"SCENES FROM A SERVER - PART 3"

Hopefully by now you have seen one of our "Scenes from a Server" video clips. The feedback from folks has been positive and the clips have certainly left a memorable impression.

While the video series was designed to be an attention getter, making its way from one integration professional's inbox to another, REMEDI is not all about nonsensical videos depicting the challenges of integration. We actually assist clients daily with B2Bi and Enterprise Integration challenges and solutions. With over 16 years in the IT integration services business we try continually to earn our reputation as a "thought leader" in this space. To achieve this positioning you will find a variety of resources on our video viewing page as well as the Resources area of our web site.

In regard to our video, the latest is the third of a short, four-part series entitled "Scenes from a Server", depicting the challenges of integration. We hope you find this one as memorable as those that preceded it. If by chance you missed the prior videos and desire to put this one in context, these videos may be viewed in succession on the video page of our web site.

Enjoy!

Click for "Scenes from a Server" - Part 3

Top 5 CIO Strategies for 2009

To follow up on my post from last week, I have outlined the top five CIO strategies for 2009 according to Gartner's research and the presentation that I attended at the 2009 Sterling Commerce Customer Connection in April of this year. Again, it is interesting to look back to see how these strategies may compare to how 2009 has unfolded within your organization and your CIO's strategies as we look toward 2010.

Top 5 CIO Strategies for 2009

1. Delivering Projects that Enable Business Growth
   
2. Reduce the Cost of IT


3. Link Business with IT Strategies and Plans


4. Implement IT Process Improvements


5. Improve IT Governance

The CIO's Agenda for 2009, A Review

While shuffling through some miscellaneous papers on my desk this week, I came across some notes that I had from the Sterling Commerce Customer Connection in April. The notes were from a session that I attended that outlined the Financial Services CIO's agenda for 2009. This information was assembled and presented by Gartner at the conference. As we enter fourth quarter of 2009, I thought it was interesting to reflect back on what CIO's were focusing on in early 2009. Here is what they found were CIO's top business priorities for 2009.

CIO's Top 5 Business Priorities for 2009

1. Improving Business Processes


2. Cutting Enterprise Costs


3. Attracting and Retaining New Customers


4. Creating New Products and Services


5. Supporting Regulation, Reporting, and Compliance Requirements

How have these business priorities remained the same or shifted within your organization as we start to plan for 2010? It is interesting to compare where we all are now to where we were then.

The Budgeting Season Approaches.

While requested year round, we are approaching the time of year we get the most calls for budgeting information. Some are trying to spend efficiently what remains in their budget for the balance of the year, others are planning initiatives for next year.

With the economy in the throws of recession this year and only mission critical projects being pursued, we expect that 2010 will be a great year if we are presently at, or near, the bottom.

We find that sizing and budgeting information requests for critical new projects often include the following components:

1. Scope Analysis
2. Obstacle Planning
3. Timeline Development
4. Resource Requirements
5. Project Costs

If you have an initiative you are planning for, consider all the aspects of your project and its life cycle in order to accurately develop a reliable budget and project plan.

Utilizing An EDI / EAI / Other Consultant…When?

In a recent Blog post, Cut Too Deeply...Some Turn To Service Providers, I submitted that it was wise of organizations to review labor capacity and make moves to reduce costs. I also outlined that based on the nature of service requests received at REMEDI, I believed that some organizations cut staff too deeply, some knowingly, and others unknowingly.

Unless real economic and long term growth is in the cards for organizations, I believe that it will be tough to get resources back in a full-time capacity. In the meantime, I believe that IT service providers will play a role in capacity solutions and skill gaps. Some of the clients we have assisted this year had capacity issues as a result of deep cutbacks, and some had never used consultants before.

Considering that some organizations have never used a consultant, we developed a checklist as a resource for others in a similar situation.

When, Why, and How to Utilize an EDI / EAI Integration Consultant is posted in 3 separate but related pieces.

