strategic business ict management and investment

Strategic Business ICT Management and InvestmentTobe NNADOZIE

Head, IT Architecture and Strategy

First City Monument Bank PLC JULY 2009

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Agenda

Introduction

The History of ICT

The Future of ICT

Computer Network and Management

eBusiness Fundamentals.

Task Management in ICT environment

Strategic ICT investment: Investment Analysis

Question and Answers

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Introduction

Information and Communications Technologyremains one of the major critical value anddrain pipe for many organizations today.

It occupies a very strategic place in the runningof most businesses with the evolving globalvillage phenomenon. While it’s costs remainsa recurring dilemma, it’s importance andunquestionable placing in the priority prismof the business makes a strong case for ourdiscussion this morning: How can we makethe most strategic and value-adding decisionregarding investment in ICT

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The History of ICT

Year/Enter Inventors/Inventions Description of Event

1936 Konrad Zuse - Z1 Computer First freely programmable

computer.

1942 John Atanasoff & Clifford Berry Who was first in the

computing biz is not always

as easy as ABC.ABC Computer

1944 Howard Aiken & Grace Hopper The Harvard Mark 1

computer.Harvard Mark I Computer

1946 John Presper Eckert & John W.

Mauchly

20,000 vacuum tubes later...

ENIAC 1 Computer

1948 Frederic Williams & Tom Kilburn Baby and the Williams Tube

turn on the memories.Manchester Baby Computer & The

Williams Tube

http://inventors.about.com/library/weekly/aa050298.htm





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The History of ICT

1947/48 John Bardeen, Walter Brattain &

Wiliam Shockley

No, a transistor is not a

computer, but this invention

greatly affected the history

of computers. The Transistor

1951 John Presper Eckert & John W.

Mauchly

First commercial computer

& able to pick presidential

winners.UNIVAC Computer

1953 International Business Machines IBM enters into 'The History

of Computers'.IBM 701 EDPM Computer

1954 John Backus & IBM The first successful high

level programming

language.FORTRAN Computer Programming

Language

1955 Stanford Research Institute, Bank of

America, and General Electric

The first bank industry

computer - also MICR

(magnetic ink character

recognition) for reading

checks.

(In Use

1959)

ERMA and MICR





http://inventors.about.com/library/inventors/bl_ERMA_Computer.htm



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The History of ICT

1958 Jack Kilby & Robert Noyce Otherwise known as 'The

Chip'The Integrated Circuit

1962 Steve Russell & MIT The first computer game

invented.Spacewar Computer Game

1964 Douglas Engelbart Nicknamed the mouse

because the tail came

out the end.Computer Mouse & Windows

1969 ARPAnet The original Internet.

1970 Intel 1103 Computer Memory The world's first available

dynamic RAM chip.

1971 Faggin, Hoff & Mazor The first microprocessor.

Intel 4004 Computer

Microprocessor







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The History of ICT

1973 Robert Metcalfe & Xerox Networking.

The Ethernet Computer

Networking

1974/75 Scelbi & Mark-8 Altair & IBM

5100 Computers

The first consumer

computers.

1976/77 Apple I, II & TRS-80 &

Commodore Pet Computers

More first consumer

computers.

1978 Dan Bricklin & Bob Frankston Any product that pays for

itself in two weeks is a

surefire winner.VisiCalc Spreadsheet Software

1979 Seymour Rubenstein & Rob

Barnaby

Word Processors.

WordStar Software

1981 IBM From an "Acorn" grows a

personal computer

revolutionThe IBM PC - Home Computer







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The History of ICT

1981 Microsoft From "Quick And Dirty"

comes the operating system

of the century.MS-DOS Computer

Operating System

1983 Apple Lisa Computer The first home computer

with a GUI, graphical user

interface.

1984 Apple Macintosh

Computer

The more affordable home

computer with a GUI.

1985 Microsoft Windows Microsoft begins the friendly

war with Apple.





