Thursday, May 28, 2009

The world connected: Society’s new highway roars up the agenda

The world connected: Society’s new highway roars up the agenda
By Paul Taylor

Published: May 28 2009 21:39 | Last updated: May 28 2009 21:39

Expanded access to fixed and wireless broadband connections is beginning to transform business communications and corporate processes while driving a new round of innovation that could have profound implications worldwide.

“Today, broadband is at the turning point with infrastructure widely available,” said Carl-Henric Svanberg, Ericsson’s chief executive, speaking at a recent event.

“However, we have not realised the full impact and potential for society.

“Over the next 20 to 30 years, it will stimulate innovation across society and will lead to the deployment of completely new solutions,” he said.

Mr Svanberg predicted that broadband would be the society's new highway, with telecommunications contributing to sustainability through innovations such as telepresence, video links which can reduce the need to travel to meetings, for example.

The potential of broadband to streamline business processes and cut costs has also ensured that investment and providing access for individuals and companies has remained top of the political and business agenda.

“The sector is receiving growing attention worldwide as governments recognise the crucial role it will play in economic recovery,” says Dianne Northfield, analyst at Yankee Group, a connectivity research firm. “The emerging ‘Anywhere Network’ – a powerful, pervasive digital network that can connect all people, at any time, in any place – presents an opportunity to create more jobs, increase productivity and develop solutions for healthcare, education, transportation and energy.”

Recent research, including a study commissioned by Nokia Siemens Networks and conducted by LECG, a consultancy, on the economic impact of broadband adoption in Europe and the US over the past 10 years, suggests this emphasis is fully justified.

The LECG Broadband Study directed by Professor Leonard Waverman of London Business School, found that in countries where diffusion and use of information and communications technologies (ICT) were at medium or high levels, the economic benefit from improved penetration was significant.

For example, the study predicts that adding 10 more broadband lines per 100 individuals across the US, or a total of 30m new lines, would raise US GDP by more than $110bn.

Significantly, the LECG study also found that in countries where ICT deployment had been relatively low, broadband has generally been adopted more slowly and has not had a noticeable positive effect on productivity.

It suggested that in these countries, while it may just be a matter of time before the benefits are evident, governments should be active in helping to speed up its adoption.

Another conclusion is that there is a significant role for “demand-side” policies which create incentives for, or lower the costs of, adopting broadband and computing technologies. “Governments and businesses could look at providing training in using ICT and raising awareness of the potential benefits,” it suggests.

But like other studies, the LECG report also suggests that even where broadband has had an impact, there are lessons and warning signs.

First, providing there are no diminishing returns, policies that promote it are policies that promote productivity, innovation and economic growth.

“Innovative ability” is an important source of comparative advantage for advanced economies – thus policies that promote innovation and encourage investment in advanced infrastructure are to the good.

However, it must not just be about infrastructure because the same infrastructure in different, more skilled hands can yield far higher returns.

Second, even within countries such as the US and the UK there is an internal digital divide. This has sometimes been portrayed in terms of access to infrastructure, but many argue there is also a divide in usage and skills.

“Many countries are looking at how to provide universal access to broadband as an assumed driver of economic productivity,” says Prof Waverman. “But far too little attention is given to other key factors. For instance, a US stimulus package that addresses affordable access would have a far greater impact when complemented by emphasising provision of computing devices, ICT training and education.”

The lesson for policy makers, he suggests, is that there needs to be a greater focus on the users of future infrastructure, enhancing the “demand side” of access.

Specifically, for broadband to become a more effective way of enhancing productivity, countries need to invest in improving skills and lowering the costs to businesses of adopting technology and restructuring business models around technology.

Ilkka Lakaniemi, head of global political dialogue and initiatives at Nokia Siemens Networks, says: “The models must take into account the digital divide between northern and southern Europe.” He adds, however, that even in advanced countries, policies that call for universal broadband access should also address issues of skills and awareness.

The LECG study agrees: “useful connectivity” depends not just on the number of people connected to a network or infrastructure, but on how those connected use the network or infrastructure.

Although it is convenient for governments and the telecoms industry to focus on the “supply side” (access), policy makers cannot ignore usage, skills and technological know-how among businesses and consumers.