Utilizing An Integration Consultant – The When

• To fill a temporary gap in personnel
  One of the most obvious reasons to hire a consultant is to fill a temporary departmental gap in IT personnel. Vacations, leaves of absence, disability and illness can all create temporary voids in personnel. An increase in management obligations will also create voids when expanding staff, training new associates, and in times of rapid growth / turnover. Associates “borrowed” for special projects can also create a temporary void.
• To address a temporary system or technological need
  Another reason to hire a consultant is to address a temporary integration system or technological need. This may arise due to lack of familiarity with a given software tool, frequency of performing certain maintenance / upgrade tasks, greater demands due to new system installation, or infrequently required technical and tuning needs. Integrating with new business partners / systems, creating data mapping for new applications, deciding to purchase new integration software, changes in communications strategy (Internet / VAN), integration system upgrades, or changes to interfacing applications, may all result in temporary needs for integration and/or technical expertise. Other less obvious needs include training, education, business partner surveys / certification, development of integration system architecture design, integration strategy, best practice reviews, and system health checks.
• To provide a long-term need
  Using integration services on a longer-term basis implies a need for an extended project, a strategic sourcing / supplementation strategy, managed services, or outsourcing arrangement. These relationships often result in the formation of a tight partnership between company and consulting organization. Examples of long-term scenarios include: outsourcing of mapping and integration development, outsourcing of everyday EDI / EAI operations, large development projects such as an SAP implementation and related integration, or the outsourcing of all integration testing and implementation.

Continue the series, link to:

Utilizing An Integration Consultant – The Why

Utilizing An Integration Consultant – The How

Utilizing An EDI / EAI / Other Consultant…Why?

Considering some organizations have never used outside IT resources, we developed a checklist as a guide to follow when considering the use of IT consultants in your organization.

This is the second of 3 related posts. When, Why, and How to Utilize an EDI / EAI Integration Consultant.

Utilizing An Integration Consultant – The Why

There are many types of roles that need to be played within the integration group of an organization. It is helpful to consider these roles, particularly the roles you need to staff, the frequency you need to staff them, and for what duration they need staffed. The outcome from this consideration might have you staffing roles with company personnel or with consultants depending on the consideration factors. By clarifying the type of position you need to staff, and assuming you take the consultant approach, you will know what requirements to communicate to a consulting company. And will also know how you will determine if the consultant presented is a good match. Below are different roles you might staff with a consultant, each with common factors as well as differing factors.

• Education Roles
  Education and training roles require good communication skills, people skills, and knowledge of the subject matter being taught. Training experience and a solid training plan are also important. Training plans can be developed custom or utilized in an off the shelf manner and each has its advantages.
• Technical Roles
  Technical roles involve data mapping, software installation, system interfacing and upgrade projects. Skills possessed and demonstrated by the resource is obviously the most important requirement for technical roles. Depending on the need, good people skills and team play may or may not be as important as technical skills.
• Strategic Roles
  Strategic roles may or may not overlap with other roles depending upon the requirements of the project. Strategic resources are often needed to address evaluation, selection, and requirements definition type projects. Research and analytical skills are of heightened importance in filling strategic positions.
• Management/Project Management Roles
  Examples of tasks in this role include leading a system integration initiative, leading a business network implementation project, or organizing / restructuring an EDI/EAI team or department. Good people skills and communication skills are required for these roles. Those that have good organizational skills, presentation abilities, and are task driven also thrive in these roles.
• Outsourcing Roles
  Outsourcing requires role analysis at a broader level. In an outsourcing arrangement one must determine what is to be outsourced, and then analyze which roles will be best handled by the outsourcer versus handled in-house. In an outsourcing arrangement, assess the abilities of the provider to be technically proficient, objective, self-directed, quality / service oriented, and time-efficient.
• Co-Sourcing Roles
  Co-sourcing requires an even greater degree of partnering and communication than outsourcing. It also requires more management involvement on the part of the client company. With co-sourcing, role analysis is of paramount importance. If your Co-source partner is handling your day-to-day operations the resource offered requires a wider / different range of skills than a resource offered who would staff your vendor portal hot line. Similarly, if the Co-source resource is to communicate with business partners on your behalf on a daily basis, you need to consider the importance of good people skills in your prospective consultant. In a Co-sourcing relationship, your partner must act as an extension of your integration team. Therefore, it is important that the service provider have the expertise and insight to approach the engagement with the same motivation and goals as your in-house team.

