Establishing a successful business today involves undertaking projects to introduce innovation and achieve competitive advantage and differentiation. The Standish Group, a primary research advisory group reports that less than a third of IT projects were completed on time and on budget last year. For SMBs delivering successful projects is a major challenge. Wrike, the collaborative work management company says barely half IT project managers have any certification. That is quite often the case for small and medium size businesses. One key to meeting this challenge is to begin projects with a robust requirements gathering plan and process. Time spent gathering requirements can pay major dividends through the life cycle of the project. A multi-track approach to gathering requirements helps unearth hidden and hard to identify needs.

Here are eight techniques to use to identify requirements for your projects.

1 – Interviews – with a broad spectrum of stakeholders
2 – Questionnaires – carefully chosen, probing questions that allow respondents to reflect and put their thoughts in writing.
3 – Workshops – that will surface divergent opinions and contrasting views.
4 – User observation – ideally record the actions and activities that really take place during a process, look for artifacts posted in cubicles, keyboards, etc.
5 – Brainstorming – surface “what if” and blue-sky ideas that help break out of the current state context and consider new visionary ideas.
6 – Role playing – have people play different roles to understand how different parts of the system will need to work to support the integrated process.
7 – Use cases and scenarios – can be used to validate the envisioned process and identify exceptions and boundary cases that need to be considered.
8 – Prototyping – helps reverse engineer the requirements by identifying “I don’t know what I want but I don’t what that” features.

IT Ally™ has the resources and methodologies to help with requirement gathering and other critical phases of your IT project.

The rapid evolution of emerging technologies and the impact this has had on business has propelled technology executives into the C suite across most industry sectors. This has generated much discussion and activity around the new responsibilities and skill sets technology executives must accept and master. A great deal has been written to advise and assist CIOs and CTOs become leaders and successful contributors, setting and executing strategy for businesses on the path to digital transformation.

All of this is positive and will strengthen the individuals and organizations to the extent that they adopt the advice. Not so much attention has been given to the other members of the C suite – CFOs, CEOs and Board members who are also incurring new responsibilities and the need for new skills as businesses develop models focused on emerging technologies.

CFOs in particular need to recognize the expanded responsibility they have as business uses technology to develop new deep relationships with customers, suppliers, employees, regulators and shareholders.

Navigating Digital Transformation

The technology chiefs will have responsibility for knowing, recommending and implementing technology – dealing with the detailed, system integration, deployment and operation of infrastructure and applications.

The CFO’s responsibility is the financial impact of digital transformation on the enterprise and that can be extensive in ways that never came into play before.

To be clear, the focus for the CFO and C suite should be the management of technology’s role in the business and not the technology itself. Technology is evolving rapidly and promising so many attractive potentials that it is tempting to take on an aggressive agenda seeking benefits across an array of technologies. By focusing on strategies to manage technology the C suite can safeguard and promote the future of the business.

The CFO is responsible for weighing the value of all technology investment. He or she must consider each investment in the context of the entire business. For example, a customer experience improvement must compete with a new marketing campaign and literally countless other ways of investing the business’s resources. Steps to reduce cost through automation or outsourcing need to consider the effect on customer service and ability to develop new product.

Near term decisions need to allow for strategies to future proof the business, to remain flexible and able to respond to changes in the market as customer needs change and technologies continue to evolve.

Managing Cyber Security and Risk

Cyber security has become a major responsibility for the CFO and his peers. A security strategy to prevent compromise is essential. A strong combination of internal and external security protection must be in place. Equally important is a robust, rehearsed response plan for when security is compromised. The financial implications of a security breach are severe and far reaching.

Research conducted by the National Cyber Security Alliance found that as much as 60 percent of hacked small and medium-sized businesses go out of business after six months. While the CIO deals with the technical aspects of a breach, it will fall to the CFO to answer to the regulating authorities, banks, customers, and suppliers. and take steps necessary to restore the business to firm financial footing, if possible. Security also plays into the very valuation of the business. A security breach can have impact on the valuation of a business, and security must also be considered regarding mergers and acquisitions. A CFO must be on guard against acquiring a company that brings with it a significant security risk.

Given these increased responsibilities for navigating digital transformation, in addition to a full load of strategic and day to day operations what is a CFO to do? Well, don’t go it alone.
Small and medium size businesses can work with a partner who has knowledge and experience – real experience in situations where what they know and what they have done can be applied to their enterprise.

48 percent of SMBs plan to transform their business for a digital future yet many don’t understand what digital transformation really is.

Strategic Financial Management of Technology

CFOs can develop a playbook. Identifying areas to be addressed on a regular basis using internal and external resources. The CFO and C suite peers will learn to assess technologies that have real value for that business. They will know the cost of these technologies, the impact to the current and future bottom line and the opportunity cost of the choices they support.