Ovum, the technology consultancy, reaches similar conclusions in its recent report, “Bridging the broadband divide: challenges and solutions”. Divisions in developed economies are linked to lack of demand and complex interfaces more than limited availability, Ovum suggests.

Globally, overwhelming evidence that broadband is “good for the economy and good for the nation”, has made connecting society an important government goal. In many developed markets, penetration is well above 50 per cent; although growth is slowing. This, says Ovum, is due to a significant minority of people either not being interested in broadband or facing significant barriers.

The report outlines strategies that could help bridge such divides. It says many people are put off by complex devices and interfaces that cater to the technically literate. In addition, users with disabilities are largely under-served. Inclusive design needs to play a much greater role.

It argues that strategies to promote internet use need to work as part of wider inclusion efforts – embedding broadband in education, employment, care and other programmes designed to empower the socially excluded – and connectivity needs community relevance.

In most cases, operators will play a key role in inclusion activity, but this will be in partnership with other commercial companies, public agencies, non-government organisations and user groups.

For example, efforts to target elderly people can involve charities, targeted media coverage, local care agencies and companies specialising in products designed for elderly users.

The debate over the role of government in promoting access continues. For example, a report from the International Telecommunications Union noted that several of the top ICT countries have higher ICT levels than expected, given their income levels. For example, South Korea is outstanding.

“This illustrates how a strong and targeted ICT policy can drive the development of the information society in countries with relatively lower income levels,” the ITU concludes.

What LECG, Ovum and other commentators agree on is that the provision of access, either by private entity or government, will not, on its own, ensure that the full potential of broadband internet access to transform lives, companies and economies is realised. For that, a more holistic approach is needed that transcends all divisions.

ITU: ”Measuring the Information Society – The ICT Development Index, 2009 Edition”, http://www.itu.int/ITU-D/ict/publications/idi/2009/material/IDI2009_w5.pdf

NSN/LECG Connectivity Scorecard, http://www.connectivityscorecard.org/images/uploads/media/TheConnectivityReport2009.pdf

Ovum: Bridging the Digital Divide – less technology, more understanding, contact Maria Di Martino on +44 20 7675 7529 or maria.dimartino@ovum.com.

Copyright The Financial Times Limited 2009

Skills: Business must learn from the new tribe

Skills: Business must learn from the new tribe
By Jessica Twentyman

Published: May 28 2009 21:39 | Last updated: May 28 2009 21:39

“To read the criticisms about the Net Generation,” writes author Don Tapscott in his latest book, Grown Up Digital, “you might conclude that they are a bunch of dull, celebrity-obsessed, net-addicted, shopaholic exhibitionists.”

Such a bleak view, he goes on to say, belies the fact that the children of the baby boomers – now aged between 12 and 30 and reared in an era of digital technologies – are poised to transform society in profound and largely positive ways.

In the workplace, he adds, their aptitude with technology and willingness to collaborate could provide their employers with a real source of competitive advantage.

But whether they are referred to as the Net Generation, digital natives, Millennials or Generation Y, this new tribe of employees can only make its mark if the businesses they work for are able to accommodate and capitalise on a host of new attitudes, beliefs and ways of working.

“Listen to young people,” Mr Tapscott urges business leaders. “Put them in the driver’s seat alongside you when designing work spaces, processes, management systems and collaborative working models.” In other words, be prepared to make big changes in order to unleash the power of these new employees.

Are businesses ready to heed that advice? In truth, many are not, says James Callander, managing director of recruitment consultancy FreshMinds. “This new generation is well-known for its unrestrained ambition, but its largely unparalleled handle on technology presents a significant management challenge,” he says.

“I think one of the biggest problems is that older members of the workforce feel scared of looking foolish in the face of new technology and are threatened by these younger peers who seem to hold all the cards.”

He observes two common approaches to tackling this challenge. “The first is almost a ‘divide and conquer’ approach, consigning technology to different divisions or units in the business. But the internet and mobile technology is now so all-encompassing ... that separation is all but impossible. The second and better approach is to encourage younger workers to train and enfranchise their older colleagues.”

