The Journey to Jamaica

Posted on April 10, 2012 by Marcel Horst Comments Off

This month’s blog is a 10 minute presentation delivered to about 250 delegates at the 4th Annual Jamaica-UK Investment Forum at the Drapers Hall in London in March. The presentation consists of 6 planning steps that an organisation needs to go through in order to offshore a portion of its business functions. Although in this case the focus was on Jamaica as a possible offshore destination, it would be equally applicable for alternative sourcing destinations.

If you have difficulty viewing the video, you should be able to open it here: Journey to Jamaica

Please contact us on 0800 689 00 89 or complete our contact form if you wish to discuss your specific offshoring ideas or requirements.

General , , , , , , , , , , , , , ,

Cloud computing for business transformation

Posted on February 7, 2012 by Marcel Horst Leave a comment

Increasingly, companies and individuals across the world are adopting “Cloud” computing, which is only set to continue as a trend over the next five year if industry experts are to be believed. However, moving into the Cloud doesn’t come without its challenges and IT leaders have to face down a number of serious issues with the model in order to fully realise the benefits Cloud computing can offer their business.  These challenges include:

  • Security
  • Data privacy issues
  • Alignment of IT and Business Strategy

These issues arise largely because Cloud computing means “no limits” – the user (and the operator alike) can be, figuratively speaking, anywhere, at any time, for as long or as short a time as they choose. But this freedom can come at a cost, even if that’s not monetary, with so much information online, reliance on 3rd party providers and limitless potential.
But first of all, what is Cloud computing?

Cloud computing considerations diagramEssentially it is doing anything computer related via the internet and/or secure Virtual Private Network (VPN) connections – i.e. “in the Cloud” – from infrastructure to platforms to software. This means if companies don’t want to, or are too small to, invest in their own data centre, they can rent their Infrastructure as a Service (IaaS) from a hosting company and it’s completely scalable; the provider can flex up or down as quickly as the customer needs capacity. Equally, a platform or operating system doesn’t need to be purchased; it too can be “rented” from a provider (PaaS). And finally, Software as a Service (SaaS) gives users access to any number of applications, all accessible via the Internet/VPN with no installation or licence purchase required, which has enormous potential cost savings and flexibility benefits for users.

Companies can go as far into the Cloud as they choose and this freedom is particularly important for businesses going through transformation as it is for small and growing businesses. For example, small businesses that need an email system can turn to companies such as Microsoft or Google as their service provider for a fixed monthly cost and go-live immediately. They don’t need to have any servers; they don’t need to know where their data is stored, they just need to know their applications are ready, online and the Cloud Services Provider (CSP) will take care of the rest. As well as email, File Servers and Intranets, all the business applications a company needs to trade are now available in the Cloud. With hundreds of CSPs now able to serve up IaaS, PaaS or SaaS.

The choice and flexibility Cloud computing offers doesn’t just bring benefit to small businesses though. Larger companies that have bought software and configured it until it’s completely bespoke to their organisation will know this means losing the ability to change quickly and cost effectively when transformation is needed.  While it may be wise to have a proportion of an IT system that is tailored and immovable in a business, in an economy that’s shifting each week, it’s just as wise to have part of it that’s in the Cloud and can be scaled up or down, added to or even removed altogether.

Nowhere is this more applicable than in companies looking at M&A opportunities – if Company A is planning to acquire a target, they can put part of their IT infrastructure into the Cloud and when they buy Company B, with its own in-house IT systems and processes, Company B is able to come on-stream at an accelerated rate. If IT is online some can be configured and operating within hours, not weeks and months, which is an essential advantage in post-merger integration.

There is always a downside however, the acquiring company will have to address security and data privacy issues as part of its Cloud adoption strategy. If they don’t, it may achieve its acquisition goals and deliver stakeholder value, but have to go through complex and expensive re-design if issues come to light.

While it may make sense to move all, or part of an IT system into the Cloud, it isn’t always a simple process to align strategically or culturally, and then to execute effectively. ExcelSource can help organisations plan their IT strategy and business transformations to realise the benefits Cloud computing can offer. We can also help businesses decide which part or parts of their IT system would be best put in the Cloud versus those that should remain static.

If you would like to discuss how your company can profit from the move towards Cloud computing and maximise the flexibility it offers, please call us on +44 (0)1206 580 125 or arrange for a complimentary consultation today.

