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Which IT Is Really Core? InformationWeek Video
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tzubair
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tzubair,
User Rank: Ninja
6/27/2014 | 8:14:40 PM
Re: Which IT is Really Core?
"A lot of healthcare companies would be content to just stay at the industry middle of the pack when it comes to technology."

@Chris: I have seen this too and I find it a little strange as well. Why is it that hospitals do not tend to take a leadership when it comes to technological projects? Does it have to do with the fact that they believe they're not in the technology business? I do know of one hospital itself that took pride in the fact that their entire business processes were paperless and that actually made them have a competitive edge over the others.
tzubair
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tzubair,
User Rank: Ninja
6/27/2014 | 8:10:39 PM
Re: Three essential IT outsourcing methods every business should know
"How does the IT department fit in at a large organization? A mid-sized one? A small one? That's something I'd love to see some of these folks address."

@Kbannan: The relationship between the nature of the IT department and the organization size is also important - thank you for rightly pointing out towards it. Many a times, companies ignore the fact that their IT department is to support the business and the size of the business itself (which is often reflected through the number of employees) is very important. You can't really have a huge IT department with a very high budget for a small-scale organization. The scale of business operations is very much important to consider to keep the overall costs of IT support down.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
6/26/2014 | 10:08:17 AM
Re: Which IT is Really Core?
I was at a healthcare conference yesterday where one line of discussion was how to take the big on premises electronic record systems they've installed and wring value out of them. I think many will turn cloud-based add-ons to those systems to get the functionality they want quickly, and without hiring a lot of dev staff. Does that draw them merely even with the rest of the industry? A lot of healthcare companies would be content to just stay at the industry middle of the pack when it comes to technology. 
zerox203
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zerox203,
User Rank: Ninja
6/24/2014 | 2:40:49 PM
Re: Which IT is Really Core?
I agree with the general tone of the comments already being made here. Of course, it's absolutely true that the decisions you make day-in and day-out, and which projects you take on over the long term, matter for your IT department and for your business. What you outsource, what you bring internally, what you license out... there are a lot of decisions to make, and they all DO matter. However, it's for that same reason that we end up with a pretty high signal-to-noise ratio on this topic. The truth is, you can make many approaches work if you do them right, which is what Mr. Mott refers to as an 'intangible'.

Just as you say, Rob, advice that works for one company may not neccesarily work for another. Moreover, thanks to the speed of this change, advice that's good one year may not even be good the next. As Mr. Levie points out, the dynamic nature of the whole system is the real takeaway - you have to be ready to think on your feet, and make complex decisions using your own logic, not a checklist. Knowing your own company is the name of the game here. Trouble is, it's as difficult a skill to teach as it is an important one to have. 

kbannan100
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kbannan100,
User Rank: Strategist
6/24/2014 | 12:42:56 PM
Re: Three essential IT outsourcing methods every business should know
I recently read a similar white paper (CIO.com/EMC/VMware sponsored) that looks at how business views IT-as-a-Service as opposed to how IT views IT-as-a-Service. Definitely worth the read. http://bit.ly/1loR3rG

As with any IT service, IT-as-a-Service is only as good as the provider, the agreement you sign with a provider and the service level agreements you make with that provider. You also need buy in at every level.

 

--KB Me: http://bit.ly/1iMdSE5
kbannan100
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kbannan100,
User Rank: Strategist
6/24/2014 | 12:35:50 PM
Re: Three essential IT outsourcing methods every business should know
Completely agree. I also think it's interesting to note that none of the experts interviewed talked about the actual IT department and whether it in and of itself is a core resource. We see so many more companies outsourcing their IT (or portions of) to an IT-as-a-Service provider. How does the IT department fit in at a large organization? A mid-sized one? A small one? That's something I'd love to see some of these folks address.


--KB (http://bit.ly/1iMdSE5)
TechYogJosh
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TechYogJosh,
User Rank: Apprentice
6/24/2014 | 7:49:11 AM
You have scale, but where to stop?
The argument that if a company has scale (like GM), it should do IT in-house makes theoretical sense. However, when should a company, whatever be the size, stop obsessing over its size and see the business value of doing things in-house? It's like if you are very rich, will you wear high branded clothes, ask these designers to make clothes for you, or buy a cloth making factory, or start farming of products to create fabrics, etc. I mean where will you stop? Looks like people are saying if your application has a business logic, it is strategic, if it does not have business logic (email, collaboration) it is not strategic. No one talks about the people aspect. If you have good people, with decent enough system you will be a good company. You can put any business logic in application, keep them in-house, if your people are bad, you won't succeed. Therefore, it's not about what applications you keep in-house or outsource, it's about what your people do with those applications.
tzubair
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tzubair,
User Rank: Ninja
6/24/2014 | 4:46:41 AM
Re: Three essential IT outsourcing methods every business should know
@Andrew: I agree with you that what needs to be kept in mind is the technology strategy when companies look to outsource. Unless there's a fit between the strategy and outsourcing model, the move cannot be successful. For instance, if you're strategy is to be a high quality service provider, outsourcing cannot work because the quality will suffer at the gain of cost savings.
tzubair
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tzubair,
User Rank: Ninja
6/24/2014 | 4:26:29 AM
Re: Outsourcing, cloud computing: two different things
"I view the cloud as an extension of the data center, imperfect though it may be, and possible replacement infrastructure for private servers/storage, but still under the control of the workload owner."

@Charlie: I agree with you. I think when it comes to outsourcing the idea is to lose control to the other business and let them handle the business process themselves. In contrast, when you go to a cloud, you're only using the other company's storage and processing facilities and you have a lot of control in your hands.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
6/23/2014 | 8:48:44 PM
Outsourcing, cloud computing: two different things
I think there's a fundamental error in viewing cloud computing as another form of outsourcing, as GM's Randy Mott does. In theory, at least, the user never relinquishes control over the application, app development or application maintenance, whether it's running on-premises or in the cloud. I view the cloud as an extension of the data center, imperfect though it may be, and possible replacement infrastructure for private servers/storage, but still under the control of the workload owner.

 
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