They will learn to focus on the management of technology and best practices in IT governance, and portfolio management. The C suite team will become aware of and sensitive to IT debt built by deferring investment to replace aging infrastructure or legacy applications. They will avoid building liabilities that reduce the business’s valuation, increase risk and hinder the flexibility needed for the future of the business.

Mastering the Customer Experience

They will also become technology users familiar with and benefiting from data analytics, business intelligence and process automation. They will invest time and effort to learn what their customer’s experience is and how to improve it.

Partnering with a network of expert resources the C suite will demystify the hype around IoT, Artificial Intelligence, Block Chain and Machine Learning and understand when and if these technologies might have true meaning for their customers and add value to their enterprise.

To increase their ability to manage technology the CFO and peers will get involved, learning how emerging technologies are being used in their industry or similar industries. Environmental scans will assess what is being done by traditional and non-traditional competition.

By exercising this playbook periodically and repeatedly, the C suite will monitor progress being made, refining and maturing emerging technologies. This will promote development of an organization with the people and resources that can take advantage when the time is ready.

What We Can Achieve Together

If you are looking for assistance on the journey to digital transformation, IT Ally™ can help. For starters check out our Diagnostic. To learn more about IT Ally’s C Suite IT Advisor services, please visit itallyllc.com or, schedule a 30-minute consultation with one of our key advisors.

In today’s world of rapidly advancing technology, cyber advisory is the last thing your SMB wants to think about. But in reality, that’s not ideal.

Many small and mid-size businesses don’t have systems in place if their business is under a cyber attack. In fact, one of our previous blog posts addresses this issue. Nearly 82 percent of SMBs don’t have a plan in the event of a cyber attack. As a result, up to 60 percent of SMBs go out of business within six months of an attack.

Cyber advisory is one of the best defenses your business can have, but is it right for your SMB? Here are some signs that it might be right for you from Neal O’Farrell, Managing Director of Cyber Advisory at IT Ally™.

Difficulty Communicating Risks

At times, it can be difficult for business leaders to communicate well in their organization, whether it’s to their employees or board members. For an IT leader, that can be especially true. Not everyone at the organization understands what their IT leader does, so when they try to communicate the need for more security, it may be hard for them to get that across to other colleagues. This can be especially hard if any technical problems your IT leader gets blamed for your SMB’s IT issues. If cybersecurity isn’t part of their priorities, they won’t bring it up.

This is where cyber advisory is important because advisors know how to communicate these issues, especially to boards who need to hear it the most. They can also bring forth the discussion if it hasn’t been brought up. Advisors will be more open and honest about issues and concerns since they aren’t part of the organization either.

C-Suite Lacks CSIO

If you’re an SMB, you likely don’t have a CSIO, which leads to cybersecurity not getting the attention it needs. Similar to the last sign, your management team may not have the right questions or insight to take on cybersecurity.

If you don’t need someone full-time, but you want someone who can give you the best IT and cybersecurity guidance possible, cyber advisory is the ideal solution.

No Contingency Plan

There’s a saying that “a goal without a plan is just a wish” and that holds true for contingency plans. When you see the statistics, it’s better to have a plan than no plan at all. Of course, you hope your SMB will never have to use it, but if it were to happen, it could not only save your business but also save your business money as you manage the ramifications.

Numerous studies show that response plans that are thought out and executed well can save an organization a lot of money when the inevitable happens. Cyber advisory services can be a great resource as your organization develops a plan. Advisors not only have the latest knowledge, but also the outside perspective. This allows them to help you create a plan that fits the needs of your organization.

Low Priority for Board

Some boards just don’t care when it comes to cybersecurity. They either think that an attack will never happen to them. Or, they expect a cyber attack to happen, but don’t have a plan and are willing to deal with the financial deficit that goes with it.

If your SMB brings in cyber advisory services, they can change the conversation in a language they understand. Advisors can push through cybersecurity roadblocks, help the board navigate security and privacy regulations, aid in decisions and bring a fresh, outside perspective on the organization. Boards not only find it helpful, but refreshing.

If these signs ring true for your SMB, IT Ally may be able to help. With over 30 years of experience and perspective, our cyber advisors can provide the best knowledge and insight for your organization. Get to know us today by contacting us or by signing up for a free consultation.

This blog is based on an IT Ally Podcast featuring Neal O’Farrell, Managing Director of Cyber Advisory at IT Ally. Listen to it here. 

Does your small or mid-size business have the endurance and discipline to create long-lasting value for your customers and stakeholders? Are your technology investments solely focused on cost reduction and efficiency? Do any of the following statements resonate with you?