Information Technology , , , , , , , , , , , , , , , ,

Rest and be Merry

Posted on December 16, 2011 by Marcel Horst Leave a comment

"Cutting fourth-quarter operating costs by eating venison was brilliant. Of course, now we've got bigger problems."ExcelSource wishes you a restful Christmas and Best Wishes for 2012.

We look forward to work with you on your new challenges in the New Year, and share our insight in business improvement.

From all of us in ExcelSource, we wish you and your family all the best.

Marcel

Uncategorized , , , , , , ,

Don’t drown in a Waterfall, use Agile Software Development to navigate your business transformation

Posted on November 16, 2011 by Marcel Horst Leave a comment

Agile Software Development (ASD) is ideally suited to many modern businesses, as it means rapid, incremental development of new software, so IT systems or solutions can evolve and move with the changing needs of an organisation, or customer requirements. It also means speed and flexibility can be built into the delivery of new software, over each stage of a transformation programme, promoting collaboration as developers aren’t fettered by plans that can’t be altered without threat of losing time and money.

In its infancy, ASD was largely used by web developers to post sites, create interaction and add new functionality, but it’s being introduced more and more into the mainstream of software development, replacing the “Waterfall” or “cascade” methodology more traditionally used. And, ASD has been increasingly adopted by companies, who previously would have seen it as too radical, because it answers the needs of their business (and the trading environment) to flex and change as quickly as possible to remain competitive.

Usually a Waterfall approach would have seen a 6 to 12 month comprehensive development and deployment plan. Every aspect of the new software release or product would have been mapped out, accounted for and costed. But, in today’s environment the idea of waiting 12, or even 6 months for an upgrade or new system seems ludicrous -  the world will have moved on… two or three times by then!

Plus, it’s naïve to expect the requirements set at the beginning of a project won’t change as a strategy is refined or becomes clearer, so what’s the point of attempting to develop a full and finite package, with all its bells and whistles, when it’s better to deliver what’s needed now, and then improve it in stages as the needs and requirements take shape?

There is, as always, a note of caution: there is a glut of software developers globally – some very good, some very disappointing, and you need to be careful who you chose to captain your ship.

ExcelSource run independent tenders for clients looking to select developers for ASD projects, supporting their business transformation and/or introduce ASD into their organisation. We are ideally placed to match suppliers with particular technical skills to a client’s business requirements. For example, a UK financial services provider of mortgage, savings and loans products, recently engaged ExcelSource to find developers that could extend  ASD for their core business systems, giving them advantage over their larger, and potentially more lumbering, competitors.

There are, of course, many scenarios where ASD offers advantage; when merging or acquiring businesses, for example, disparate IT systems need to be brought together quickly to realise the M&A objective.  But these types of IT project, with long roadmaps, can lose time, money and momentum along the way, especially if the end destination remains fluid. What if the “Waterfall” is used, the system is developed and you find out it’s not what you needed after all, or even more concerning, it has become too large and complicated to be delivered? This is where ASD comes into its own, as a system is never going to be 100% agreed, signed-off and perfect, so why not develop and deploy it through useful iterations?

An IT methodology that can be refined or adapted as a business changes is far more effective than trying to cast all system requirements into a single, detailed specification where development is started, only later to find that extensive changes need to be made because the strategy has changed, or is understood in more detail.

So, don’t drown in the “Waterfall”, navigate through your business transformation the Agile way. And, if you would like to discuss its potential use or introduction into your business, ExcelSource is ideally placed to help you chart a course, so please call on 0800 689 00 89 or contact us today and schedule a free consultation.

Information Technology , , , , , , , , ,

Five business change mistakes and how to avoid them

Posted on September 20, 2011 by Marcel Horst Leave a comment

Sovereign debt crises, credit rating down-grades, volatility in global markets and unprecedented trading conditions – businesses need to be flexible and agile just to stay alive at the moment. The more quickly and effectively a company can adapt to change at the moment, the more competitive it will remain.

This brings change management to the top of the agenda and makes it a critical discipline for any organisation to master, as all industries across all geographies are susceptible to the internal and external forces of change.

Implementing change across an organisation, let alone wholesale business transformation, is never easy though. You have to make sure there’s buy-in and consensus for the programme, you have to bring management and employees with you on the journey, and you have to realise the benefits or savings of the “While implementing change is never going to be easy, you can at least avoid some of the obvious pitfalls”undertaking, all of which have their own set of unique challenges.

