What are some typical operation problems?
- Slow response time
- Down networks
- Data unavailability and integrity compromise
What are three strategies to improve operations?
- buy more equipment
- regulate and prioritise computer workload and activities
- implement operational measurements, set standards and benchmarks
List a few operational measures, both external and internal.
External:
- system uptime/downtime
- response and turnaround time
- program failures
Internal
- computer usage as percentage of capacity
- disk storage set
- job queue length
External problems can be explained by deviations in internal operations.
Why is good management important?
Must create an organisational culture that values good operations
Set standards
- monitor performance
- respond quickly to problems
Hire a good manager with a specific skill set
What’s new in operations ?
Managing open source
- new options to develop cost effective applications in an open environment
Getting serious with security
Large scale data warehousing
- content management will be a critical daily operation
Enforcing privacy
- striking the right Balance when disseminating data within organisation
Dealing with talent storage
- retaining talented workers
- constantly redefine job of IT professional
More operations managers are managing outward
- managing outsourcing
E.g. Web hosting, head hunting for IT talent
Operations are being simplified
- centralising operations
What are the driving forces behind outsourcing?
Added value to products and devices for the customer
Based on the value proposition, the company can focus more on core competences and businesses and what it’s good at.
Explain organisational structure when it comes to managing outsourcing and list the 5 layers of joint teams established.
Outsourcing is a joint effort of two parties that may not have the same goals.
Five layers of joint teams
- Top level team
- final word in a conflict resolution - Operational team
- oversea day to day operations - Joint special purpose teams
- created periodically to solve pressing issues - Committees j
- oversee the use of formal change management - Relationship managers
- look after the relationship
Explain Governance
Foundations of outsourcing relationship laid out in a contract
Service level agreement important component
- responsibilities
- performance requirements
- penalties
- bonuses
- metrics of performance
- can be tricky
Give some examples of outsourcing governance rules.
Service levels must stay in the top 25% as benchmarked against the clients peers
Escalation of problems becomes more painful as it goes higher to encourage early resolution
Add significant value
New services can be put out for bid
No exclusive agreements
Meet our standards
Let us know about potential problems before they happen.
Explain day to day working.
Manage expectations not the staff
Realise that informal ways of working may disappear
Loss of informal ways adds to rigor and thus work quality
Integration of two staffs require explicit actions
- invite each other to meetings
- hold joint celebrations and social events
Communicate frequently
Explain off shoring
Companies shift outsource from domestic to international to lower their costs and an ample supply of qualified people
Offshore is different from domestic in that off shoring options are broadening
- customer service, back office, BPO etc
Cultural difference
- address communications issues and provide cultural training
Local country laws need to be followed
Use offshoring to advantage
- major criticism is that it decreases skills and knowledge of clients IT organisation
Just develop different competences
Redefine services using offshoring
- understand customers
- understand demographics
- office end to end services
- dominate the screen
- controlling where the information ends up.