• IT initiatives and the business are often misaligned because what the business values is not well defined or communicated.
• Decisions are made without a shared perspective of value.
• IT is perceived as a deep cost center that does not deliver value.
• The budgeting process is difficult because finance executives have a limited understanding of information technology and use a different vocabulary.
• Common “quick-win” cost-cutting initiatives do not satisfy the organization’s financial objectives.
• Cost-optimization projects often have unanticipated consequences that offset potential cost savings and result in business dissatisfaction.

A constant cycle in large and small companies, no matter the economic environment, has business leaders demanding IT departments to do more with less. Leaders of small-enterprise IT departments feel constantly constrained and pressured to reduce cost. Care must be taken for without informed discipline, cuts to the budget may create bigger shockwaves than the business is ready or willing to handle.

In our previous blog post introducing the IT Fitness Program, we proposed that leaders master the management of technology versus a focus on the technology itself when seeking leverage for strategic advantage. To assist SMB’s we recommended establishing an IT fitness program aligned with your business objectives. Whether your goal is to build muscle, become leaner or agile, you will use a combination of strategies (think – diet, nutrition, exercise) to achieve your objectives.

As with physical fitness, when it comes to IT financial management, you should avoid those trendy cost-cutting programs that may come with some serious side effects that could put your business at risk. Rather, adopt a more balanced and thoughtful approach that builds the endurance needed to thrive in today’s competitive environment. The conversation should start with “What are the goals you are trying to accomplish?” to help you align your financial management strategy for IT and to increase the chance of achieving those goals versus meeting short-term objectives.

You Can’t Shrink to Greatness

“Cost control is a necessary part of effective IT governance. It can help IT position itself well with an organization’s executive management”. Info Tech Research Group Director of Small Enterprise Research, states that in cases where cost containment is an enterprise-wide initiative, every department will likely need to pitch in, and it’s important for IT to play its part. Treat cost-cutting measures as an opportunity to create a more efficient and smarter department and demonstrate that throughout the enterprise.

Having led IT in large global Fortune 500 organizations as well as at smaller companies, one thing I know for sure is that “you can’t shrink yourself to greatness.” Historically, IT departments have been mandated to optimize resources and mitigate risks. Organizational priorities should drive IT priorities, but there is often misalignment. When CEO’s are asked about their priorities, they often cite “maximizing shareholder value” as a top goal. However, heads of IT typically state “improving operational efficiency” as their top priority. To exacerbate this disconnect, IT leaders can misestimate the size of their next IT budget, overestimating or underestimating, which can create issues of credibility in the budgeting process. My experience given this situation almost always leads to IT being asked to reduce their budget resulting in a focus exclusively on efficiency and cost “take outs” versus value creation.

The IT Fitness Program for the SMB

Our IT Fitness Program identifies nine sections that are based on the COBiT Framework and best practices research from Info-Tech Research Group. They are:

• Strategy and Governance
• Financial Management
• People and Resources
• Service Planning and Architecture
• Infrastructure and Operations
• Security and Risk
• Applications
• Data and Business Intelligence
• Portfolio and Project Management
• Adopting the IT Management capabilities in this framework will enable your organization to reach the full potential of your IT investments. In this blog, we will cover Financial Management and explore several capabilities including Business Value, Cost and Budget Management, Vendor Management and Cost Optimization.

IT Financial Management

Business Value:

Everything IT provides must have real business value. IT provides value by maintaining the benefit of existing services and functions it provides, eliminating services that no longer provide benefit, and by creating new value. This is true whether IT operates as a background utility, a broad enabler of business value closer to the user experience, or incorporating the entire chain of value from end to end.

Therefore, it is critical to ensure a common understanding of what is valuable for the organization to drive growth and consistent strategic decision-making. Then, equip IT to evaluate, direct, and monitor investments to support the achievement of the organization’s values and business benefits. Finally, align IT spend with business value through an enhanced governance structure to achieve cost optimization and ensure IT provides a visible contribution to the creation and maintenance of value.

With the above in mind, here are three steps to get your organization on the path to benefits realization:

1. Understand business value; ensure there is a common understanding of what is valuable for the organization to drive growth and consistent strategic decision making.
2. Incorporate benefits realization into governance; align IT spend with business value through an enhanced governance structure to achieve cost optimization
3. Ensure an accurate reference of value; IT provides a visible contribution to the creation and maintenance of value.
Cost and Budget Management:

An IT budgeting process must contain adequate measures to capture and communicate the benefit of IT investments. This begins with the collection of data and ends with effectively presenting the benefits IT investments will have for the business. IT cost pressure is fueled by negative sentiment and IT can be perceived as a high cost that does not deliver value. Budgetary approval is difficult because finance executives have a limited understanding of IT and use a different vocabulary. Detailed budgets must be constructed in a way that clearly highlights benefits but avoids technical detail that is complex and confusing.