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The Future of ICT

…whatever you can conceive, you can achieve

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Computers, Network & Mgmt

There are 10 types of Computers1. PC: The personal computer (PC) defines a computer

designed for general use by a single person.

2. Desktop: A PC that is not designed for portability is a desktop computer. The expectation with desktop systems are that you will set the computer up in a permanent location. Most desktops offer more power, storage and versatility for less cost than their portable peers

3. Laptop: Also called notebooks, laptops are portable computers that integrate the display, keyboard, a pointing device or trackball, processor, memory and hard drive all in a battery-operated package slightly larger than an average hardcover book

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4. PDA: Personal Digital Assistants (PDAs) are tightly integrated computers that often use flash memory instead of a hard drive for storage. These computers usually do not have keyboards but rely on touchscreentechnology for user input. PDAs are typically smaller than a paperback novel, very lightweight with a reasonable battery life. A slightly larger and heavier version of the PDA is the handheld computer

5. Workstation: A workstation is simply a desktop computer that has a more powerful processor, additional memory and enhanced capabilities for performing a special group of task, such as 3D Graphics or game development.

6. Server: A computer that has been optimized to provide services to other computers over a network. Servers usually have powerful processors, lots of memory and large hard drives.

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7. Mainframe: In the early days of computing, mainframes were huge computers that could fill an entire room or even a whole floor! As the size of computers has diminished while the power has increased, the term mainframe has fallen out of use in favor of enterprise server. You'll still hear the term used, particularly in large companies to describe the huge machines processing millions of transactions every day

8. Minicomputer: Another term rarely used anymore, minicomputers fall in between microcomputers (PCs) and mainframes (enterprise servers). Minicomputers are normally referred to as mid-range servers now.

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9. Supercomputer: This type of computer usually costs hundreds of thousands or even millions of dollars. Although some supercomputers are single computer systems, most are comprised of multiple high performance computers working in parallel as a single system. The best known supercomputers are built by Cray Supercomputers

10. Wearable Computer: The latest trend in computing is wearable computers. Essentially, common computer applications (e-mail, database, multimedia, calendar/scheduler) are integrated into watches, cell phones, visors and even clothing.

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There are various types of Networks:

1. LAN: This refers to Local Area Networks which involve the interconnectivity between systems, servers and accessories within a close range. The can be connected via lead cables, fiber or via wireless routers and switches

2. MAN: This refers to the interconnectivity between LANs or systems within medium range of distance. They can be connected via fiber (with amplifiers in-between), radio and other technology

3. WAN: This refers to the interconnectivity of networks and or systems that are widely separated. Several technologies abound like DSL, Radio, Fiber, VSAT and others

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Best Practice in Technology Management is centered on the following:

1. Ensure that good governance is in place

2. Ensure that globally accepted standards are implemented

3. IT should be strictly aligned to the business and strategy of the organization

4. IT Group should be run by someone with an understanding of the business and corporate goal

5. Outsourcing should be considered for support where the core business of the organization is not. Do not develop competencies that will be expensive to run and maintain

6. IT should be future proof

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eBusiness Fundamentals

Electronic Business, commonly referred to as"eBusiness" or "e-Business", may be definedas the utilization of information andcommunication technologies (ICT) in support ofall the activities of business.

Commerce constitutes the exchange of products andservices between businesses, groups andindividuals and hence can be seen as one of theessential activities of any business. Hence,electronic commerce or eCommerce focuses onthe use of ICT to enable the external activitiesand relationships of the business with individuals,groups and other businesses

http://en.wikipedia.org/wiki/ICT

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It is important to note that eBusiness is much more thaneCommerce. eBusiness includes the following apart fromeCommerce:

Application of knowledge management systems

Electronic purchasing

Supply chain management

Processing orders electronically

Handling customer service

Cooperating with business partners.

Brand Marketing, Messaging and Collaboration

E-business can be conducted using the Web, the Internet,intranets, extranets, or some combination of these.

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Electronic Banking (e-banking) is defined as theautomated delivery of new and traditionalbanking products and services directly tocustomers through electronic, interactivecommunication channels.

