Tag Archive | "McKinsey"

Raising performance by reducing IT complexity: An interview with TalkTalk’s CIO – McKinsey

Tags: Business Service Management, CIO, McKinsey, Service Value, Transformation


The Hub Commentary_

The link to read the article below merely requires you to set up a sign-on with McKinsey for free.

Nice article to take heed to as we ebb and flow with new technology.  A doesn’t pass that I don’t read an article regarding bringing the mobile devices to the workplace and expecting support as an example.  Business service management practices have to govern the cost and business value of doing so or we end up spending more to support without a business value.

David speaks of joining as CIO into an organization that had grown fast, had many systems, decentralized, spaghetti strings of complexity to manage and support.  We all sit on the cusp of this reality as many seek to take the short term gains of new technology (cloud, virtualization, consumer devices, etc.).

It’s great when things ar booming and business is good, everyone overlooks the reality of what is progressing in IT.  In fact, we do it to ourselves because we do not have or take the time to step back, plan and take the time to do the long term right thing strategically to sustain long term growth.

I experienced this once in my career as well, the cost of doing business starts to overshadow the IT organization when it grows in this manner.  The business enjoys the revenue growth, but they too are looking at the spend against the revenue as margins and thus IT while seeming to support the growth is dragging down the business.

It is easier to measure twice and cut once up front than to create change as David did here and I commend him and his efforts.  I also see and understand that it took the team from the business and IT to come together as one unit and drive business goals and objectives to make this successful.  Often times creating change like this is difficult for the business and why it is often outsourced.  If outsourced, they would not have realized these savings.  The savings would have gone to the margin of the service provider and the business to manage the relationship.

This team achieved a 50% reduction in IT budget over 2 years and 65% in data size and cost in 3 years, that is truly phenomenal and also shows it can be done when the team comes together.  And as David looks back in the close of the story, he indicates holding firm to standards earlier would have made it more successful.

Thus putting the proper business service management strategy in place while in growth mode and service enabling the infrastructure as it grows and leverages new technology may take 5 minutes more, but in the end saves and grows the business faster and more successfully.  Awesome article!

Are you growing your business and service enabling the infrastructure at the same time?

Michele

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Since TalkTalk’s inception, in 2003, the company has grown both organically and through acquisitions to become the United Kingdom’s second-largest broadband provider, serving more than four million customers. Rapid growth, however, left the company with fragmented and inflexible operations and IT, which raised operating costs and made it harder to manage the customer base and maximize revenues across brands.  (Read Full Article…)

How IT is Managing New Demands: McKinsey Global Survey Results – McKinsey

Tags: Business Alignment, Business Service Management, Cost Reduction, IT Investment, McKinsey, Survey, Trends


The Hub Commentary __

A few interesting results from this survey of over 700 respondents.  Nothing shocking, more with less, improved business efficiency and drive business growth.  New investments on the rise and operating expenses on the decline.

I consider investments in the management, integration and infrastructure visibility enabling service delivery a key component to new investments.  In many of the the articles about new technology, the management component is an afterthought and it is the key to the success of the strategy.  It’s the whole package of leveraging new technology, delivery models and how you monitor/manage/measure it.

In these dynamic times integration is often mentioned in much of the dialog, however, I sense it is often overlooked.  I caution you not to overlook your integration and management strategy as part of your future investments to drive growth to the top line as is expected with all new investment strategies.

Michele

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In our fifth business technology survey, executives say they want more immediate value from IT and forward-looking strategies from technology leaders that support growth and innovation.  (read full article…)

Understanding the strategic value of IT in M&A – McKinsey Quarterly

Tags: Business Alignment, Business Service Management, Integration, IT Management, McKinsey


Many mergers don’t live up to expectations, because they stumble on the integration of technology and operations. But a well-planned strategy for IT integration can help mergers succeed.  (read more…)

I find this article interesting as it hits the core of IT aligning to business, integration and a sound integration platform and strategy.  The link to the Credit Suisse article also discussing integration enabling distribution and regional agility with company level views.

Reshaping IT Management for Turbulent Times – McKinsey Quarterly

Tags: Best Practices, Business Alignment, Business Service Management, IT Management, McKinsey


Despite decades of increasingly intensive use of information across industries, IT has remained a black box for many executives. Too often, the link between spending and performance has been unclear, if not problematic. As a result, leaders felt that their only course of action was to hire a competent CIO, throw increasing amounts of money at IT, and hope for the best.  (read more …)

Integrating diverse IT systems: An interview with the CIO of Credit Suisse – McKinsey Quarterly

Tags: Business Alignment, Business Service Management, Integration, IT Management, IT Management Tools, McKinsey


Tom Sanzone, CIO of Credit Suisse, says he was attracted to his position by senior management’s commitment to technology—a commitment demonstrated by his seat on the executive board of Credit Suisse. In that role, Sanzone helps shape the bank’s overall strategy, which is based on the opportunities that his technology organization has created.  (read more …)