Therefore it is important to build an IT Budget that demonstrates value delivery. However, according to a research survey conducted by Grant Thornton, only 40% of CFOs describe their current financial planning and analysis system as effective. 62% of CFOs claim their staffs were too busy with daily tasks to make the changes needed to keep their budgets up to date. Clearly, the IT budget process and subsequent maintenance extends beyond IT and can be widespread throughout the organization.

With the above in mind, here are three steps to reduce IT Budgeting frustration in your organization:

1. Plan the budget with ample time for collaboration; for example, have preliminary talks with business units to understand their plans for the fiscal year.
2. Build the budget; for example start budgeting early, with a sound forecasting methodology.
3. Sell the budget and its benefits; for example presell ideas, making business stakeholders into advocates for the budget

Vendor Management

As IT services and products continue to become outsourced, IT is becoming increasingly dependent on external vendors and a transaction-based approach becomes insufficient to guarantee continued value. Vendor management often focuses on procurement, which can reduce the value of the vendor to that of the transaction itself. When IT does not manage vendors properly, performance levels can drop and fail to deliver essential services – and IT is left accountable.

IT often has so many vendors that it is impossible to provide the same level of attention to each vendor. Even if there are a few vendors that are clearly the most important, it’s not clear how to monitor relationships with the rest of IT’s vendors. According to a Deloitte Outsourcing Survey, more than 76% of organizations outsource core applications, services, and functions with the primary goal of reducing and controlling operating costs, yet less than 24% of organizations clearly define requirements of outsourced initiatives and have the tools and processes to adequately manage their vendor portfolios

With the above in mind, here are three steps to get some order to your vendor management process:

1. Prioritize and classify your vendors with quantifiable, standardized rankings.
2. Focus on your strategic vendors first, then, year over year, work through every classification of vendor.
3. Standardize your processes for transitioning in new vendors, maintaining communications, monitoring performance and contingency plans for addressing vendor underperformance.

Cost Optimization:

IT organizations are being asked to do more with less and just because your budget is being cut, doesn’t mean that the organization’s expectations of IT are any lower.  IT cost cuts are everyone’s cost cuts. When IT’s budget is slashed, everyone feels it and fiscally prudent IT leaders need to do their part, working collaboratively with the business to convey the full implications of IT cost cuts, to help mitigate risk and preserve IT’s fundamental capabilities. Operating with a cut budget is no time to just put your head down and soldier on. Broadcast the impact of your reduced spending.

Whether it is just IT, or the entire organization, when the ax falls, it is critical to be able to absorb the blow. Proactively cutting costs and demonstrating continuous pursuit of efficiencies helps build a strong relationship with the CFO and increases the business’ confidence in IT. Cost optimization gives you an opportunity to realistically trim the fat and the flaws of the IT organization and increase efficiency and performance.  Don’t try to cut everything all at once or your actions may have unintended consequences for the business. Understand the magnitude and urgency of your cost-cutting mandate before taking action.

With the above in mind, here are three steps to get some order to your cost management process:

1. Know your mandate; Don’t start identifying potential cuts before truly understanding the external and internal drivers that are dictating the urgency and magnitude of the mandate.
2. Build momentum with quick wins; Low-risk, quick-to-implement initiatives that enhance your reputation as a fiscally prudent IT leader – even if initial savings are small.
3. Identify initiatives that will save your organization money; Conduct a high-level brainstorming session, harnessing the collective knowledge of the IT leadership team.

We Can Help

Our comprehensive selection of IT Effectiveness Assessments combined with our Assess, Measure, and Improve approach, enables tailored improvement plans to be established and implemented.

Given the importance of IT Financial Management as part of the IT Fitness Program, we recommend the following assessments:

• CEO – CIO Alignment is designed to identify and close the gaps between your vision for IT and the business, and ensure alignment of goals and objectives.
• CIO Business Vision is designed to assess the level of satisfaction across core IT services, support and relationships with key stakeholders to identify and better understand areas in need of improvement.
• IT Management and Governance is designed to assess the importance and effectiveness of your core IT processes and to identify and better understand areas in need of improvement.

IT Ally™ has the experience and expertise to help small and medium-size businesses succeed in establishing and improving your IT Fitness Program. To get started, check out our IT Fitness Test to get a customized report or call us at 844-4ITALLY (844-448-2559) to continue this discussion and see how we can improve your IT fitness.