5View IT as a
utility, a necessary evil
2013 IT Accessed Ltd
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View IT as a utility, a necessary evil.
To avoid wasting money:
You’ll miss opportunities if you’re not innovative in your thinking about IT. Be imaginative. Look at the problems of music retailers that failed to address MP3 technology.
Be proactive – think of IT as an opportunity to progress your business.
Consider new ways of working collaboratively – inside and outside your company.
Consider new services at low costs.
Look for new ways of promotion.
Be aware of new technology (e.g. ‘apps‘).
2013 IT Accessed Ltd
Your IT capability is part of your brand image and reputation.
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“In the next few years, most companies will expect to use IT to create new revenue streams.” *Paraphrased.
2013 IT Accessed Ltd
Predictions:
“By 2015 the valuation of a business will explicitly include IT assets & capabilities.” *Paraphrased.
“By 2015, 20% of non-IT Global 500 companies will be cloud service providers”*
* Gartner Report 2011
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7 Ways to Waste Money on IT
4Don’t train
people to get the most from IT
2013 IT Accessed Ltd
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Don’t train people to get the most from IT.
Regularly review training requirements.Consider giving people time to experiment.
To avoid wasting money:
Often people are not aware of the all the features in your current software. You might think your current system can’t do something and pay to replace it.You or your people might come up with some really good ideas if they better understand the software’s features. Misuse through lack of training causes stability, legal, commercial and maintenance issues.On the job training can work very well with software.
2013 IT Accessed Ltd
Well trained people may be able to contribute good ideas for new revenue streams or cost savings using IT.
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2013 IT Accessed Ltd
Prediction:
“By 2015 information-smart businesses will increase recognised IT spending per head by 60%.” * A lot of this is down to a more IT savvy workforce.
Could be as a result of lower head-counts or increased IT costs driven by revenue opportunities.
With innovative, streamlined and stable systems in place – you’ll be in a good position to take advantage of an end to the recession WITHOUT increasing costs.
With innovative, streamlined and stable systems in place - alongside well trained people – you’ll be in a good position to lower prices while maintaining your margins.
* Gartner Report 2011
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3Don’t invest the time to understand what you need and the
resources needed to implement it
7 Ways to Waste Money on IT
2013 IT Accessed Ltd
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Don’t invest the time to understand what you need, know exactly what you’re buying and the resources it will require to implement.
To avoid wasting money:
There are lots of decisions to be made. All software packages are unique – they each do things differently.
Invest the time to understand what you need and the resources needed to implement it.
If you buy a package you will have to change they way you do things to match the package – how much you change depends on how well the package fits the way you want to work.
2013 IT Accessed Ltd
Bespoke software is designed to work how you want it to – it can be more expensive, but you only need to pay for the features you will use.
In summary you need good project management – ideally, in our opinion, from inside your company.
Remember: don’t computerise chaos.
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2013 IT Accessed Ltd
Prediction:
“There are hundreds, perhaps millions of software choices and millions of different ways to use the software – and it’s going to get worse!” IT Accessed.
Going through a period of great change and shake out.
IT cheaper than ever.
So it’s your management that is the key.
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Top US sports brand: $100 million in lost sales, a 20 percent share dip and a collection of class-action lawsuits.
2013 IT Accessed Ltd
Horror Stories
UK Supermarket October 2006: giant British food retailer had to write off approx. £350 million investment in an automated supply-chain management system.
Printer manufacturer: project eventually cost them $160 million in order backlogs and lost revenue.
Etc, etc, etc.
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2Forget the
people side
7 Ways to Waste Money on IT
2013 IT Accessed Ltd
www.itaccessed.com
Forget the people side.
To avoid wasting money:
With a new system people’s jobs can change dramatically.
Be people-focused from the start. No matter how small the change.
People can feel threatened.
Opportunities for people to shine.
Implementing new systems can stretch people to breaking point.
So the people you have are more important for an IT change’s success than the software.
2013 IT Accessed Ltd
People find workarounds – you might not be aware of a lot of “hidden” effort going on just to “feed” the computer!”
Data collection and routine IT tasks can be automated more cost effectively than ever.
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Need to have ability to work effectively but still enforcing IT policies.
Staff will be using more than one device each.
2013 IT Accessed Ltd
“By 2014, 90% of organisations will support corporate applications on personal devices.”*
Prediction:
* Gartner Report 2011
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7 Ways to Waste Money on IT.Countdown!!!
Use the “golf course” strategy. Remember what works for them may not be best for you.
7
Don’t train people to get the most from IT.
Regularly review training requirements.Allow experimentation.
4
View IT as a utility – a necessary evil.
Be proactive – think of IT as an opportunity to progress your business.
5
Don’t invest the time to understand what you need and the resources needed to implement it.
Invest the time and be clear about the resources required!
3
Forget the people side. Be people focused.No matter how small the change.
2 2013 IT Accessed Ltd
Do IT right!Have unstable, insecure systems, computerised chaos & operate illegally.
6
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1Consider IT solutions
separately from your business
strategy
The Number 1 Way to Waste Money on IT
2013 IT Accessed Ltd
Always consider what you are trying to achieve for your business before making IT decisions.
Bridging the gap between IT and Business
Contact IT Accessed
Joke: The IT Engineer and the Manager
• A man is flying in a hot air balloon and realizes he is lost. He reduces height and spots a man down below. He lowers the balloon further and shouts: "Excuse me, can you help me? I promised my friend I would meet him half an hour ago, but I don't know where I am.“
• The man below says: "Yes. You are in a hot air balloon, hovering approximately 30 feet above this field. You are between 40 and 42 degrees N. latitude, and between 58 and 60 degrees W. longitude.“
• "You must be in IT," says the balloonist.
• "I am," replies the man. "How did you know?“
• "Well," says the balloonist, "everything you have told me is technically correct, but I have no idea what to make of your information, and the fact is I am still lost.
• "The man below says, "You must be a manager.“
• "I am," replies the balloonist, "but how did you know?“
• "Well," says the man, "you don't know where you are, or where you are going. You have made a promise which you have no idea how to keep, and you expect me to solve your problem. The fact is you are in the exact same position you were in before we met, but now it is somehow my fault."