Continue the series, link to:

Utilizing An Integration Consultant – The How

Utilizing An EDI / EAI / Other Consultant…How?

Considering some organizations have never used outside IT resources, we developed a checklist as a guide to follow when considering the use of IT consultants in your organization.

This is the third of 3 related posts. When, Why, and How to Utilize an EDI / EAI Integration Consultant.

Utilizing An Integration Consultant – The How

The Selection Process

Once you determine the consulting role or roles you need filled, proceed with your selection efforts working through the following items.

• Clarify Information
  Ask prospective consulting companies for a summary of projects related to your needs. Also ask for proposed consultants’ credentials and understand what makes them appropriate for your project. Expect consulting companies to give you a “read back” of your requirements so they propose candidates that are a good match.
• Timing and Availability
  The timing of consultant availability can be the trickiest part of the engagement process. Maximizing utilization, or failure to do so, can be the driver of profit or losses for service companies. It can be a great source of frustration to an employer who has a consulting need, but finds that the ideal candidate is not available on the right time line. Plan ahead as best you can to ensure you get the consultant you need. Also minimize the time between interview and engagement to make sure resources are not booked on another project.
• Company Considerations
  Remember; you are selecting a company as well as a specific consultant. They are two separate but interrelated entities. A consultant that comes from a competent, reputable, flexible, supportive company will be more effective than a consultant coming from a company does not demonstrate these qualities.

The Engagement Process

The contractual agreement is the primary mechanism that establishes a consulting relationship. It defines the ground rules of the relationship, responsibilities of the parties, resources that will participate on the project, and outlines what happens in the event of a “breakup”, before the parties even begin “dating”. Consider these components of the contractual agreement:

• Your Contract or Theirs?
  Some IT departments have standard contracts that they use when engaging consultants. In the absence of standard contracts, consulting companies have their own contracts. The contract negotiation process may be out of your hands, especially if you have a legal department within your company. Be aware that it can be a process to get contracts “worked out”. Familiarizing yourself with your company’s contracts and policies will enable you to be better prepared for this part of the process. With this awareness you may have the ability to provide input to, or have influence over, the process. Regardless of whose contract is utilized agreement by both parties to find common ground in the event of differences will go a long way towards shortening the process.
• Consulting Rates
  Many factors contribute to what can be a wide range in rates. Get informed about these factors. Going through the process of role clarification you will know your very specific needs, which will help determine where to expect to fall in the rate spectrum. Factors affecting rates include: years of experience, depth of experience, supply / demand of skill set experience, engagement length, role expectations, on-site/off-site delivery of services, all-inclusive hourly vs. time (plus T&E), and contract terms & conditions to name a few.
• Billing Terms
  Consulting companies bill weekly, every other week, semi-monthly, or monthly. Keep factors such as this in perspective. After all, the invoicing process is not the purpose of the consulting arrangement, nor does it add any value to the delivery of services. Be prepared to arrive at a reasonable middle ground concerning invoice frequency knowing that the time value of money on really lengthy invoicing terms will have an impact on rates.
• To Cap or Not to Cap?
  Do you have a policy on capping expenses for traveling consultants that you engage? This may be another negotiation point in the contractual process. Once again, common ground should be reached balancing the need to control expenses with keeping the consultant in reasonable accommodations while serving your organization and while away from home and family.