So, here are five of the classic business change mistakes, with tips on how to manage or avoid them!

1. Not driving from the Business Case

Firstly, it’s essential to have a formalised and agreed business case for any change programme. This is the key reference point that sets out the reasons for embarking on a transformation programme, which all parties can come back to if they ever start losing their way. It provides clarity on what needs to be delivered and why, as well as the baseline for costs, savings and return. The business case also forms the basis from which project plans, communications plans and execution plans grow. When companies don’t drive forward from the business case, they can easily lose their way and lose sight of their end goal.

2. No buy-in from the top

Hopefully all the necessary people have signed-off the business case, but this doesn’t mean senior stakeholders are automatically bought-in to the change activity. Committed senior sponsors can remove project roadblocks, lead communications activities, and (if doubt sets in) they can be the advocates for the programme among their peers – all of which is invaluable to seeing a change through to completion. Without spending time nurturing the relationship with a senior stakeholder, project delivery is put seriously at risk.

3. Forgetting to communicate

It is a classic mistake to think that there is a mandate for change, the senior management team has bought in, and therefore it will just have to happen; people will just have to accept it. But, without explaining the need for change, the milestones along the way and the effects it will have on people, employees can be very resistant. In the worst case scenario, particular influencers among the employee population may even be able to sabotage a programme from the inside by refusing to adopt new practices. A robust communications plan that utilises senior leaders; that mirrors the project plan and the business case is a relatively simple step that will help mitigate risk and the negative impact of change.

4. Weak project management

Businesses and change programmes are full of influencers – people who want to do things differently, do things their way, or not do them at all. Weak project management will make milestones slip, take a programme off-course, add cost into the business and leave a business case in the dust. A strong project manager however can co-ordinate all angles and aspects of the change activity; they will be the ones to drive them forward to delivery and they will have the skills to manage influencers, as well as senior stakeholders. Strong project managers are worth their weight in gold, as they can be the difference between successfully achieving the end goal or missing it completely.

5. Not seeing it through

It’s fair to say that one of the decisions any change programme will face is whether to “step away”; to acknowledge the wrong path has been chosen, or that the market has moved on and it’s no longer the right thing to continue implementing a programme. If this is the case, the difficult, but courageous thing to do is walk away before wasting any more time and money.

But, if the change activity is still the right thing to do, a company must see it through.

It’s damaging to employee morale, market confidence and bottom-line to embark on a transformation activity, that has inherent costs, and not to execute on it. If the business case is still sound, then companies have to stick with their commitment to change – through thick and thin. Adoption of change is always difficult and a programme may not end when the final milestone is in place, as organisations have a habit of snapping back into their old ways if new practices aren’t seen through (from top down) and have time to become second nature.

The irony is that while a company is going through its change programme the ground is still shifting beneath its feet. The competition and the market aren’t doing to wait politely while a thorough and robust change management programme is executed. By the time the business case is agreed, the project plans are written and the first stakeholder meeting is scheduled, the world has moved on. So adaptability and flexibility are always necessary factors within a programme. But when speed is of the essence, especially in today’s trading environment, companies can’t afford to get the basics wrong.  So, while implementing change is never going to be easy, you can at least avoid some of the obvious pitfalls.

These five pointers are some that the ExcelSource team have used and developed processes around to deliver maximum value to our clients’ organisations.

General , , , , , , , , ,

M&A: Murder and aggravation, or Marriage made in heaven?

Posted on August 24, 2011 by Marcel Horst Leave a comment

M&A is notoriously difficult to do and do well.

Firstly, you have to start by targeting the right ‘product’ to add to your portfolio, which can prove to be a game of Russian roulette, even for the most seasoned professional. Note News Corporation’s recent sale of MySpace at a loss of $545 million – ouch!  Who would have known that this was the wrong social media network to take a punt on…clearly not News Corp anyway?

But, it’s not just about whether you’re selecting the right company, software or product to acquire, it could be a marriage made in heaven on paper, and still turn out to be murder and aggravation during the reality of integration. You just don’t want to make life harder for yourself by getting into bed with the ‘wrong partner’ in the first place.