In principle, that makes good sense, because while they may be reluctant to admit it, older business leaders have much to learn from their younger co-workers, says Urs Gasser, executive director at the Berkman Center for Internet and Society at Harvard University and co-author of Born Digital: Understanding the First Generation of Digital Natives.

As principal investigator on the Digital Natives project, an academic collaboration between the Berkman Center and the Research Center for Information Law at the University of St Gallen in Switzerland, he has devoted the past few years to studying how people who grew up immersed in digital technologies interact with the world.

Three characteristics distinguish a digital native in today’s workplace, he says. The first is their relaxed attitude to information disclosure; the second, their aptitude at social networking; and the third, the very different way they process information, as compared with previous generations.

It is this first trait that causes business leaders most concern, according to Prof Gasser. “Digital natives are generally more open about themselves and have fewer reservations about sharing their thoughts and opinions with the world.

“The fear is that this will lead them to share information about their jobs and the organisations they work for, without reflecting on how appropriate it might be to divulge information that might be considered confidential or commercially sensitive.”

Tackling the issue is a matter of education, he argues. Where corporate policies are thoughtfully applied (and observed), that propensity for self-disclosure can be a positive force, building trust between colleagues and opening the door to deeper collaborations.

It also offers organisations a chance to get to know young employees better, to understand what motivates them and the best ways to channel their energies to reap better business results.

But it’s the second and third traits that offer companies the greatest chance to get ahead. “For years, organisations have been investing heavily in knowledge management initiatives to tap into the collective expertise of their workforce, but the results have been mixed.

“Suddenly, the cultural barriers to information sharing are crumbling with the emergence of social networking and the rise of a new workforce that is more than comfortable with working online with their peers to solve a problem.”

This, he says, has huge implications in many aspects of business, such as developing products, identifying market opportunities and generating sales leads.

But the issue of working hours can be contentious, says Claire Schooley, an analyst with IT market analyst firm Forrester Research. “Work-life balance is paramount to Millennials. These young people do not work by the clock – rather, they work by the task. Let them know what they need to do and when assignments need to be done. With mobile technology, they’ll be online at night completing projects.”

As the connected world evolves, it is therefore vital that organisations adapt policies and tools to suit the style of new workers. In economies where the working population is ageing, this may not just be desirable but essential to survival.

Grown Up Digital, by Don Tapscott, McGraw Hill, 2008.

Born Digital: Understanding the First Generation of Digital Natives, by John Palfrey and Urs Gasser, Basic Books, 2008

Copyright The Financial Times Limited 2009

The world connected: Society’s new highway roars up the agenda

The world connected: Society’s new highway roars up the agenda
By Paul Taylor

Published: May 28 2009 21:39 | Last updated: May 28 2009 21:39

Expanded access to fixed and wireless broadband connections is beginning to transform business communications and corporate processes while driving a new round of innovation that could have profound implications worldwide.

“Today, broadband is at the turning point with infrastructure widely available,” said Carl-Henric Svanberg, Ericsson’s chief executive, speaking at a recent event.

“However, we have not realised the full impact and potential for society.

“Over the next 20 to 30 years, it will stimulate innovation across society and will lead to the deployment of completely new solutions,” he said.

Mr Svanberg predicted that broadband would be the society's new highway, with telecommunications contributing to sustainability through innovations such as telepresence, video links which can reduce the need to travel to meetings, for example.

The potential of broadband to streamline business processes and cut costs has also ensured that investment and providing access for individuals and companies has remained top of the political and business agenda.

“The sector is receiving growing attention worldwide as governments recognise the crucial role it will play in economic recovery,” says Dianne Northfield, analyst at Yankee Group, a connectivity research firm. “The emerging ‘Anywhere Network’ – a powerful, pervasive digital network that can connect all people, at any time, in any place – presents an opportunity to create more jobs, increase productivity and develop solutions for healthcare, education, transportation and energy.”

Recent research, including a study commissioned by Nokia Siemens Networks and conducted by LECG, a consultancy, on the economic impact of broadband adoption in Europe and the US over the past 10 years, suggests this emphasis is fully justified.