E-banking includes the systems that enablefinancial institution customers, individuals orbusinesses, to access accounts, transactbusiness, or obtain information on financialproducts and services through a public orprivate network. The channels include Mobile

Banking; Internet banking; ATM (Automated TellerMachine);POS (Point of Sales)

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eBusiness can also be grouped into: business-to-business (B2B)

business-to-consumer (B2C)

business-to-employee (B2E)

business-to-government (B2G)

government-to-business (G2B)

government-to-government (G2G)

government-to-citizen (G2C)

consumer-to-consumer (C2C)

consumer-to-business (C2B)

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What should guide our eBusiness Strategy and Implementation:

CUSTOMER: Our Customers are the reason we remain in business. Their present and perceived needs have to be fully considered in our eBusiness implementations.

COST: There is an eBusiness possibility for every price. Before you implement, how much are you ready to spend?

CONTINUITY: Business Continuity plans should also be considered to know who to partner with. This will reduce the rate of sunk costs.

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21

Skills, People Quality & Culture

Reach and market

coverage

Strategy Execution

Effectiveness

Financial Strength

Internal Customer

satisfaction

Product and portfolio Diversity

Internal Process simplicity

Organization

YOURFIRM

eBusiness Plans

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Task Mgmt in ICT Environment

ICT has been demystified and tasks which ceremonially resides within a core techy caucus can be simplified to empower users control their usage. However, the following factors should be considered before doing this:

What is the Exposure Level of the Users?o BASIC

o INTERMEDIATE

o ADVANCED

o EXPERT

Like we say, you can force a camel to the stream but you cannot force it to drink! !! !!!

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What is the Security Requirement of the firm?o LOW

o AVERAGE

o HIGH

o RISKY

What level of business criticality is attached to the ICT platform?o VERY LOW IMPACT

o AVERAGE IMPACT

o HIGH IMPACT

o FULL SHUTDOWN

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What are the cost implications of hiring?o INSIGNIFICANT

o IRRITANT

o MAJOR

o TOTAL

What are the cost growth potentials?o PREDICTABLE

o GEOMETRIC GROWTH (CURVED LINE)

o ARITHMETIC GROWTH (STRAIGHT LINE)

o DEALS-LINKEDo PRE-DEALS COMPULSORY

o OPERATIONAL

o ONE-OFF

o REGULATORY/POLICY-DEFINED/EMOTIONAL RECRUITMENT

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Looking at all the components mentioned, it is therefore necessary to state that tasks can be managed centrally, regionalized or fully outsourced.

Tasks can also be fully automated, partially automated or manual. Automated tasks have a high take-off cost and a predictable running costs while manual ICT tasks may be cheap to run but are not efficient, do not generate spot-on MIS data and are normally associated with key man control risks

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ICT has been demystified and tasks which ceremonially resides within a core techy caucus can be simplified to empower users control their usage. However, the following factors should be considered before doing this:

What is the Exposure Level of the Users?

What is the Security Requirement of the firm?

What level of business criticality is attached to the ICT platform?

What are the cost implications of hiring?

What are the cost growth potentials?

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Strategic ICT investment:

Investment Analysis

Why should I invest on ICT?

What should dictate my investment?

Are there tools to guide my investment?

How do we recover past investment?

How do we create a balance between investments and cost-savings?

Who should control IT Investment?

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Investment Analysis

The following should guide you when you want to make an ICT Investment

Corporate Strategy and Policies

Customer Needs

Operating Countries Regulations

Business Value

Budget and Costs (Purchase, Maintenance, Escrow,

Change, Licensing, Training, Dependencies and others)

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Investment Analysis (cont’d)

Future-proof state of the Investment

Support Capacity (esp. Localized)

Buy-back Opportunities

Inter-operability with Existing Systems (Open systems are better)

Adherence with defined and globally accepted standards

Time to deploy and start reaping value

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Question and Answer

Q and

A