Assuming you do have that perfect partner though, some heartbreak is inevitable along the way, because with any M&A you have to ‘merge’ something: two organisations; multiple-processes; disparate IT systems, and this means it will be painful for someone. It also means that the more problematic integration becomes, the longer it takes to reap the benefits of your acquisition, and it could mean you end up with no benefit at all. For the classic example, witness Daimler Chrysler’s merger in 1998, which was reversed when the

The merger did produce some great cars!

Chrysler brand was sold in 2007, restructured and now, since June 2011, majority owned by Fiat. In this case the shareholder value was not realised due to the differences in company culture. Daimler being the methodical one and Chrysler valuing creativity. Had, with hindsight, this difference been realised, the two companies might not have started their expensive journey or done things differently.

It’s about always choosing the better of the two options a merger presents and taking that one forward. It’s also about going back to your original business case and remembering why you fell in love in the first place. Did you want to acquire expertise; get into a new geography; gain access to a customer base? When you are clear, and can remind yourself of these cornerstones, you can go-forward knowing you’re making the right decisions for your business and everyone involved, which also gives your integration the best chance of success.

This clarity of vision around your integration can get muddied by partiality, as people naturally want to protect their interests and the areas they are passionate about. ExcelSource can provide the impartiality you need to be able to give your integration the best chances of success and a long, happy marriage.

If you need help with your M&A Integration activity, contact ExcelSource today on +44 (0)1206 580 125 or click here to complete our contact form.

General , , , , ,

Is Outsourcing outstripping Finance?

Posted on June 5, 2011 by Marcel Horst Leave a comment

Recent research carried out by Oxford Economics (sponsored by the Business Services Association) found the UK Outsourcing market now generates over £207 billion annually. So, while the Financial Services industry still dominates, contributing around 8.1% of GDP for the UK each year, Outsourcing (at 8%) is fast catching up.

Just as Agriculture gave way to Manufacturing, and Manufacturing gave way to Financial Services in the UK economy, is it now time for a new wave, and will Outsourcing soon be outstripping Finance?

UK Outsourcing Types

UK Outsourcing Types (Oxford Economics, 4/2011)

The global recession, plus government support for the sector, has led to an acceleration of growth in Sourcing changes and Outsourcing, as companies from Start-up to Corporate look for more flexible, faster and cheaper ways of doing business. The success of Outsourcing non-core activities, such as office cleaning (which adds value, but is not a core activity), meant other processes naturally became candidates for Outsourcing.

As it stands, Facilities Management is still one of the top four support functions to Outsource, with IT, Finance and HR making up the rest. As organisations become more comfortable and experienced in setting up these third party arrangements, it becomes more natural not to host your own IT equipment and employ technicians to operate it, or to run your own mail room keeping staff to distribute post.

The growth and development of Outsourcing also means Start-up companies can buy IT infrastructure online, they can run a virtual office from home, and they can get support with financial transactions from experts who have to leverage their own economies of scale to deliver for a fraction of the cost involved in you “doing it yourself”. The beauty of Outsourcing is; it enables you to focus on core business, while making the real experts accountable for processes you don’t want to manage anyway. Is it any wonder this has taken hold of the UK economy?

There is always a note of caution – for example, organisations don’t want to get so carried away they end up “selling the farm”, i.e. relinquishing control of their key functions and operation. In theory everything is a candidate for Outsourcing, but it doesn’t mean everything should be Outsourced. Plus, the barriers to creating offshore captive entities are reducing in a global economy, with more and more companies able to set up subsidiaries in lower cost locations to support core business.

If you want to leverage the growth in Outsourcing and Off-shoring in the UK economy for your business, simply complete our preliminary assessment enquiry form and ExcelSource will give expert advice on your sourcing decisions.

General , , , , , , , , , , , , , , ,

ExcelSource features in the Telegraph

Posted on January 25, 2011 by Marcel Horst Leave a comment

Today, ExcelSource features in the Daily Telegraph’s Outsourcing supplement with an article on the choice of the area of outsourcing and the importance of carrying out a preliminary assessment. A copy is available here.

General

Our revamped web site

Posted on January 24, 2011 by Marcel Horst Leave a comment

It’s been 18 months since we launched our first web site. Much has happened with our young company that was not reflected in our site. Over Christmas we took a bit of time to review what we had and tidy things up. We hope you like the result. Please leave us a comment.

Marcel

General