The LECG Broadband Study directed by Professor Leonard Waverman of London Business School, found that in countries where diffusion and use of information and communications technologies (ICT) were at medium or high levels, the economic benefit from improved penetration was significant.

For example, the study predicts that adding 10 more broadband lines per 100 individuals across the US, or a total of 30m new lines, would raise US GDP by more than $110bn.

Significantly, the LECG study also found that in countries where ICT deployment had been relatively low, broadband has generally been adopted more slowly and has not had a noticeable positive effect on productivity.

It suggested that in these countries, while it may just be a matter of time before the benefits are evident, governments should be active in helping to speed up its adoption.

Another conclusion is that there is a significant role for “demand-side” policies which create incentives for, or lower the costs of, adopting broadband and computing technologies. “Governments and businesses could look at providing training in using ICT and raising awareness of the potential benefits,” it suggests.

But like other studies, the LECG report also suggests that even where broadband has had an impact, there are lessons and warning signs.

First, providing there are no diminishing returns, policies that promote it are policies that promote productivity, innovation and economic growth.

“Innovative ability” is an important source of comparative advantage for advanced economies – thus policies that promote innovation and encourage investment in advanced infrastructure are to the good.

However, it must not just be about infrastructure because the same infrastructure in different, more skilled hands can yield far higher returns.

Second, even within countries such as the US and the UK there is an internal digital divide. This has sometimes been portrayed in terms of access to infrastructure, but many argue there is also a divide in usage and skills.

“Many countries are looking at how to provide universal access to broadband as an assumed driver of economic productivity,” says Prof Waverman. “But far too little attention is given to other key factors. For instance, a US stimulus package that addresses affordable access would have a far greater impact when complemented by emphasising provision of computing devices, ICT training and education.”

The lesson for policy makers, he suggests, is that there needs to be a greater focus on the users of future infrastructure, enhancing the “demand side” of access.

Specifically, for broadband to become a more effective way of enhancing productivity, countries need to invest in improving skills and lowering the costs to businesses of adopting technology and restructuring business models around technology.

Ilkka Lakaniemi, head of global political dialogue and initiatives at Nokia Siemens Networks, says: “The models must take into account the digital divide between northern and southern Europe.” He adds, however, that even in advanced countries, policies that call for universal broadband access should also address issues of skills and awareness.

The LECG study agrees: “useful connectivity” depends not just on the number of people connected to a network or infrastructure, but on how those connected use the network or infrastructure.

Although it is convenient for governments and the telecoms industry to focus on the “supply side” (access), policy makers cannot ignore usage, skills and technological know-how among businesses and consumers.

Ovum, the technology consultancy, reaches similar conclusions in its recent report, “Bridging the broadband divide: challenges and solutions”. Divisions in developed economies are linked to lack of demand and complex interfaces more than limited availability, Ovum suggests.

Globally, overwhelming evidence that broadband is “good for the economy and good for the nation”, has made connecting society an important government goal. In many developed markets, penetration is well above 50 per cent; although growth is slowing. This, says Ovum, is due to a significant minority of people either not being interested in broadband or facing significant barriers.

The report outlines strategies that could help bridge such divides. It says many people are put off by complex devices and interfaces that cater to the technically literate. In addition, users with disabilities are largely under-served. Inclusive design needs to play a much greater role.

It argues that strategies to promote internet use need to work as part of wider inclusion efforts – embedding broadband in education, employment, care and other programmes designed to empower the socially excluded – and connectivity needs community relevance.

In most cases, operators will play a key role in inclusion activity, but this will be in partnership with other commercial companies, public agencies, non-government organisations and user groups.

For example, efforts to target elderly people can involve charities, targeted media coverage, local care agencies and companies specialising in products designed for elderly users.

The debate over the role of government in promoting access continues. For example, a report from the International Telecommunications Union noted that several of the top ICT countries have higher ICT levels than expected, given their income levels. For example, South Korea is outstanding.

“This illustrates how a strong and targeted ICT policy can drive the development of the information society in countries with relatively lower income levels,” the ITU concludes.

