Building the Ultimate IT Portfolio from Scratch

Peter Grant

Advisor, IBRS

0417 005 500

Toughest Job in Government

Businesses• Surveying

• Quarry

• Water and Sewerage 

• Road Construction

• Parks Maintenance

• Fleet Services

• Business Licencing

• Animal Management

• Development Assistance

• Water Billing

• Building Approvals

• Local Law Enforcement

• Call Centre

• Customer Service Centre

• Rates and Searches

• Environmental Licencing

• Youth Development

• Library Services

• Caravan Parks

• Sports Development

• Swimming Pool and Life Guards

• Tourism Venues

• Childcare

• Counter Disaster

• Cemetery

• And many more…

Remember Y2K

Lots of your IT systems have grown old since then...

And if all this wasn’t challenging enough…

You don’t currently have very good tools for the job.

1. 1965 – IBM 360 Mainframe computer

2. Late 1970s – Advent of the Mini computer (Wang, Digital, IBM S34)

3. 1990 – Client Server computing (Microsoft, Sun)

4. 2000 – Internet becomes mainstream (TCP/IP is the standard)

5. 2010 – The Big Five Emerge Simultaneously !– Cloud Computing– Mobility as the default access mode– Consumerisation– Social Networking – Big Data

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The last 20 years and NOW!• Our old ICT architectures didn’t deliver much innovation.

– Remember VISTA, Windows 2000, Capacity issues, Information Management issues, scale issues, connectivity issues, agility issues.

• So much so that many organisations are still running Windows XP on their desktops…13+ years after it’s release.

• And then the cloud, plus bandwidth, plus commodity, plus mobility, plus social came along…

Enjoy the ride…

It’s clear our approach to ICT in 2009 won’t work in 2020.

The way we do business also has to Change

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Customer Power

Blockbuster Video was a $1 Billion business in 2009.

Customers put up with the limitations of physical media until there was something better. (NetFlix)

Blockbuster was dismantled in 2012.

Ineffective Response

Executives didn’t believe there was a significant challenge.

Customers love paper!They reacted too late.

$65B advertising fell to $18B

20% reduction in circulation

New Entrants

New Entrants have transformed the music business model. And they are still doing it.

Traditional businesses that didn’t add value in the NEW MODEL were disintermediated

We are dealing with a different business challenge and a different

ICT challenge.

Imagine a World Where…• Connecting with stakeholders was easy

• Implementing new ideas was easy, cheap and reliable

• ICT infrastructure changes were NEVER on the critical path for business projects

• Operating costs were considerably lower

• Your organisation provided measurably better services.

Imagine working in IT where…• ICT is cheaper to deploy

• ICT is easier to deploy

• Things work (quality is very high – because it has already been done 10,000 times)

• There is a huge backlog of innovative things to do and people are asking for more!

• And everyone VALUED what IT were offering!

How to take advantage of Cloud, Mobile, Consumerisation, Social, Big Data

-And not be left behind.

Cloud• Commodity Systems

• Line of Business Systems

• Enabling Capabilities

– Security– Networks– Identity Management– Your ICT team

Commodity Systems• Mail, Calendaring, Document Management, Grants,

Contacts…

• Massive Savings and BETTER functionality

– $850,000 p.a. to $50,000 p.a. with better availability and far more functionality.

– Implementation time was 3 weeks.

• Best to use a CLOUD SERVICE BROKER !

What Does a Broker Bring• One organisation to access Commodity Cloud offerings.

• MUCH MORE THAN A PROCUREMENT FUNCTION!

– Apps Store– Federated Identity Management Capacity

• Types of Brokers

– Aggregation– Integration– Customisation

Lines of Business

Cloud Service Broker (Aggregation, Integration, Customisation)

Lines of Business

Cloud Service Broker – ‘Enterprise Service Bus’

Lines of Business

Line of Business Systems• Never do this again

– Build another system.– Buy licences for another system.– Buy infrastructure to run another system.– Have a UNIQUE system just for your organisation unless it

provides SUSTAINABLE competitive advantage..

• Opportunities

– Major SaaS opportunities among councils – across Australia.– Look for agility, integration with commodity systems, cost,

analytics, connectivity to mobile devices and the community and NO LOCK IN.

Enabling Capabilities• Security

– No more firewalls because your data is NOT in-house.– Think hard before locking down devices– Monitoring is FAR more important than prevention.– You will NEVER be as good as your cloud vendor.

• Networks

– The best Network out there is the INTERNET.

• Your ICT Team

– They have the skills and knowledge of your business. There are not redundant. But they do have different roles.

– A change in approach to risk and possibly customer service ethos is required.

Summary1. We are in a digital revolution and we cannot keep doing things the

same old way. Everyone will be effected

– ICT– Business– Community

2. There are great opportunities emerging.

– Aggregate commodity and line of business applications.

3. Adoption does require some new skills and recognition of new industry players.

– Cloud Service Brokers– New approach to Security

4. Your ICT staff have important new roles – look after them.

Discussion…