Live-Blogging – Michael Walsh – Gartner

Live blogging…Michael Smith of Gartner at MISA Canada.

The Value of IT

-Productivity growth in U.S. economy –
-Each year 2.5% increase in productivity from 2000-2007
-IT Capital and Application of IT have biggest improvements on productivity (Non-IT capital and multifactor productivity, and labor composition also)
-80% of U.S. productivity growth comes from IT

IT Productivity Gap
-IT is correlated with productivity, but there are substantial variation among companies

2010 Public Service Cost Challenges Will be Different from 2009 – Some are Multi-year
2009 – IT Supply (Procurement actions, cutting projects, staffing actions, cuts, consolidation and shared services)
2010 – IT Demand (Prioritization, business case scrutiny, SLA, IT Standardization, Transparency)

2009- Doing More With Less
2010 – Doing Less with Less

Where people fit
-Round 1 optimization – 40%
-Round 2 Optimization – 44%
-Prepare for Growth – 9%
-Expansion Economy – 6%

Strategic vendor relationships

Focus on SLAs
-High level SLAs for Mission Critical only

IT Service catalogues
-Application development
-Backup and recovery
-Network monitoring
-Production control
-Help desk
-Project management
-Workplace support
-Security management

Recommendations for Public Service IT
-World has changed – challenge previous assumptions
-Build business case for tighter IT spending controls
-Build an IT service catalog with SLA
-Set expectations for lower IT service levels
-IT is essential for driving business value and you have the responsibility to communicate this to your mgmt team

Shadow IT is what happens when IT budget is cut. Operation finds a way to buy what they want.
-20 to 30% of IT budget is spent outside the official IT budget
-Lose security, reliability