What LECG, Ovum and other commentators agree on is that the provision of access, either by private entity or government, will not, on its own, ensure that the full potential of broadband internet access to transform lives, companies and economies is realised. For that, a more holistic approach is needed that transcends all divisions.

ITU: ”Measuring the Information Society – The ICT Development Index, 2009 Edition”, http://www.itu.int/ITU-D/ict/publications/idi/2009/material/IDI2009_w5.pdf

NSN/LECG Connectivity Scorecard, http://www.connectivityscorecard.org/images/uploads/media/TheConnectivityReport2009.pdf

Ovum: Bridging the Digital Divide – less technology, more understanding, contact Maria Di Martino on +44 20 7675 7529 or maria.dimartino@ovum.com.

Copyright The Financial Times Limited 2009

Friday, May 22, 2009

How safe is your IT security?

How safe is your IT security?
By Graham Fern, director of axon-IT

Published: May 22 2009 09:49 | Last updated: May 22 2009 09:49

The largest challenge facing businesses today is IT security. As business become increasingly reliant on the data in its systems, it faces an ever-increasing threat to the network and data integrity.

Everyone is aware of issues regarding internet usage and the security of electronic data stored or transmitted to third parties. Recently, Microsoft issued a report indicating that 97 per cent of all e-mails sent over the net are unwanted – spam is dominant.

So is IT security really an issue or are we just scaremongering?

The simple answer is yes, security is a big problem if you don’t take reasonable protective measures. So how do you “shut the door” to your PC network?

Simple steps can reduce the risk – data must be protected but without spending very large amounts of money. The solutions differ slightly between home and business users but we’re looking here at business.

IT systems use a multi-layered approach to ensure security, similar to methods used in banks. When it comes to protecting the money, banks place their highest security closest to the money – the vault door with complex alarms, together with the front of house security.

This multi-layered approach allows and encourages normal people into the bank, but in turn discourages the thief, who is faced with a difficult path to the money.

This is similar for IT systems and the data they contain: IT security should be tiered with multiple levels of security from the front door to the bank vault.

So how does this translate into the real world?

First, e-mail, a recent Microsoft study determined that e-mail was the number one use of a PC. So if e-mail is important we need steps to ensure the e-mails received are relevant to the business:

We need a device or a service that “cleans” e-mails of spam, and that removes viruses at the same time, ensuring what arrives in an inbox is relevant and safe.

Such systems are not 100 per cent perfect, therefore any system must be able to learn and needs to be simple to use and administer. This protection then needs to be extended to the PC itself as another layer – in the form of a suite of software that blocks and inhibits spyware, viruses, malware, spam etc.

This software needs to be adaptive to the threats and learn quickly, it also needs to talk to a central system with status information.

Firewalls can also stop the internet from getting inside your computer network. They vary considerably in features and price and one size does not fit all.

Best practice is usually for a relatively simple and fast device to be placed closest to the internet to undertake simple security blocking tasks (like the front door to the bank). Closer to the users you would place a more complex device (like the bank vault) that can undertake a very fine inspection of information flowing in.

These complex devices can also inspect/block what is going out from your network, which can be a useful productivity and security tool if your staff are surfing potentially unsafe websites that could contain spyware and viruses.

The use of professionally written, intelligent and well executed viral code is becoming widespread. These code writers use the same processes and procedures a professional application developer would use to ensure the highest quality virus.

Infections today are less openly destructive than they used to be – yet more damaging – as virus writers now know they can extract useful and valuable data that has a financial worth, such as credit card details. Infected machines have allowed thieves to undertake money laundering, gain remote access to internal database systems, allowed terrorism to be funded, and other criminal activities.

These attacks are not just limited to small time ad-hoc efforts but they can be streamlined targeted affairs for a particular purpose. This type of criminal activity is rapidly becoming mainstream, the number of detected viruses over the past two years is almost equal to all the viruses detected since they started recording such information.


Axon IT is accredited as a Microsoft Gold Partner with a specialisation in security.

Copyright The Financial Times Limited 2009

Monday, May 18, 2009

The desktop of the future: centralised and social?