The Ways To Optimize Your Results

By examining your specific needs, selecting an appropriate resource, and handling the engagement details, you will be on your way to satisfying project goals. Consider the points below an extension of the process and a means of optimizing your engagement results:

• Be realistic in your expectations
  If you have a multi-faceted project / resource need, you may have found yourself looking for a combination of skills in a consultant that does not exist, or exists in scarcity with pricing impacts. Consider selecting an experienced, well-rounded consultant that is the best fit for the need and rely on supplemental support resources from your consulting organization that can fill in the skill gaps. Also, consider the fact that a consultant will need time to become familiar with your company, department, infrastructure, people, as well as your initiatives and specific project requirements.
• Do up-front preparation
  Since you have gone through the examination and analysis process, take time to communicate the expected deliverables with engaged resources. This can be done simply by sharing the requirements definition and discussing deliverables point by point with resources.
• Be available
  Management accessibility is essential to the success of the consultant’s efforts at your company. Success is dependent upon his or her understanding of your goals, as well as understanding about your company’s culture, politics, knowledge resources, and who the decision makers are. You (the relationship manager for our organization) are the most important resource to your consultant! Being available does not involve a lot of extra time, nor does it require a micro-management mentality. It can be accomplished by simply agreeing to connect with the consultant on some frequency.
• Conduct on-going communication sessions
  Once your consultant is on-board, keep the lines of communication open. Plan periodic review sessions with your consultant and account manager reviewing the project, the progress being made, and reiteration of the priorities. Have your consultant provide weekly status reports. This keeps everyone on track, prevents surprises, and avoids misdirected effort.
• Good management skills apply to consulting engagements
  In effect, your consultant is part of the total team that you manage. Besides emphasizing good communication skills, don’t forget the importance of friendly encouragement, positive feedback and constructive guidance.
• Post evaluation of the engagement
  This step allows you to evaluate the consulting result and experience. It will also be beneficial to you the next time you choose to utilize consultants. Your consulting company benefits from this evaluation process as well. It is in their best interest to carefully listen and thoroughly understand the customers’ feedback concerning the project.
• Creative solutions to your consulting needs
  If you don’t confine yourself to traditional paradigms, you may find a greater number of options available to you. Don’t overlook co-sourcing, outsourcing, telecommuting or other options as a way of obtaining, maintaining, or supporting your integration environment.

B2Bi and EAI has an ever expanding subset of technologies and tool sets under its umbrella. It is increasingly an arena where integration specialists will be needed and have to be managed for success.

Cut Too Deeply...Some Turn To Service Providers

With the second quarter 2009 results just out from the Labor Department, it was reported that productivity rose at an annual rate of 6.6% in the quarter. This was one of the largest advances in productivity since 2003. With productivity defined as output per hour of work, the cited and obvious factor for the increase was output (production) at a somewhat constant level and a significant reduction of hours worked. The reduction of hours worked is the result of corporations shedding staff through a variety of means.

While this report has its bright spots, many have been impacted by the labor related cost cuts. Likely you or someone you know has been impacted. For those whose positions were spared, remaining workers are left to "produce" at current or higher levels. This may be fine in the short run, but there are limits to human capacity as well as the degree people can be cross trained to perform certain skill or knowledge tasks in the organization. REMEDI knows about staff limitations because we speak often with IT folks responsible for the integration and eCommerce function within their organization. These managers were asked to make contractor cuts, others asked to make staff cuts, and others asked to make cuts concerning both parties.

They say it's likely this will be a slow recovery with unemployment (the consumer) presently at 9.4% nationally. The consumer, spending more cautiously, will be responsible for the slow recovery and the consumer drives about 70% of economic activity. So if this is to be a consumer led recovery they need to be employed and feel as though their finances are on solid ground.

So what's my angle on this post you might ask?

While it was prudent to review labor capacity and make moves to reduce costs, some cut too deeply. Some did this by choice and others unknowingly. But in either event, REMEDI has had quite a number of EDI/EAI engagements in the past year that supplement staff to handle backlog, fill a skill set gap, or utilize our managed services to perform their entire EDI/EAI function, all initiated by deep staff cuts. By the way, many of these organizations did not use consultants as a matter of practice before the recession.

I mentioned this will be a slow recovery, yet the work must get done. It may be tough to get resources back in a full-time capacity until we are on the path to a firm recovery. In the meantime you have IT service providers that can assist with solutions to capacity and skill gaps. The good news for your finance folks, contract capacity does not count toward FTE headcount in most organizations. This is an approach that enables you to easily ramp your labor needs up and down without a lot of HR headaches.