The desktop of the future: centralised and social?
By Laurent Séraphin, senior product director, Centrix Software

Published: May 18 2009 17:45 | Last updated: May 18 2009 17:45

The desktop is one of the most important utilities for many organisations today. It provides a primary point where, in the digital economy, most workers consume company services and resources and access tools that help them carry out their work: transforming data into information up its value chain.

Over the past 15 years, the PC has been the dominant device used by the majority of the workforce, but the inherent challenges of maintaining and managing PCs has become a serious hindrance for IT departments.

Two major technology trends have emerged that will affect this on a wider scale and impact how organisations plan their desktop strategies: IT centralisation and cloud computing.

These trends are pulling desktop strategy in two different directions, so how can organisations make sure that their IT strategy really meets the needs of users, and delivers value back to the business?

The first stage is to look under the hood. The points of provision and points of consumption for IT services are moving apart. Users have more ways than ever to access their applications and services. It means the IT resources underneath – enabling them to access anything from anywhere – is complicated: many-to-many relationships, relying on multiple nodes and multiple infrastructure stacks to deliver multiple applications and resources.

To reduce their costs and make management simpler, IT is facing two choices: either try to centralise the distribution of applications and resources as much as possible or move applications and services on to the internet as part of a cloud computing strategy.

Both approaches aim to cut the time and cost associated with desktops by broadcasting virtual desktops or publishing virtualised applications (similar to the TV broadcasting model) to the user but they move the level of control and management in different directions. Do you look to centralise and lock down, or give the problem to a third party?

The two technologies that have accelerated these trends are virtualisation and now cloud computing.

Virtualisation splits the workload from the IT resource that it is running on, meaning that PCs can be held in the central data centre instead of under every desk. This approach can deliver greater management control over desktops, while also reducing the overheads that are associated with support. However, it requires resources to be hosted centrally, which can drive up cost.

Cloud computing is seen as the future for some facets of IT services. Much like real clouds, IT clouds can come in a variety of different forms: internal or external; trusted or non-trusted; on premises or outsourced; public or private; and web-based applications. What cloud computing can deliver is greater flexibility and over time this translates into greater business agility benefits.

The main impact on users from cloud computing today is the relative complexity of delivering services to users. The value of the applications held in clouds can only be realised when users can use the services quickly and efficiently. While most cloud-based services are simple to access and operate, there is still a lot of fragmentation: information can reside across multiple services, applications and clouds.

What these two overall directions for the future have in common is to make all services available via a browser-based interface. The availability of internet connectivity makes this more attractive to organisations as the entire spectrum of end-point devices, from desktops through to smartphones, laptops or netbooks can be assumed to have a baseline browser capability, and therefore give access to the same services wherever the user is.

However, as the browser becomes the lowest common denominator, the user experience can be greatly reduced. The functionality and richness that the desktop can provide is often sacrificed.

At the same time, users are becoming increasingly difficult to satisfy. Technology is part of daily life, and this has made users acutely aware of how easy using IT resources can be.

The gap between the private digital experience and the professional IT environment is increasing, leading to dissatisfaction. The main risk that organisations face is that, despite being a success from an IT standpoint, projects are not delivering all the value that they can as users either work around services, or don’t use their full potential.

Users want to retain the richness of functionality that they are used to, so centralised approaches such as virtual desktops can be a let-down.

Similarly, web-based approaches are not yet delivering on their promise, as the most common user experience is very crude. Typically, a user will have to navigate through multiple nested and tiled desktop environments, or “walled garden” style applications where information cannot be taken out of the system. This leads to push back from the users, and is the biggest reason behind the slow adoption of new IT services.

While these two trends are pulling desktop strategy in different directions, by focusing on the browser it is possible to design systems that aggregate applications from wherever they happen to be and deliver them to the user in a way that fits in with their working habits.

In order to meet user expectations and encourage them to make the most of their IT resources, IT has to deliver the best of both worlds: the control and support that centralisation can provide, with the flexibility and innovation of cloud. Without this combination, users won’t get the experience that they are used to.


laurent.seraphin@centrixsoftware.com

Copyright The Financial Times Limited 2009

Friday, May 15, 2009

Stick or twist? Assessing the risks of outsourcing

Stick or twist? Assessing the risks of outsourcing
By Alan Bowling, chairman of the SAP UK & Ireland User Group

Published: May 15 2009 13:15 | Last updated: May 15 2009 13:15

There was a time when organisations would not outsource their core systems. However, outsourcing is back on the agenda for many organisations as they look to outsource entire systems, or part thereof, in an attempt to reduce operating costs.

As an example, outsourcing company Capita reported that it had won £610m of contracts within the first seven weeks of 2009.

It is, however, important that organisations are outsourcing for the right reasons and not simply jumping on the cost-reduction bandwagon. Outsourcing purely for financial reasons can sometimes be a dangerous path.

As such, organisations need to work out what areas of their business they want to outsource and the potential risks of doing so.

Outsourcing can take many shapes and sizes ranging from the manufacturing of a particular product to the management of enterprise software. It is therefore vital that businesses firmly establish what they are outsourcing and develop a well-planned and well-managed risk management strategy to support it.

Is it a commodity that can be easily outsourced, such as a data centre or the hosting of a particular software application, or is it the outsourcing of a particular business process?

Software-as-a-Service (SaaS) is also changing the current outsourcing model, as organisations can now in effect “outsource” an entire end-to-end software function or process. All of these options carry particular benefits and risks which all need to be properly evaluated.

The movement of company and personal data is, quite rightly, an important and sensitive issue. There have been several high profile incidents over the last couple of years, where organisations have outsourced a particular aspect of their business only for the outsourcer to lose or compromise sensitive data.

It is clear that many organisations need to do more due diligence when it comes to outsourcing. For example, according to Gartner, more than 60 per cent of companies do not conduct any security risk mitigation when outsourcing their development, so there is a clear need for a change in mindset.

Another consideration for many organisations is the geographical location of their outsourcers, so it is important that businesses weigh up the pros and cons of outsourcing their operations overseas.

Undoubtedly, organisations can stand to make considerable savings by outsourcing to India or new emerging locations such as Brazil, but what effect will this have on an organisation’s level of service, particularly as operations and support is thousands of miles away? Are businesses sacrificing long-term prosperity for short-term gain?

There will always be a big human element to outsourcing, so naturally there will be an inherent element of risk. Whatever outsourcing partner an organisation works with, they need to ensure that the people they employ are capable of doing the job.

A good outsourcer should be seen as an extension of the organisation and, as such, should operate as if it was part of the in-house team.

Equally, outsourcers need to be accountable. Therefore organisations should ensure that they include specific and detailed requirements of what they will and will not accept in the contract.

One of the biggest challenges facing organisations is getting the outsourcing contracts shaped to ensure the liability of both sides is clear and that the level of risk is acceptable.

By having credible service level agreements (SLAs) in place, businesses can retain control over the outsourcer and hold them accountable for their performance if problems do occur. It is important that organisations read their outsourcing contracts carefully, and seek amendments accordingly.

While outsourcers will aim to demonstrate high levels of service, organisations should always be clear that the outsourcer views it very much as a commercial arrangement and will aim also to improve the profitability of the contract.

According to the Corporate Executive Programme (CEP), managing risk to protect brand revenue and reputation in the economic downturn is increasingly a legal challenge. This is, however, covering the worse case scenario. If all the planning, knowledge transfer and risk management is properly completed then the scenario will be a successful one.

The lasting message is that outsourcing can work and deliver but organisations must proceed with caution. Like all successful business projects, outsourcing requires meticulous planning and management as organisations need to understand fully what they will get out of it and the risks involved.

Ultimately, outsourcing should form part of a long-term business strategy rather than simply being looked at as a short-term cash-saving fix.


Copyright The Financial Times Limited 2009

Wednesday, May 13, 2009

OpenText übernimmt Vignette

Open Text, Anbieter für Enterprise Content Management (ECM)-Software und -Lösungen, gab die Übernahme des weltweit agierenden CMS-Anbieters Vignette bekannt. Vignette mit Hauptsitz in Austin, Texas, gilt mit seiner über zehnjährigen Erfahrung und mehrfachen Produktauszeichnungen als führender Anbieter innovativer Technologien im Content Management.

Die beiden Unternehmen haben sich bereits über einen Gesamtkaufpreis von 310 Millionen Dollar geeinigt, Vignette-Aktionäre sollen pro Aktie 12,70 US-Dollar erhalten. Wenn Aktionäre und Börsenaufsichtsbehörde ihre Zustimmung zur Übernahme geben, soll diese im zweiten Halbjahr 2009 abgeschlossen sein.

Nach John Shackleton, President und Chief Executive Officer bei Open Text, profitiert das Unternehmen von der Übernahme durch die Möglichkeit das eigene Produktportfolio deutlich zu verbreitern und so zukünftig die Position als führender, unabhängiger Anbieter im ECM Markt zu stärken.

Nach zahlreichen Übernahmen verschiedener Anbieter aus der ECM-Branche in den letzten Jahren, unter anderem Gauss (WCM) 2003, SER (DMS/Workflow) 2003, IXOS (Archiv) 2004 und Hummingbird (WCM, DMS, …) 2006, wäre dies nun der nächste große Coup von Open Text.

Detaillierte Informationen zur Vignette-Übernahme finden sie in der englischsprachigen Originalmeldung unter:

08.05.2009, Contentmanager.de




http://www.contentmanager.net/magazine/news_h35957.html

Tuesday, May 12, 2009

Autonomy pushes its head into the cloud with bank offering

Autonomy pushes its head into the cloud with bank offering
By Geoff Nairn

Published: May 12 2009 12:22 | Last updated: May 12 2009 12:22

Autonomy, the search specialist based in the UK, has launched a cloud-based compliance solution for banks and others that do business on the web.

The offering takes “snapshots” of the dynamic content served up by websites and so helps firms comply with regulatory requirements.

It stems from Autonomy’s recent acquisition of content management specialist Interwoven and uses Digital Safe, Autonomy’s cloud-based archive service, which is already used by several financial firms.

• Sterling Commerce, specialist in e-commerce software, has jumped into business process integration with the Sterling Business Integration Suite.

This focuses on the business-to-business market and Sterling says it can reduce the cost and complexity of linking IT systems. In one of those unlikely acquisitions made in the dotcom boom, the company was bought by SBC Communications and is now part of AT&T.

• More on the business integration front, this time from Microsoft, which has released BizTalk Server 2009. It sports 25 adapters to connect to the enterprise software suites of rivals such as Oracle and SAP, and supports Microsoft’s Hyper-V virtualisation software. It also embraces the latest standards for data from radio frequency ID (RFID) tags.

• SugarCRM, the pioneer of open-source customer relationship management, unveils Sugar Express, a cloud-based version of its software aimed at small businesses. As well as core CRM features, it has plug-ins for Microsoft Office and “cloud connectors” to link data from sites such as Hoover’s business information. Subscriptions start at $499 a year for up to five users.

• EDS, the services arm of Hewlett-Packard, has struck a deal with Microsoft jointly to sell the software giant’s hosted communication offerings. The Microsoft Productivity Online Suite includes online versions of Exchange and SharePoint as well as Office Live Meeting and Office Communications Online. Unlike rivals such as Google, Microsoft is unwilling to put the full suite of productivity software online so as to protect its packaged software business.

• Sun Microsystems is making some of its open-source software available via the Amazon Elastic Compute Cloud. The product families are the GlassFish application server and OpenSSO, Sun’s open-source offering for identity management. With many IT budgets frozen, Sun says EC2’s hosted infrastructure allows IT departments to kick-start projects that would otherwise experience hardware requisition delays.

• IBM has teamed up with MarketShare Partners, a specialist in marketing analytics, to target the media industry.

Based on the Cognos business intelligence software, which IBM acquired in 2007, the offering is designed to help media companies monitor key performance indicators and consumer behaviour across different channels, and so maximise advertising revenues.

• It is not just media folk who need help understanding their business. IBM plans to open a network of analytics solution centres around the world, with the first five about to open in Beijing, Tokyo, London, Washington DC and New York. IBM says economic stimulus measures will drive demand in areas as diverse as financial risk management and electronic medical records.

Copyright The Financial Times Limited 2009